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Chrysler Gets Rid of 7-Year Warranty

May 16, 2005

DETROIT -- Starting in the 2006 model year, the Chrysler group will dispense of its seven-year/70,000-mile standard powertrain warranty.

A survey by Chrysler showed that the 7/70,000 warranty is a low priority for car buyers, said John Schenden, owner of Pro Chrysler-Jeep in Denver and chairman of the Chrysler-Jeep national dealer council.

Chrysler will continue to offer its three-year/36,000-mile standard bumper-to-bumper warranty to customers. The money originally slated to be used for the longer warranty will go to "other consumer and dealer marketing efforts," Schenden added.

Observers believe this could be good news for service contract marketing.

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