General Motors to cut powertrain warranty on 2016 Chevy, GMC vehicles

(March 13, 2015) DETROIT -- General Motors will cut its powertrain warranty on Chevrolet and GMC vehicles for the 2016 model year, noting that its standout offer of 100,000-mile coverage — in place for nearly a decade — wasn't a strong enough selling point, according to Automotive News.

The five-year/100,000-mile powertrain coverage will be reduced to five years/60,000 miles for 2016 models. The brands will continue to offer courtesy transportation and roadside assistance during the coverage period.

The five-year/60,000-mile coverage matches that of many of GM's largest competitors, including Ford, Toyota and Honda. Hyundai and Kia offer a 10-year, 100,000-mile powertrain coverage, which the Korean brands bill as "America's Best Warranty."

GM also will scale back its offer of two years of free maintenance, including oil changes and tire rotations, on most new Chevy, GMC and Buick vehicles. The brands, which began the free-maintenance deal for model year 2014, will reduce the number of free service visits to two, from four, starting with 2016 models.

Both changes were announced in a memo sent to dealers on Wednesday.

Source: Automotive News