Archived Copies of Warranty Week

December 2002 to Today

U.S. Auto Warranty Metrics: In 2019, warranty metrics improved for Tesla and deteriorated for GM and Ford. While Tesla still sets aside the most funds per unit sold to finance future warranty costs, its current claims rate is one of the lowest in the business. And while GM and Ford spend less per vehicle, their vehicles also cost less, and their costs have been rising for several years in a row.
March 5, 2020
Auto Warranties & Quality Ratings: Few people would say that Chinese cars are the best in the world and that German cars are the worst. The quality and reliability studies certainly say otherwise. But the warranty data says Chinese companies spend the least and German companies pay the most. How to reconcile these contradictory data sets?
November 1, 2018
Warranty Accruals for New Homes: When a new home is sold, the builder sets aside a specific amount of money in the form of warranty accruals to cover its predicted warranty costs. Some builders do a consistently good job, accruing roughly the same amount per home sold from one season to the next. But others raise and lower their accrual rates over incredible ranges that seem to have little to do with predicted warranty costs.
August 13, 2015
New Home Warranty Accruals: While the average homebuilder sets aside about one percent of revenue to cover warranty costs, the average new home is expected to cost around $2,500 over the life of its warranty. Luxury homes will cost more, but even some average-priced units have high warranty costs. It all depends on the builder.
December 18, 2014
Telecom & Medical Equipment Warranties: While Motorola sets the pace in the telecom equipment warranty sector, no one company dominates medical equipment warranties. In fact, if anything, the medical and scientific instrument makers are known for consistently low rates of warranty spending.
April 2, 2009