In a move to combat declining sales, Opel/Vauxhall is introducing a 100,000 mile warranty on all of its vehicles. The European unit of GM calls this a ‘lifetime warranty’ and says that it will include the powertrain and steering systems as well as the brake system and on board electrical equipment until the car reaches 160,000 km, or 100,000 miles.
The warranty program is part of a broader campaign to boost sales due to uncertainty of what the future holds after GM has gone back and forth with the decision to sell the division. The company’s European sales fell by over 4% in the first six months of this year, in a market that is slightly up overall.
CEO Nick Reilly says that the warranty program is made possible because of the brand’s reliability.
The program has a progressive scale of coverage based on the cars mileage; Opel absorbs 100% of material costs up to 50,000km, declining eventually to 40% of costs in the top tier (100,000km to 160,000km), meaning that the owner will have to shoulder the burden for the other 60%.
GM funded a $4.3 billion restructuring of the company back in June after failing to secure aid from the EU.
Doesn’t this mean the Opel Insignia based Buick Regal should be as reliable?
– By: Stephen Calogera
Source: Automotive News (Subscription Required)