Archived Copies of Warranty Week

December 2002 to Today

Worldwide Auto Warranty Expenses: Most auto manufacturers have filed their latest annual reports, so the totals are in for 2021: $45.9 B in claims paid, a 2.4% claims rate, $54.0 B in accruals made, a 2.8% accrual rate, $128.4 B in reserves held, and $653 in accruals made per vehicle sold. Claims and accrual totals changed little last year, but because sales rebounded in 2021, the expense rates fell.
October 6, 2022
Mid-Year U.S. Truck Industry Warranty Metrics: During the lockdowns, sales were down and so were accruals for the top truck makers. But warranty claims barely changed, and were actually down more this year than last. And while extended warranty sales fell precipitously in 2020, they're still not back up to the record levels we saw in 2019.
September 30, 2021
Worldwide Heavy Equipment Warranty Report: Claims were up a bit last year but warranty accruals fell significantly, as did product revenue. As a result, the industry's claims rate was also up a bit while the average accrual rate fell. And the combined warranty reserve fund balances of the 52 companies we're tracking in this category grew five percent to a record $9.81 billion.
September 9, 2021
Worldwide Auto Warranty Expenses: Last year, claims fell -10% to $43.9 billion while accruals rose +4% to $51.0 billion. And with some additional adjustments along the way, that drove worldwide warranty reserves up to a new record balance of $114.9 billion. And because sales fell so fast, the average claims rate rose to 2.8% last year, while the average accrual rate jumped to 3.3%.
September 2, 2021
Japanese Automaker Warranty Expenses: Sales revenue fell and so did claims, but warranty accruals actually rose last year. Because of the pandemic, unit sales fell to their lowest level of the last ten years. But while claims are down, accruals are up, as Japanese manufacturers seemingly prepare for increased costs down the road.
August 5, 2021
US Auto Warranty Expenses: During the Great Recession, vehicle sales fell faster than accruals but slower than claims, so claims rates slowly rose while accrual rates slowly fell. During this pandemic, however, claims rates jumped quickly, while accrual rates are holding steady. But sales are plunging just like they did 12 years ago.
September 24, 2020
Appliance Warranty Expense Report: While the HVAC industry is known for its long warranties and low warranty expense rates, the household appliance industry is known for its volatility. In 2019, claims fell and accruals rose, but the big news is the jump in expense rates seen in early 2020, caused by a recall in Europe.
June 4, 2020
Top Chinese Automaker Warranty Expenses: Claims jumped but accruals fell. Automotive revenue rose but unit sales declined. The warranty metrics of the top Chinese OEMs are puzzling, and the amount of accruals they each set aside per vehicle sold is impossibly low. Something is just not right with these numbers.
August 1, 2019
Top 100 Warranty Providers of 2017: While total claims and accruals fell last year, some companies saw their warranty costs soar. By comparing each company to itself over time, we can spot the most and least improved warranty providers. And we can also spot the accounting eccentricities of those few that act like nobody's watching.
March 15, 2018
Ninth Annual Warranty Report,
Totals & Averages: Warranty expenses rose in 2011, as the recovery continued to take hold. But sales grew a bit faster, and the percentage of revenue used to pay for warranty work fell to record low levels.
March 22, 2012
Eighth Annual Warranty Report,
Totals & Averages: When sales fell, so did warranty costs. But even though sales are rising again, warranty costs are remaining low as a percent of sales. That reflects a change in reliability, and caps a multi-year success story resulting from the increased attention paid to warranties.
April 1, 2011
Construction Equipment
Warranties: While sales fell in 2008, warranty claims continued to rise well into 2009. So some of the top construction equipment makers saw their claims rates reach all-time highs last year. In the first half of 2010, however, things seem to be getting back to normal.
October 21, 2010
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
Warranty by Industry Sector: While claims grew by 4.9% to $25.1 billion in 2004, warranty's slice of revenue actually shrank a bit as sales grew faster. In some industry sectors, both dollars and percentages actually fell, but computer and automotive OEMs still process the vast majority of all warranty claims.
May 10, 2005
Top 50 Warranty Providers: Manufacturers spent more than $25 billion last year on warranty claims, but sales rose a bit faster, so claims as a percentage of revenue fell slightly. Most of the top 50, however, saw their claims rates fall more.
May 3, 2005