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GM cutting back on powertrain warranty citing lack of interest

Generally, when a manufacturer offers a long, high-mileage warranty, it's a sign that it stands behind its products. On top of that, it's generally a selling point for consumers, who can rest easy knowing that any catastrophic failures will be picked up by the manufacturer. Considering those facts, it does seem rather strange that General Motors is slashing the mileage warranty on model year 2016 vehicles from Chevrolet and GMC. Instead of offering consumers a 100,000-mile warranty, GM will now only offer a powertrain warranty up to 60,000 miles. The five-year warranty period, though, remains unchanged. GM will also cut the number of free services being offered to Chevy and GMC owners, as well as Buick drivers, from four to two. "Through research, we have determined that when purchasing a new vehicle, included maintenance and warranty rank low on the list of reasons why consumers consider a particular brand over another," explained a memo sent to dealers by Chevrolet VP Brian Sweeney and his GMC counterpart, Duncan Aldred, and obtained by Automotive News. "As a result, we have benchmarked our competitors, reviewed our current offerings and have concluded the following modifications to align closely with our customers' needs and expectations." While the move might seem odd, Sweeney and Aldred are right – according to Automotive News, Ford, Honda and Toyota each offer a five-year, 60,000-mile powertrain warranty. As for what the money saved by trimming the powertrain warranty will go towards, a GM spokesperson simply told AN that the company will "reinvest the savings we will realize into other retail programs," some of which have been requested by consumers. What are your thoughts? Would a 40,000-mile reduction in a new vehicle's powertrain really turn you off from buying one? Even if it matched its competitors? Is GM better off spending its money elsewhere? Have your say in Comments. Featured Gallery 2016 Chevrolet Equinox View 10 Photos News Source: Automotive News - sub. req.Image Credit: Chevrolet Chevrolet GM GMC Auto Repair Maintenance Ownership warranty

Body shop manager stole over $500,000 worth of government trucks and parts

The US Department of Justice announced yesterday that the manager of a collision and restoration business in Virginia admitted he helped misappropriate and sell vehicles and parts from the State Department. Specifically, he sold 12 Chevrolet Suburbans, a Hummer, and $7,500 worth of tires and wheels. He pled guilty to charges to commit theft of government property and wire fraud. He will likely see 18 to 20 months in prison, a fine of $4,000 to $40,000, and has already agreed to pay restitution of $416,020 and asset forfeiture of the same amount. According to the Department of Justice, the body shop manager, James Ratcliffe, worked with the owner of the business and a State Department official, both unnamed, to obtain the property. It started with the wheels and tires, which were delivered and sold on two occasions, one in 2011 and another in 2012. The trucks came later, and were sold throughout 2011 and 2013. Ratcliffe and the shop owner kept most of the profits, and shared some of the leftovers with the government official. In addition to the vehicles that were sold, the government official also gave Ratcliffe a pair of Suburbans for his own personal use. The Department of Justice estimated the total value of the SUVs at $96,400. In total, the group misappropriated $512,420 worth of property. Related Video:

GM recalling 70k Chevy Malibus, Pontiac G6s over steering issue

A problem with the power steering system in the Chevy Malibu and Pontiac G6 has prompted General Motors and the National Highway Traffic Safety Administration to issue a recall for an estimated 69,633 vehicles. The issue revolves around the electric power steering assist, which could suddenly fail and increase the risk of a crash, especially at low speeds where the power steering is most helpful. The recall affects 2006-2007 Chevy Malibu sedans and Malibu Maxx wagons (specifically those manufactured between April 1, 2006, and June 30, 2006), as well as the Pontiac G6 (which was offered as a sedan, coupe or convertible) from the same model years and manufactured from April 18, 2006, to June 30, 2006. Owners of the affected units can expect to hear from the manufacturer with instructions to bring in their vehicles to their local dealers to have the torque sensors in the power steering system replaced. RECALL Subject : Sudden Loss of Electric Power Steering , 1 INVESTIGATION(S) Report Receipt Date: FEB 04, 2015 NHTSA Campaign Number: 15V064000 Component(s): STEERING Potential Number of Units Affected: 69,633 Manufacturer: General Motors LLC SUMMARY: General Motors LLC (GM) is recalling certain model year 2006-2007 Chevrolet Malibu and Malibu Maxx vehicles manufactured April 1, 2006, to June 30, 2006, and 2006-2007 Pontiac G6 vehicles manufactured April 18, 2006, to June 30, 2006. In the affected vehicles, there may be a sudden loss of electric power steering (EPS) assist that could occur at any time while driving. CONSEQUENCE: If power steering assist is lost, greater driver effort would be required to steer the vehicle at low speeds, increasing the risk of a crash. REMEDY: GM will notify owners, and dealers will replace the torque sensor assembly, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Chevrolet customer service at 1-800-222-1020 or Pontiac customer service at 1-800-762-2737. GM's number for this recall is 14772. Note: This is an expansion of recall 14V-153 to cover additional vehicles built between April 1, 2006 and June 30, 2006. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.