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GM throw lifebelt into a sinking market
publication date: Jul 14, 2010
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author/source: Robin Roberts
In today’s economically turbulent times, new car
buyers want the security of a “lifebelt”, says Chevrolet MD Mark Terry.
| Keen
to build on their success through the scrappage scheme, Terry said
research among buyers and customers at the end of 2009 indicated it
wasn’t just a cheap car which they wanted, but also security behind a
brand.
It was this continuing research which led Chevrolet to announce
its 5-Year Promise last week.
It is not only a five-year warranty on
all new Chevrolets but customers will also get five-years’ free
servicing, five years’ roadside assistance, five years of free annual
vehicle health checks and free MoT test cover until the car is five
years old.
The package is also transferable to subsequent owners who
qualify for the remainder of the cover left. Terry said, “Our
research indicated that the post-recession is probably going to feel
more like a recession than it was last year when the scrappage incentive
was brought in and softened the landing so to speak. |  | | Promising: Terry
joined Saab in 1987 from an engineering and sales background and left in
2008 when operations director, to take over at Chevrolet UK. | “People who
have a disposable income have told us they will spend on something if
they feel they are getting value for money. Customers want to feel very
confident about a brand and as a result we introduced the 5-Year Promise
to show them we are here for them after the initial purchase.”
Terry
said other manufacturers offered extended warranties and they had seen
sales rise as a result and various service packages exist to support
buyers but they are charged for or were more limited than the new
Chevrolet 5-Year Promise.
“Put simply, no one else is doing what we
have said we will do,” he added. “We want customers to know they can
count on us and we are stepping up to meet customer requirements.”
There
is also another element to the new support package. It demands more of
dealers to keep the customers happy if they want to retain service work
but it will also assist with lifting residual values, which are good for
both sellers of Chevrolet models, traders who deal in them and used car
buyers who will have the benefit of the outstanding period of the
5-Year Promise, said Terry.
|  | In the keenly priced used car market the
addition of the new Chevrolet package will make the brand more
attractive than a competitor which does not have the manufacturer backed
warranty, particularly for private buyers
who have bought 1,000 more cars so far this year than last and have
taken a bigger percentage of Chevrolet registrations in a market which
has declined and is expected to continue going down in 2010. They hope
to do better than the 18,600 sales of 2009, but how much better is
likely to be down to the success of the 5-Year Promise. |
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