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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

GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.

2017 GMC Acadia First Drive

We're in the midst of the Second Great CUV War, and the crossovers are winning by a lot. Compact sedans are being hauled around the side of idled factories and unceremoniously shot. FCA, whose be-sweatered CEO is either omnipotent or a troll of the highest order, is organizing a last stand around profit-dense SUVs and trucks on the off chance that gas prices don't rise ever again. It's the tall wagon's finest hour, and GMC is hoping the new Acadia will capture a share of the glory. The old Lambda-platform Acadia was introduced in 2007, leading the full-size, three-row crossover charge that spawned a quartet of semi-indistinct variants, including a Saturn. (Remember Saturn?) These four were truck-like in heft and capabilities, but lighter and better-mannered than their body-on-frame counterparts – and with an unusually stout 5,000-pound towing capacity. The Lambda siblings bombarded established beachheads on the sales territories occupied by minivans and truck-based SUVs. Last year, GMC moved nearly 100,000 Acadias in the US, the best year ever for the model. Now GMC shows up with a deflated Acadia for 2017, 7.2 inches shorter overall, 3.5 inches narrower, and with a 6.4-inch-shorter wheelbase. The company has even carved something like 700 pounds out of its previously portly unibody, mostly due to the size reduction but also through an increase in the percentage of high-strength steel and the use of lighter soundproofing materials. GM's C1XX platform was launched with the Cadillac XT5 earlier this year, and this GMC version is the second to appear. There's even an available four-banger, but more on that in a bit. What remains to be seen is whether the downsized Acadia represents a leaner, meaner fighter or if GMC is sending it into battle hamstrung. Outside, the new Acadia is stealthily innocuous. Gone is some of the lozenge-ness of the outgoing Acadia, but don't fret about it standing out from the crowd. The overall styling falls into lockstep with the Sierra and Canyon. The cut of the rear window, with an upsweep at the trailing edge, emulates the brand's mid-sized truck offering. A chrome mustache cuts across the front fascia below the grille, and there's more brightwork around the front side windows and at the crease below the scallop in the doors. The taillights are more contemporary than before, with an attractive elongated C element comprised of LEDs.