Archived Copies of Warranty Week

December 2002 to Today

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
Homebuilder Warranty Report: As happened in 2007, the warranty metrics of the U.S.-based single-family home builders seem to have hit a bit of a plateau in 2019. Unit sales and warranty claims are up, but all the other metrics are little-changed from 2018 levels. And now, it's hard to imagine how 2020 will turn out.
March 12, 2020
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
Worldwide Automotive Warranty Expenses: With reliable warranty expense data in hand from 24 of the world's largest carmakers, we have calculated some worldwide metrics: $46 billion in claims, $50 billion in accruals, $115 billion in reserves, 2.14% average claims rate, 2.53% average accrual rate, and $543 in accruals per unit sold.
August 22, 2019
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
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
New Home Warranty Report: With products such as single-family homes, it's possible to measure warranty accruals not only per dollar of revenue, but also per unit sold. And then it becomes clear which companies have mastered their warranty cost estimation process and which are still making it up as they go along.
June 8, 2017
U.S. Automakers' Warranty Expenses: Because there were so many big recalls in 2014, the amount spent on warranty soared. Last year, things began to get back to normal, but expense rates are still at elevated levels. Nevertheless, unit sales totals smashed a 15-year-old record in 2015.
January 7, 2016
Fulcrum Analytics Spins Off After Inc.: The experts in extended warranty analytics and post-sale marketing services have spun off the business unit so it can stand on its own.
September 17, 2015
U.S. & Asian Auto Warranty Report: Almost every passenger car manufacturer is reporting rising warranty expense rates, thanks to soaring recall costs. But while some OEMs are seeing their costs per unit rise by a third or even by half, a few are reporting only small increases.
July 16, 2015
Warranty Accruals per Vehicle: Though currency fluctuations are a major factor, in 2013 both GM and Ford accrued less per vehicle sold than any of the European or Japanese OEMs. And though BMW and Daimler command a higher price per vehicle, they've accrued less and less per unit over the past decade as they continue to cut warranty costs.
July 17, 2014
Warranty Acquisitions: Big companies are buying smaller companies all the time. But then they have to merge their product lines, combine their warranty reserves, and publish all the details. Divestitures, meanwhile, also happen once in a while, but not as often as entire companies are sold as a single unit.
October 20, 2011
RV & New Home Warranties: Sales are declining so claims rates are rising. But a few homebuilders have radically cut the amount they set aside per unit sold, raising suspicions that they're intentionally estimating low. Meanwhile, homes on wheels continue to show higher warranty costs.
June 20, 2008
Manufacturer's Extended Warranties: Although retailers dominate the business, a handful of manufacturers do very well for themselves in the extended warranty business. Now a major bank's insurance unit wants to help more of them to launch service plan sales efforts.
February 14, 2006