Archived Copies of Warranty Week

December 2002 to Today

Mize Merges With Syncron: What began as a discussion about how a warranty management and field service solution could be bolted onto an aftermarket service and parts management software platform has culminated in an international merger between an American and a Swedish software company.
August 19, 2021
American Home Shield During the Pandemic: While sales of existing homes dipped during the worst of the lockdowns, they soared for the rest of last year. But while home warranties have historically been closely tied to the sale of existing homes, American Home Shield has moved on to selling the annual policies directly to homeowners staying put, and then encouraging those homeowners to renew year after year.
June 10, 2021
American Auto Warranty Expenses: In this first part of a worldwide automotive warranty report, we find last year's slowdown turning into this year's slump. But the warranty expenses of the top U.S.-based automakers were actually up last year, and have failed to fall as fast as sales did this year, leading to increased expense rates.
August 20, 2020
American Auto Warranty Expenses: While General Motors continues to recover from its massive ignition switch recall of 2014, the warranty expenses of Ford are creeping upward. Tesla, meanwhile, is in the strange position of having the lowest claims rate and the highest accrual rate in the U.S.-based portion of this industry.
July 18, 2019
Warranty Accruals per Vehicle Sold: Once again, Tesla comes out with the most expensive warranty while Hyundai is the least costly. But the warranty cost rankings of the passenger car and light truck manufacturers in between have shifted somewhat, with the Asian carmakers seeing their accrual rates per vehicle rise and the North American manufacturers seeing their warranty costs drop.
July 19, 2018
Thirteenth Annual Product Warranty Report: As the latest charts clearly show, American manufacturers are spending less on warranty than they used to. But is it because of better products, less costly repairs, or fewer sales? Now that the 2015 warranty expense data collection is almost complete, it's time to figure out why claims and accruals are declining.
March 24, 2016
European Manufacturers' Warranties: While most international manufacturers don't disclose their warranty costs, some of the largest European warranty providers do. And their warranty expense rates aren't tremendously different from those of their American competitors.
August 7, 2014
Warranty Cost Reduction: Billions of dollars have been saved in the past decade as American manufacturers find ways to reduce their warranty expenses. Now we're naming names and showing the decline in charts that measure warranty expenses as a percentage of product sales.
August 8, 2013
Home Warranty Market Share: While American Home Shield continues to dominate, electrical and water utilities are shaking things up with the growth of their wire and pipe protection services. And despite a continuing multi-year dip in home sales, the home warranty industry set a record this year with $1.5 billion in premiums paid by consumers.
December 22, 2009
Home Warranty Insurance: While our American readers go on holidays to eat turkey and watch football, we're shifting our focus to how the governments of New South Wales and Ontario have gotten deeply involved in new home warranties. Both require those warranties to be insured, but that hasn't worked out as well in Australia as it has in Canada.
November 25, 2009
Worldwide Electronics Warranties: It's not where you're from as much as what you make. European and Japanese electronics companies report warranty expense rates similar to what their American competitors do. The difference is that while U.S. companies must report what used to be trade secrets, the international companies are simply doing their New York Stock Exchange shareholders a big favour.
July 9, 2009
Five-Year Warranty Trends, Part Five: American manufacturers now keep $41.1 billion in their warranty reserves, equal to 17 months' worth of claims paid. And it's been more or less steady at that capacity level for the past five years. Meanwhile, average accrual rates have stayed close to 1.7%, although different industries accrue for warranty at different rates.
April 29, 2008
Consumer Electronics Warranties: While most of the brands are imports, there is a short list of American CE manufacturers. But while the Japanese brands have relatively low warranty expenses, the American brands pay claims at rates more like those seen in the computer and automotive businesses.
May 1, 2007
Product Warranty Claims, 2003-2006: Signs are emerging that suggest a peak in warranty spending by American manufacturers. Is it better management? Shorter warranties? Or could it be nothing more than sales rising faster than costs? With four years of data to examine, there's evidence for each scenario.
April 11, 2007
Automotive Warranties: As seen by its third quarter financial statements, Ford is catching up to GM, both in terms of revenue and warranty spending. Ford has now become only the second American manufacturer to ever pay out $1 billion or more in warranty claims per quarter. Meanwhile, other U.S.-based vehicle manufacturers have their own warranty ups and downs to report.
November 15, 2005
Home Warranties:  Three decades ago, American Home Shield, now part of ServiceMaster, invented a new category of extended warranties, covering the major systems and appliances in a home but not the home itself.
October 13, 2004
Top 50 Warranty Providers: The data is in, and there are four new names on the list of companies with the largest warranty programs. American manufacturers reported more than $23.675 billion in warranty claims during 2003, a rate very close to $2 billion a month.
March 23, 2004