Volkswagen has apparently decided to ditch its six-year/72,000-mile bumper-to-bumper warranty in the United States.
Automotive News reports that the German car manufacturer will offer a four-year/50,000-mile warranty instead and throw in two years of factory-covered maintenance, starting with 2020 model year vehicles.
Volkswagen North America senior vice president of sales and marketing Duncan Movassaghi says the change has been made to tackle doubts among consumers about Volkswagen’s cost of ownership. The automaker is also implementing a new advertising program that will pay dealers up to $200 per vehicle to better “develop their local markets.”
“We felt that a combination of a strong warranty with a service and maintenance package and the co-op program for our dealers, which is where we netted out, was the best way forward,” Movassaghi said.
According to Autoblog, many believe that Volkswagen introduced its six-year/72,000-mile bumper-to-bumper warranty to win back the trust of customers after the dieselgate. A statement issued by the automaker to the publication reiterates its belief that the four-year warranty and two years of free maintenance is the best way forward.
“Volkswagen is committed to listening and addressing the needs of its customers and dealers as we look to increase market share in the U.S. The previous warranty was a valuable tool to introduce customers to the Volkswagen brand and to give them peace of mind. Our new vehicle limited warranty builds upon those benefits by still providing robust coverage and further lowering the cost of ownership with carefree maintenance for the first two years.”