Since their creation in the beginning of 90 decade, the popular vehicles, which main characteristic is the use of engines up to 1.0 liter of volumetric capacity, have strongly influenced the Brazilian market of vehicles, having more than 50% of participation in the market share since the beginning of their sales. Based on the current scenario of the Brazilian Automotive Industry, this work has the objective of suggesting a model to evaluate the warranty extension for popular vehicles to 36 months as a market competitive advantage. The study, supported by reliability and product failures theoretical concepts, consists of using the field failure data to estimate the warranty cost in 36 months exposure in the field, which allows analyzing its advantages and disadvantages for company decision making. This study also recommends a technical validation plan for warranty extension that consists of submitting vehicles from the company proving ground to high mileages to verify their parts durability and reliability in 36 months of field exposure. The warranty extension implementation plan recommends the implementation of two years warranty in the market, monitoring the failures and customers complaints during this period to generate information for company for decision making to implement the three years warranty. Finally, the warranty extension for popular vehicles is possible since all levels of the organization are committed and a previous plan must be done using all the information and resources available for company decision making.
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