KOMATSU
Machine Total Care Program Offers Enhanced Coverage and Service

Reported by Hidetaka Kita, Komatsu Ltd.
1. The Concept and Merits of the Machine Total Care Program

Concept:
The Machine Total Care Program is an additional warranty that can be purchased on top of the standard warranty. This extended warranty program combines machine warranty and maintenance for up to five years or 10,000 hours to offer higher efficiency and lower costs for machine owners by concluding service contracts in advance over several years.

Merits for Users:
By combining an extended warranty contract provided by Komatsu with a maintenance contract provided by distributors, the program enables users to reduce costs by avoiding unexpected breakdowns as well as to equalize payments toward ensuring stable machine operation.

Merits for Distributors:
Undertaking maintenance enables provision of Komatsu parts (expendable parts, oils, etc.) and easier forecast of parts demand to maintain an optimal level of inventory. Distributors can also incorporate the “All Makes Service” (other competitors’ machine maintenance services) into the program.

Merits for Komatsu:
Obtaining repair and maintenance information will prove useful in improving product quality.

2. Machines Covered by the Machine Total Care Program

The Machine Total Care Program applies to a wide range of machines as described below, but does not apply to machines in such special applications as forestry and scrap handling. Exceptions may include application-specific machines (e.g., PC200LC or other designated machines).
PRODUCTS MODEL COVERED
  Bulldozer   D20 - D275
  Wheel Loader   WA80 - WA500
  Hydraulic Excavator   PC01 - PC750
  Dump Truck   HD255- HD405
  Motor Grader   GD305 - GD705

3. Menu, Component Coverage and Warranty Period for Machine Total Care Program

Full Machine Coverage:
The component coverage is similar to standard warranty coverage.

Power Train Coverage:
In the case of hydraulic excavators:
Engine (excluding alternator, starter motor, cooling fan, fan drive, filters, hoses, fuel lines, injector nozzles, radiator, air cleaner, muffler, wiring, air compressors, sensors and electrical components)
  Swing machinery group
  Final drive (excluding sprockets)
  Hydraulic pumps and motors only (piston pump motors, excluding valves)
Menu Full Machine
Contract
Power Train
Contract
  Areas Covered   Engine & Drive Mechanism
  Hydraulic Parts
  Ancillary Engine Parts    
  Electronic Components  
  Tanks  
  Frame  
  Work Equipment  
  Undercarriages    
  Hydraulic Pipes    
  Machines Covered   Micro
  Mini
  Small
  Medium
  Large*    
  Super-large*    
  Coverage Period
(Up to 5 Years)
  1,000 hours                
  2,000 hours                
  3,000 hours                
  4,000 hours                
  5,000 hours                
  6,000 hours                
  7,000 hours                
  8,000 hours                
  9,000 hours                
  10,000 hours                
* Repair & Maintenance Contract is available for large and super-large machines.

Notes:
1.     The following items are always excluded from both component coverage contracts:
  Expendable parts (windows, hoses, tubes, filters, tires, V-belts, wiper blades, lights, spark plugs, fuses, batteries and any other wear-and-tear parts)
  Small components (alternators, starter motors, turbo, air cleaners, mufflers, radiators, oil coolers and after coolers)
  Ground-engaging tools (buckets, bucket teeth, ripper teeth and cutting edges)
  Undercarriage pieces (tracks, shoes, idlers, rollers, sprockets and guards)
  Attachments (those not manufactured by Komatsu)
2.     Komatsu America Corp. has already been offering a similar program under the name of “Advantage” in the United States since 1999, and Komatsu Europe International N.V. has been providing a similar program under the name of “Flexible Warranty” in Europe since 2001.