Chrysler offers lifetime powertrain warranty

Chrysler Group has announced a lifetime powertrain warranty on most new Chrysler, Dodge, and Jeep vehicles purchased from dealer inventory and delivered on or after July 26, 2007. The warranty program covers 88 percent of the retail models sold, excluding fleet sales, SRT variants, Dodge Sprinters, and other vehicles with diesel engines.

This bold warranty announcement follows the trend that has seen many automakers extend their warranty protection as a means to shore up brand image and customer confidence. Clearly, it will be hard for another manufacturer to one-up the length of Chrysler's warranty, though other makes do shine in other areas of protection, such as Chevrolet with its 100,000-mile roadside assistance (5 years) and rust warranty (6 years).

Chrysler’s warranty initiative was motivated by multiple factors, according to a company spokesperson, including dealers reporting that the latest Chrysler Group products were the highest quality they had seen and customers stating that vehicle warranty, specifically powertrain, is a chief purchase consideration. This program precedes involvement from Cerberus, the investment group that is acquiring Chrysler Group from DaimlerChrysler.

The new warranty is available only to the new-vehicle buyers; it is non-transferable. That caveat alone significantly decreases the how many years will actually be covered within the vehicle’s “lifespan.” With the previous 7-year/70,000-mile powertrain warranty, there was a low instance of warranty transfer from the first to second owner, according to a company spokesperson, despite the process being a simple paperwork sign off. Because of this, Chrysler expects costs associated with the change in the warranty coverage to be less dramatic than the marketing-friendly name may suggest.

And with all seemingly good news, there’s always the “fine print.” For example, while the lifetime warranty does not require owners have the car serviced at a dealer, it does demand that maintenance adhere to recommended intervals and be documented. To continue the warranty coverage, the owner must have the powertrain inspected (for free) within 60-days of each five-year purchase anniversary.

We suspect that once the total eligible vehicle pool is filtered out by those who sell their vehicle within five years, lose their paperwork, and/or forget to have this inspection performed, there will be a very modest original-owner group come year six. And those leasing will not reap the benefits at all, as most contracts are for just two to three years. However, for those drivers who like to hold on to their vehicles, such as those in the unofficial 200,000-mile club, there could be real financial benefit from this program. Of course, that only matters if you truly want a Chrysler, Dodge, or Jeep model for the long haul.

For such a broad product portfolio, there are precious few Chrysler Group models that meet the stringent standards of a Consumer Reports Recommendation:

Chrysler 300 (V6)
Chrysler PT Cruiser
Dodge Durango
Dodge Ram 1500
Jeep Liberty

Several models are too new for us to have any reliability data and/or haven’t been tested.

Looking closer at the Recommended models, those vehicles don’t shine in their respective classes. The Durango, for instance, did earn a Good overall score, though it is the lowest-rated model in the full-sized SUV class and has just average predicted reliability. Likewise, the Liberty qualifies as Good, though it ranks near the bottom of the class. The Dodge Nitro and Jeep Wrangler score even lower.

In a brand comparison, Chrysler, Dodge, and Jeep each rank below average in predicted reliability, based on analysis of the 2006 Consumer Reports car reliability survey. Jeep ranks 32nd among 36 tracked brands.

These numbers show that the Chrysler Group vehicles could use the type of image enhancement that such a well-promoted warranty can offer. After all, the 10-year warranty has worked wonders for Hyundai--once the punch line for reliability.

Either way, more protection can only aid the customer and motivate the manufacturer to focus on quality. In the end, consumers should focus on buying the best vehicles for their needs, weighing reliability more heavily than warranty protection. After all, the best deal is not having to visit the dealer for unscheduled maintenance, rather than have it performed for free. Clearly, Chrysler needs to get people into its showrooms, but it’s too early to tell whether this warranty announcement will do the trick.

--Jeff Bartlett

Comments

[Gearhead]

I know a lot of people that have jumped to other brands because of better warranties even though they never use them. Hopefully it will give them the shot in the arm that they need.

I would think this would be especially nice for people searching for a cheap used car in a few years. In a dealer's lot full of 70k-100k+ mile cars, I think I'd pick the Chrysler.

If they aren't already, they might wanna think about taking a cut on a "certified" used car program.

[john]

I just purchased my Dodge Nitro 7/25 along with a 7 year extended warranty. I only heard about this new offer from Chrysler today. Do I have a shot at getting my $ back for the extended warranty or am I S.O.L.?

[Marc]

This is only a start of many product improvements needed by Chrysler/Ford/Chevy. I buy American, but it is painful, and some Honda products are made of more American parts and the company is owned by more american shareholders than the big three.

I went to a car show in Virginia and was so disappointed in the Chrysler cars. As a whole they have the worst gas mileage and the most cheap plastic inside. The big grill theme that has carried through the models from the pickup is tired. They need to employ some new talented engineers and designers to freshen the lines. I will be there to buy when this happens.

[John Hoyle]

Unfortunately Chrysler has a well documented history of simply refusing to pay for repairs covered by their warranties. The Internet is full of stories of Chrysler product buyers that simply could not get any satisfaction from dealers and found that escalating up the corporate chain rarely helped. Chrysler will continue to lose their customer base and market share as long as they continue to provide unsatisfactory service on their poorly engineered cars and trucks.

[Bill]

I have two 2002 Jeep Grand Cherokees. I had a powertrain problem that was not covered by Chrysler, the right front hub squealed.

I asked if the hub was removed, would the powertrain work and of course they (the dealer) said no. Well lah dee dah. What does the power train consist of?

[Richard]

We bought a new 2007 Jeep Liberty a few months ago and it came with a 36,000 mile basic warranty. I will check with the dealer and if I find that a pre July 2007 Liberty has a 36K warranty and a post July 2007 Liberty has unlimited it will be the last Chrysler for us that is for sure.

[Bob Acheson]

I own a 2002 Serbing Convertible and have the 7/70 plan. Any problems I have had has been repaired by Chrysler dealers at no charge and they have done a great job in fixing them as well as resolving the problem in a very timley manner. We also own a 2006 Jeep Cherokee and have had great performance with it, have a 7/70 waranty but have been offered a unlimited powertrain upgrade for $750. We are in the process of accepting this offer, and must do so by the end of Sept 2007.

[Howard]

I found out today (9/12/07)that I can purchase the new unlimited warranty for $750 ($100 deductible) or $950 ($0 deductible)..I purchased my '07 Wrangler a couple of months before the new scheme
that Chrysler is offering.

[Bryce Decker]

I have a 2005 Jeep Liberty with turbo diesel. There is a lot of grinding noise in the drive train with only 15,000 miles on the car. My problem is a refusal by the local dealer's service department to acknowledge that anything is wrong. They even claim not to hear anything at all. Does anyone have a suggestion about how to proceed to get them to service a warranty?

[debbie]

I own a 2005 dodge durango(second owner). When I purchased this vehicle the sales person was quick to advise that I have the balance of the 7-70 warranty. Low and behold, 5 months after we purchased this vehicle,(the transmission) the dealer fixes it and then advises we have no warranty. What the heck? Ive heard nite mere stories about these warranties. Where do I go from here. Any suggestions?

[norman cutway]

I bought a 2008 Avenger the very end of june and then found out about the new warranty. It is very disappointing that this new warranty covers 2006, 2007, and 2008 models only sold after 7/26 from dealer inventory. The most disappointing aspect is that the Avenger I bought was an R/T AWD which was a late availability. My particular car was just off the delivery truck, and because I bought it prior to 7/26 it doesn't qualify, yet a 2006, or 2007 which may have been sitting on a dealer lot for over a year does. This does't sound much like a commitment to back a quality product. To further compound my ire, when contacted, Chrysler told me to go to my dealer and thet could cancel the 6yr maint. plan I purchased, and get me a lifetime maintenance plan. It would only cost me $1700 more than what I already paid for my 6yr maintenance plan. Is there any other actions I can take.

[david roosenberg]

I purchased a 2007 chrysler 300,with 22,145miles. The dealer offered 3 differant warranties. 1.base warranty 39 months or 39,000 miles,for $1420 2.powertrain warranty 8years or 80,000 miles,for both packages together are $1900.00. Than they offered a 3rd warranty lifetime powertrain only for $907.00.This is the one I purchased. When I received the paper work on the warranty it said 8years or 80,000 miles. Is this lifetime? Now on a new 2008 you get lifetime with unlimited mileage without purchasing anything extra. I thought I was purchasing the lifetime warranty. Can anybody help???

[tom]

I have a chrysler 300 touring w/37000 miles for the third time transmission seals are leaking anyone else with this problem? I have always taken good care of this car and now I have to pay for this repair Just wondering if anyone else has the same problems..

[Chris]

I have a 2005 dodge ram,,,,, it kinda acts like the tires are out of balance, however it dont do it when I let off the gas, so that leads me to believe it is in the powertrain, and suggestions? Plus since it is a 2005 do I have the 7/70 warranty, im the only owner.