Hoping to win American customers back, Volkswagen is now offering a six-year or 72,000-mile limited warranty on every 2018 model year vehicle in its lineup – minus the e-Golf. A similar offer was first introduced on the the VW Atlas and Tiguan CUVs, but has been rebranded the “People First Warranty” to reflect its broadened appeal. Hinrich J. Woebcken, President and CEO of Volkswagen Group of America said he thinks this will help increase VW’s U.S. sales numbers.
“We want to grow from a niche player to a volume player in the auto industry,” Woebcken said. “Rather than charging a premium for our product, our new vehicles are now more competitively priced in key segments”
The People First bumper-to-bumper warranty includes powertrain coverage for engines, transmissions, and VW’s 4Motion all-wheel-drive system. Compared to most of its mainstream competitors, VW offers coverage for longer and for higher mileage. For reference, Toyota and Ford both only offer a three-year or 36,000 mile basic warranty and five-year or 60,000 mile powertrain warranty. Hyundai and Kia plans offer more time and mileage on their powertrain warranties, but aren’t transferable to a second owner like VW’s. Assuming the car is resold before the warranty expires (six years or 72,000 miles), a second owner can still benefit from the VW warranty, depending on the vehicle’s original sale date.
Although Woebcken admits dealer morale was lacking when he came on board in 2016 (just after the discovery of cheating devices on VW diesel vehicles), he said the corporate-dealer relationship is now “in a really good place.”
“We want to show that we are taking American customers seriously,” Woebcken said. “The dealers are the ones looking into the eyes of our customers, and I want will do my utmost to keep that positive momentum with the dealer body.”
Woebcken also said this new warranty is part of the brand’s plan to “decentralize from Germany and allow more autonomy in the North American region.” One primary example he referenced was the VW Atlas’ name – which was changed to better appeal to the American market.
“What’s so great about this country is that everybody loves a great comeback story,” Woebcken said. “We feel like we are on a very good path in this regard, and if you look at recent sales numbers, it’s kind of proving it.”
VOLKSWAGEN'S PEOPLE FIRST WARRANTY PUTS BUYERS IN THE DRIVER'S SEAT
Sep 29, 2017
- Volkswagen stands behind its quality and workmanship with America’s Best Car & SUV Bumper-to-Bumper Transferable Limited Warranty*
- Six-year or 72,000-mile “bumper-to-bumper” limited warranty beats its competitors’ bumper to bumper coverage in years and mileage
- Fully transferable warranty demonstrates Volkswagen’s commitment to quality and means increased peace of mind and confidence for new and used buyers
HERNDON (Sept. 29, 2017) — For the 2018 model year, most new Volkswagen vehicles in the United States will come with the People First Warranty, a six-year or 72,000-mile (whichever occurs first) bumper-to-bumper New Vehicle Limited Warranty, which can be transferred to subsequent owners throughout its duration.
“Volkswagen has always been ‘the people’s car,’ and with the People First Warranty, we’re putting our customers first,” said Hinrich J. Woebcken, President and Chief Executive Officer of Volkswagen Group of America. “By bringing the right cars, at the right time and making the offer very competitive, we believe we’re in the position to grow in the US market.”
First introduced for the all-new 2018 Atlas and Tiguan, the People First Warranty now covers additional 2018 VW models: Beetle, Beetle Convertible, Golf, Golf Alltrack, Golf GTI, Golf R, and Golf SportWagen, Jetta and Passat.
“Volkswagen has begun to grow again in America, and buyers have welcomed the Atlas and Tiguan into their homes” said Derrick Hatami, Executive Vice President, Sales and Marketing for Volkswagen of America. “Expanding this warranty beyond those two models gives our dealers another compelling argument for the rest of our lineup, and we believe it will lead to a reduced overall cost of ownership for buyers.”
The six-year/72,000-mile People First Warranty includes powertrain coverage for engines, transmissions and optional 4Motion® all-wheel-drive systems. Additionally, all the elements of the People First Warranty can be transferred to subsequent owners for up to six years or 72,000 miles, whichever occurs first, from the date it was first sold new.
Most mainstream competitors to the Volkswagen brand in the United States such as Honda, Toyota and Ford offer only a three-year/36,000 mile basic warranty and a five-year/60,000 mile powertrain warranty on their cars and SUVs. While Hyundai and Kia offer a five-year/60,000 mile basic warranty and a higher time and mileage limit on their powertrain limited warranties, if the vehicle is sold to a second owner, the powertrain limited warranty is not transferable beyond five years or 60,000 miles from the date it was first sold new.
About Volkswagen of America, Inc.
Founded in 1955, Volkswagen of America, Inc., an operating unit of Volkswagen Group of America, Inc. (VWoA) is headquartered in Herndon, Virginia. It is a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany. VWoA’s operations in the United States include research and development, parts and vehicle processing, parts distribution centers, sales, marketing and service offices, financial service centers, and its state -of-the- art manufacturing facility in Chattanooga, Tennessee. The Volkswagen Group is one of the world's largest producers of passenger cars and Europe's largest automaker. VWoA sells the Atlas, Beetle, Beetle Convertible, e-Golf, Golf, Golf Alltrack, Golf GTI, Golf R, Golf SportWagen, Jetta, Passat, Tiguan, Tiguan Limited and Touareg vehicles through more than 650 independent U.S. dealers. Visit Volkswagen of America online at www.vw.com or media.vw.com to learn more.
This press release is available at media.vw.com. Follow us @VWNews.
“VW,” “Volkswagen,” and all model names and the Volkswagen logo are registered trademarks of Volkswagen AG. All other trademarks are the property of their respective owners.
Features and technical data apply to models offered in the USA. They may differ in other countries.
*6 years/72,000 miles (whichever occurs first) New Vehicle Limited Warranty on MY2018 VW vehicles, excluding e-Golf. Based on manufacturers’ published data on transferable Bumper-to-bumper/Basic warranty only. Not based on other separate warranties. See owner’s literature or dealer for warranty exclusions and limitations.
** See owner’s literature or dealer for warranty exclusions and limitations.