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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

5 reasons why GM is cutting jobs, closing plants in a healthy economy

DETROIT — Even though unemployment is low, the economy is growing and U.S. auto sales are near historic highs, General Motors is cutting thousands of jobs in a major restructuring aimed at generating cash to spend on innovation. It's the new reality for automakers that are faced with the present cost of designing gas-powered cars and trucks that appeal to buyers now while at the same time preparing for a future world of electric and autonomous vehicles. GM announced Monday that it will cut as many as 14,000 workers in North America and put five plants up for possible closure as it abandons many of its car models and restructures to focus more on autonomous and electric vehicles. The reductions could amount to as much as 8 percent of GM's global workforce of 180,000 employees. The cuts mark GM's first major downsizing since shedding thousands of jobs in the Great Recession. The company also said it will stop operating two additional factories outside North America by the end of next year. The move to make GM get leaner before the next downturn likely will be followed by Ford Motor Co., which also has struggled to keep one foot in the present and another in an ambiguous future of new mobility. Ford has been slower to react, but says it will lay off an unspecified number of white-collar workers as it exits much of the car market in favor of trucks and SUVs, some of them powered by batteries. Here's a rundown of the reasons behind the cuts: Coding, not combustion CEO Mary Barra said as cars and trucks become more complex, GM will need more computer coders but fewer engineers who work on internal combustion engines. "The vehicle has become much more software-oriented" with millions of lines of code, she said. "We still need many technical resources in the company." Shedding sedans The restructuring also reflects changing North American auto markets as manufacturers continue to shift away from cars toward SUVs and trucks. In October, almost 65 percent of new vehicles sold in the U.S. were trucks or SUVs. That figure was about 50 percent cars just five years ago. GM is shedding cars largely because it doesn't make money on them, Citi analyst Itay Michaeli wrote in a note to investors. "We estimate sedans operate at a significant loss, hence the need for classic restructuring," he wrote. The reduction includes about 8,000 white-collar employees, or 15 percent of GM's North American white-collar workforce. Some will take buyouts while others will be laid off.

GM recalling over 243,000 crossovers over possible seat belt defect

2010 Buick Enclave - Click above for high-res image gallery
The summer of 2010's recall hit parade continues unabated today, with General Motors having just announced that it is asking 243,403 owners of its 2009-2010 Lambda crossovers to bring their three-row haulers in for inspection. The culprit? Second-row seat belts in select Buick Enclave, Chevrolet Traverse, GMC Acadia, and Saturn Outlook CUVs have "failed to perform properly in a crash."
According to GM, a second-row seat-side trim piece is to blame, as it can impede the upward rotation of the buckle after the seat is folded flat. As a result, if the buckle makes contact with the seat frame, cosmetic damage can occur, potentially requiring additional force to operate the buckle properly. So far, no great shakes, but in the process of applying that additional force, the occupant may push the buckle cover down to the strap, potentially revealing and depressing the red release button. As a result of this, the belt may not latch, or in certain cases, it may actually appear to be latched when, in fact, it isn't.