GM stretches warranties on 2007 models to lure buyers

General Motors Corp., the world's largest automaker, will extend warranties to 100,000 miles on 2007 cars and trucks as part of a plan to tout quality and win back buyers lost to Toyota Motor Corp. and other rivals.

The new warranty on engines and other powertrain parts is an increase from the current 36,000 miles, chief executive Rick Wagoner said yesterday in Detroit. It also will apply to 2007 models already sold, he said.

``If an automaker is standing behind their product, that's good," said Ron Tadross, an analyst with Banc of America Securities in New York. ``It's not a silver bullet. It won't be the big bang for their buck they think it is. It's just one of the many things they need to be doing."

Wagoner is trying to emphasize value and rely less on incentives after Toyota and Hyundai Motor Co. grabbed US market share last year, contributing to GM's $10.6 billion loss. Sales of redesigned models helped GM post record revenue in the first half.

The warranty, which starts today , will run 100,000 miles or five years. It has no deductible, is transferable to new owners, and applies to all new cars and light trucks sold in the United States and Canada. GM also will extend roadside assistance to 100,000 miles. Warranty coverage for parts outside the powertrain remains at 36,000 miles.

Wagoner said GM would pay for the extra warranty expense with part of the $9 billion in savings it's achieved this year through job cuts and other changes. He didn't specify the cost , but he said it was manageable.

GM shares rose 73 cents, or 2.4 percent, to $31.17 at 4:19 p.m. in New York Stock Exchange composite trading. The stock has climbed 61 percent this year, the most of any company in the Dow Jones industrial average.