Warranties

With thousands of Chrysler and General Motors Corp. dealerships closing, customers could be confronted with problems over warranty coverage, trade-ins or other matters. Both automakers pledge to make the contraction as painless as possible, but that doesn't mean there won't be problems. "When all of these relationships are disrupted, you can't help but have some elements of chaos, and some practical problems occur," said Aaron H. Jacoby, a Los Angeles lawyer who represents car dealers.

A coalition of automobile trade groups has sued the California Air Resources Board over a new regulation that extends warranties on some vehicle emissions equipment, claiming it could cost its members billions of dollars. The suit was filed last week in Los Angeles Superior Court by 11 organizations that represent the aftermarket car parts and service industry. At issue is a rule, approved Jan.

It was a return policy made in shopper heaven, but it became hellish for Costco Wholesale Corp. Customers at the membership warehouse chain could buy a snazzy big-screen TV, use it indefinitely and take it back anytime. They could use their refund to buy a newer model -- often for a cheaper price. Costco's generous policy was a big hit with consumers. "It was probably the best return policy in retail," said Jamil Brush, a 30-year-old Los Angeles claims examiner.

Chrysler Group said Thursday that it would begin offering a lifetime powertrain warranty on almost all of its new vehicles to increase sales and address a longtime concern of dealers. The warranty covers the engine, transmission and drive systems on Chrysler, Jeep and Dodge models for as long as a first-time owner drives the vehicle. It replaces the automaker's current three-year, 36,000-mile warranty.

san francisco -- Apple Inc. issued a warning Monday to iPhone customers who have found ways to uncouple Apple's device from the AT&T Inc. wireless service: If your iPhone breaks, don't come crying to us. Apple said many of the unauthorized software programs used to "unlock" iPhones from AT&T were damaging the devices. The Cupertino, Calif., company warned that updated software it periodically sent out might not work with phones that had been unlocked -- and could render the iPhones unusable.

More and more, shoppers are heeding the advice of consumer advocates who every holiday season warn against buying extended warranties for television sets, cellphones and computers. Steve Abernethy doesn't see this as a problem, even though his company, SquareTrade, is in what he has dubbed the "obsolescence-proofing" business. It sells guarantees against any electronic product's failure or your money back, no matter where you bought it.

Ford Motor Co. said it was adding two years to the powertrain warranty of its vehicles, adding more standard safety equipment and taking other steps to shore up the resale value of its cars and trucks. The moves are an attempt to offset any concerns about quality and offer more to consumers at a time when Ford is losing ground in a flat U.S. auto market. Ford's unit sales have dropped 4% in the first half of the year.

General Motors Corp. announced Wednesday that it would improve the warranty on its 2007 model year cars and trucks, hoping to stop car buyers from migrating to Asian automakers. GM extended its warranty to five years or 100,000 miles, substantially enhancing the three-year, 36,000-mile coverage the company had offered on engines, transmissions and other powertrain parts.

As more expensive and complicated products hit the shelves, consumers will spend $1.6 billion on extended warranties for big-screen televisions and appliances this holiday season, an industry expert says. To consumers, the warranties often mean peace of mind and a way to avoid big repair bills. But to consumer advocates, they are often an expensive waste of money. Robert Mitchell of Kean, N.H., a national correspondent for Computer World, recently bought extended warranties for two cellphones.

Car dealers said Monday they hoped General Motors Corp. and Chrysler would be spared a trip to the wrecking yard, while shoppers were comforted by the Obama administration's promise to back new car warranties in case the auto giants failed. For the thousands of workers who depend on GM and Chrysler, the government's rejection of the companies' restructuring plans and the ouster of GM Chairman and Chief Executive Rick Wagoner were a big blow.