News - Kia
Kia launches industry-first seven-year warranty
‘Watershed moment’ for Kia Australia as it introduces seven-year/unlimited warranty
1 Oct 2014
By TERRY MARTIN
KIA Motors Australia has introduced an industry-leading seven-year/unlimited-kilometre new-vehicle warranty across its entire range from today, October 1, supported by roadside assistance and fixed-price servicing over the entire period.
Eclipsing the six-year cover offered by Citroen across its passenger car range, the Kia deal comes almost three months after the South Korean brand’s chief operating officer in Australia, Damien Meredith, revealed that the company was crunching the numbers on seven years as one way of convincing potential buyers of the quality of its new-generation vehicles.
It is also a key part of his plan to increase sales by more than 60 per cent over the next few years, lifting Kia’s annual volume from circa 30,000 units to 50,000 and taking its market share from around 2.7 per cent to 5.0 per cent.
In announcing the cover, which adds two years to the current Kia Connect program, Mr Meredith described it as “a watershed moment in customer care” and insisted that customers will not be asked to pay more for scheduled servicing than had previously been the case.
“Kia customers now have a peace of mind that can’t be matched in the Australian new car market,” he said.
“The two-year increase in warranty, capped-price servicing and roadside assist is absolutely transparent and we will not be asking our customers to dip into their pockets to fund the extra benefits.
Left: Kia Australia chief operating officer Damien Meredith. “Kia acknowledges that there is huge choice available in the new-car market in Australia and we need to be ready to build a lifetime relationship with our customers, anticipating and providing for their needs when they make that decision to join the Kia family.” Owners who are currently part of the five-year capped-price servicing program will be automatically upgraded to the longer deal, while the extended warranty and service benefits will be transferable to subsequent owners providing they meet “the usual conditions” of the Kia Connect program.
While the first year’s roadside assistance is automatically applied with the purchase of the vehicle, renewals are only applied upon annual servicing by an authorised Kia dealer.
“It will quickly become apparent that Kia’s established value proposition will be even further enhanced by the level of ownership coverage and clarity flowing from the 7-7-7 program,” Mr Meredith said.
“A capped-price service program, particularly where a service is an annual event, is an excellent tool for owners to have clarity and consistency of pricing when budgeting for keeping their new purchase in peak condition.” As well as providing an incentive for prospective buyers, Kia anticipates the longer warranty will also improve the resale value of its vehicles.
Citroen extended its six-year deal to the entire passenger car range in July, leaving only the compact Berlingo van with a three-year/100,000km warranty – the industry norm, although car companies are increasingly improving their cover.
Kia’s sister brand Hyundai recently announced a new lifetime capped-price servicing program for every vehicle sold in Australia since the brand launched here in 1986, and extended its roadside assistance cover from seven to 10 years, although the warranty remains at five years/unlimited kilometres.
Mazda and Subaru have also introduced a lifetime capped-price servicing scheme this year, but the standard warranty from both brands applies for a more conventional three years/unlimited kilometres.
Market leader Toyota has a limited (three-year/60,000km) capped-price servicing scheme in place, and the regular three-year/100,000km warranty.
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