Hummer’s New 100,000 mile Warranty — Who’s the real winner?

GM Ren Cen
GM recently made the bold move to increase Hummer’s power train warranty to 5 years and 100,000 miles, showing consumers they are both confident and committed to quality. Recent quality tests have shown a lot of improvement for GM across the board, especially after a decline in quality in the mid-90s. The extended warranty will now put GM’s money where their mouth is. By putting a guarantee on quality GM takes a gamble on how well their products will hold up in 5 years. If GM’s quality isn’t where it should be, this could be a huge loss for the automaker. However, would GM make a move that would jeopardize their future? Probably not – and they also would not have stood behind the warranty unless they knew for sure, through their own testing, that the quality was there and it would be a sound decision. The real winner is the customer – since they have the guarantee. Whether or not GM is a winner will only show in time.

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