Law and Rights
Ford's 2005 warranty repair costs were $3.986 Billion, which was 2.6% of product sales. Maybe a small percentage, but it's a really huge number.
GM's 2005 warranty repair costs were $4.696 Billion, which was 3% of product sales. The only good news for GM is that the warranty tab dropped in the first quarter of '06 to less than Ford's.
Compared with Ford and GM, DaimlerChrysler's warranty claims have been all over the map, but almost always hugely above the other two. From Warranty Week, here's the warranty claims rates for the big 5 automakers from 2003 to 2006:
The chart shows that the perception of Toyota and Honda quality is borne out by the reality of their warranty claims rates: flat. Then take a look at Chrysler. The numbers are significantly higher and erratic. That matches their perception of quality too.
When Chrysler, Ford and GM get their quality up, their warranty costs will go down. And that will mean their profits will go up. After all, you don't hear Toyota crying the financial blues like GM.
Until the quality goes up, if you've got a lemon, don't go it alone. Know your Lemon Law rights and don't let Detroit run over you!
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- Monaco Worsens ?
The complaints and reports are starting to come in that Monaco dealers are refusing to do warranty work because of either "slow pay" or "no pay" on warranty claims. Rumor has it that a Southern California dealer turned away a 2009 Dynasty owner's...
- Motown's Tough Times
Times are tough in Motown. Factory stats are out and the picture isn't good in Detroit. With the Mayor having his own tough times, things aren't good in Dearborn either. Sales at GM and Chrysler dropped 19% in March and Ford fell 14%. Even Toyota...
- Isuzu Gives Up
Last year in the entire United States Isuzu sold a grand total about 9 cars a day --- in the entire country. You can't make a living that way, so Isuzu gave up. Isuzu is pulling out of North America, unable to compete with either price or quality...
- Tata, Baby, Tata
Well, there goes Jaguar. And Land Rover. Bye bye, baby, bye bye. Or maybe Tata, baby, tata. Tata Motors, from India, looks to be the high-bid winner in the "Jaguar and Land Rover sales auction" from Ford for a cool $2 Billion, according to reports from...
- Quality Is Job 1 At Ford Again
Years ago Ford's advertising slogan was Quality is Job 1. Well, maybe quality is coming back to Ford. But in an ironic twist, the best manufacturing plant in America, the one with the lowest defect rate, is the one Ford just shut down in Wixom, Michigan,...
Law and Rights
Big 3 Warranty Repair Costs Reflect Quality
Ford's 2005 warranty repair costs were $3.986 Billion, which was 2.6% of product sales. Maybe a small percentage, but it's a really huge number.
GM's 2005 warranty repair costs were $4.696 Billion, which was 3% of product sales. The only good news for GM is that the warranty tab dropped in the first quarter of '06 to less than Ford's.
Compared with Ford and GM, DaimlerChrysler's warranty claims have been all over the map, but almost always hugely above the other two. From Warranty Week, here's the warranty claims rates for the big 5 automakers from 2003 to 2006:
The chart shows that the perception of Toyota and Honda quality is borne out by the reality of their warranty claims rates: flat. Then take a look at Chrysler. The numbers are significantly higher and erratic. That matches their perception of quality too.When Chrysler, Ford and GM get their quality up, their warranty costs will go down. And that will mean their profits will go up. After all, you don't hear Toyota crying the financial blues like GM.
Until the quality goes up, if you've got a lemon, don't go it alone. Know your Lemon Law rights and don't let Detroit run over you!
Subscribe in a reader- Monaco Worsens ?
The complaints and reports are starting to come in that Monaco dealers are refusing to do warranty work because of either "slow pay" or "no pay" on warranty claims. Rumor has it that a Southern California dealer turned away a 2009 Dynasty owner's...
- Motown's Tough Times
Times are tough in Motown. Factory stats are out and the picture isn't good in Detroit. With the Mayor having his own tough times, things aren't good in Dearborn either. Sales at GM and Chrysler dropped 19% in March and Ford fell 14%. Even Toyota...
- Isuzu Gives Up
Last year in the entire United States Isuzu sold a grand total about 9 cars a day --- in the entire country. You can't make a living that way, so Isuzu gave up. Isuzu is pulling out of North America, unable to compete with either price or quality...
- Tata, Baby, Tata
Well, there goes Jaguar. And Land Rover. Bye bye, baby, bye bye. Or maybe Tata, baby, tata. Tata Motors, from India, looks to be the high-bid winner in the "Jaguar and Land Rover sales auction" from Ford for a cool $2 Billion, according to reports from...
- Quality Is Job 1 At Ford Again
Years ago Ford's advertising slogan was Quality is Job 1. Well, maybe quality is coming back to Ford. But in an ironic twist, the best manufacturing plant in America, the one with the lowest defect rate, is the one Ford just shut down in Wixom, Michigan,...