Automakers need to shift their warranty focus toward reducing cost and away from blaming suppliers, according to a study by the Original Equipment Suppliers Association.
North American warranty costs are about $10 billion annually, and just a small percentage of those costs are pushed down to suppliers, says association President Neil De Koker.
"But more programs are being implemented to share warranty responsibility based on targets," he says. "The OEM says: 'Our goal is to reduce warranty costs by X percent. If you exceed that goal, we'll share the savings.
"If you don't reach the goal, you must write a check to make up the difference.' "