CAA-Quebec says warranties on electric vehicles should be more specific

Press release
Published on March 6, 2019

As electric vehicles (EVs) gain in popularity and a used market emerges, EV owners need to know what to expect if their traction battery needs to be replaced while under warranty. The answer is currently far from clear, even after close examination of the fine print. 

EV batteries are generally covered for 8 years/160,000 km and rarely need to be replaced during this period. But the first EVs will soon reach this age, so manufacturers need to clarify how they will address the issue. It’s a big concern, as batteries cost at least $8,000 to replace. A used EV with 90% of its range makes sense. But it’s less attractive at 50%. 

The problem? Warranties have variable percentages! 

Most manufacturers do not commit to replacing defective traction batteries with new ones. Hyundai, Kia, Volkswagen, and other automakers guarantee that the replacement battery will have at least 70% of its original capacity (73% for Nissan). That’s great for seven-year-old EVs, but what about one- or two-year-old vehicles? Owners could theoretically lose out. Chevrolet provides a replacement battery with at least 60% of the original capacity, while “taking the vehicle’s age and mileage into account.” Toyota, Honda, Chrysler, and others are mum on the issue. 

“It can’t be left ‘to the manufacturer’s discretion.’” 

“If the traction battery needs to be replaced, will they install a new battery? A used one? A reconditioned battery? What percentage of the original capacity will it have?” wonders Pierre-Serge Labbé, Vice President, Automotive Services at CAA-Quebec. “These are important questions because the battery’s capacity is what dictates an EV’s value. So it can’t be left to ‘the manufacturer’s discretion.’ Current and future owners need to know what to expect.” 

-> Check out our warranty guide for electric vehicles 

“The notion of normal battery wear, which automakers always exclude from their warranties, also needs to be clarified. It’s normal for a battery’s capacity to decrease over time and with use, but how much? Some manufacturers say that they’ll change the battery if more than 30% or 40% is gone. But quite often it’s not specified at all, and that could be problematic for consumers,” Mr. Labbé said. 

High-end make, low-end warranty 

Interestingly, a number of luxury automakers are at the back of the pack when it comes to warranties on their electric vehicles. Audi, BMW, Jaguar, Lexus, Mercedes, Mini, Porsche, Smart, and Volvo offer more restrictive warranties in at least one respect. Often, the electric motor is covered for a shorter period of time than the battery, which is also the case with Chrysler, Nissan, Toyota, and Volkswagen. 

Tesla’s warranty stands out 

Tesla is ahead of the competition when it comes to the clarity and scope of its warranty. The U.S. automaker guarantees that the charging capacity of its replacement batteries will be the same or higher and that its batteries will still have at least 70% of their original capacity at the end of the 8-year/160,000 km (or 192,000 km) warranty. 

Chrysler and Mitsubishi offer more extensive warranties on their EVs compared to the competition, but say nothing about replacement batteries or acceptable capacity loss. 

A one-stop shop for automobile warranties!

Here are the main findings of CAA-Quebec Automotive Advisory Services’ 2019 study on automobile warranties. The study summary is a veritable guide to new-vehicle warranties for 2019 and a valuable shopping tool that can help tip the scales in favour of one vehicle or another. 

2019 gas vehicle warranties at a glance

  • Mitsubishi leads the pack with a 5-year/100,000 km bumper-to-bumper warranty and a 10-year/160,000 km powertrain warranty. 
  • Hyundai and Kia both offer 5 year/100,000 km bumper-to-bumper warranties. 
  • Mazda is the only automaker that offers unlimited mileage on its main warranties. 
  • Hyundai is the only manufacturer that excludes the upper part of its vehicles from its 5-year corrosion/perforation warranty. Only elements located “below the bottom window line” are included. 
  • Volkswagen no longer offers any warranty against surface corrosion. 

-> Contact CAA-Quebec Automotive Advisory Services, free for members.

About CAA-Quebec

CAA-Quebec is a not-for-profit organization that helps its members by offering mobility, travel, insurance, and residential benefits, products and services.

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