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GM to cut pickup production, shorten Saab warranties

 
2 1,159 views Jul 28, 2008
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GM to cut pickup production, shorten Saab warranties

GM to cut pickup production, shorten Saab warranties

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Part of the company's continuing reorganization plan, General Motors has taken several actions today to lighten its load in the face of reduced demand. Cutting back truck production, much like rival Ford recently announced, has been expected for some time. But reducing the warranty terms on U.S. Saab vehicles is a different tactic to what has been taken so far, either by GM or its rivals.

The warrant reduction, which is effective immediately, drops the coverage on all future Saabs sold in the U.S. from the 100,000mi (160,000km) or seven-year coverage that was previously standard to 50,000mi (80,000km) or four years. The company will continue to provide free maintenance for three years or 36,000mi (57,600km) however, reports Automotive News.

In another cost-cutting announcement, GM has decided to reduce its pickup truck output by a further 117,000 to approach its year-long goal of reducing output by 300,000 units. GM will cut a shift at its truck-centric plants in Moraine, Ohio and Shreveport, Louisiana to hit the lower targets. The reduction comes even after the long American Axle strike earlier this year that the company claimed to have cost 330,000 units of production and $2.8 billion.



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Comments (2)

  1. By bambam Posted: 7/29/2008 3:13am PDT

    These days not many people really cares about warranties especially when it comes to a luxury car or above average brand such as Saab. The sales pattern should be the same with or with out these warranties length.
     
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  2. By Guber Posted: 7/29/2008 5:40pm PDT

    Speak for yourself BamBam, and are you kidding me? I owned a Jaguar 02 Xtype, if not for the EXTENTED warranty I've purchased, the car would be sitting in the junkyard with only 56k mile. SaaB and Jaguars are not known to be reliable and are expensive! to fix.
     
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