Warranty Week Industry Headlines

Twelfth Annual Product Warranty Report: Warranty expenses are once again rising and so are the associated expense rates. Much of that has to do with the increased cost of passenger car recalls, and some of it is caused by the soaring sales of smartphones. But could it be that some of the most successful warranty cost-cutters have let things slip back a little recently?
March 19, 2015

Supplier Recovery: If all the warranty expenses that were caused by suppliers were paid by suppliers, what would the industry split be between them and the OEMs that they supply? And are the OEMs now recovering a quarter of what they could, half of what they could, or three-quarters of what they could?
April 11, 2013

Warranty Adjustments, Part 3: While all exporters must deal with foreign exchange fluctuations, some companies seem to be affected more than others. In fact, when compared to other warranty metrics, some of these fluctuations are huge. Is that caused by the unique nature of their businesses, or is it a sign of sloppy warranty accounting?
November 10, 2011

Computer Industry Warranties: For most of the major players, sales declines caused relative warranty costs to increase. Turmoil in other industries caused a major PC maker to become the biggest warranty provider in the U.S. And for the lucky few, sales rose and warranty costs fell, despite a tough market full of customers still reluctant to spend.
September 17, 2009

Automotive Warranties: With GM now government-owned and several mobile home makers trapped in bankruptcy, industry-wide warranty statistics are losing their meaning. And thanks to the distortions caused by massive sales declines this year, claims rates have also lost much of their relevance during this recession. But among at least the well-run warranty providers, accrual rates have remained proportional to sales rates and quality levels.
September 10, 2009

Fixing Things: The best way to measure performance is not just by counting the number of failures or adding up the warranty costs. A better alternative is to measure how the product consumes energy to perform each of its functions, and how successfully it avoids failures caused by energy lost to friction, vibrations, or heat. In short, it's a restatement of the second law of thermodynamics.
May 31, 2005

Declining Warranty Claims: In both dollar amounts and as a percentage of product sales, warranty claims took a steep dive during the first quarter of 2004. Was it caused by cyclical factors? Was it due to rising sales? Or has there been a product quality improvement?
June 15, 2004