Marketing and all things related

Whenever we think our life is tough, we take solace in the fact we are not employed in the US auto industry. Even Bill Ford Jr. stepped outside the kitchen to escape the heat. (This is a bold move superior to their advertising campaign.) To help bolter their struggling businesses, both Ford and GM recently announced enhanced warranty programs intended to make them more competitive with the Japanese. Ford increased its warranty period to 60,000 miles or 5 years. GM goosed their warranty to 5 years or 100,000 miles beginning with the 2007 model year. (Chrysler, Hyundai, and Kai offer 10 year, 100,000 mile warranties.) GM believes they have a distinct advantage is allowing their warranty to transfer beyond the original owner. GM hopes the new warranty will convince customers they are closing the quality gap with foreign manufacturers. In a recent JD Power and Associates Vehicle Dependability Study, only two GM brands, Buick and Cadillac were rated above the national average for three year ownership. Marketing Blurb believes warranty coverage can influence the auto purchasing decision. We just wonder if Ford and GM will be able to afford the long-term service. You can read more from Business Week.