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]