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Mitsubishi drops 10-year powertrain warranty

Trimmed: Mitsubishi will stop offering its 10-year powertrain warranty but the company believes price cuts on MY13 cars like the Lancer (pictured) are more appealing to customers.

Low take-up of 10-year Diamond Advantage warranty leads Mitsubishi to rethink cover

25 Sep 2012

MITSUBISHI Motors Australia (MMAL) will drop its market-leading 10-year powertrain cover from the Diamond Advantage warranty and capped-price servicing plan as of October 1.

As part of a wider Diamond Advantage rethink, the inclusive roadside assist package will be reduced from three years to one year for customers who opt to service their car outside the Mitsubishi dealer network.

The company is citing low take-up of the no-cost 10-year warranty, which is restricted to the vehicle’s original purchaser and expires if it is driven more than 160,000 kilometres.

MMAL corporate communications manager Caitlin Beale told GoAuto that just 1.5 per cent of customers had taken up the 10-year powertrain warranty in the eight years since it was established.

She said existing customers and those who purchased their vehicles before October 1 were unaffected by the change, but that cost savings from not having to administer the warranty were being passed on to new customers, who will receive the standard five-year warranty.

“What it will do is bring that saving down into the price point of our vehicles and help every customer, not the 1.5 per cent it helps at the moment... we want to give value to all the customers that drive our cars .”

Ms Beale confirmed that price reductions will be applied to 2013 model year vehicles as they arrive on the market.

Price cuts already announced include the facelifted ASX, MY13 Lancer and MY13 Lancer Evolution launched last month, with savings of up to $8900 on the Evo, $2000 slashed from the up-spec ASX Aspire and entry to a base-specification Lancer becoming $1700 less expensive.

GoAuto understands some of MMAL’s capped price servicing prices may increase as the schedule is boosted to include extra items like pollen filters.

Ms Beale said numerous options for re-jigging the Diamond Advantage plan were considered, but the decision to drop the 10-year cover was arrived at because few customers were keeping their cars for longer than three or five years and many of those who did had exceeded the 160,000km limit.

The Diamond Advantage warranty begins with a standard three-year/130,000km policy that can be extended to five years (still with a limit of 130,000km) if the vehicle has been serviced in accordance with Mitsubishi’s official schedule and the owner has notified their dealer of their intention to take up the additional cover during the final six months of the original three-year period.

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