For the Volkswagen Group in Australia, there is precedent that affordable brand Skoda leads the way on warranty coverage upgrades. Last week, the Czech manufacturer moved from a five-year warranty to seven years of coverage – but will parent marque Volkswagen follow?
We put the question to Volkswagen Australia director of passenger vehicles Michal Szaniecki, who is responsible for VW-badged cars and SUVs locally – but not Skoda models.
Volkswagen’s Australian warranty is good, at five years, but Skoda now wins with seven years
The answer was that such a move is possible, but that it’s a lower priority than bringing Volkswagen’s range of electric vehicles down under. Both missions are costly exercises, as head office would have to soak up the cost of claims under any longer warranty.
“This tactical move of our younger sister brand [Skoda] is needed for the legacy of Skoda in the market, but the Volkswagen brand has a much stronger legacy in the market. The reliability of our product is unquestioned,” Szaniecki said.
At present, all new Volkswagen cars sold in Australia are covered by a five year, unlimited kilometre vehicle warranty – the same coverage that Skoda offered as standard until last week.
The Skoda Octavia was the 2022 Chasing Cars Car of the Year, partially thanks to its ownership strengths
Despite his bullish view on Volkswagen’s reputation, though, Szaniecki conceded that a seven-year warranty for VW was being examined.
“For now, we will be of course looking into the possibility [of adopting a seven-year Volkswagen warranty], and maybe in the future [we will do so].
“It is not our key priority. The cars are being admired for their reliability and comfort and safety. Five years is appreciated. Bringing the cars, especially EVs, to Australia is our focus right now and we are putting money behind [that] rather than anything else.”
Volkswagen will soon launch a range of electric models in Australia under a five-year warranty
In Australia, the Volkswagen Group has repeatedly used Skoda as a first-mover on warranty upgrades.
In January 2017, Skoda’s warranty shifted from three years of coverage in Australia to five years.
Nearly two years later, in December 2018, Volkswagen followed suit, adopting a five year warranty in Australia. Five years after Skoda shifted, in January 2022 for the Group’s luxury marque, Audi, to finally upgrade from three years of warranty cover to five.
