Archived Copies of Warranty Week

December 2002 to Today

Apple & Tesla Warranty Accounting: The third quarter numbers are coming in fast and furious now, and some investors and stock analysts are treating the warranty expense data as a leading indicator of a company's financial health. But there are limits to how quickly some bad numbers can turn into a trend or a scandal.
November 7, 2019
Top Asian Automaker Warranty Expenses: The recent trend has been upward for the warranty metrics of these Korean and Indian car companies, with some of their expenses setting new record highs. Their warranty costs are far from out of control, but they're no longer low, which is bad for companies known for their lengthy warranties.
August 15, 2019
Telecom Equipment Warranty Report: Some of the four very different segments of the telecom equipment industry are better at reducing their warranty costs than others. But the biggest trend over the last decade has been the contraction of the U.S.-based part of the industry, and the rise of European and Asian competitors in their place, except for the Internet/data and broadcasting/cable TV segments.
May 7, 2015
Aerospace Warranty Report: Because a few big manufacturers dominate the industry, their problems or successes with warranty cost control can change the industry averages significantly. But over the long term, the trend is clear: aerospace suppliers have learned how to cut their warranty expenses and keep them low. The OEMs? Not so much.
April 2, 2015
Appliance & HVAC Warranties: With huge amounts of warranty cost-cutting reported by United Technologies and others, the industry trend for expense rates is now firmly downwards. But HVAC and household appliance makers used to spend even less on warranty a decade ago.
May 16, 2013
Most Improved Warranty Metrics, Part 2: Warranty expense rates have been on a downward trend for most of the past decade. And most of the manufacturers are reducing their claims and accrual rates year after year. Some, however, continue to cut costs faster than their peers.
October 25, 2012
Vehicle Service Contract
Attachment Rates: Has the chaos of the Great Recession actually increased the appeal of vehicle service contracts? Auto dealers aren't selling as many as they used to, but for at least the past five years roughly one out of every three customers has bought one. And the recent trend seems to have been upwards, as unlikely as that sounds.
January 28, 2010
Medical Equipment Warranties: Doctors, hospitals, and laboratory technicians want sturdy and reliable medical systems, and for the most part the manufacturers that supply them have been steady and predictable. But every once in a while, a massive recall or a production glitch causes warranty costs to spike. And it's when the trend line leaves its historical range that we know there's something wrong.
October 8, 2009
Aerospace Warranties: Though the industry trend is upward, some aerospace companies have managed to reduce their warranty expenses significantly over the past five years. But a few have recently seen their warranty costs go back up.
July 24, 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
Automotive Warranties: Thanks to reduced warranty expenses at GM, claims were up only slightly for the auto industry in 2006. With four years of data in hand, it's now possible to calculate typical claims rates by product or vehicle type. And while warranty expenses for some are on a downward trend, others have seen costs rise.
May 15, 2007
Warranty Conference Keynotes: Globalization is already a major trend in warranty service provision, according to WCM Conference keynote speakers from Solectron and Lenovo. Next month, they'll tell the Conference that what's happened to them is what may happen to everyone else soon, as mobile phones and laptops amplify global demand for warranty service -- turning next week into next-day.
February 14, 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
Telecom Equipment Warranties: Unlike in other industries, there doesn't seem to be any typical spending rate for warranty claims in the phone, data, wireless, or broadcast equipment sectors. For every high there's a low, and for every upward trend there's a decline.
December 20, 2005
Warranty Reserves: While the average manufacturer spends 1.9% of product revenue on warranty claims and keeps a little over a year's worth of funds in reserve, each industry is different. Computer manufacturers and automakers fund their warranty programs at different levels than telecom or aerospace manufacturers. But in any group, as with any trend, there's always the odd man out.
April 6, 2004