Volkswagen is cutting back on its warranty, while helping dealers cover some of their costs. Automotive News is reporting VW’s 6-year/72,000-mile bumper- to-bumper warranty program will become 4 years/50,000 miles beginning with the 2020 model year. However, they say it includes two years of “factory-covered maintenance”, and is still transferable. Automotive News quotes Senior Vice President of Sales for Volkswagen's North American region, Duncan Movassaghi as saying, "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".
Volkswagen started the 6-year/72,000-mile bumper-to-bumper New Vehicle Limited Warranty when it introduced the 2018 Volkswagen Atlas and 2018 Volkswagen Tiguan. To make the deal even more appealing the warranty was transferable. At the time, President and Chief Executive Officer of Volkswagen Group of America, Hinrich J. Woebcken was quoted in a press release as saying, “We’re confident in the reliability and workmanship of these SUVs, and we want our customers to be confident in their purchase. We believe this warranty will lead to reduced cost of ownership for Volkswagen owners.”
As for the dealers, Automotive News is reporting VW is also starting a new program that will pay dealers up to $200 per vehicle to help with local advertising.
