Carmakers could cut warranty costs by 25%.(Brief article)

Automotive News Europe,  April, 2006  by Ciferri, Luca

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Byline: Luca Ciferri

European automakers could cut their huge warranty costs by up to a quarter by improving their processes.

Consultancy MSX International estimates that warranty costs average between 2 percent and 4 percent of total revenue for most automakers - or [euro]30 billion globally.

The MSX estimate includes only the direct cost of claims - product repairs, warranty administration infrastructure and capital spending to fix the manufacturing process for chronic problems.

Not included are costs such as customers lost because of a poor warranty experience and ...

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