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http://www.reuters.com/article/marketsNews/idINN1931402220080819?rpc=44

DETROIT, Aug 19 (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) on Tuesday said it was extending a warranty offer on certified used cars and trucks, citing gains in quality and a drop in warranty-funded repairs.

GM said it would begin offering a 12-month, 12,000-mile "bumper-to-bumper" warranty on all used cars and trucks certified as eligible for the repair coverage by participating GM dealers.

The change, which takes effect on Sept. 13, extends the term of the GM warranty on late model used cars in good condition by an additional 9 months and 9,000 miles.

The move comes a day after GM announced it was rolling out a sweeping new discount program on new cars and trucks that will offer employee-level pricing for any buyer.

U.S. automakers, including GM, have long argued that improvements in the quality of their vehicles have not been fully recognized by American consumers.

In response, all three Detroit-based automakers have rolled out more generous warranties over the past several years in a bid to raise consumer confidence.

GM's sales of new cars and trucks have dropped 18 percent so far this year, pushing its dealers to rely more heavily on sales of used cars, which typically carry higher margins.

"This is a clear indication of the confidence in the quality and value of our cars and trucks," Brian McVeigh, GM's manager of fleet and commercial operations, said in a statement about the revamped warranty offer.

GM has seen a drop of 40 percent in warranty-funded repairs over the past two years and a decline of 14 percent this year alone, Jamie Hresko, the automaker's vice president of quality, told reporters and analysts.

GM said it expected that the new warranty offer, which can be transferred to subsequent buyers, would support resale values for GM vehicles but declined to provide a target.

Auto brands with higher resale values are able to command higher prices on new car sales, a key advantage in profitability for Japanese automakers like Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) and Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) in the U.S. market.

A year ago, Chrysler LLC began offering a "lifetime" warranty on the powertrain on almost all of its new vehicles to address a longtime concern of dealers.

In February 2007, GM extended a five-year, 100,000-mile powertrain warranty to its certified used cars, the same offer that the automaker extends on new car sales.
 

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Would that improvement in quality have come from new inexperienced workers building GM vehicles for half the pay as before?

What I see is more squeaks, rattles, waterleaks, and windnoise than I have in the previous thirty years.

Sorry. I forgot electrical problems.
 

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Would that improvement in quality have come from new inexperienced workers building GM vehicles for half the pay as before?

What I see is more squeaks, rattles, waterleaks, and windnoise than I have in the previous thirty years.

Sorry. I forgot electrical problems.
I don't think GM really has any of these "inexperienced workers ... half pay..".

First - there has to be open positions and even after all the buyouts there is still plenty of the experenced - well paid people to fill almost all the positions.

Second - contract does not allow the lower pay positions for traditional auto assembly work. It can be used for support (moving materials, etc) and for work that is typically done by outside suppliers.

At the rate GM is shrinking - it will be years before there is a significant number of new workers working at the reduced wages
 

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Would that improvement in quality have come from new inexperienced workers building GM vehicles for half the pay as before?

What I see is more squeaks, rattles, waterleaks, and windnoise than I have in the previous thirty years.

Sorry. I forgot electrical problems.

Sounds like someone is a little bitter.
 

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I'm bitter all right. I'm bitter that GM has money and percieved quality problems and ships vehicles to the dealer that aren't ready to sell.

Since 2007, we continually get every Acadia with factory sunroof with water leaks from the sunroof. We took digital pictures of the problem and how to correct it and sent them directly to the assembly plant. I'm still getting water leaking Acadias that haven't incorporated any kind of fix.

We've got knocking intermediate shafts in GM full size trucks that have been going on for years. Now Pontiac Grand Prixs and G6's have the same problem. I can't count how many cars we've put steering gears and tie rods on at 20K and above.

With the whole world watching we got our first Yukon Hybrid in. Finally after the $4K rebate we sold it. It kept dying when switching from hybrid drive to gas drive. After hours and hours on the phone with technical assistance the trained hybrid technician reported they were sending two engineers from Detroit. After two days the engineers discovered the vehicle had the wrong program in the powertrain control module. They downloaded the program and reprogrammed the module and all's well? Not exactly. A customer just paid $55 grand for a vehicle that wasn't ready to sell.

People here have pride in GM, but it doesn't take a genius to figure out if you have properly watertested a vehicle that it's going to leak. And if you tested the suspension and steering components, they wear out too soon.

So either you didn't test the vehicles, or you shipped them for sale knowing they weren't ready to sell. Either way, there is no excuse.
 
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