I think it will be gone in about two years. Just won't be necessary
anymore from a Company Standpoint. What do you all think?

IMHO it will be around for a while because it has become a core part
part of the company's brand identity.

As Hyundai has been moving up I have noticed other manufacturers
testing out longer waranties to encourage sales. The latest is Ford
offering 5yr/60k mile powertrain on all 06's

No doubt that Hyundai and Kia used it in the beginning as a marketing ploy
to get people to notice their products as up-and-comers in a crowded
marketplace.

But as they have been making quality gains, it has become more of a symbol
of what they can be. It remains a powerful chip to use against cars that
have, maybe a 3/36000 warranty.

In that sense, there will be a lot of heat if they try to drop it. Indeed,
what this most recent poster said makes it clear that this strategy is
affecting the other car makers.

It wouldn't make sense for the warranty to take a step down when they are
forcing everyone else to take a step up.

Just FYI, the local Hyundai/Kia dealer now has occasional sales where they
put 100,000 mile warranties on ALL their cars, new and used, regardless of
manufacturer. Those are the companies biggest volume weekends.

It works. No one in their right mind would try to drop something that works
(or would they??).

Tom Wenndt


<art.obrien@gmail.com> wrote in message
news:1154966387.677753.266990@i3g2000cwc.googlegro ups.com...
> IMHO it will be around for a while because it has become a core part
> part of the company's brand identity.
>
> As Hyundai has been moving up I have noticed other manufacturers
> testing out longer waranties to encourage sales. The latest is Ford
> offering 5yr/60k mile powertrain on all 06's
>

jtees4 wrote:
> I think it will be gone in about two years. Just won't be necessary
> anymore from a Company Standpoint. What do you all think?

Who cares? It's available now, which is all that matters.

When Hyundai indroduced the 5/60--10/100 program, they intended for it to
be temporary. I wouldn't be surprised to see it go away in about the same
period as the OP suggested. But, as has been pointed out, if it becomes
the industry standard, they'll be pretty much forced to keep it.

On Mon, 07 Aug 2006 11:42:01 -0400, jtees4 <jtees4@hotmail.com> wrote:

>I think it will be gone in about two years. Just won't be necessary
>anymore from a Company Standpoint. What do you all think?


Why drop it if they are able to maintain their quality and price? You
should look into some of what Malcom Baldrigdge preached and the
Asians bought into. Total cost of ownership is cheaper to build
something right the first time rather than pay for service over the
usefull life. Many folks understand that. Detroit ignores it at
their peril.

nothermark wrote:
> On Mon, 07 Aug 2006 11:42:01 -0400, jtees4 <jtees4@hotmail.com> wrote:
>
>
>>I think it will be gone in about two years. Just won't be necessary
>>anymore from a Company Standpoint. What do you all think?
>
>
>
> Why drop it if they are able to maintain their quality and price? You
> should look into some of what Malcom Baldrigdge preached and the
> Asians bought into. Total cost of ownership is cheaper to build
> something right the first time rather than pay for service over the
> usefull life. Many folks understand that. Detroit ignores it at
> their peril.

Because it carries the stigma of the cars being low quality if they need
a warranty that long to sell them. Remember, that almost all extended
warranties like that have been instituted by car makers who were having
quality problems (Chrysler with their original 7/70 plan and Hyundai and
Kia when their stuff was junk).

People tend to associate long warranties with low quality as backward as
that seems logically!

Matt

On Mon, 07 Aug 2006 19:34:19 -0400, "hyundaitech"
<notpublic@not.public.com> wrote:

>When Hyundai indroduced the 5/60--10/100 program, they intended for it to
>be temporary. I wouldn't be surprised to see it go away in about the same
>period as the OP suggested. But, as has been pointed out, if it becomes
>the industry standard, they'll be pretty much forced to keep it.

Chrysler used to have the 7/70 thing, I bought two Chryslers during
that period. Now I own two Hyundais...so I guess I like the ideafew
months to a year. If they dropped the warranty it might affect my
decision.

On Tue, 08 Aug 2006 08:01:17 -0400, jtees4 <jtees4@hotmail.com> wrote:

>On Mon, 07 Aug 2006 19:34:19 -0400, "hyundaitech"
><notpublic@not.public.com> wrote:
>
>>When Hyundai indroduced the 5/60--10/100 program, they intended for it to
>>be temporary. I wouldn't be surprised to see it go away in about the same
>>period as the OP suggested. But, as has been pointed out, if it becomes
>>the industry standard, they'll be pretty much forced to keep it.
>
>Chrysler used to have the 7/70 thing, I bought two Chryslers during
>that period. Now I own two Hyundais...so I guess I like the ideafew
>months to a year. If they dropped the warranty it might affect my
>decision.

Just an additional note...with the Chrylser you NEEDED the 7/70
warranty. No issues at all with my 03 or 05 Hyundai Excel GT's.

Do people actually associate a long warranty with poor quality? I can
see where some may think that, but I bet they're in the minority.
Although I'm speaking strictly from a personal perspective, and I'm
certainly no student of automotive history, I've always thought longer
warranties make for better cars, for a few reasons.

I think most people look at it from the manufacturers' perspective: If
they build a crappy car and put a long warranty on it, they're losing
money... no company is going to do that.

On the other hand, if they build an average car and put a long warranty
on it, they'll break even and both parties will share the headaches of
vehicle ownership.

The best thing for everyone is the offer of a very long warranty. Why?
The manufacturer must be confident that their car will stay out of the
shop, because otherwise they're on the hook for repairs for a long
time. Everyone wins: the consumer gets a good vehicle, the
manufacturer makes a good dollar and a good reputation, and the
warranty is there for peace of mind even though very few need to use
it. The only person who loses is the shop guy/gal (sorry
hyundaitech)... although they probably could keep busy with work that
doesn't fall under warranty, like accidents and modifications and so
forth.

If the warranty is transferable, it would also help keep resale and
residual values high.

The worst are the short warranties... because then the manufacturer
doesn't care if their product winds up in the shop after 24-36 months
with a pooched transmission... it isn't their problem.

I agree that some may take the view that a long warranty is a sign of
poor quality, but those same people probably still believe in the tooth
fairy and/or the earth is flat.

Tim

Matt Whiting wrote:
> nothermark wrote:
> > On Mon, 07 Aug 2006 11:42:01 -0400, jtees4 <jtees4@hotmail.com> wrote:
> >
> >
> >>I think it will be gone in about two years. Just won't be necessary
> >>anymore from a Company Standpoint. What do you all think?
> >
> >
> >
> > Why drop it if they are able to maintain their quality and price? You
> > should look into some of what Malcom Baldrigdge preached and the
> > Asians bought into. Total cost of ownership is cheaper to build
> > something right the first time rather than pay for service over the
> > usefull life. Many folks understand that. Detroit ignores it at
> > their peril.
>
> Because it carries the stigma of the cars being low quality if they need
> a warranty that long to sell them. Remember, that almost all extended
> warranties like that have been instituted by car makers who were having
> quality problems (Chrysler with their original 7/70 plan and Hyundai and
> Kia when their stuff was junk).
>
> People tend to associate long warranties with low quality as backward as
> that seems logically!
>
> Matt