Warranty Cost Optimization using AI

The automotive industry is grappling with rising warranty costs, with the top 10 OEMs incurring over $50 billion per year at an average. The introduction of advanced technologies such as autonomous driving, electrification, and connectivity has led to a surge in warranty claims. The emergence of software-defined vehicles (SDVs) has introduced new challenges, as software-related issues now account for a significant proportion of warranty claims.

OEMs face several specific challenges in managing warranties, including:

• Timely processing of unstructured data from multiple sources
• Prioritizing issues based on potential risk of recurrence
• Identifying root causes for issues with multiple symptoms
• Coordinating among various teams to align prioritized actions
• Optimizing operational and accrual costs by minimizing analysis costs and no-trouble-found (NTF) incidents

This whitepaper outlines the need for OEMs to establish new practices to further strengthen warranty management systems, including effective data collection techniques, data management systems, and data-driven decision-making mechanisms.

This white paper is a must-read for anyone interested in understanding the complexities of warranty cost optimization in the automotive industry. Download the complete white paper to gain valuable insights and strategies for effective warranty management.

Authors: