Chrysler Warranty extended to 100000 ?

[jrcal]

Anyone hear the same rumor I heard? Chrysler is planning on extending their warranty from 36k to 100k ?

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JC

[turbo59]

yes it is true.....i saw the ad tonite on nbc......the problems has just begun!

[robc]

I am fairly sure the warranty is just a free powertrain service contract. This is going to be increasingly popular (see what Ford has done with the Focus and GM with Oldsmobile).



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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

[Steve Wells]

"Home for the Holidays" is a 7 year /100,000 mile power train limited warranty that will be included with every eligible vehicle sold or leased during the program period from Nov 1 through Dec 31, 2001. The Service contract includes engine, transmission, driveline and a $100.00 deductible. Roadside assistance and alternate transportation are not included. There are special requirements for transfers and upgrades.

Steve

[joe r]

We were told in the sales meeting this morning that it is a test program as Steve described but is is for California dealers. I'm sure more will come out in the next few days.

Joe R

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[Matt Parsons]

I'm curious why Turbo59 thinks 'the problems have just begun'?

This seems like a great sales strategy by DCX to get people into showrooms and purchasing new vehicles.

My question is, how does this effect a dealers bottomline on parts and service they would have performed on a customer pay basis that will now be warranty? In addition, what are peoples thoughts on, will this increase service business for dealers in that customers will be coming back to the dealer (guaranteed) for a longer period of time or does it eat into customer pay profits?

Also, any ideas as to how the vehicles sold under this program will be tracked? I could see this being a bit sticky when this model years vehicles are used cars and people advertise them as having the longer warranty and yet they aren't part of this program.

[Doug]

I agree, I don't see this as a bad thing. This type of warranty will tie the customer to our dealerships. Thinking towards the future, there will plenty of cars in our shops for ($$$$) powertrain repairs which,
very likely, would have gone elsewhere for the repairs.

Of course, if you are forunate enough to always have more business than you can handle then you may not be too excited. Me? Hey, I'll take what I can get, when I can get it.

Besides, my experience with Chrysler Service Contracts has been exceptionally positive....

Cheers,
Doug

[Steve Wells]

This is an Automatic program applied to eligible vehicles (there are no excluded models). All DaimlerChrysler dealers are eligible who agree to abide by program rules.
The 7/100 powertrain limited warranty is not transferable to a subsequent owner, unless the original owner purchased a DCX service contract upgrade plan. There can be special requirements and contract plans for residents of some states. This is a great opportunity for DCX Dealers to answer the competition in extended drivetrain warranty issues and retain our customer base for a longer period.

Steve

[Matt Parsons]

A number of years ago I remember GM having a program where the warranty stayed with the customer and not the vehicle. This created a great deal of confusion in the Service Department in that every vehicle needed to have a VISS search run to determine who the original owner of record was. In addition, it became even more confusing if the vehicle was leased in that often the system would show the leasing institution (e.g. GMAC) as the owner of record that the warranty applied to.

How is this handled today, as I have been out of the service end of our business for a number of years?

[Mike Davis]

Matt:

Chryslers version of the VISS is their option 14 (VIP) on DIAL and we run this on every vehicle that comes in and it is very easy to use. I think that this will be a positive program all the way around. We will see many customers back for repairs for the 7/100,000 time frame and unless they do an upgrade it is powertrain only. Think of the legitimate upsell opportunities on a 50,000 mile vehicle in the areas of maintenance and repairs that aren't part of the warranty. Besides this, what percentage of powertrain repairs are we doing after the 3/36 now as a dealer group? We know that we will be doing a lot more with this in place and while many techs don't enjoy heavy line work under warranty it keeps my shop full and I get paid to do it and I have techs that will recognize the benefits!

[This message has been edited by Mike Davis (edited 11-28-2001).]