Under the new ownership of Cerebus Chrysler has made one of the boldest moves in the market. Never before has a automaker offered such a warranty. Just this past Thursday Chrysler rolled out an engine warranty plan second to none. They currently offered a 3 year 36000 mile warranty on their powertrains which covers engine and transmission repair. The lifetime warranty is only effective for vehicles that were purchased as of July 26, 2007 according to an article in the Detroit news.
Autoblog (http://www.autoblog.com/2007/07/26/breaking-chrysler-announces-lifetime-powertrain-warranty/) reported this comment by a Chrysler executive that “This new Chrysler Lifetime Powertrain Warranty is a statement of confidence to our customers to the reliability of their powertrain. It’s peace-of-mind reassurance for as long as they own the vehicle,” said Steven Landry, Executive Vice President – North America, Sales and Marketing, Service and Parts, Chrysler Group.
Chrysler has surpassed the best warranty on the market which was 100000 miles. KIA and GM offered these warranties as a best in class offering. I am not sure how this strategy will effect them in the long run. Recalls can destroy a company, just ask Ford and some other OEM’s. When Ford had the tire blow-out problem with the explorer it appeared to be the beginning of concurrent recalls.
What would be great is Chrysler being the example (and catalyst) that has all other OEM’s following in their footsteps. With an offer such as this it is a great way to say you stand behind your work.
www.detnews.com
