VW KILLS Its Industry-leading Six-year/72K-mile Bumper-to-Bumper Warranty — What Does THIS Tell You?

Volkswagen made headlines back in 2017 when it introduced an all-new warranty program. Seemingly serving as an apology to the market, VW rolled out a mega bumper-to-bumper warranty.

It was an industry-leading move. Six years or 72,000 miles, whichever came first.

While I don't think I am friends with anyone who would buy a vehicle simply based on its warranty, I do know that it did sweeten the deal for some consumers. It was, sort of like, the cherry on top. And, used vehicle buyers were especially excited. Why wouldn't you be if you were buying a USED Volkswagen?

But that time has passed. VW has pulled the plug on the program.

Now, starting with 2020 model year Volkswagen vehicles, they will come with a standard, four-year/50,000-mile bumper-to-bumper warranty.

That said, I've got to ask: What does this warranty adjustment tell YOU?

Volkswagen will scale back its industry-best 6-year/72,000-mile bumper- to-bumper warranty program to 4 years/50,000 miles, but throw in two years of factory-covered maintenance beginning with its 2020 model-year vehicles, Automotive News has learned.

And to help its profit-struggling dealers, the German automaker is starting a new Tier 3 advertising program that will pay dealers up to $200 per vehicle to better "develop their local markets." The program is set to begin in the first quarter of 2020...

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TomM - 8/1/2019 1:15:22 AM

-1 Boost

It tells you that they could not afford it - after all - it is not like VW cars are selling like Hotcakes again.

THe long warranties are normally to offset a reputation for reliability that is not entirely true. People will buy a car they believe to be unreliable if the warranty covers the car when they have it. Korean cars have longer warranties - but they have the advantage of lower cost labor to offset some of the warranty costs - people bought their cars largely because they were CHEAP and had long warranties. I would be reducing the Korean warranties would cost them sales now.

But VW cars ARE unreliable - and incredibly expensive to repair for major items. Reducing the warranty is not going to help sales - just as I don't think more advertising will help either. THey need to address the main problem - lack of Quality.

mre30 - 8/1/2019 7:22:53 AM

0 Boost

I'm not sure long warranties translate into greater sales and just end up cost the company $$ or in VW's case $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$.

If a customer really wants a longer warranty, they can generally buy one from the manufacturer at a reasonable cost (unless an exotic) and if you are a person who keeps your car out of warranty it is usually money well spent.

I like keeping my cars for about 7 years (I don't drive that much and have 4 cars) and get pissed if I have to spend $1,000's in repairs. I added an additional two years to my Bentley for $9,000 (incurred about $15,000 in covered repairs so far, with six months left) and I added an additional 3 (!!) years to my Mercedes GL Bluetec Diesel for $4,500 (deal of the century as far as I'm concerned) and have incurred about $8,000 in electric 3rd row (motors replaced twice) and emissions (replaced all oxygen sensors) issues.

If the original customer only keeps the car for 3 years or 4 years, any benefit of offering the warranty is lost to the manufacturer. The warranty is not reflected in the resale value at that point.

VW is run by idiots and the poor reliability combined with this stupid, wasteful "People's Warranty" Bullsh*t shows that most VW execs have had parts of their brains removed.

MDarringer - 8/2/2019 1:52:24 PM

+1 Boost

You not being sure doesn't validate anything. Hyundai/Kia's research shows that the long warranty IS an attraction.

For average, middle-class families, the certainty of having the powertrain covered for 10/100 is financial benefit.

SuperCarEnthusiast - 8/1/2019 7:31:28 AM

0 Boost

Just buy “used” VW cars!

Tiberius1701A - 8/1/2019 8:31:32 AM

0 Boost

Just like all other Greman makes, they are over-engineered warranty hogs.

OneOfOne - 8/1/2019 9:45:05 AM

-7 Boost

so sayeth the bus rider

MDarringer - 8/1/2019 11:28:18 AM

-2 Boost

This is a STUPID move on VW's part. VWs NEED that warranty for consumer protection.

CANADIANCOMMENTS - 8/1/2019 5:46:44 PM

-5 Boost

@MD- Agreed. VW,FCA, BMW, Mercedes etc... Everyone who isn't Toyota/Lexus. In contrast my Toyota 840 amp battery is 7 years old and still going strong. Boring is good.

MDarringer - 8/1/2019 7:46:48 PM

-2 Boost

People here slag Hyundai/Kia but when they no longer needed the 10/100 warranty they were smart enough to realize that keeping it was an advantage.