Is This A Sign GM Has Lost Faith In Its Own Cars?

GM

Slashing warranties suggests that it has.

This isn't the sort of thing you want to see. GM has quietly announced in a letter to dealerships that it will be cutting its five-year powertrain warranty from covering 100,000 miles to just 60,000 miles. It will also be cutting the number of free services that new owners of Chevrolets, GMCs, and Buicks receive down from four to two. The decision was made, according to the letter, because polling data suggests that customers aren't especially interested in warranties.

This is not to say that customers don't want warranties, just that it isn't a very important factor when considering a car, and for GM to offer a 100,000 warranty when Ford, Honda and Toyota are all offering 60,000 was seemingly just spending extra money for no reason. That said, it is a move that reeks of bean counter-ism at best. But one could easily see more from this, and we're sure that many will see it as GM simply losing faith in its own product. The money saved will supposedly be put into improving retail operations, but this is a very vague statement and may not mean anything at all.

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