DaimlerChrysler Corporation today announced a seven year/70,000-mile limited, transferable powertrain warranty for Chrysler, Jeep and Dodge vehicles.

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However, the warranty replaces an earlier seven-year/100,000 mile powertrain warranty offered to the first owner only, according to BRG Newswire.


The warranty, transferable to subsequent owners at no extra cost, will be provided free of charge on all new Chrysler Group vehicles purchased or leased on or after July 9, 2002.


Components covered by the “7/70 Powertrain Warranty” include engines, transmissions/transaxles, transfer cases and axles.












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The changing face of warranty

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this announcement by Chrysler is  impressive credit to the “The Changing Face of Warranty” report which predicted that soon all manufacturers will be making this type of change.


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Powertrain component coverage becomes effective following the standard bumper-to-bumper coverage of three years or 36,000 miles on all other components, and extends to seven years or 70,000 miles, whichever comes first.


The 7/70 powertrain warranty covers all vehicle lines except some commercial fleet vehicles. Remaining 2002 models also will be covered by the new warranty.


“Our overall quality levels have improved substantially while warranty costs have dropped 20% in the latest model year, and have been cut in half since 1996,” said Chrysler group president and chief executive officer Dieter Zetsche.


“We have been investing heavily in developing new engines and transmissions, and that is at the very core of what is now one of the most comprehensive warranties in the industry,” said executive vice president of product development and quality Richard Schaum.


“But we are moving ahead even further by leveraging the expertise and know-how of Mercedes-Benz, which has an unequalled reputation when it comes to powertrains.”


Schaum said an example is the Mercedes-Benz W5A580 five-speed automatic transmission, to be built in Indiana for use in some Chrysler vehicles.


DaimlerChrysler will begin running a multi-media campaign starting tomorrow (9 July) which will highlight the customer benefits of the 1998 merger between Chrysler and Daimler-Benz. The campaign, which focuses on the combination of American and German strengths, will begin with cross-brand radio advertisements, followed by a major print ad on 12 July. Television ads for Chrysler, Jeep and Dodge will begin airing 15 July.


Chrysler said the 7/70 powertrain warranty should positively affect resale and lease residual values across all three brands.