This just in–Edmunds is reporting that Volkswagen, once revered for having a 4 year/50,000 mile original manufacturers warranty, is now reducing the coverage to 3 years/ 36,000 miles on all 2009 models and newer. The good news is that like several other high-end manufacturers, VW will be covering this cost of all scheduled maintenance up to 36,000 miles. Which would you rather have–a longer warranty or free service? While some may perceive it as six of one, half a dozen of the other, that’s not really true. You certainly could shell out a lot more money with the 14 less months of warranty coverage if a transmission or engine problem occurs at 40,000 miles, or 3 years and 2 months after you purchase your car. One may also question why VW is shortening their warranty at a time where most companies are tyring to find a competitive edge.
Less publicized is the fact that Mazda has also reduced their manufacturers warranty from 4/50 to 3/36 as well.
No doubt these reductions in warranty protection will help the manufacturers with their bottom line, but how will the change affect sales? Only time will tell.