Volkswagen messed up bad with the whole diesel gate situation. And it's not just the accounting department that's feeling the pain. The brand itself has taken a severe blow.
Not to mention all diesel-powered vehicles in the United States. Volkswagen essentially presented all electric vehicle manufacturers a gift with a bow on it.
So, now how does the manufacturer attempt to get back in the good graces of consumers? HINT: Slash prices, sell cars people actually want and over the best damn possible warranty out there.
But does the last point actually move the needle for new car buyers? It certainly does for any smart used car buyer.
VW announced today that most of its 2018 model year vehicles will receive what it's branding the People First Warranty. It's a six year, 72,000-mile — whichever comes first — bumper-to-bumper warranty.
Considering VW's spotty reliability record, this is an interesting move by the automaker. I wonder if they've done the calculus behind how many warranty claims it forecasts. Having owned a 2004 Touareg that was in the shop two to three times a month and having dated a woman who went through multiple Jetta TDIs that were major problem children, I can walk the walk.
All that said, I am left wondering:
Do warranties ACTUALLY matter in YOUR purchasing decision?Volkswagen's press release follows:
VOLKSWAGEN'S PEOPLE FIRST WARRANTY PUTS BUYERS IN THE DRIVER'S SEAT
Sep 29, 2017
- Volkswagen stands behind its quality and workmanship with America’s Best Car & SUV Bumper-to-Bumper Transferable Limited Warranty*
- Six-year or 72,000-mile “bumper-to-bumper” limited warranty beats its competitors’ bumper to bumper coverage in years and mileage
- Fully transferable warranty demonstrates Volkswagen’s commitment to quality and means increased peace of mind and confidence for new and used buyers
HERNDON (Sept. 29, 2017) — For the 2018 model year, most new Volkswagen vehicles in the United States will come with the People First Warranty, a six-year or 72,000-mile (whichever occurs first) bumper-to-bumper New Vehicle Limited Warranty, which can be transferred to subsequent owners throughout its duration.
“Volkswagen has always been ‘the people’s car,’ and with the People First Warranty, we’re putting our customers first,” said Hinrich J. Woebcken, President and Chief Executive Officer of Volkswagen Group of America. “By bringing the right cars, at the right time and making the offer very competitive, we believe we’re in the position to grow in the US market.”
First introduced for the all-new 2018 Atlas and Tiguan, the People First Warranty now covers additional 2018 VW models: Beetle, Beetle Convertible, Golf, Golf Alltrack, Golf GTI, Golf R, and Golf SportWagen, Jetta and Passat.
“Volkswagen has begun to grow again in America, and buyers have welcomed the Atlas and Tiguan into their homes” said Derrick Hatami, Executive Vice President, Sales and Marketing for Volkswagen of America. “Expanding this warranty beyond those two models gives our dealers another compelling argument for the rest of our lineup, and we believe it will lead to a reduced overall cost of ownership for buyers.”
The six-year/72,000-mile People First Warranty includes powertrain coverage for engines, transmissions and optional 4Motion® all-wheel-drive systems. Additionally, all the elements of the People First Warranty can be transferred to subsequent owners for up to six years or 72,000 miles, whichever occurs first, from the date it was first sold new.
Most mainstream competitors to the Volkswagen brand in the United States such as Honda, Toyota and Ford offer only a three-year/36,000 mile basic warranty and a five-year/60,000 mile powertrain warranty on their cars and SUVs. While Hyundai and Kia offer a five-year/60,000 mile basic warranty and a higher time and mileage limit on their powertrain limited warranties, if the vehicle is sold to a second owner, the powertrain limited warranty is not transferable beyond five years or 60,000 miles from the date it was first sold new.
Volkswagen announces the People First Warranty, a six-year or 72,000-mile (whichever occurs first) bumper-to-bumper New Vehicle Limited Warranty for most new 2018 model year Volkswagen vehicles in the United States, which can be transferred to subsequent owners throughout its duration.