In another cost-reduction effort, GM announced today it will cut the warranties on all new Saab vehicles it currently sells in the U.S. Currently, Saabs come with a seven-year, 100,000 mile extended warranty option, or five years and 100,000 as standard for the powertrain, which includes the engine and transmission. Effective as of Friday, the new warranty is valid for four years and 50,000 miles.
GM told its Saab dealers of the change on Friday, but will still offer free scheduled maintenance on the vehicles for three years or 36,000 miles in order to remain competitive with other luxury brands.
Only Saab vehicles get the warranty cut, and Cadillac and Hummer retain the extended warranty along with a five-year, 100,000 mile powertrain warranty. GM has not announced how much money the move is believed to have saved it, or why just Saab’s warranty was effectively halved, at least in terms of allowed mileage.
