Automotive warranty management solution requires industry collaboration

Business Wire,  March 5, 2008  

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BearingPoint study identifies need for common standards, better communication and cooperation among manufacturers and suppliers

MCLEAN, Va. -- BearingPoint, Inc. (NYSE: BE), one of the world's largest management and technology consulting firms, today published the results of a study of automotive manufacturers and suppliers on issues surrounding warranty management. Among the key findings profiled in the "Global Automotive Warranty Survey Report": Responsibility for warranty management is fragmented; widely varying perspectives exist with respect to key issues; clear warranty cost targets are rare; and limited win-win approaches between OEMs and suppliers have thus far been enacted.

BearingPoint's Automotive Practice teamed with the Original Equipment Suppliers Association (OESA), Automotive Industry Action Group (AIAG), European Association of Automotive Suppliers (CLEPA) and Warranty Week magazine on the study. Copies of the complete report can be downloaded at www.bearingpoint.com.

"Lagging sales in North America and Europe, stricter regulations, industry restructuring, increased competition, and more product complexity all affect the task of warranty management," said Robert Baxendale, survey director and a senior manager in BearingPoint's Automotive practice. "Now more than ever, warranty management has a direct impact on the profitability of an original equipment manufacturer, its dealer network and the myriad suppliers on which it depends."

Estimates of global spend on warranty claims run between $45 billion and $50 billion. In the United States, automotive manufacturers and their suppliers spent almost $13 billion on warranty claims in 2006, according to Warranty Week.

Building on the study's findings, BearingPoint recommends OEMs and suppliers:

* Build on survey respondent's broad desire to increase collaboration by making data gathering, sharing and analysis initiatives a top priority.

* Emphasize standardization. To date, there are no industry-wide standards for warranty communication or warranty management processes among OEMs and suppliers.

* Insist on timely and efficient communication of warranty claims, parts and diagnostic data.

Additional recommendations, as well as detailed findings and observations by OESA, AIAG, CLEPA and top warranty executives can be found in the report at www.bearingpoint.com.

About BearingPoint, Inc.

BearingPoint, Inc. (NYSE: BE) is one of the world's largest providers of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. Based in McLean, Va., the firm has more than 17,000 employees focusing on the Public Services, Financial Services and Commercial Services industries. BearingPoint professionals have built a reputation for knowing what it takes to help clients achieve their goals, and working closely with them to get the job done. Our service offerings are designed to help our clients generate revenue, increase cost-effectiveness, manage regulatory compliance, integrate information and transition to "next-generation" technology. For more information, visit the company's Web site at www.BearingPoint.com.

Some of the statements in this press release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations, estimates and projections. Words such as "will," "expects," "believes" and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events or our future financial performance that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. As a result, these statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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