PEUGEOT has extended the warranty cover on all its new cars and vans to three years. The UK's third best-selling fleet manufacturer launched the initiative on January 1, in a development that follows Rover's move to three-year cover on its 25, 45 and 75, and leaves the country's two biggest-selling car firms, Ford and Vauxhall, out on a limb with one-year warranties.

Peugeot's first year of cover has no mileage limit and remains a manufacturer-backed warranty, while the subsequent two years of cover (up to 60,000 miles), will be provided by dealers. Tod Evans, managing director of Peugeot, said the dealer warranty was identical to the manufacturer's standard 12-month cover. The extended warranty is only available in the UK, and Peugeot will charge no extra for the additional two years of cover, although the warranty only remains valid if customers use franchised dealers for service and maintenance work.

The provision of a three-year warranty comes at an interesting time for the motor industry when manufacturers are under pressure from the Consumers' Association to 'unbundle' their new car packages to cut prices and give customers a choice of value-added services. As many as 10% of Peugeot's fleet customers buy warranty packages to cover vehicles in their second and third years. But Ford and Vauxhall, however, remain committed to their one-year warranty packages.

Peugeot Partner, Boxer and Expert vans receive a slightly different warranty treatment, with their paint warranty remaining at one year, and their anti-perforation warranty is for six years rather than the 12-year cover on all other Peugeots.