For all of their whining about how the biased media unfairly portrays GM’s quality, they are finally putting their warranty money where their mouth is. They claim quality has improved, now they are lengthening warranties to show they believe it. This hits home to me today because my Chevy Trailblazer is currently at the dealer, being worked on (just a few months under the 3 year warranty deadline).
From a customer standpoint, this lengthened warranty should improve the value of GM vehicles, which should help close the price gap between GM and Toyota. Whether the perception is fair or not, the market values Toyota vehicles more (at a higher price) than comparible GM models (e.g., Toyota Matrix vs. Pontiac Vibe, basically the same car).
Remember, in the lean mindset, the price for which you sell your products is determined by the market. If GM’s quality improves to the point of Toyota’s, the market (the customers’ collective voice) will confirm that by accepting a higher price.
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