According to an article on Bloomberg's website, a number of sources inside GM are saying that in addition to nixing cash incentives, GM wants to extend warranties on new vehicles, across the board.
The rumored move is another step in winning the hearts, minds and cash of owners that have purchased competing brands, due to a perceived quality gap. Bloomberg cites Hyundai and Toyota as the biggest culprits of the General's market share, due to the formers lower pricing, coupled with a 10-year, 100,000 mile warranty and the latter's lower overall cost of ownership.
General Motors has already afforded Buick a one-year and 14,000-mile increase on GM's standard three-year, 36,000-mile warranty, which helped to bring the entry-luxury mark up to the standards of its Japanese rivals.
If such warranty extensions come to fruition, it will echo what Vice-Chair Lutz and others within GM have maintained for the past few years: they're confident that GM's products will hold up over the long-term. Hopefully the public will buy it, literally.
[Thanks for the tip, Invicta.]
[Source: Bloomberg News]
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