Chrysler cuts powertrain warranty to 5 years

AUBURN HILLS, Mich. -- Chrysler Group said Wednesday that it is dropping its lifetime powertrain warranty in favor of a 5-year, 100,000-mile guarantee.

Chrysler spokesman Rick Deneau said the decision was driven by market research that showed consumers prefer warranties with a fixed time period. Powertrain warranties typically cover repair or replacement of transmission and engine parts.

"Basically, the assumption of a lifetime warranty just wasn't that big a deal to consumers," Deneau said.

The 5-year, 100,000-mile warranties will be transferable to new owners if the vehicles are sold before they run out, he said. The previous lifetime warranties were not transferable.

The new warranty program also includes the automaker's SRT and Viper models, which were excluded from the lifetime warranty. But the Sprinter van and the diesel version of the Ram pickup remain excluded, Deneau said.

The change is effective with the start of the 2010 model year.