Bailout Blues: Do GM and Chrysler need to offer Hyundai-like warranties?

Our friends over at The Truth About Cars have started using data from analysts at Morgan & Company. One of their first comparisons: long-term U.S. market share between the automakers formerly-known-as The Big/Detroit Three.

As you can see in the first graph, above left, it's been a long, downhill slide for Chrysler, Ford and General Motors since the early 90s.The exception is Ford, which is on a relative rebound.

Today over at TTAC, they decided to look at upstart Hyundai's numbers since 1993, above right. No surprise that the Korean automaker has seen unbridled rise in market share

What is interesting is TTAC's reasoning for Hyundai's success.

Since 1998, the automaker has offered its 10 year/100,000 mile U.S. bumper-to-bumper warranty (5 year/100,000 km in Canada)—a sure sign that it believed in its products more than some its less-than-reliable and durable offerings from the early 1990s (Excel? Hello?)

Currently GM and Chrysler in Canada offer a common 3 year/60,000 km comprehensive, and an additional 5 year/160,000 and 100,000 km, respectively,  drivetrain-only warranty.

So, TTAC asks, Do GM and Chrysler need to offer longer, more comprehensive warranties to gain back consumer confidence?

Would you consider a Chevy Malibu or Dodge Avenger over a Hyundai Sonata if they came with better warranties?

[Source: The Truth About Cars]

Comments

[Chris]

It might move them up the list of vehicles I would consider, but only if the "Detroit 3" actually provide the warranty coverage. My experience with them is that their dealers will try to wriggle out of warranty repairs for the slightest reason. I contrast that with my experience with Kia, where every warranty claim I had over the period of coverage was promptly and cheerfully addressed and corrected. Of course the fact that I had only 3 items to worry about during my 5 years/100,000 km coverage certainly helped.

Warranty coverage is important; it does signal a level of pride and confidence in the product by the manufacturer. What is even better is never having to use that warranty coverage in the first place!