Kia Motors Corporation (KSX:0270) importer Kia Motors Israel Ltd., plans to offer a seven-year extended manufacturer's warranty on cars built at Kia's factories in Europe, beginning in 2008. The warranty is mainly intended for the new model CEED family car, which the company has been producing at its Slovakian factory for several months, and which is due to arrive in Israel during the second quarter of next year.
The extended warranty will also apply to the Kia Sportage jeep.
Kia Motors Israel is currently negotiating with Kia regarding the extended warranty. As a manufacturer's warranty, it will apply on vehicles immediately upon purchase. Currently, Kia Motors Israel offers a five-year importer's warranty as an extra option for extra money.
Israel's car sector predicts that the new seven-year manufacturer's warranty will revolutionize the market, and push other importers to offer similar deals as a way to add value to new and upgraded car models for private customers. Currently, manufacturers' warranties are usually for two years, although some carmakers offer three or four years.
Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2007
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