We're continuing our series of 23-year charts with medium- and heavy-duty vehicles. In our most recent newsletter, we covered the Cars & Cycles industry, which includes manufacturers of vehicles up to the size of a pick-up truck or ambulance. This week, we're analyzing the warranty expenses of the U.S.-based manufacturers of larger vehicles, including on-highway trucks, RVs, firetrucks, tactical trucks, tow trucks, heavy equipment used for agriculture, construction, and mining, and coach, transit, and school buses.

The Truck, Bus, & Heavy Equipment industry includes makers of on-highway truck frames, such as Paccar, the parent company of Peterbilt and Kenworth. However, truck powertrain manufacturers, such as Cummins, are included in the Auto Parts & Powertrain industry, which we will feature in next week's newsletter.

We make this distinction because commercial vehicle product warranties work differently than those for consumer vehicles. Trucking companies frequently purchase powertrain components, such as the chassis, engine, and transmission, separately from the vehicle frame. Each component comes with its own discrete product warranty, attached to each vehicle element. We will analyze the relationship between the product warranty expenses of vehicle OEMs and suppliers in an upcoming newsletter.

There are 36 manufacturers in the U.S.-based Truck, Bus, & Heavy Equipment industry, of which 21 reported product warranty expenses in 2025. The largest manufacturers in this industry were: Deere & Co., Caterpillar Inc., Paccar Inc., Thor Industries Inc., AGCO Corp., Winnebago Industries Inc., Oshkosh Corp., Terex Corp., Rev Group Inc., Astec Industries Inc., Blue Bird Corp., Greenbrier Cos. Inc., Miller Industries Inc., Workhorse Group Inc., and Xos Inc.

We also depict data from the former Navistar in Figures 1, 2, and 4. Navistar was acquired by Traton SE, Volkswagen's truck division, in 2021. The Volkswagen subsidiary was rebranded to International Motors in October 2024.

Keep in mind that another prominent American truck company, Mack Truck, is also European-owned, a subsidiary of Volvo Group since 2000.

Manitex International, maker of truck-mounted cranes, was acquired by Tadano Group, a Japanese crane and lift manufacturer, in January 2025.

Nikola Corp., an electric and hydrogen heavy-duty truck startup, filed for Chapter 11 bankruptcy in February 2025. Nikola founder and CEO Trevor Milton was sentenced to four years in prison in December 2023 for defrauding investors, but he was pardoned in March 2025, after donating millions to Trump's re-election campaign.

Most recently, Rev Group and Terex completed their merger in February 2026, so 2025 will be the final year where the two manufacturers report separately.

To create this newsletter, we perused the annual reports and quarterly financial statements of all U.S.-based heavy-duty vehicle manufacturers that report their product warranty expenses to the SEC. We gathered three key warranty metrics: the amount of claims paid, the amount of accruals made, and the end-balance of the warranty reserve fund.

In addition, we gathered data on each manufacturer's segmented vehicle sales revenue. This excludes revenue generated from extended warranty, service, apparel, financing, etc.

We used these data to calculate two warranty expense rates: claims as a percentage of vehicle sales revenue (the claims rate), and accruals as a percentage of sales (the accrual rate).

Warranty Claims Totals

Figure 1 shows the total warranty claims paid by the Truck, Bus, & Heavy Equipment manufacturers, from 2003 to 2025. Figures 1, 2, and 4 highlight the top 10 manufacturers by warranty expenses.

In 2025, the heavy-duty vehicle industry paid a total of $3.94 billion in warranty claims, down -5% from 2024's record high.

Amongst the makers of agricultural and construction equipment, Deere & Co. paid $1.33 billion in warranty claims in 2025, a very slight increase of 0.23% from 2024. Caterpillar Inc. paid $836 million in claims, a 1% increase. AGCO Corp. paid $415 million in claims, a 4% increase.

On-highway truck manufacturer Paccar Inc. paid $772 million in claims in 2025, a -16% decrease from 2024.

RV maker Thor Industries paid $241 million in claims in 2025, a -23% decrease. Winnebago Industries Inc. paid $98 million in claims, a -6% decrease. Rev Group Inc. paid $36 million, a -12% decrease.

Oshkosh Corp., maker of military vehicles, police vehicles, and emergency vehicles, paid $89 million in claims in 2025, a 48% increase. The manufacturer's 10-K annual report discussed "higher warranty expense" in several sections, but did not provide an explanation for this increase.

Terex Corp., maker of aerial work platforms and waste management equipment, paid $36 million in claims in 2025, a -12% decrease. Terex and Rev Group completed their merger in February 2026.

Astec Industries Inc., maker of paving equipment, paid $22 million in claims in 2025, a 15% increase. The Greenbrier Companies Inc., maker of freight railcars, paid $12 million in claims, a -2% decrease. School bus manufacturer Blue Bird Corp. paid $10 million in claims, a 12% increase. Tow truck manufacturer Miller Industries Inc. paid $5 million in claims, a 36% increase.

Phoenix Motor, an electric bus and van startup, paid $6 million in claims in 2025, a 524% increase from 2024. Electric truck startup Workhorse Group paid $2 million in claims, a 451% increase. Xos Inc., electric medium-duty commercial vehicle startup, paid $2 million in claims, a 3% increase.

Warranty Accrual Totals

Figure 2 shows the total warranty accruals set aside by the heavy-duty vehicle manufacturers, from 2003 to 2025.

The Truck, Bus, & Heavy Equipment industry set aside a total of $3.47 billion in warranty accruals in 2025, a 1% increase from 2024. Notably, this means that the industry as a whole paid more in warranty claims than it set aside in accruals in 2025.

Deere set aside $1.15 billion in warranty accruals in 2025, a -1% decrease from 2024. Caterpillar set aside $762 million in accruals in 2025, a 21% increase. AGCO set aside $414 million in accruals in 2025, a 4% increase.

Paccar set aside $581 million in accruals in 2025, a -6% decrease.

Thor Industries set aside $229 million in accruals, a -18% decrease. Winnebago set aside $99 million, a 17% increase.

Rev Group set aside $47 million in accruals, a 5% increase. Terex set aside $51 million, a 31% increase.

Oshkosh Corp. set aside $78 million in accruals, a 16% increase. Astec Industries set aside $24 million, a 28% increase. Blue Bird set aside $16 million, a 56% increase.

The Greenbrier Companies set aside $7 million in warranty accruals, a -39% decrease. Miller Industries set aside $5 million, a 17% increase. Workhorse Group set aside $2 million, a 661% increase. Xos set aside $2 million, a 67% increase. Phoenix Motor reported zero warranty accruals in 2025, despite its claims costs increasing by a factor of seven in 2025.

Warranty Expense Rates

Figure 3 shows the quarterly average warranty claims and accrual rates for the U.S. heavy-duty vehicle manufacturers, from 2003 to 2025.

Over 23 years, the Truck, Bus, & Heavy Equipment industry had an average warranty claims rate of 2.04%, with a standard deviation of 0.33%, and an average warranty accrual rate of 2.01%, with a standard deviation of 0.23%.

In 2025, the heavy-duty vehicle industry had an average warranty claims rate of 2.10%. The quarterly percentages ranged from 1.68% in the second quarter, to 2.46% in the first quarter.

In 2025, the industry had an average warranty accrual rate of 1.79%. The quarterly percentages ranged from 1.43% in the second quarter, to 2.00% in the first quarter.

Warranty Reserve Balances

Figure 4 shows the year-end balance of the warranty reserve funds of the heavy-duty vehicle manufacturers, from 2003 to 2025.

At the end of calendar 2025, the Truck, Bus, & Heavy Equipment industry held $4.94 billion in warranty reserves, a -5% decrease from the end of 2024.

Deere held $1.26 billion in reserves at the end of 2025, a -13% decrease from the end of the year prior. Caterpillar held $1.63 billion in reserves, a -4% decrease. AGCO held $814 million in reserves, a 10% increase.

Paccar held $596 million in reserves at the end of 2025, a -2% decrease. Oshkosh Corp. held $88 million, a 20% increase.

Thor held $292 million in warranty reserves, a -3% decrease. Winnebago held $74 million, a 2% increase. Rev Group held $53 million, a 25% increase. Terex held $50 million, a -7% decrease.

The Greenbrier Companies held $20 million in reserves at the end of 2025, a -17% decrease. Astec Industries held $19 million, a 20% increase. Blue Bird held $17 million, a 4% increase. Rush Enterprises Inc. held $20 million in reserves, a 5% increase.

Workhorse Group held $5 million in reserves, a 478% increase. Miller Industries held $4 million, a 1% increase. Xos held $1.5 million, double the amount held at the end of 2024.

Check out the rest of our series of 23-year charts:

• 23rd Annual Product Warranty Report
• U.S. Passenger Vehicle Warranty Expenses