Ford is extending powertrain warranties on some Ford, Mercury and Lincoln models sold in the US and Canada.
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A five year/60,000 mile (100,000 km) no-deductible (excess) warranty on 2007 Ford light trucks and SUVs is up from the previous three years/40,000 miles (60,000 km)
New 2007 Lincolns get six years and 70,000 miles (110,000 km) of powertrain coverage, up from four years/50,000 miles (80,000 km).
Roadside assistance coverage will now also be included for the powertrain warranty period.
Previous Ford powertrain coverage was the same as the three-year, 36,000-mile, bumper-to-bumper warranty.
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By GlobalDataThe Lincoln powertrain warranty previously mirrored the luxury brand’s four-year, 50,000-mile, bumper-to-bumper warranty.
The bumper-to-bumper warranties themselves are unchanged.
Ford said the longer warranties will be honoured for all 2007-model-year vehicles, including those already sold.
US media reports said such tactics are seen by automakers there as a good way to sooth customer concerns over quality and enhance the perception of value for money.
Ford has previously extended warranty – notably in 2002, when it offered five-year, 100,000-mile powertrain coverage on the US- and Mexican-built Focus, then similar to the European model, which had numerous quality problems and recalls in its early years.
“Ownership costs including warranty coverage are among the top vehicle purchase considerations for Canadian customers,” claimed Ford Canada chief Bill Osborne.
Standard & Poor’s credit analyst Robert Schulz told Reuters the powertrain warranty expansion will have a negative impact on future earnings because Ford’s warranty accrual will be increased from current levels.
Bert Boeckman, owner of Los Angeles-based Galpin Motors, a dealer group that includes the largest Ford dealership in the United States, told the news agency it was difficult to say how much the extended warranty would mean for generating sales.
Boeckman reportedly said Ford’s turnaround depended on fulfilling its pledge to roll out a line of boldly designed and distinctive cars like the Fusion sedan.
“The ultimate answer is going to be product. It won’t be warranties,” he told Reuters.
