VWoA politely calls sinking its six-year/72,000 mile bumper-to-bumper warranty an adjustment. For the 2020 model year, the warranty program is four years/50,000 miles with two years of factory-covered maintenance. Longtime VW fans will notice that VW’s new scheme is similar to the Carefree Maintenance plan introduced in 2009. Then, VW offered a three-year/36,000 mile warranty with paid scheduled maintenance.
According to Automotive News, the People First plan launched in 2017 with a Woodstock-like TV ad, hasn’t helped its dealers move metal. Plus, the expanded warranty, meant to improve consumer confidence in VW, never became a major reason for buying a VW. One reason is leasing. Those who leased didn’t see much benefit in a longer warranty. VW expects paid maintenance to win over leasing and purchasing customers who cite overall cost of ownership as critical to their purchase decision.
VW also sweetened the deal for its retailers with a new co-op program. VW will pay dealers up to $200 per vehicle to cover local advertising. This should improve VW dealer profits, which are lower than most other major brands.
VW Atlas: first VW model with the expanded People First Warranty
Last Edit: Aug 1, 2019 9:40:22 GMT -6 by VWCA_Adman