Chrysler gets life

Chrysler continues to grab headlines, this time with a gutsy move intended to underscore their commitment to quality.

They've now announced a lifetime powertrain warranty for all new vehicle sales in the U.S.

Chrysler's previous powertrain warranty was for three years or 36,000 miles (58,000 km).

This is the now the best warranty in the auto industry.

Both GM and Ford currently offer transferable 5-year powertrain limited warranties; GM for 100,000 miles (161,000 kms), Ford for 60,000 miles (97,000 kms).

Hyundai has been the market leader in this sense. Since 1999, they've had a 10-year, 100,000-mile non-transferable powertrain warranty.

Toyota has a five-year, 60,000-mile warranty for Toyotas, and a six year, 70,000-mile warranty for Lexuses.

The new Chrysler warranty is non-transferable, and owners must get a free powertrain inspection every five years from a certified dealer.

Chrysler had tried a 7-year, 70,000-mile warranty two years ago, but that turned to be too onerous. According to Wards, DaimlerChrysler paid out $6.9 billion in worldwide warranty claims in 2005, way ahead of all other manufacturers, including GM ($4.7 billion) and Ford ($4 billion).

According to Wards:

Chrysler officials trace the genesis of the plan back to its dealers, who recently told executives in Auburn Hills the auto maker’s product quality is the best they've seen in years and its warranty should reflect the improvement.

MSNBC reports that the warranty applies to 88 percent of U.S. sales under the Chrysler, Dodge and Jeep brands, and covers the cost of all parts and labor needed to repair covered powertrain components, engine, transmission and drive system, which happen to be the most expensive repairs in a vehicle.

Tags: Chrysler, Cerberus, automotive, auto industry, automotive industry

Powered by Qumana