Partner Ann Marie Uetz was quoted in the Reuters article, “Ford’s new CEO tackles warranty costs in bid to boost profit,” about Ford Motor Company’s recent move to charge suppliers upfront for half the cost of a warranty problem. The move is an effort to help improve the company’s financial performance by reigning in rising warranty repair costs.
According to the article, bad parts from suppliers account for nearly one-third of Ford’s warranty costs.
Uetz told Reuters that “warranty recovery is increasingly seen as a revenue source,” by automakers. “Often times, it can feel like a bit of a grab,” she said.
