FCA Cutting Powertrain Warranties, Includes Ram and Jeep
Fiat Chrysler Automobiles looks to be cutting the mileage coverage of its powertrain warranty for nearly every vehicle in its fleet, including all gasoline-powered Ram and Jeep vehicles. Since 2009, the automaker has offered a five-year/100,000-mile powertrain warranty, but starting on 2016 models, FCA will only offer a five-year/60,000-mile coverage.
“Following changes already made by competitors, FCA US is adjusting powertrain warranty coverage for 2016 model year vehicles to be more consistent with industry practices,” FCA said in a statement to Automotive News. Those industry practices FCA is referring to was a similar warranty reduction by General Motors back in March.
Thankfully for diesel-powered Ram and Jeep vehicles, powertrain warranties remain at the five-year/100,000-mile mark. FCA’s bumper-to-bumper warranty of three years/36,000 miles has not changed.
Distinguishing between the two, the powertrain warranty covers the engine, transmission, and driveline system while the bumper-to-bumper warranty covers the body, interior, and electrical systems. The cost of repairs made under warranty at a FCA-licensed dealer are covered, meaning owners aren’t paying for replacement parts on their brand-new vehicle because it was defective. As usual, neither warranty covers broken parts due to user error or negligence.
While FCA might be following the standard industry practice, some might argue the automaker isn’t acting in the interests of consumers. Perhaps so, but the bean counters are likely to point out that warranties aren’t always first priority in new vehicle shoppers.
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Why It Matters
You may recall that after emerging from bankruptcy, both Chrysler and General Motors began offering powertrain warranties up to the 100,000-mile mark. One possible explanation of the decrease is now consumers are buying more and automakers need fewer incentives to entice buyers, therefore the warranty coverage is able to drop. While an expansive warranty is great for the consumer, automakers end up paying hefty sums in warranty claims as vehicles age.
Source: Automotive News