The Biggest 9-Month Warranty Expense Rate Changes
The weekly newsletter for warranty management professionals
The Biggest 9-Month Warranty Expense Rate Changes
The city of Louisville, Kentucky, home of both General Electric's Appliance Park and United Parcel Service's Worldport, has become a major hub for the warranty industry. AIG Warranty Solutions is just across the Ohio River in Jeffersonville, Indiana, Best Buy's Geek Squad City is just south of the a...
Worldwide Auto Warranty Expenses
European Auto Warranty Expenses
Now that we've completed our roundup of all the U.S.-based manufacturer warranty expense data, it's time to turn to some of the international companies that also report their claims and accrual data in their annual reports.
Supplier Recovery Estimates https://www.warrantyweek.com/archive/ww20190418.html
Automotive Supplier Warranty Report https://www.warrantyweek.com/archive/ww20190411.html
Automotive OEM Warranty Report https://www.warrantyweek.com/archive/ww20190404.html
March is the month that most manufacturers release their annual reports, and so it's also the time of year that we traditionally publish a tally of all the claims, accruals, and warranty reserves detailed in those financial statements. This year, we're going to start off with a high-level snapshot o...
The Photovoltaic-Institute Berlin AG, which provides inspection and consulting services to solar cell manufacturers, has published a white paper on worldwide product quality trends in the industry.
ASC 606 Causes Warranty Accounting Changes https://www.warrantyweek.com/archive/ww20181220.html
While warranties have a worldwide presence, outside of a few industries the disclosure of warranty expenses is primarily an American phenomenon. Thanks to the accounting scandals at the turn of the century, U.S.-based manufacturers are now required to disclose the size of their liabilities, includin...
Warranty expenses took a big drop last year, but it's not entirely clear if that was a good outcome for U.S.-based manufacturers. Some of the decline was attributable to better products and higher quality. But some was due to acquisitions by foreign firms, many of which don't report their warranty e...
Apple Inc., manufacturer of both the market-leading iPhone and the innovative Macintosh computer product line, just published an annual report for the fiscal year ended September 30 that suggests both its product warranty and extended warranty programs have peaked. But total revenue is up, and so is...
The global construction machinery industry, like the passenger car and civilian aircraft industries, is dominated by a limited number of very large manufacturers, many of which report their warranty claims and accruals totals in their financial statements. And as with those industries, it is possibl...
The commercial aviation industry, specifically the manufacturers of the airliners, business jets, and smaller propeller-driven planes that fill our skies, are a major source of warranty expenses. Although some manufacturers are still government-owned or are closely tied to the national air forces of...
Thanks to a tradition of full disclosure across the worldwide automotive industry, we have good measures of how many cars and light trucks were made, how many were sold, where they were bought, and how much they cost. Combined with some basic warranty metrics released by the manufacturers of upwards...
As we discovered several years ago, there seems to be an inverse relationship between the size of a civilian airplane and its warranty expense rates. Basically, the bigger the aircraft a company manufactures, the lower its claims and accrual rates. The smaller the aircraft, the higher its claims and...
Next week, for the third year in a row, the Global Warranty and Service Contract Association is convening its annual meeting and conference in Chicago. And for the second consecutive year, the event takes place at the Palmer House, a huge hotel that was built and rebuilt on the same site for the pas...
In last week's newsletter, there were several solar equipment companies profiled that were incorporated in one country, had their headquarters in another country, and sold their stock in New York. Several were startups from Asia, which had acquired small U.S. companies in order to gain their stock l...
We now have warranty expense data for a baker's dozen companies manufacturing passenger cars and light trucks in the U.S., Europe, and Asia. It's too much data to fit into one newsletter, so it will take three weeks to get to all of it. This week, we will start with the five European OEMs: BMW AG, D...
There's a new economy emerging, comprised of new companies making new kinds of products. But they still have to comply with all the old accounting rules, including the Financial Accounting Standards Board regulations that have mandated the disclosure of warranty reserve activity since 2003.
Chicago, Sept 21-23, 2016
The Global Warranty and Service Contract Association (“GWSCA”) has established sponsorship rates and registration fees for our third annual conference, to be held at the Palmer House Hilton in Chicago September 21-23, 2016.
In order to put together this week's industry report, we started with a list of 196 U.S.-based medical equipment and scientific instrument manufacturers and split them into two groups. There were 44 companies making equipment that used lasers or X-rays in some way. And there were 152 that did not.
The computer industry is one of the most warranty-intensive of all, after the automotive sector. But although it accounts for more than a quarter of all warranty spending by all types of manufacturers, the computer industry has neither long warranties nor well-funded warranty reserves. So when somet…
Automotive OEM Warranty Report
PCMI & Ancillary Products
Microsoft Complete & AmTrust
Nestled between the upscale Gucci and Versace retail outlets in Midtown Manhattan's Fifth Avenue high-end shopping district sits the flagship Microsoft Store. Brightly lit glass walls welcome shoppers from the sidewalk into the high-tech space, like they do a few blocks up the street at the Apple St…
Apple's Warranty & AppleCare Programs
Not only is the company one of the world's largest warranty providers, but it's also running one of the world's largest extended warranty…
Isn't it ironic that a bunch of students caught one of the world's largest manufacturers cheating on a test?
The problem with consumer electronics warranties is that most of the products are imported. And the problem with imports is that a decreasing number of international companies are choosing to conform to U.S. accounting rules that require the disclosure of their warranty expenses. So compared to some…
Warranty claims and accrual rates are easy to figure out: take the expense and divide it by sales revenue to calculate a percentage rate. But when the revenue includes service, consumables, and sales of basic materials, the percentage rate is too low because the revenue is too big.
If there really is a correlation between reliability and warranty costs, then why do some of the most expensive warranties seem to belong to the most well-regarded brands? Can it have more to do with tax and labor rates and less to do with the frequency of repairs?
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.
Way back in 2003, following scandals in which crooked companies did everything from booking bank loans as sales revenue in Buffalo to manipulating the supply of electricity in California, a new accounting rule was written to force all companies to reveal the size and scope of all the guarantees they…
Warranty Chain Management Conference Workshops Preview
Warranty management is one of those professions whose numerous unwritten rules are passed down orally, to be perfected through experience and then bequeathed to the next generation. For instance, should you approve a claim for a product whose warranty expired yesterday, for a customer whose father k…
Warranty Chain Management Conference Keynote Speeches Preview
At this year's Warranty Chain Management Conference, attendees are immediately going to be challenged to face the changes that new technology is forcing upon our industry.
After following American manufacturers for a dozen years, it's become relatively easy to spot when a company's warranty costs get out of control. Even when they don't give a reason for the turbulence, the numbers speak for themselves.
For decades, the extended warranty business has been centered around one value proposition: What are the odds of a product needing a repair, and what is the average cost likely to be?
The reason it's so hard to gauge the size of the extended warranty and service contract industry is because it's typically a small part of a lot of large companies' overall business.
Each year, Strategies For Growth (SFG), the Westtown, Pennsylvania-based research analyst and consulting firm, conducts a series of Benchmark Surveys among its global outreach community of services professionals. There were a total of 228 responses for the firm's 2014 Warranty Chain Management Bench…
So much is written about the iPhone, Android and other mobile handsets. But there's so little written about the service contracts and insurance policies that protect them from theft, loss, damage, malfunction, and manufacturing defects.
In our series of articles on the major appliance service contract industry back in early 2011, we neglected to include one important item: a market share report. Seven consecutive weekly newsletters explored the history of ServiceBench Inc., GE Appliances, Lowe's, and Abt Electronics and Appliances,...
Most of the top passenger car manufacturers continue to reduce their warranty expenses, as calculated by the size of the expense per vehicle and as a percentage of their automotive revenue.
If all the warranty expenses that were caused by suppliers were paid by suppliers, what would the industry split be between them and the OEMs that they supply?
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