New 100,000 mile 5 Year Warranty for 2007 GM Vehicles

TO: All General Motors Dealers
SUBJECT: Announcing The GM 100,000 Mile Warranty "The Best Coverage in America"

Today, we are announcing the next major step in our go to market strategy with an enhanced powertrain across all eight brands to 100,000 miles/five years, beginning with the entire 2007 model year lineup. The new GM 100,000 Mile Warranty, in combination with 100,000 miles/5 years of roadside assistance and courtesy transportation is the best coverage in America and represents an unprecedented level of value and peace of mind for General Motors car and light duty truck buyers. This is the result of years of hard work by our employees, suppliers and dealers, and it is aimed at building a new level of consumer confidence in the quality of GM vehicles.

The GM 100,000 Mile Warranty also features no deductibles and is fully transferable. In addition we are providing 100,000/5 year 24/7 roadside assistance and free courtesy transportation while a vehicle is being serviced for a powertrain-related issue. The GM 100,000 Mile Warranty will be provided on all 2007 model light duty vehicles, including those previously purchased.

Owners of previously purchased 2007 light duty models will be notified via U.S. Mail and will receive an updated warranty booklet insert for their glove box materials in late September. For non-powertrain components, GM's Bumper-to-Bumper New Vehicle Limited Warranty remains in effect: four years/50,000 miles for Buick, Cadillac, HUMMER and Saab vehicles; and three years/36,000 miles for Chevrolet, GMC, Pontiac and Saturn vehicles. All divisional websites, as well as LMG sites, were updated this afternoon and we have created a dedicated website www.gm.com/warranty to provide customers with details about the program.

National advertising will start tomorrow night during the first NFL football game of the season and we have developed an aggressive PR and media strategy to leverage this announcement. We are also providing you with a comprehensive point of sale package that will include banners, posters, static clings, desk and car toppers, mirror hang tags and warranty page inserts for vehicles already in your inventory. It will arrive tomorrow and will include sell sheets for your dealership team to share with customers to help answer questions about the new warranty.

This letter and Customer and Dealer Frequently Asked Questions and Answers will be available via GM Messenger later today, to provide your team with additional information regarding this announcement. I think you'll agree, this latest step in our North American turnaround plan reflects the confidence we have in the quality of our cars and trucks. It's something you've been asking for and now we have it. It's a strong confident statement about who we are...and the cars and trucks we sell. And the end result will be a huge win for you and our customers.

GMNA Vice President Vehicle Sales, Service, and Marketing

Of course, I just bought an '06 a month and a half ago. Just my luck - if I buy a stock, you should sell it...

I was within a few minutes of buying a 2006. I was in the sales office when I noticed the poster on the wall about the 2007 warranty. Needless to say I bought a 2007. Just have to wait for it to come in.

Yeah, GM kinda pulled the rug out from under the dealers by offering the new warranty only on 07's and not leftover 06's like Ford did (with a $100 deductible over 36K miles). Some of my dealer friends at the local Chevy store are less than amused, as it will not make getting rid of old inventory any easier.

Otherwise, it is a good move, signalling that the manufacturer has enough confidence in their product that they are willing to support it for a significant time period. I would definitely make sure you keep all of your receipts and abide by the minimum manufacturer's maintenance recommendations.

Anyway, kudos to GM for both showing Hyundai crushing confidence in their product, and taking the wind out of Ford's warranty sails.