“To win customers, many automakers are looking to improve their warranty offerings “

According to an article in Businessweek, the gap between quality and safety from one automobile company to another is closing, and is resulting in a search for new methods of product differentiation. A popular way for the car companies to distinguish themselves from each other is the warranty that comes with the vehicle.

From the Businessweek article:

To demonstrate confidence in the quality of their vehicles and lure customers away from competitors, many automakers are looking towards ramped up warranty offerings – the window of time and/or distance for which the vehicle is covered in the event major maintenance issues arise.

General Motors Co. recently made headlines when it announced that it was increasing its limited powertrain warranty on all 2007 model vehicles to 5 years or 100,000 miles, including roadside assistance up 100,000 or 5 years and courtesy transportation. The warranty is fully transferable and has no deductible.

The article goes on to mention how Hyundai and Kia each “increased flexed warranty offerings in order to strengthen its quality reputation and gain a foothold on the competition” – and the plan worked, if the recent recognition and sales for either of the companies is any indication.

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