Hyundai says no to seven-year warranty

HYUNDAI Motor Co Australia (HMCA) had no idea its South Korean sister company Kia planned to announce a seven-year warranty and it will not extend its current five-year agreement to match it, according to one of the company's local chiefs.

Speaking with GoAuto at the launch of the 2015 Santa Fe this week, HMCA chief operating officer John Elsworth said he first heard about Kia’s new warranty in the public announcement on October 1.

“We found out about the seven-year warranty the day it was released,” he said.

The two brands share the Hyundai Group as their parent company and use many of the same vehicle platforms and powertrains, but according to Mr Elsworth there is no communication between the two car-makers locally.

“To be honest with you, we don’t even talk,” he said.

“Their head office is located 20km away and they’re just another competitor to us – there’s no sharing at all, no regular conversations.” The seven-year/unlimited-kilometre new-vehicle warranty across Kia’s range announced by chief operating officer Damien Meredith offers the longest cover in Australia.

Mr Elsworth said Hyundai would not extend its five-year/unlimited-kilometre warranty, adding that he felt the entire aftersales package is the best in the industry.

“We look at it not just as the warranty – we’ve introduced lifetime capped-price servicing – they don’t have that our first five services are subsidised by Hyundai to the consumer and I’m pretty sure Kia’s aren’t our servicing package through the normal ownership cycle is a bit cheaper there’s the five-year warranty and 10 years roadside assistance.

“We think it is an industry-leading overall package and we’re going to stick to it,” he said.

In July Citroen extended its six-year/unlimited-kilometre warranty announced in March to cover its full range, apart from the Berlingo light-commercial van.

Until then Kia and Hyundai offered the longest cover with their five-year/unlimited warranties.

In September Hyundai extended its roadside assistance program from seven to 10 years and introduced its lifetime capped-price servicing for every one of its vehicles bought since the brand’s arrival in Australia in 1986.