A: The powertrain is the "go parts" of a vehicle. This consists of the engine, transmission, and drivetrain.
The warranty covers the powertrain components if they are damaged or found defective within a certain period of time, meaning the manufacturer will pay to have bad components repaired or replaced. The powertrain warranty generally has a year/mileage "whichever comes first" period of coverage, and expires upon reaching the designated milestone. This warranty usually applies for a longer timeframe than other manufacturers' warranties, such as the bumper-to-bumper warranty. A deductible may apply.
A: In essence, an Extended Warranty is an insurance policy on your vehicle that acts as a safeguard against expensive, unforeseen repairs. A deductible may or may not apply. An Extended Warranty will cover repairs and/or regular maintenance for an agreed-upon period of time and can be customized to fit your needs and budget. True warranties, though, are included in the price of the product; extended auto warranties are really service contracts, since they cost extra and are sold separately.