Chrysler Ups the Ante With Lifetime Powertrain Warranty

AUBURN HILLS, Mich. — In what it described as an "unprecedented announcement," Chrysler Group said on Thursday that it is offering a lifetime powertrain warranty on all of its 2007 and 2008 models starting today. The new powertrain warranty covers everything from the 4.7-liter V8 in the 2008 Jeep Grand Cherokee to the 600-hp 8.4-liter V10 in the 2008 Dodge Viper SRT10.

"We just finished a call with all of our dealers across the country," said Steven Landry, executive vice president of Chrysler Group North American sales and marketing, service and parts. " 'Turning point,' 'jump start' were some of the words the dealers were using." The warranty is nontransferable to subsequent owners. Landry said it will be limited to the first owner or holder of the first retail lease. Subsequent owners will get the three-year/36,000-mile coverage. Landry said the new warranty covers the "most expensive" parts on a vehicle and also covers front- and rear-wheel-drive components. Consumers are required to have a mandatory powertrain inspection at the dealership once every five years to maintain the warranty. Landry also said the new powertrain deal could bring the company's incentive spending down, although "we are not going to count on that." The Chrysler Group had one of the most paltry warranties in the auto industry prior to today, at three years/36,000 miles. The Korean manufacturers pioneered warranty coverage with a 10-year/100,000-mile powertrain warranty, which was quickly emulated by automakers from Suzuki to General Motors. Suzuki currently offers a seven-year/100,000-mile limited powertrain warranty. GM offers a five-year/100,000-mile powertrain warranty that is fully transferable to other owners of the vehicle. What this means to you: Chrysler demonstrates enormous confidence in its new powertrains with this industry-first warranty coverage. And that's good news for buyer