“General Motors Corp. said Friday it will extend its five-year/100,000-mile powertrain warranty to used cars going back to the 2002 model year, another move to convince customers that its cars and trucks are as reliable as those made by its Japanese rivals.

The warranties apply to all GM Certified Used Vehicles and are fully transferable. They become available March 1.

“This is what you’d expect from a company like GM — a company that wants to remain a leader,” said Troy Clarke, president of GM’s North American operations who announced the deal in Las Vegas at the National Automobile Dealers Association annual convention. “Quality will not be a reason for people to not buy our cars.”

The world’s largest automaker has made strides in improving quality, but its cars and trucks still are widely perceived by consumers as inferior to Japan’s Toyota Motor Corp. and Honda Motor Co.

The new warranty covers hundreds of components that comprise the engine, transmission and final drive assemblies. It applies to all GM Certified Used Vehicles from Buick, Chevrolet, GMC, Oldsmobile and Pontiac sold in the United States.

A similar offering soon will be made for Saturn vehicles, Clarke said.

The warranty will help GM in its fight to maintain its lead over a surging Toyota and keep its title as the world’s No. 1 automaker because, Clarke said, a strong reputation translates to sales.

Dealers had been pushing GM to back used cars with a warranty, and the automaker wanted something that would help it stand out in a market where overall vehicle quality is good.

“The No. 1 thing a used car buyer is afraid of is problems,” said Ed Bozarth, a Chevrolet dealer with eight Chevrolet outlets in Topeka, Kan., Grand Junction, Colo., and the Denver area. “This is a safety net. It’s huge.”

More importantly, the move is a statement that GM is confident its vehicles, even used ones, will hold up, said Tom Libby, senior director of industry analysis at J.D. Power and Associates.”
fromAuto Insider/Sharon Terlep