Archived Copies of Warranty Week

December 2002 to Today

U.S. & German Auto Warranties: Car manufacturers based in Germany have the highest warranty expense rates in the industry. But that doesn't mean they make the worst cars and more than it suggests that China, the country with the lowest warranty expense rates, makes the best cars. Somewhere in the middle are the U.S. and Japan.
October 25, 2018
Japanese Auto Warranties: While Toyota, Nissan and Honda dominate, six other companies also pay claims and make accruals for cars, trucks and buses made in Japan, or made elsewhere by a Japanese company. And while none besides Toyota & Honda report all their warranty metrics, most leave enough clues for outside observers to plug the holes with estimates.
October 11, 2018
ServiceBench Signs HomeServe: When it came time to upgrade its field service management system, the home warranty company turned to Asurion's ServiceBench unit for a cloud-based service platform that could connect its customers, contractors, and service center team, helping them to make sure that the right contractor is assigned for the job and that they show up at the appointed time.
August 23, 2018
Construction Equipment Warranties: While most of the top industry players are diverse manufacturers of a wide variety of products, some make little besides construction and mining equipment. And these "pure plays" can provide us with clues about the typical warranty expenses of those manufacturers that don't include any details about their claims and accruals in their financial statements.
August 17, 2017
Implementing a New Warranty Management Solution  -- or Just Upgrading Your Existing Solution -- Can Make a Significant Improvement to Your Organization's Bottom Line.
August 10, 2017
Top 100 Warranty Providers of 2016: While we can't directly compare the warranty expenses of companies to each other, we can compare a company to itself over time, and can then make comparisons based on the rate of change. In doing so, we can spot the companies cutting their warranty expense rates significantly, as well as those whose warranty costs are beginning to spin out of control.
March 16, 2017
Planning and Structuring a Successful Warranty Transformation Program: One of the biggest mistake companies make is failing to consider the needs of customers and stakeholders in other departments. Others fail to articulate the business benefits internally, or they fail to consider industry trends that will impact the warranty process.
June 23, 2016
Top 100 Warranty Providers of 2015: Most of the major warranty providers have published their annual reports in the past few weeks. By comparing their most recent warranty claims, accrual, and reserve metrics against the same expense figures from a year ago, we can make a series of top 10 lists of the most improved and the most injured warranty providers.
March 17, 2016
PCMI & Ancillary Products: As the protection plan industry broadens from just break/fix coverage, new software platforms have enabled sellers to more efficiently make their offers and print the paperwork, and new ways of delivering those platforms have allowed smaller startup companies to launch and administer innovative new products.
February 4, 2016
Mize Launches Warranty Connect: The second time around, you know how to avoid the pitfalls, the roadblocks, the bottlenecks and the obstacles. And you can take advantage of the latest technology such as cloud computing and smartphones to make it smaller, better, faster, and less costly.
October 8, 2015
Warranty Lawyers: Better to let them do their jobs before the launch than to bring them in for the clean-up after you make a mess. As protection programs become more complex and laws become more complicated, the need for warranty law expertise has never been higher.
September 24, 2015
Home Appliance & HVAC Warranty Report: There are a few very large companies with operations in multiple industries that make it difficult to examine just the warranty expenses of the major appliance and HVAC companies. But if we set them off on their own, we can calculate industry averages for the expenses of others.
June 4, 2015
Semiconductor Industry Warranty Report: While the companies making semiconductors and printed circuit boards have kept their warranty expenses below one percent of revenue, the companies that make the machinery that actually manufactures the products pay much more. Even so, over the past decade the machinery makers have been much more successful at cutting their warranty expenses than their customers.
May 14, 2015
Mining Equipment Warranties: Things haven't been the same for mining equipment warranty expense rates since the recession started, though they're now close to getting back to normal. The problem is that so many of them also make construction equipment, and that market was impacted severely by the downturn.
September 25, 2014
Computer OEM & Supplier Warranties: Are the computer OEMs paying a growing or shrinking percentage of the warranty costs of their industry? Are the warranty costs of their suppliers rising or falling as a result of their efforts to make them split the bill?
September 4, 2014
Supplier Recovery Efforts: Are the automotive OEMs paying a growing or shrinking percentage of the warranty costs of their industry? Are the warranty costs of their suppliers rising or falling as a result of their efforts to make them split the bill?
August 21, 2014
Sports Equipment Warranties: While the makers of sports-oriented vehicles are cutting their warranty costs, those who make the equipment used by players aren't making much progress. Most of them spend about the same percentage of sales on warranty costs now as they did a decade ago.
June 19, 2014
Semiconductor Industry Warranty Report: In no other industry is the factory machinery so costly, and so expensive to maintain. And nowhere else does the output of the factory have such low warranty expense rates, compared to the machinery used to make it. It's as if the factory owners have shifted much of their warranty costs onto their equipment suppliers.
May 15, 2014
Automotive Warranty Report: For the first nine months of 2013, claims are up a bit from 2012 levels while accruals are down. More importantly, the percentage of revenue spent on warranty work is down as well. That means manufacturers expect to see lower warranty costs in the future, as they make more reliable vehicles that cost less to repair.
January 9, 2014
New Leaf Service Contracts: Smaller retailers looking to sell service contracts usually had to choose between running the program themselves or selling another company's self-insured product. Now, there's a company trying to make it as easy as possible for small retailers to sell fully-insured service contracts.
November 7, 2013
Mining Equipment Warranties: Most of the larger manufacturers of drilling and digging equipment are in many more industries besides mining. They make everything from medical instruments and food handling equipment to road paving equipment and diesel generators. So it may not be possible to analyze them as a single group.
June 27, 2013
Power Generation Equipment Warranties: Harnessing multiple energy sources from coal to solar, the makers of electrical power generating equipment are a diverse bunch. While much of what they make also fits into other product categories such as automotive, appliances or semiconductors, this week we've brought them all together.
May 30, 2013
Japanese Electronics Warranties: Four electronics manufacturers that are based in Japan but export their products worldwide show below-average warranty expense rates. Part of the reason is what they make. But could part of the reason also be where they make it?
July 19, 2012
Semiconductor Warranties: The companies that make the equipment that makes the semiconductors pay for more than half of the industry's warranty costs, even though their sales are less than a quarter of the total. But they've also done the most to cut their costs since 2003.
May 3, 2012
Warranty Adjustments, Part 2: In the past few years, a small group of companies has made repeated and relatively large upwards adjustments to their warranty reserves. Are they simply bad at predicting the future? Or have they found a way to make their warranty costs look lower than they really are?
November 3, 2011
Warranty Software Acquisition: Engineering wants to talk to warranty and so does manufacturing. And warranty needs user manuals and parts from them. No single company's software can make them all talk to each other, not even a CAD/CAM company like PTC. So it bought warranty software company 4CS to round out its product line.
September 15, 2011
International Warranty Costs: What you make matters more than where you make it. As in the U.S., the makers of appliances, computers and telecom gear have significant warranty costs. But for most consumer electronics manufacturers, warranty is not such a significant burden.
July 14, 2011
Warranty Reserves vs. Accruals, Part One: With 32 quarters of data, it's becoming easier to see which companies carefully calibrate their warranty budgets and which make it up as they go along. Here are the "scores" for the top three in each of six industries.
June 16, 2011
Vehicle Service Contract Underwriters, Part 1: If you know how many vehicles were sold and how much insurance was purchased, you can make a pretty good guess of how much consumers have spent on vehicle service contracts. But who sold them? How much were they? Some answers follow.
August 26, 2010
Warranty Claims & Accruals
by Industry: There's been a massive divergence between claims and accrual rates, and it can't all be blamed on the recession. It looks more like some companies are managing earnings by reducing their accrual rates to make their numbers. As claims rates soar, accruals fall.
April 15, 2010
VSC Industry Structure: In a business as opaque as the vehicle service contract industry, it's not always obvious who all the players are or how they all work together. And auto dealers who make the wrong choice of partners may not know it for years.
February 4, 2010
Top 100 Warranty Providers at Midyear: Was that the sound of the bottom of the recession? If so, financial data from the first half of 2009 provides a detailed record of how warranty providers reacted to a collapse in sales and a jump in claims. Though some of the largest warranty providers didn't make it, those that did are enjoying the benefits of recent claims processing automation projects and other cost-cutting efforts.
September 3, 2009
Warranty in Financial Statements: Because warranty disclosures began appearing in annual reports less than seven years ago, it takes a bit of skill to hunt down the right data and turn it into meaningful percentages and ratios. So until the procedures are old enough to make it into the accounting textbooks, here's a step-by-step guide to how it's done, using one company's most recent disclosures as an example.
July 30, 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
NEW's Smart Procurement: By taking advantage of ServiceBench's connectivity with servicers and parts distributors, NEW is hoping to speed up repairs by helping servicers to find and order parts. The resulting reduction in turnaround time should make NEW's retail clients happier and its service contract customers less unhappy.
June 18, 2009
RV Extended Warranties: As sales plummet, the nameplates are dropping like flies. But the dealers have to make a living, and they've found that extended warranties -- sold at a discount or practically given away -- are a great way to induce skittish buyers to drop a quarter million dollars or more on an otherwise as-is purchase.
June 11, 2009
Warranty Conference: Economic turmoil is likely to take its toll on WCM 2009 attendance, but those who can make it to Orlando next week will see a series of how-to presentations by some of the biggest warranty providers in the world. Legal and regulatory issues are also on the agenda, and yes, there will be a quiz at the end.
March 5, 2009
Green Warranties, Part Four: Solar cell manufacturers betray their youth and inexperience when it comes to warranty accounting. Very long warranties, new technology and rapidly increasing sales don't make their jobs any easier.
June 5, 2008
Automotive Warranties: Are claims soaring or falling? It depends how you slice the market. One way is to compare OEMs to their suppliers. Another is to group OEMs by the size of the vehicles they make. Either way, passenger car and light truck makers always seem to end up paying the most.
September 11, 2007
Warranty Analysis Workshops: Four pre-show workshops and an automotive warranty seminar make the day before the official opening of WCM 2007 a worthy destination, and may presage an era when advanced courses and certification become a routine feature of warranty industry events.
February 21, 2007
Automotive Warranty:  For some the trend is up, while for others warranty costs are falling. And those who make vehicles aimed at either summer or winter activities are seeing a seasonal pattern in their warranty costs.
October 17, 2006
Warranty Reserves: Over time, both companies and industries make consistent choices regarding how much revenue to put aside to fund future warranty claims, reflecting the outlook of their forecasters.
May 9, 2006
Extended Warranty Bankruptcies: Like a tree falling in the woods, recent dot-com warranty failures went largely unnoticed by the media and unpredicted by either the regulators or the ratings agencies. So how can a customer be expected to make the right choice?
February 7, 2006
Extended Warranty Income: Though most extended warranties are sold by retailers, a few computer manufacturers continue to make a killing by selling their own service contracts. Extended warranties can account for a significant slice of profits, and sometimes can actually be the difference between profit and loss.
October 25, 2005
Warranty Seminar: Last month, a business intelligence software developer sponsored a morning seminar on the topic of the TREAD Act and warranty claims. For those who couldn't make it, here's a brief overview of the proceedings.
July 27, 2004
Warranty by Industry: While automotive warranties continue to account for half of all claims, a diverse mix of other industries makes up the balance, from air conditioning to airplanes. Manufacturers grouped by the types of products they make exhibited distinct personalities during the past year.
March 30, 2004
Turf Warranties: In some of North America's largest sports stadiums, the grass is always greener, thanks to AstroTurf and its successors. Unlike the sods it replaces, an artificial sports surface comes with an eight-year warranty. But if you're planning to make a claim, bring your lawyer.
February 10, 2004