US & Asian Auto Warranty Report: - Warranty Week
While lengthy and all-inclusive warranties are advertised as if they are a proxy for quality and reliability, in truth the actual cost of passenger car warranties doesn't seem to correlate that well with the reputation of the manufacturers. This is Part Two of a series of newsletters on automotive warranty expenses. In last week's newsletter we covered the top European automotive OEMs and detailed both their warranty claims rates as a percentage of revenue and their accrual rates per vehicle sold. All told, we're now up to 13 automotive OEMs reporting their warranty expenses, accounting for roughly two-thirds of global passenger car and light truck production and three-fourths of U. S. sales. Last week, we looked at the warranty data of five European OEMs: Daimler AG. the Volkswagen Group. This week, we will look at four Asian OEMs: both Honda and Toyota Motor Corp. , as well as Hyundai Motor Co. and Tata Motors Ltd. , and at four American OEMs: General Motors Co. Ford Motor Co. FCA US LLC (formerly Chrysler). Out of that baker's dozen, which company would you say has the highest warranty costs. Perhaps, before reading further, you could mentally sort those 13 OEMs into one of two groups: those you think have above-average warranty costs and those with below-average warranty costs. Source: www.warrantyweek.com
