The Chrysler arm of DaimlerChrysler AG said on March 28 that it was extending a seven-year or 100,000-mile warranty on engines and transmissions in its new 2001 and 2002 cars and trucks until the end of May, according to Reuters.

Chrysler introduced the extended warranty in November last year when it diverted somewhat from the zero percent financing offered by its domestic rivals, General Motors Corp. and Ford Motor Co.

"The powertrain protection pledge has been an effective tool in generating more showroom traffic and raising closing ratios," said Jim Schroer, Chrysler's executive vice president for global sales and marketing.

Chrysler's U.S. sales during the first two months this year have fallen more than 10 percent from last year, compared to a drop of 4.3 percent for the industry overall.