By offering a 100,000 mile warranty, GM is taking a page from the Hyundai playbook in hopes of getting customers back in showrooms, explains Rick Newman of U.S. News. But there is a big risk associated with making such an offer. “Wall Street dislikes generous warranties, because they are guaranteed to increase costs down the road,” writes Newman. “GM’s gamble is that quality improvements are real and thorough enough to keep extra warranty costs fairly low, while raising the company’s image and boosting sales. It ought to know–nobody has better data on the quality of GM’s cars than GM does.”
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