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Volkswagen Extends Six-Year/72,000-Mile Bumper-to-Bumper Warranty to (Nearly) Its Entire Lineup

By: · September 29, 2017

2017 Volkswagen Golf GTI

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Volkswagen will have arguably the most aggressive new-vehicle warranty in the United States when it rolls out its 2018-model-year vehicles. The coverage will span six years or 72,000 miles, whichever comes first, and will be fully transferable to subsequent owners. Called the People First Warranty, it’s an extension of coverage that is currently found on the Atlas and three-row Tiguan SUVs. “We are the people’s car, and we are putting people first,” Volkswagen Group of America president and CEO Hinrich Woebcken said Friday at a media event in Michigan.

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The warranty will cover every 2018 model except the e-Golf, which has a three-year/36,000-mile bumper-to-bumper warranty and five-year/60,000-mile powertrain coverage. The e-Golf’s battery is covered for eight years or 100,000 miles.

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The extended coverage for every other model is part of Volkswagen’s strategy to move from a niche player to a higher-volume brand in the United States. Most automakers’ bumper-to-bumper coverage is for three years or 36,000 miles, although there are some exceptions. New Hyundais and Kias come with bumper-to-bumper coverage of five years/60,000 miles, which is transferable, and a 10-year/100,000-mile powertrain warranty, which is not transferable. This more robust warranty coverage, launched in 1998, has been a key reason the previously fledgling Hyundai brand has gained more of a foothold in the U.S. market.

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Volkswagen, meanwhile, has been recovering from the diesel-emissions scandal, which is expected to cost the company $30 billion. The company is still in the process of fixing TDI vehicles that were sold back to Volkswagen as part of a settlement with U.S. consumers; Woebcken told reporters that the process is about 67 percent complete. In the meantime, thousands of VW and Audi TDI models are sitting in some 30 makeshift storage lots around the country.

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Despite the scandal, Volkswagen’s new-vehicle sales in the United States have been solid this year, growing 6.4 percent to 220,334 units through August, even as industry-wide sales fell by 2.7 percent. We see no reason why a healthier warranty would get in the way of that momentum.

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Filed under: Audi,Hyundai,Kia,News,VW

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