Serves the Commercial Small Fleet Market of 10 – 50 Vehicles

Chrysler Revives 7/70 Warranty As Permanent Marketing Feature

July 8, 2002

The "7/70" warranty-protection offer that former Chrysler Corp. Chairman Lee Iacocca used to pitch cars in the 1980s is coming back, according to a Wall Street Journal story by Joseph B. White.DaimlerChrysler AG's Chrysler Group is expected to announce July 8 that it will offer as a permanent feature of its marketing seven-year, 70,000-mile powertrain, or engine and transmission, warranties that are transferable at no cost when vehicles are resold. The new warranty will take effect July 9, according to the Journal.Chrysler's move comes after several months during which the U.S. arm of the German automaker has offered customers nontransferable seven-year, 100,000-mile engine and transmission warranties as a sales incentive. The offer has been renewed month by month.Dealers said last week they anticipated Chrysler would make it permanent.Chrysler CEO Dieter Zetsche said the company decided to make a seven-year, 70,000-milewarranty a standard offer in part to try to counter perceptions that Chrysler vehicles have more quality problems than rival brands, particularly Japanese and European names. By making the warranty transferable at no costto subsequent owners, Chrysler also hopes to improve the resale value of the vehicles.
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