The Detroit News today

June 1, 2010

I read a vindicating article in The Detroit News today.  It seems that warranty costs for U.S. automakers are down by 40 percent or more since 2007.

Forgive me if this sounds overly elementary but I find that there are enduring misconceptions about automobile warranties.  In short, the companies that build the cars pay the repair expenses for the first 3 years or 36,000 miles.  When those companies’ warranty expenses go down, it is a pretty clear indication that the quality of the vehicles is on the rise.

As The Detroit News points out, the biggest contributor to the growing trend is improved quality. Ford’s warranty costs have dropped by 40 percent since 2007.  General Motors (Chevrolet makes up more than half of GM’s sales) costs have dropped 45 percent and Chrysler has seen a 48 percent decrease.

Doug Betts, senior vice president in charge of quality for Chrysler, told The Detroit News that the manufacturer of Chrysler, Dodge, and Jeep vehicles saw its warranty costs drop by $240 million in 2008 alone, and 2009 saw still more savings.  This is a personal aside.  I have met Doug Betts.  I think he is one of the most important contributors to Chrysler’s turnaround.  He came to Chrysler after working at Nissan and Toyota and has brought some of their principles with him.  The man breathes, eats, and lives quality.

Milton Ruben Superstore is one of the top selling dealership groups in the United States.  In May, Milton Ruben Superstore sold more than 500 new and used cars, trucks, vans, and SUVs for a record third consecutive month.  Milton Ruben Superstore sells new Chevrolets, Chryslers, Jeeps, and Dodges as well as Toyotas.  Milton Ruben is also one of the top Used Car dealers selling vehicles to fit every need and budget.

Milton Ruben also repairs and maintains any make or model of car, truck, van, or SUV.

Since 1982, we are Augusta’s Whatever it Takes dealer.  We do deals the other guys just won’t.  Shop us online at www.drivebaby.com

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