Same Vehicle, Different Warantees??

[Duncan]

Hi guys

I have posted this question on other forums, also put them to my motoring enthusiast friends, and yet not received a satisfactory answer. So may-be you guys can shed some light.

In certain markets, one model of vehicle is offered under several different badging. Ford and Mazda are famous for this. For example, here in SA we can buy the identical p/up truck as a Mazda Drifter or Ford Ranger. But the warranties offered are completely different.

Anyone got an answer for this??

Cheers

[milinda]

Hi guys

I have posted this question on other forums, also put them to my motoring enthusiast friends, and yet not received a satisfactory answer. So may-be you guys can shed some light.

In certain markets, one model of vehicle is offered under several different badging. Ford and Mazda are famous for this. For example, here in SA we can buy the identical p/up truck as a Mazda Drifter or Ford Ranger. But the warranties offered are completely different.

Anyone got an answer for this??

Cheers

As far as I know a warantee can sell a product. A company can use it as a selling tool of their cars. So a competitor would offer a more comprehensive warantee than the market leaders just to catch up market and sell their cars. So even though its the same pick up Mazda might offer a more comprehensive warantee than Ford if they want to out sell Ford or vice versa

I have noticed a good example in UK market. Hyundai offers a comperhensive 5 yrs warrantee for their cars and no other manufacturer has been able to match it. (all others offer 3 yrs). The result is Hyundai shift their

cars in a very competitive market otherwise they would really struggle due to lack of brand image.

Poeple who wouldnt ever thought they would own a HYundai now have one parked on their driveways because of the peace of mind and value for money hyundai offers is unbeatable. Infact this warantee has help Hyundai to sell its coupe well in the most fiercely competitive coupe market segment.

So basically its down to marketing to decide what kind of warantee to be offered considering their sales targets/profits. Well at least thats what I think

[Duncan]

I hear you bro, but here is the thing. In our (and some others world over) market, both Ford and Mazda products are sold through the same dealer network. In fact in some show rooms both the Drifter and the Ranger is parked right next to each other! They even have identical mechanical components!!

So does it mean that the brand offering a lesser Warranty is expecting buyers to be real dumb and not see the difference??

[milinda]

I hear you bro, but here is the thing. In our (and some others world over) market, both Ford and Mazda products are sold through the same dealer network. In fact in some show rooms both the Drifter and the Ranger is parked right next to each other! They even have identical mechanical components!!

So does it mean that the brand offering a lesser Warranty is expecting buyers to be real dumb and not see the difference??

Duncan,

What are the prices of these pick ups .Are they in the same range?? If so

I think this comes down to brand loyalty.whoever offers the lesser warantee should be the stronger brand in the market.

Given the choice between a Mazda and a FORD an old ass typical Englishman would go for ford even though its the same car that Mazda offers.(Many buyers dont know that Ford has a major interest in Mazda) So obviously Mazda has to offer something extra like a longer warantee to attract these kind of buyers.

[gunat]

To add to milinda's response- components like warranties and after sales services are not decided on a corporate level.

ie. Ford does not dictate what mazda/jaguar/volvo etc must do entice customers.

That decision is made entirely at a brand-level marketing/sales level. Each brand has their own strategy as to how they will attract customers.

Having said that, how do two brands end up side by side? ( i take duncan's example of the Ford/Mazda pickups). Typically, this ends up being a dealer decision i'd say; its most likely cheaper/economical to carry both brands based on transport/logistics costs (especially if both vehicles come off the same production line from the factory...)