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Chrysler drops lifetime powertrain warranty, eases transfers

Chrysler drops lifetime powertrain warranty, eases transfers

Bradford Wernle
Automotive News | August 19, 2009 – 6:48 pm EST


DETROIT — Chrysler Group is abandoning its lifetime powertrain warranty in favor of five-year, 100,000-mile coverage that’s more easily transferred to a new owner.

Spokesman Rick Deneau said the switch was made after discussions with its dealer council. The change is effective on all 2010 model-year vehicles.

Customers can now sell their vehicle and transfer the warranty to a new owner at no charge, Deneau said.

“The issue of transferability was something people found very appealing,” he said. The lifetime powertrain warranty “wasn’t as valuable to consumers as we might have hoped.”

The new warranty also broadens the policy to vehicles that weren’t covered under the lifetime warranty: all SRT performance vehicles and the Viper sports car. It does not cover Dodge Sprinter commercial vans or Dodge Ram trucks with diesel engines, Deneau said.

Chrysler introduced the lifetime plan in July 2007, just before being acquired by Cerberus Capital Management. The automaker is now controlled by Italy’s Fiat S.p.A. as part of a U.S.-directed rescue and six-week bankruptcy.

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