Warranty Week Industry Headlines

HVAC & Appliance Warranty Report: The appliance makers have higher warranty expense rates but the HVAC makers spend more. They also maintain warranty reserves that are much larger than the appliance companies, because the warranties on their products have longer durations.
June 21, 2018

Automotive OEM Warranty Report: The car manufacturers used to spend a greater share of their sales revenue on warranty work than the truck manufacturers did. But because of persistent cost-cutting, that is no longer the case. Last year, car manufacturers cut their expense rates to below-average levels, while the truck manufacturers were slightly above their long-term average at the end of 2017.
April 5, 2018

Service Contract Market Size: There are signs that the market is topping out at current levels, although home warranty sales continue to soar. Other types of protection plans, such as vehicle service contracts, mobile phone insurance, and extended warranties for brown and white goods, are no longer growing like they used to, though jewelry and furniture protection programs showed slight growth.
February 1, 2018

Service Contract Pricing: Refrigerators: The bigger the refrigerator, and the more it costs, the lower the ratio between its list price and the price of protecting it for a given length of time. And the longer the duration of coverage, the more it will cost, though the industry-wide ratio isn't close to a straight line in terms of cost per year.
January 19, 2017

Aerospace Warranty Report: Unlike the computer and automotive industries, the aerospace OEMs do not pay a vastly greater share of industry warranty expenses than do their suppliers. However, like their parts and component suppliers, they tend to provide longer warranties and keep larger reserve balances than manufacturers in other industries.
April 14, 2016

Solar Power Equipment Warranties: First Solar and SunPower have emerged as major warranty providers, building megawatt power plants in the desert. And Tesla Motors, while not solar powered, has emerged as a major warranty provider in the "green" energy industry. They're still not as big as GE or GM, but they're no longer small either.
June 12, 2014

Appliance & HVAC Warranty Report: While we group them together, they're actually very different. Appliance makers pay higher warranty expense rates but for shorter durations. HVAC makers keep larger reserves on hand but they have to, given their longer-lasting warranties.
April 10, 2014

Extended Warranty Image Problems, Part 2: More than a debate about terminology, what the industry needs is a spokesman (or woman) who can defend the value and convenience of protection plans. Service is becoming a major issue for both manufacturers and retailers, and letting attacks on the service contract industry go undefended is no longer acceptable.
September 26, 2013

Warranty Accruals per Vehicle: The German OEMs still have the highest warranty costs worldwide, but the Japanese carmakers are no longer unopposed at the bottom. Both Fiat and Ford are cutting their warranty costs to within range of longtime low-cost leader Honda. And Toyota is well on its way to getting back to normal.
July 11, 2013

Data Storage Warranties: Sales are once again rising and warranty costs are falling or at least remaining under control, despite longer warranty durations. But while some companies are cutting their warranty costs for real, at least one is merely changing the way it reports the numbers.
September 23, 2010

Fleet Warranties: Among companies that operate fleets of hundreds or even thousands of vocational vehicles, service contracts are rarely bought. Some ask their manufacturers for longer warranties, but most prefer to fix their trucks and buses themselves. And what they like to outsource isn't so much the repair labor as it is the labor associated with warranty claims submission.
May 20, 2010

Green Warranties: As the price of traditional fuels soar, the alternatives are becoming more viable. And manufacturers are promoting the growing viability of electric and biofuel-powered vehicles through longer warranties. Government is also getting involved by mandating higher fuel efficiency, new fuel blends, lowered emissions levels, and longer warranties.
May 14, 2008

Automotive Warranties: What once looked like a trend turned out to be a temporary spike. So the gap between the warranty costs of OEMs and their suppliers remains close to 2% wide. But the good news is that warranty expenses are no longer soaring for automotive manufacturers.
January 31, 2008

Warranty Reserves by Industry: Longer warranties usually mean larger reserves. And in industries where warranties are getting longer, the ratio between claims and reserves is growing. But in some sectors, the need for earnings may be forcing companies to live with more risk and smaller reserves.
June 12, 2007

Top 100 Warranty Providers: In this midyear report, we look at who's up and who's down compared to a year ago. Driven by acquisitions and longer warranties, some companies are paying out more than ever before. But others have found ways to cut their outlays by big numbers.
September 26, 2006

Peripheral Warranties: With computer printers and monitors, older technologies frequently get longer warranties than new. And while one would think higher prices mean longer warranties, that doesn't seem to be the case.
August 8, 2006

Longer Warranties: Sometimes they boost sales and other times they just boost costs. Meanwhile, sometimes shortened warranties hurt a brand's image while other times the changes pass unnoticed. Why the difference?
October 18, 2005