Chrysler to offer LIFETIME power train warranties

[Pliablemoose]

This will definitely boost sales, and at not a whole lot of risk, the average car is traded in/sold when the interior starts to look shabby.

Where Chrysler's (or the suppliers) gonna lose their ass is on minivans, pickups and Jeeps.

Interesting changes at Chrysler, wonder what they're going to do next...

It comes on the heels of this:

Chrysler Group has begun warning some of its weakest dealers that it may attempt to shut them down if they don't improve sales within six months, The Wall Street Journal reported.

Years of declining market share have left Chrysler, General Motors and Ford with too many dealers, which can lead to undercutting of prices, squeezing more successful dealers and getting less "bang for automakers' marketing buck," the story said.

GM has about 6,900 dealers, Ford has 4,200 and Chrysler 3,700. With U.S. market shares of about 23 percent, 16 percent and 14 percent, respectively, that amounts to about 300 dealers per one point of U.S. market share held by GM, about 280 a point for Ford and 270 for Chrysler.

By contrast, Toyota has about 1,400 dealers, and its 16 percent market share gives it about 90 for each market-share point, the WSJ pointed out

The other thing I suspect is that many buyers planning on keeping their new Chrysler product forever will be so plagued with electrical problems (failing sensors etc) at around 100-150K miles they'll give up & sell it.

 

[ElFenix]

Originally posted by: Arkaign
I'm almost suspicious that this is a move to drive up stock prices temporarily, so that a few movers and shakers can pump and dump. It'd be awful if this move eventually kills the Chrysler motor company.

no. chrysler is getting bought by cerberus in a week at a price that was set months ago.

 

[sandorski]

If it gives a boost to Sales, it buys them some time. The hope would be that it would buy them enough time to come out with something revolutionary, like how the Minivan was. That would allow them to drop the Lifetime Warranty while honouring the Lifetime Warranties already given. All that and still turning a Profit.

It's a gamble, but Chrysler is in a desperate situation right now and gambling is worth the risk.

 

[Pliablemoose]

Originally posted by: sandorski
If it gives a boost to Sales, it buys them some time. The hope would be that it would buy them enough time to come out with something revolutionary, like how the Minivan was. That would allow them to drop the Lifetime Warranty while honouring the Lifetime Warranties already given. All that and still turning a Profit.

It's a gamble, but Chrysler is in a desperate situation right now and gambling is worth the risk.

Yep, they're in do or die mode.

There's the possibility they could go bankrupt & the bits & pieces sold off...

Man, I'm still awestruck at the idea of a Jeep with a lifetime drivetrain warranty...

 

[Zenmervolt]

Originally posted by: Arkaign

Originally posted by: Zenmervolt

Originally posted by: Arkaign
I just don't quite agree with that. Sure, maybe 50-70% of people only keep a car for it's first 30-100k miles, but a lot of people will drive something until it's dead/severely dying.

Demographically those types of people don't buy new cars. Those types buy cars that are 2-3 years old with low miles so that they can take advantage of the depreciation.

ZV

That's smart, but wouldn't logic follow that those same types of people would now choose to buy a new Chrysler and then drive it for 10-20 years?

Not if those people are smart. The amount of savings from buying a 2-3 year old "used" car would be greater than the likely amount of powertrain repairs. You have to factor in the interest that they would earn on the money that they save by buying used.

Statistically speaking, these types of warranties are almost never redeemed. There's really not much risk to Chrysler at all. I'll guarantee that there are a myriad of "gotchas" written into the fine print on these cars.

ZV

 

[Arkaign]

Originally posted by: Zenmervolt

Originally posted by: Arkaign

Originally posted by: Zenmervolt

Originally posted by: Arkaign
I just don't quite agree with that. Sure, maybe 50-70% of people only keep a car for it's first 30-100k miles, but a lot of people will drive something until it's dead/severely dying.

Demographically those types of people don't buy new cars. Those types buy cars that are 2-3 years old with low miles so that they can take advantage of the depreciation.

ZV

That's smart, but wouldn't logic follow that those same types of people would now choose to buy a new Chrysler and then drive it for 10-20 years?

Not if those people are smart. The amount of savings from buying a 2-3 year old "used" car would be greater than the likely amount of powertrain repairs. You have to factor in the interest that they would earn on the money that they save by buying used.

Statistically speaking, these types of warranties are almost never redeemed. There's really not much risk to Chrysler at all. I'll guarantee that there are a myriad of "gotchas" written into the fine print on these cars.

ZV

Yikes Guess I'll stay away then, I've been burned bigtime by a new Chrysler vehicle already, and I'm in no hurry to repeat that

Ford seems to have something with that new Fusion, however. What do you make of Ford's warranty and service?

 

[Zenmervolt]

Originally posted by: Arkaign
Yikes Guess I'll stay away then, I've been burned bigtime by a new Chrysler vehicle already, and I'm in no hurry to repeat that

Ford seems to have something with that new Fusion, however. What do you make of Ford's warranty and service?

Well, realistically, how many things go wrong with the powertrain? It's quite unusual, even for Chrysler, to have issues with the engine or with RWD transmissions/differentials. The warranty is probably limited to the engine and transmission and differential. All things that shouldn't have massive mechanical issues for most cars built. Sure, there will be a few, but not very many. Most of the problems people have are not with the powertrain itself, but with ancillary systems. For example, the powertrain warranty won't cover the A/C, any electrical issue not directly related to running the engine, the power steering, etc.

As far as the Fusion goes, I really like that as a family car. I think that Ford did a fantastic job with it. Warranty work isn't difficult to get done. Dealers love doing warranty work because they know that they'll be paid for it promptly. Most of the time the dealer doesn't care about it. Warranty repairs don't cost the dealer anything. Service depends on the specific dealership, just like with any other company.

I would strongly recommend that someone who was looking at a family car give the Fusion a drive when they were looking at the cars.

ZV

 

[steppinthrax]

Originally posted by: Zenmervolt

Originally posted by: steppinthrax

Originally posted by: redly1
Smart move. really, how many people that buy brand new cars actually drive them until they wear out? On the other hand, I guess this type of warranty would encourage that type of buyer

I'm that kind of person.

Then why did you just buy a used Camry instead of a new one to drive until it wore out?

ZV

Actually it was a 99 Camry with only 30K on the odo. It was to replace my 95 Saturn with 200K on it that pretty much wore out. It couldn't pass emissions test, AC was bad, cracked windshield, bad cat among other things. It would be cheaper to get another car. It had been though 2 transmissions a various other parts replaced. I'm planning to keep the Camry at least 15 years or more then 200K. I don't buy used cars. I do what you said before take advantage of the depreciation by buying an older vehicle with low mileage. I think also most people would agree 30K on a Camry is new. And finally if I ever were to buy a new car it surely wouldn?t be a Chrysler

 

[CrackRabbit]

Originally posted by: Zenmervolt

Originally posted by: Arkaign
Yikes Guess I'll stay away then, I've been burned bigtime by a new Chrysler vehicle already, and I'm in no hurry to repeat that

Ford seems to have something with that new Fusion, however. What do you make of Ford's warranty and service?

Well, realistically, how many things go wrong with the powertrain? It's quite unusual, even for Chrysler, to have issues with the engine or with RWD transmissions/differentials. The warranty is probably limited to the engine and transmission and differential. All things that shouldn't have massive mechanical issues for most cars built. Sure, there will be a few, but not very many. Most of the problems people have are not with the powertrain itself, but with ancillary systems. For example, the powertrain warranty won't cover the A/C, any electrical issue not directly related to running the engine, the power steering, etc.

As far as the Fusion goes, I really like that as a family car. I think that Ford did a fantastic job with it. Warranty work isn't difficult to get done. Dealers love doing warranty work because they know that they'll be paid for it promptly. Most of the time the dealer doesn't care about it. Warranty repairs don't cost the dealer anything. Service depends on the specific dealership, just like with any other company.

I would strongly recommend that someone who was looking at a family car give the Fusion a drive when they were looking at the cars.

ZV

Chrysler has long had issues with their automatic transmissions. You could almost expect to rebuild it somewhere after 75000 miles.
That being said my GF has only had one issue with her PT Cruiser.

 

[steppinthrax]

 

[Zenmervolt]

Originally posted by: steppinthrax
I don't buy used cars. I do what you said before take advantage of the depreciation by buying an older vehicle with low mileage.

Considering that what I said earlier requires buying a used car, I find it hard to believe that you manage it by buying a new car.

Originally posted by: steppinthrax
I think also most people would agree 30K on a Camry is new.

No, most people know that any car with 30,000 miles is used.

I take this to mean that you actually don't buy new cars and that you must have been lying earlier when you said you bought new cars and then drove them until they wore out. Honestly, you're so full of BS that I'll bet you bleed brown.

ZV

 

[Zenmervolt]

Originally posted by: CrackRabbit
Chrysler has long had issues with their automatic transmissions. You could almost expect to rebuild it somewhere after 75000 miles.

That's why I limited myself to the RWD transmissions. The FWD stuff has been sh*t.

ZV

 

[Jahee]

Without reading the thread, i'd imagine it has pretty strict guidelines... "Provided all maintenance (oil change, air/oil/fuel filter change etc) be carried out by them" at the exact dates set by them at their prices etc

 

[iamwiz82]

Originally posted by: CrackRabbit

Originally posted by: Zenmervolt

Originally posted by: Arkaign
Yikes Guess I'll stay away then, I've been burned bigtime by a new Chrysler vehicle already, and I'm in no hurry to repeat that

Ford seems to have something with that new Fusion, however. What do you make of Ford's warranty and service?

Well, realistically, how many things go wrong with the powertrain? It's quite unusual, even for Chrysler, to have issues with the engine or with RWD transmissions/differentials. The warranty is probably limited to the engine and transmission and differential. All things that shouldn't have massive mechanical issues for most cars built. Sure, there will be a few, but not very many. Most of the problems people have are not with the powertrain itself, but with ancillary systems. For example, the powertrain warranty won't cover the A/C, any electrical issue not directly related to running the engine, the power steering, etc.

As far as the Fusion goes, I really like that as a family car. I think that Ford did a fantastic job with it. Warranty work isn't difficult to get done. Dealers love doing warranty work because they know that they'll be paid for it promptly. Most of the time the dealer doesn't care about it. Warranty repairs don't cost the dealer anything. Service depends on the specific dealership, just like with any other company.

I would strongly recommend that someone who was looking at a family car give the Fusion a drive when they were looking at the cars.

ZV

Chrysler has long had issues with their automatic transmissions. You could almost expect to rebuild it somewhere after 75000 miles.
That being said my GF has only had one issue with her PT Cruiser.

Myself and my family have gone through a lot of Chrysler products, and I have only had to have one transmission rebuilt, and that was only because I Probably overtaxes the stock one.. Silly to think that I could tow someone out of a mud hole after being in another hole that was almost to the handles.

I wouldn't use Chrysler Financial again, but their vehicles have always been solid for us.

 

[Fenixgoon]

fwiw, we have a 2003 (i think) town and country. other than routine maintenance, it's been absolutely flawless.

i'd love to see a new crossfire (i'm one of the few who like the car), and the 300/charger STR are badass, wish i could get either

 

[Gillbot]

I got a feeling this will last as long as their old 10yr/100k plan lasted or until they go bankrupt.

 

[jagec]

Originally posted by: steppinthrax
I don't buy used cars. I do what you said before take advantage of the depreciation by buying an older vehicle with low mileage. I think also most people would agree 30K on a Camry is new. And finally if I ever were to buy a new car it surely wouldn?t be a Chrysler

If there are ANY miles on the odo, it is a used car. What's so hard to understand about that?

Originally posted by: Pliablemoose
The other thing I suspect is that many buyers planning on keeping their new Chrysler product forever will be so plagued with electrical problems (failing sensors etc) at around 100-150K miles they'll give up & sell it.

Heh, yeah, maybe they'll get the British to completely redesign their electrical system, just to ensure that no one ever gets to claim the powertrain warranty.

 

[Pliablemoose]

Originally posted by: Gillbot
I got a feeling this will last as long as their old 10yr/100k plan lasted or until they go bankrupt.

I was thinking the same thing, just saw that they're not covering diesels, gasoline powered vehicles only.

Originally posted by: jagec

Originally posted by: Pliablemoose
The other thing I suspect is that many buyers planning on keeping their new Chrysler product forever will be so plagued with electrical problems (failing sensors etc) at around 100-150K miles they'll give up & sell it.

Heh, yeah, maybe they'll get the British to completely redesign their electrical system, just to ensure that no one ever gets to claim the powertrain warranty.

"Get your Town & Country with our new Lucas electrics"

 

[Zenmervolt]

Originally posted by: Jahee
Without reading the thread, i'd imagine it has pretty strict guidelines... "Provided all maintenance (oil change, air/oil/fuel filter change etc) be carried out by them" at the exact dates set by them at their prices etc

They can't specify that it all be done by a dealer unless they provide the maintenance for free. Federal law prevents that. Magnusson-Moss Act.

ZV

 

[Apex]

Originally posted by: boomerang
Life of the vehicle. I wonder how that will be determined?

If it breaks, it's considered "dead."

 

[redgtxdi]

Hmmmmmmm.............just saw the first commercial tonight.


Interesting. (Though, ya, if we can get American car mfgrs to make good enough vehicles, maybe they won't *have* to offer something like this).

 

[evident]

nail in the coffin for chrysler... good riddance

 

[PingSpike]

Originally posted by: Zenmervolt

Originally posted by: Arkaign

Originally posted by: Zenmervolt

Originally posted by: Arkaign
I just don't quite agree with that. Sure, maybe 50-70% of people only keep a car for it's first 30-100k miles, but a lot of people will drive something until it's dead/severely dying.

Demographically those types of people don't buy new cars. Those types buy cars that are 2-3 years old with low miles so that they can take advantage of the depreciation.

ZV

That's smart, but wouldn't logic follow that those same types of people would now choose to buy a new Chrysler and then drive it for 10-20 years?

Not if those people are smart. The amount of savings from buying a 2-3 year old "used" car would be greater than the likely amount of powertrain repairs. You have to factor in the interest that they would earn on the money that they save by buying used.

Statistically speaking, these types of warranties are almost never redeemed. There's really not much risk to Chrysler at all. I'll guarantee that there are a myriad of "gotchas" written into the fine print on these cars.

ZV

Are you sure? Dodges are fucking cheap new usually, with all the incentives, compared with a lot of companies...and they have lots of powertrain problems to repair!

 

[IGBT]

Originally posted by: jdoggg12

Originally posted by: Arkaign
Huh? It sounds great, but financially impossible. Are there limits to how many times they will replace something like a motor? I had a Neon that died (head cracked) before it had 70k miles on it. I imagine if they have to keep servicing the vehicle several times for major problems over a five year period, that it would end up costing them big time.

The catch is that its for the first owner only. Im sure relatively few buyers of ANY manufacturer keep the car long enough to make this something to really hurt Chrysler.

..I bought my 92 dakota in 94 and still have it. so mabe I'll buy one new this time and keep it 10-15 years??

 

[Summitdrinker]

92 dakota's were good trucks, better than any full sized made that year
too bad the new one's may not be so good

RIP mopar, they done maybe.........................................................it never should been that way, letting benz buy them was there death it could be