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Ford Fusion/Mercury Milan: Warranty/Extended Warranty

ANT14ANT14 Posts: 2,687
Starting 2007, powertrain warranties for Ford/Mercury's will be stretched to 5 years, 60K miles, and 6 years, 70K miles for Lincoln.

I've been at pushing this for years if some of you have remembered from earlier posts.
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Comments

  • badgerfanbadgerfan Posts: 1,565
    Good move by Ford, though in my experience with both my 1990 Taurus and my 2000 Taurus, I didn't have a bit of power train problems in the first 60K or 5 years anyways. In fact none on the 1990 Taurus when I sold it at ten years and 98K miles and the 2000 is going good at 58K so far.

    This 5/60 warranty will give some peace of mind to some potential consumers, however.
  • snowman89snowman89 Posts: 36
    It will also have the sport pkg...which seems like a huge bargain. Also, I just learned powertrain warranties are increasing with the '07s...this is annoying, Ford! Make it retroactive to '06!!
  • johnclineiijohnclineii Posts: 2,287
    The extended warranties for the 07's is figured into the price. If you want a longer warranty for you 06, you can buy one....at any Ford dealer...

    If you haven't bought that 06 yet, the warranty is quietly being offered on 06's in stock...or that's my understanding, any way...
  • snowman89snowman89 Posts: 36
    Thanks for the tip...I'll push for it when we pick it up Tuesday. Do you have info in print or on the web somewhere about extending the warranty for 06's? The papers are all signed, but no money has exchanged hands. I also learned that side air bags will be standard in 07, and some of the optional sport pkg equip (the radio upgrade) will be standard on 07 se's. I also read somewhere that the sticker price will only increase about $300-$400. I'm not interested in the extended warranty...even though I tend to drive the wheels off my car before giving them up (but I'd love to drive new every 2-3 years...)
  • johnclineiijohnclineii Posts: 2,287
    Ford's recent extending of warranty coverage makes clear it has faith in these vehicles:

    http://carreviewsonline.auto123.com/en/info/autonews/index,view.spy?artid=65470
  • baggs32baggs32 Posts: 3,213
    Ford's recent extending of warranty coverage makes clear it has faith in these vehicles:

    Yes! I can't believe that no one is making a big deal out of this either. All we ever heard on these threads is how Ford should step up their warranty if they think they stepped up the quality. Well, here it is. Who's ready to buy now?
  • backybacky Twin CitiesPosts: 18,747
    A five-year powertrain warranty is no big deal IMO. Now if Ford were to really step up, maybe offer a 5 year comprehensive warranty and a 10-year powertrain warranty--that would be a Big Deal.
  • baggs32baggs32 Posts: 3,213
    I agree that the new warranty itself isn't a big deal because other makes offer the same thing and have for some time now. But I do think it's a big deal that Ford is now offering it. That says a lot about their new lineup IMO.
  • Ford acts to rev up stalled turnaround

    Bryce G. Hoffman / The Detroit News

    Advertisement


    GET FREE HEADLINES BY E-MAIL

    Ford Motor Co.

    Ford's generous warranty could boost sales and lift resale values, some analysts say. See full image
    Warranties at a glance
    While some warranties may vary within a company, here's a quick look at what warranties automakers are offering.
    DaimlerChrysler AG
    Drivetrain: 3 years/36,000 miles
    Basic: 3 years/36,000 miles
    Roadside service: 3 years/36,000 miles
    Ford Motor Co.
    Drivetrain: From 5 years/60,000 miles to 6 years/70,000 miles
    Basic: 3 years/36,000 miles to 4 years/50,000 miles
    Roadside service: Up to 6 years/70,000 miles
    General Motors Corp.
    Drivetrain: From 3 years/36,000 miles to 5 years/60,000 miles
    Basic: 3 years/36,000 miles to 4 years/50,000 miles
    Roadside service: Up to 4 years/50,000 miles
    Honda Motor Co.
    Drivetrain: 5 years/60,000 miles
    Basic: 3 years/36,000 miles
    Roadside service: Not offered
    Nissan Motor Co.
    Drivetrain: 5 years/60,000 miles
    Basic: 3 years/36,000 miles
    Roadside service: 3 years/36,000 miles
    Toyota Motor Corp.
    Drivetrain: 5 years/60,000 miles
    Basic: 3 years/36,000 miles
    Roadside service: Not offered
    Source: Edmunds.com

    Ford is increasing the warranty on all of its 2007 Ford and Mercury vehicles to five years or 60,000 miles. In addition, Ford will offer free roadside assistance for the entire warranty period. How important are these benefits when you're shopping for a car?
    Click here to vote


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    Ford Motor Co., struggling to gain traction with its North American turnaround effort, announced a series of moves Thursday aimed at cutting costs and boosting sales.

    Ford's Board of Directors voted to cut the company's quarterly dividend in half, from 10 cents to 5 cents a share, beginning in the third quarter. The dividend is now at its lowest point since Ford eliminated payments altogether in 1982 and mirrors a 50 percent dividend reduction at General Motors Corp. in February.

    Ford's directors also cut their own $200,000-a-year compensation by half. Chairman and CEO Bill Ford Jr. said the moves were necessary to maintain strong liquidity.

    Also Thursday, Ford announced that it is extending the standard powertrain warranty on all Ford and Mercury vehicles from three years or 36,000 miles to five years or 60,000 miles. Lincoln's four-year or 50,000-mile standard powertrain warranty is being extended to six years or 70,000 miles. In addition, Ford said it will offer free roadside assistance for the entire warranty period and allow customers to transfer their warranties if they sell their car or truck before the warranty expires.

    That makes Ford's warranty package the most generous of any full-line automaker -- a fact it hopes will bring more customers into Ford dealerships, which have seen retail sales drop 9 percent so far this year.

    "The headwinds we faced at the beginning of 2006 have only become stronger, as consistently higher gasoline prices in the U.S. have caused consumer purchase preferences to shift away from SUVs and large trucks to smaller cars and crossover vehicles," Bill Ford said in a statement issued after Thursday's board meeting. "While this shift plays positively to our new vehicle offerings, we must still get our costs in line in response to segment adjustments and higher commodity prices that are affecting the company."

    But Wall Street said the decision to cut dividends signals bad news ahead as Ford prepares to release its second-quarter financial results next week.

    "This certainly suggests that second-quarter earnings are going to be uglier than expected," said Bradley Rubin, vice president of credit research at BNP Paribas in New York. "People are finally realizing at Ford that this turnaround is a little more difficult than they anticipated."

    Ford shares closed down 32 cents Thursday to $6.56, a 4.6 percent decline.

    "The dividend cut telegraphs the board's mounting concern about the company's performance," said John Casesa of New York's Casesa Shapiro Group LLC. "It's a very pessimistic signal."

    The dividend cut is expected to save Ford about $375 million annually.

    "Strong liquidity is an important enabler of our ongoing turnaround efforts and this action will make an important contribution," Bill Ford said.

    But credit analysts said the move will not change the company's balance sheet enough to boost Ford's weak credit ratings, which have already fallen into junk-bond territory.

    "The cash savings are relatively marginal," said Robert Schulz, who follows the company for Standard & Poor's in New York.

    Craig Hutson, an analyst with Gimme Credit, said he expects Ford's ratings to sink even deeper.

    "It is a sign that the company is acting to shore up its liquidity amid greater headwinds in the industry than it originally anticipated," he said. "A dividend cut is never good news."

    But Ford's decision to extend warranties may be good news, at least for consumers.

    The five-year or 60,000-mile powertrain warranty being offered on Ford and Mercury cars and trucks is substantially better than the three-year or 36,000-mile warranty offered on all of DaimlerChrysler AG's domestic nameplates and most of General Motors Corp.'s brands. More importantly, it matches the warranties offered by Ford's leading Japanese rivals: Toyota Motor Corp. and Honda Motor Co., neither of which includes roadside assistance as part of their standard packages.

    "Ford is setting its own path," said Cisco Codina, head of North American marketing, sales and service for Ford. "All of this is part of our strategy to become America's car company."

    The new warranties, which are effective today, will be applied retroactively to customers who have already purchased 2007 cars and trucks. Moreover, the company said it will offer extended warranties to customers who buy 2006 models. The new warranties apply to all Ford, Mercury and Lincoln vehicles, except for those like Ford's diesel pickups and hybrid SUVs that already featured more attractive terms.

    "It definitely gives consumers another reason to look at Ford," said Mike Jackson, an analyst with CSM Worldwide in Farmington Hills.

    Boosting warranties addresses one of Ford's biggest product problems -- the resale value of its vehicles. However, the move could increase the company's warranty costs substantially.

    Ford's second quarter warranty data shows that 2006 model year per-unit warranty costs are 24 percent less than those for 2005 model vehicles.

    "I'm glad that we're leading instead of following," said Kenny Shreve, owner of Kenny Shreve Ford Mercury in McLeansboro, Ill.

    "I feel better about Ford today than I have in years."
  • mschmalmschmal Posts: 1,757
    Ford's warranty is 0 deductable and fully transferable. This is not the case with the powertrain warranties from other companies.
  • backybacky Twin CitiesPosts: 18,747
    Not correct. For example, Hyundai, Kia, and Mitsubishi warrant powertrains with 0 deductible and tranferability for 5 years and 60k miles. In addition, they offer 5 more years and 40k more miles of zero-deductible powertrain warranty to the original purchaser. Suzuki offers 7/70k with 0 deductible and transferability on powertrains. Note Ford qualifies their unique warranty by saying they are the only "full-line" manufacturer to offer this kind of warranty. That doesn't pass the "so what?" test for me.
  • wow, what would it take to make you happy, giving you the car for free?

    This is such a big deal, especially for a US automaker. This is exactly the right move on fords part. This shows the company is standing behind its product, and could potentially increase resale values of there cars.

    They are beating Honda and Toyota with this and its a very important move. Don't make it out to be less than it is. The other automakers you mentioned have only a toehold in the US market. There total warrentee costs for the US pale in comparrison to a full line maker like ford.

    This is why its so important that ford did this, and why fords descision is more significant than huyundai or kia.
  • akirbyakirby Posts: 7,723
    If you're comparing a Fusion to a Camry and Accord then it is a big deal. Same with a MkZ vs. TL vs. ES350. Hyundai (not so much lately), Kia, Mitsubish and Suzuki are at or near the bottom in quality so they need the warranty just to get customers to consider them.

    Look at it from the other standpoint - they now offer a better powertrain warranty than Honda, Toyota, Nissan, Infiniti, Lexus, Acura, BMW, Mercedes, Dodge, Chrysler, Jeep, Audi, VW, Chevy, Pontiac, Buick, Cadillac, GMC, Saturn, Scion, Hummer and Saab.
  • theman123theman123 Posts: 170
    Look at it from the other standpoint - they now offer a better powertrain warranty than Honda, Toyota, Nissan, Infiniti, Lexus, Acura, BMW, Mercedes, Dodge, Chrysler, Jeep, Audi, VW, Chevy, Pontiac, Buick, Cadillac, GMC, Saturn, Scion, Hummer and Saab.

    Wow !!! Yeah I think this warranty along with great new cars would definitely get allot of people off the fence and into Ford/Mercury/Lincoln showroom in a hurry. I think that this is the biggest news of the automotive year so far. Oh and you should hear how quite the import fans are. The import fans have nothing and I do mean nothing to say. You could hear a pin drop in the Forum. :D
  • backybacky Twin CitiesPosts: 18,747
    Oh sure, jump on me just because I try to clarify some misleading info in a post.

    I agree is is a good move for Ford. But let's not make more of it than it is. Ford's marketeers are doing a good enough job of that on their own. ;)

    And before you talk about "toeholds", I suggest you look at the sales for a few companies, such as Honda, Nissan, and Hyundai/Kia.

    Also, if Ford builds good products, their powertrain warranty costs shouldn't be very large, should they?
  • backybacky Twin CitiesPosts: 18,747
    Hyundai at or near the bottom of quality compared to Ford? ROFL.

    Personally I'd take the four years of free maintenance that BMW offers vs. one more year and 10k more miles of powertrain warranty. Also, I don't see how Ford's 5 year, 60k mile powertrain warranty is better than that from the likes of Honda or Toyota. It seems to me the only major advantage Ford's new program has over companies like that is the free roadside assistance. Which is a nice benefit, but it isn't actually a warranty on the car. It helps you when the car breaks down, however.
  • snakeweaselsnakeweasel a Certified Edmunds Poster.Posts: 11,789
    Ford's new program has over companies like that is the free roadside assistance. Which is a nice benefit, but it isn't actually a warranty on the car. It helps you when the car breaks down, however.

    It also helps with stupidity, you know like locking your keys in the car or running out of gas.

    The sign said "No shoes, no shirt, no service", it didn't say anything about no pants.

  • backybacky Twin CitiesPosts: 18,747
    That too! I've used that benefit twice on my wife's Elantra when she locked the keys in the car (hard to do, you have to remove the keys from the ignition first, then lock the doors, then leave the keys in the car). And it saves about $300 bucks vs. an auto club membership over the five years.
  • johnclineiijohnclineii Posts: 2,287
    Of course if Ford had seen fit to include the keypad that comes on other Fords on the driver's door, such a benefit would rarely be necessary, if at all. . .
  • snakeweaselsnakeweasel a Certified Edmunds Poster.Posts: 11,789
    Well if someone is of the mind to lock their keys in the car they might not remember the code.

    The sign said "No shoes, no shirt, no service", it didn't say anything about no pants.

  • jeffyscottjeffyscott Posts: 3,855
    Note Ford qualifies their unique warranty by saying they are the only "full-line" manufacturer to offer this kind of warranty.

    Yeah, I had to laugh when I read that.

    The power train warranty is a nice extra. Giving a longer warranty is typically something that has been done when buyers do not trust the product...eg. Hyundai and before that it was Chyrsler with the 7 yr/70,000 mile power train warranty.

    I would like it if there were an option for fewer miles and more years on all these warranties, though. Since I only drive maybe 8000 miles per year, 5 years is only be about 40,000 miles for me.

    Is it just coincidence that mazda is changing from their 4 year bumper-to-bumper warranty to this same warranty structure?
  • explorerx4explorerx4 Central CTPosts: 9,830
    we live by the code. the only problem is that after you own a few, you can get confused as to the current code. then call your wife/husband/whatever, as long as you didn't lock the phone in there too. ;)
  • johnclineiijohnclineii Posts: 2,287
    So change the secondary code of all the vehicles you own to be the same...that is if you trust the wife/kids/dog, etc.!

    I still think Ford erred in not including the doorpad on Fusion/Milan.
  • explorerx4explorerx4 Central CTPosts: 9,830
    from what i remember, you can only add digits to the code.
    ford does sell an add on keypad.
  • akirbyakirby Posts: 7,723
    Hyundai at or near the bottom of quality compared to Ford? ROFL.

    Gee - hard to tell you own a Hyundai.

    I did qualify that with "not so much lately". Hyundai quality is much improved (nowhere else they could go but up). But the fact remains that Ford is above average in long term dependability and Hyundai is below average. Kia, Suzuki and Mitsubishi are at or near the bottom. See for yourself.

    image
  • snakeweaselsnakeweasel a Certified Edmunds Poster.Posts: 11,789
    I wouldn't put to much stock in those figures. It just says problems per vehicle, doesn't say what those problems are. A model with one problem per vehicle is worse than one with two problems per vehicle if that one problem is the engine exploding verses a couple of knobs falling off.

    The sign said "No shoes, no shirt, no service", it didn't say anything about no pants.

  • akirbyakirby Posts: 7,723
    So point us to a reliability rating system that takes that into account. JD Power is THE industry standard.

    I bet if the same survey showed Hyundai above Ford you'd be singing a different tune.

    Not hard to tell who the Hyundai owners are in this forum.
  • ron_mron_m Posts: 188
    Based upon the dependability results displayed on this particular chart, I sure would hate to think that I had went out and dropped a huge amount of cash on an Audi, Mercedes-Benz, or Land Rover product! :) Also, I was pleased to see that Ford came in above the industry average.

    Regarding the increased powertrain warranty duration that Ford is now offering, there is absolutely no doubt that this is a step in the right direction for improving their North American sales.

    Ron M.
  • snakeweaselsnakeweasel a Certified Edmunds Poster.Posts: 11,789
    So point us to a reliability rating system that takes that into account.

    I don't know of one that does. But that doesn't diminish what I said.

    I bet if the same survey showed Hyundai above Ford you'd be singing a different tune.

    If you do make that bet don't put your rent money on it because you would lose. But that doesn't diminish what I said.

    The sign said "No shoes, no shirt, no service", it didn't say anything about no pants.

  • backybacky Twin CitiesPosts: 18,747
    CR's annual study is weighted by type of problem. Take a look at the scores for Fords vs. Hyundais in their 2006 survey and tell us what you see--which brand scores better overall?

    Also, 18th from the bottom is a long ways from "at or near the bottom." And a difference of 231 to 250 is hardly a big difference. Kia, Land Rover, Mini... they have some catching up to do. They are "at or near the bottom." Hyundai is not.

    Not hard to tell who the Ford owners are in this forum. ;)

    P.S. As long as JD Power is "the industry standard", you probably noticed how Ford fared in their latest IQS, vs. the likes of Hyundai. But since that survey shows Hyundai above Ford (which was below average), perhaps you will sing a different tune?

    http://www.jdpower.com/corporate/news/releases/pressrelease.asp?ID=2006082
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