GM throw lifebelt into a sinking market

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.