"Two Years" Strategy Of VW: Shortened Warranty and Added Free Maintenance

After-sales service is an important component in the automotive industry, which is hooked with the company's reputation and satisfaction. Reviewing on the coverage year has on many of the warranty slips, it's quite attracting to gain a big number from that segment. However, numbers do not always stand for anything.

Volkswagen once announced a six-year / 72,000-mile warranty, now the make adjusts its warranty policy to a four-year and 50,000 miles for the 2020 model year. We know how that sounds like, it's quirky for VW to drop The People First Warranty which claimed to be perfect for customers priviously. 

According to VW spokesman Mark Clothier, VW has conducted after-sales surveys with owners, which indicates that they value more about the carefree maintenance in the first few years of ownership than coverage length. Knowing that, VW regulates its warranty policy and make it more owner-friendly like.

As compensation, Volkswagen has added two years of free factory-covered maintenance for owners and prepaid the full warranty rate for dealers.

"Volkswagen is committed to listening and addressing the needs of its customers and dealers as we look to increase market share in the U.S." a VW spokesman responded to the issue. 

He added that, "The previous warranty was a valuable tool to introduce customers to the Volkswagen brand and to give them peace of mind. Our new vehicle limited warranty builds upon those benefits by still providing robust coverage and further lowering the cost of ownership with carefree maintenance for the first two years."

Volkswagen is not loading the dice against the owners, which will also against itself apparently, but to presenting more sentimental customer care and rational image in the automotive industry.