Automotive Fleet
MenuMENU
SearchSEARCH

Learned At Press Time

Longer warranties on new cars keep causing problems for auto makers

by Staff
May 1, 1967
4 min to read



LONGER WARRANTIES ON NEW CARS keep causing problems for auto makers . . . most models are guaranteed against parts failures for five years or 50,000 miles, whichever comes first. Six years ago, it was three months or 3,000 miles. The extended warranties have boosted manufacturers' costs sharply, angered some dealers, and drawn attention of the FTC. The agency is looking into re­quirements of car makers that buyers have periodic checkups to keep warranties in force. Total industry cost of warranties, which doubled to $700 million last year from the 1962 figure, is expected to rise by $200 million this year. Some dealers complain that auto makers don't reimburse them enough for repairs made under warranties. The dealers also bristle at making repairs on cars bought from competing dealers.

KINNEY NATIONAL SERVICE, INC. WILL PURCHASE 6,000 American Motors cars during the next three months for its expanding car rental system. In a joint statement, AM president, William V. Luneburg, and Kinney president, Steven J. Ross said the purchase calls for twice as many cars as American provided last spring when it became the major supplier of autos to Kinney. Kinney's short term rental fleet will consist solely of 1967 models and will be top-of-the-line models.

Ad Loading...

A BILL, PROVIDING FOR A FINE UP TO $200 for persons convicted of tampering with mileage on odometers to defraud purchasers, has been introduced into the Texas Legislature. The bill outlaws the use of any "speedometer resetting machine", and describes it further as any device which is designed to change the mileage on a motor vehicle speedometer.

ALL 1968 GM CARS WILL BE EQUIPPED with two features to help pre­vent theft of the vehicle. One is a buzzer which will sound when the driver leaves the car with key still in the ignition. The second is a system of vehicle identification numbers on the instrument panel, engine and transmission. GM also plans an in­creased use of key-lock combinations to make illegal entry into cars more difficult. The buzzer device is activated when the driver's door is opened, with key left in the ignition. Instrument panel numbers will be visible through the windshield, allowing police and theft investigators to identify the vehicle without having to enter the car.

STUDS OK IN 56 STATES . . . Legislation approving use of studded tires in Indiana and Iowa raises to 36 the number of states per­mitting the use of studded tires.


POSI-TRAC SAFETY TIRE CORP, of Michigan, headed by former Chrys­ler president, William C. Newburg, and Posi-Trac Rail, Inc., Houston, have agreed to a merger. "This move," according to Newburg, "foresees a government edit requiring that 1969 model cars be equipped with a means, when tires fail at high speeds, for retaining a deflated tire on the wheel and bringing the vehicle to a stop without skidding or swerving, and without need for more than normal-condition driving skills."

THE BUREAU OF STANDARDS, under an agreement between the Commerce Department and the Transportation Department, will conduct a quality test of brake lining, tires and seat belts. The Bureau will provide "research assistance" to the National Traffic Safety Agency in developing mandatory standards for better tires, seat belts, shoulder harnesses and braking systems.

Ad Loading...

BUDGET RENT-A-CAR OPENS 47 new offices throughout the world in their current expansion drive . . . now has 450 offices though-out the United States, Canada, Hawaii, Mexico, Puerto Rico, Antwerp, Brussels, Geneva, Zurich, Barcelona, Dusseldorf and the United Kingdom, with a fleet of 11,000 vehicles and a reported gross revenue of $35 million.

THE RUBBER MANUFACTURERS ASSOCIATION has called for a national inspection standard which would remove from the road all tires with less than 2/32nds of an inch of tread depth. The Associ­ation issued its call in conjunction with publication of a revised tire inspection guide which lists six tire conditions suggested as cause for rejection by state highway inspection agencies and policing authorities. Of the 20 states and the District of Columbia which require motor vehicle inspection, 17 require tire inspection, and only 5 of these specify a 2/32nds inch tread depth minimum, while 12 merely prohibit use of "unsafe" tires, without adequate definition as to what "unsafe" means. The five states requiring 2/32nds of an inch are New York, New Hamp­shire, Massachusetts, Vermont and Pennsylvania.

AMERICAN MOTORS IS PLANNING TWO ENTRIES INTO THE SPORTS CAR FIELD. The Javelin, reportedly designed along the lines of Ford Motor's Mustang, should debut late in 1967, although AMC officials won't confirm an introduction date. The second model may be called AMX II after the experimental model shown last year. It is expected that plans for this model will be released after the Javelin Is brought out.

AUTO DRIVEAWAY COMPANY ANNOUNCED THE OPENING of two new offices, bringing the total number of offices operated to 32 throughout the United States and Canada. The new offices are located in Las Vegas, Nev. headed by John Carpenter, and Phoenix, Ariz., managed by Richard Trimble.

Topics:Operations
Subscribe to Our Newsletter

More Operations

Promotional graphic for a fleet management whitepaper titled “From Data Overload to Decisive Action: 5 Steps to Drive Smarter Fleet Decisions.” The design features a row of white commercial fleet vans, blue and lime-green branding, and supporting text about using telematics data to improve fleet performance, driver behavior, safety, and operational decision-making. A highlighted quote reads, “The challenge is no longer collecting data. The challenge is using it effectively.” The Utilimarc logo appears at the bottom alongside the website URL.
SponsoredMay 28, 2026

Turn Fleet Data Into Smarter Decisions

Fleet leaders have access to more operational data than ever, but disconnected systems and unclear metrics often slow decision-making instead of improving it. This article outlines five practical steps fleets can take to transform fragmented data into actionable insights that improve planning, safety, utilization, and long-term performance.

Read More →
SponsoredMay 15, 2026

Hybrids: Electrification Without the Challenges

For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.

Read More →
Man speaking during an Automotive Fleet interview beside text reading “The 60% Driver Improvement Nobody Expected!” with blue motion graphics background.
Operationsby Chris BrownMay 14, 2026

How NOV Uses Telematics to Improve Fleet Safety Across 160 Locations

James Victory of NOV discusses how the company manages fleet safety, maintenance, and telematics across more than 150 locations supporting oilfield operations throughout the U.S.

Read More →
Ad Loading...
A graphic with Ford Pro's Steven Sanstostasi's headshot on it representing the Fleet Meets series.
Operationsby Faith HowellMay 14, 2026

Fleet Meets: Steven Santostasi

This edition of the Fleet Meets series features Steven Santostasi, the current TSP channel manager for Ford Pro.

Read More →
Cover of a whitepaper titled “The Hidden Costs of Departmentally Assigned Vehicles on Your Fleet” featuring a black fleet vehicle driving on a road at sunset. Subheadline reads: “Discover how your fleet can reduce costs and minimize risk by implementing vehicle sharing.” The document focuses on fleet optimization, vehicle sharing, cost reduction, utilization tracking, and risk management for fleet operations.
SponsoredMay 13, 2026

Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools

Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.

Read More →
Three team members in shop with Chris
Operationsby Chris BrownMay 12, 2026

Soap Box Derby Challenge: Assembling the Crew

Meet Gabriel, Matthew, and Angel — the team helping bring this soap box derby build to life.

Read More →
Ad Loading...
Handshake graphic featuring BBL Fleet and Velcor Leasing Corporation logos announcing BBL Fleet’s acquisition of Velcor to expand fleet management services nationwide.
Operationsby News/Media ReleaseMay 8, 2026

BBL Fleet Acquires Velcor Leasing Corporation

BBL Fleet expanded its footprint in the fleet management industry with the acquisition of Velcor Leasing Corporation of Madison through a stock purchase agreement finalized Feb. 27, 2026.

Read More →
Graphic reading “What’s New From Lytx at Protect 2026?” over a blue digital network background highlighting Lytx fleet technology and AI-powered safety solutions.
Operationsby News/Media ReleaseMay 6, 2026

Lytx Introduces New AI Fleet Technologies at Protect 2026

The company introduced new AI-driven fleet safety and operations technologies during its annual user conference.

Read More →
Cover image for the “5th Annual Market Pulse Report” by Element titled “Navigating fleet management in 2026: Data and insights shaping the future of fleet and mobility.” The design features an aerial view of a cable-stayed bridge with vehicles traveling on a highway beside a dense green forest. A teal graphic panel overlays the lower portion of the image, with the Element logo and tagline “Intelligence in motion” at the bottom.
SponsoredMay 6, 2026

Fleet Costs Are Rising: Here’s How Leaders Are Responding

Fleet leaders are under pressure to reduce costs, adapt to economic uncertainty, and make smarter decisions. See how peers across North America are responding with real data, proven strategies, and forward-looking insights. Download the 2026 Market Pulse Report to benchmark your strategy and uncover where you can gain an edge.

Read More →
Ad Loading...
A blue Automotive Fleet graphic representing the weekly AF News Recap series.
Operationsby Faith HowellMay 4, 2026

From Waffle House to AI: Fleet Trends You Need to Know

In this AF news recap, host Faith Howell covers how Waffle House stepped up during disaster response and new AI tech on the market.

Read More →