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GM offering factory-backed extended warranty for Chevys, GMCs, Buicks and Cadillacs

Cars are generally more reliable than ever before. When things do go wrong, every automaker offers some form of factory warranty (in most cases at least three years and 36,000 miles, though many extend even longer), providing peace of mind to new-car buyers that many faults will be fixed at no charge to the customer. Starting today, GM is offering a new optional plan that will extend the factory warranty on all new Chevy, GMC, Buick and Cadillac products. In the past, extended warranties have been offered as dealer add-ons, with all profits from these sales going to the dealership. GM's new program can be viewed as another nail in the the looming dealership-model coffin. According to Automotive News, some dealers aren't happy to see GM cut into their business like this, saying that it helps GM far more than it does dealers. GM says the new program will help keep customers in the GM family. Customers are also more likely to visit a GM service center rather than going to an independent repair shop. Currently, new Chevy and GMC vehicles come with three-year/36,000-mile warranties. Buicks and Cadillacs are covered for 4 years or 50,000 miles. The new program extends Chevy and GMC warranties to five years or 60,000 miles. Buick and Cadillac warranties extend to six years or 70,000 miles. GM, citing IHS Markit, says most owners keep new cars for about 6.8 years, so these warranties will cover most of the length of their ownership. The extended warranty will add between $1,000 and $2,000 to the price of a vehicle, and the additional cost can be rolled into the vehicle's purchase or lease price. Unlike many dealer extensions, the factory program covers the vehicle no matter who owns it. That should help increase the car's resale value if it's sold within the covered timeframe. GM says there's no deductible and no need to file a claim form when getting warranty repairs. Additionally, dealerships can continue to sell their own extended warranties or service contracts. Related Video:

GM is the latest automaker accused of diesel emissions cheating

Volkswagen and Ram need to make room on the diesel-emissions bench for General Motors. America's largest automaker was accused in a lawsuit on Thursday of rigging hundreds of thousands of diesel trucks with at least three so-called defeat devices to ensure that the trucks would meet federal and state emission standards, even if they generated more pollution in real-world driving. According to the complaint, on-road emissions testing conducted for the plaintiffs found that Duramax-equipped trucks produced NOx pollutants, comprised of nitrogen and oxygen atoms, two to five times higher than legally permitted, and "many times" higher than their gasoline counterparts. The proposed class-action lawsuit was filed in federal court in Detroit on behalf of people who own or lease more than 705,000 Chevrolet Silverado and GMC Sierra pickup trucks fitted with "Duramax" engines from 2011 to 2016 model years. The lawsuit seeks remedies including possible refunds or restitution for lost vehicle value, plus punitive damages. It adds to legal problems for Detroit-based GM, which has already paid about $2.5 billion in penalties and settlements over faulty ignition switches linked to 124 deaths. GM joins at least five automakers whose diesel emissions have been scrutinized by regulators or consumers. They include VW, which has admitted to cheating; Mercedes-Benz parent Daimler; Fiat Chrysler Automobiles, Peugeot and Renault. GM spokesman Dan Flores called the claims "baseless," and said the trucks comply with US Environmental Protection Agency emissions standards and California's own tough standards. Shares of GM were down 69 cents, or 2.1 percent, at $32.50 in afternoon trading, after earlier falling to $31.93. The GM lawsuit was filed by several law firms, including Hagens Berman Sobol Shapiro, which helped reach multibillion-dollar settlements with VW on behalf of drivers and dealers. The case is Fenner et al v General Motors LLC et al, US District Court, Eastern District of Michigan, No. 17-11661. The named plaintiffs are Andrei Fenner of Mountain View, California and Joshua Herman of Sulphur, Louisiana. They said they would not have bought their respective 2011 Sierra and 2016 Silverado trucks, or would have paid less for them, had they known about the alleged rigging. Joseph Spak, an RBC Capital Markets analyst, in a research report said "negative publicity" from the lawsuit could drive buyers to trucks from Ford or even Fiat Chrysler's Ram.

GM execs fired over fraudulent India emissions testing

General Motors hadn't had a recall in India since 1995. That changed when it was discovered that certain employees were playing tricks with local emissions testing in order to ensure passing grades for engines. More than ten GM Powertrain employees in India and the US have been let go over the ensuing emissions flap, including Sam Winegarden, VP of global engine engineering, a man who has been with the company since 1969, leading development of some marquee powerplants.
According to Automotive News, an internal investigation revealed that employees "violated testing procedures," sometimes swapping specially prepared low-emissions engines during testing regimes for the Chevrolet Tavera SUV equipped with the 2.0-liter and 2.5-liter engines. Employees were also manipulating weights in order to get vehicles placed into different emissions categories. The discovery has led to GM recall the 114,000 Taveras produced over an eight-year period and halting their production and sale.
The Economic Times of India reports that the issue is due to "a faulty component." GM has developed a solution to the issue, and once it is validated in testing and approved by the Indian authorities, the recalled vehicles will be fixed at dealers and production will resume.