New technology and parts sharing is posing a tough challenge for vehicle makers to decide on warranty cover.
Warranty and quality specialists from automotive suppliers met at the 2018 CLEPA Warranty Conference in Frankfurt, to discuss the future challenges in managing warranty in the future and the headline of the conference was “Warranty in a digital world”.
Partners from Strategy&, a daughter company of Price Waterhouse Coopers (PwC), set the scene by disclosing the first insights of their latest study on the automotive market which is expected to be published in November.
The trend to an increasing number of shared vehicles operated in professionally managed fleets will have an impact on how cars are designed and manufactured. The value stream in the automotive industry will be reshaped and responsibilities and liabilities will be more difficult to assign.
The law firm Bird & Bird laid out the future need for service contracts and service level agreements in addition to current purchasing contracts to cover all aspects from the increasing complexity of state of the art vehicles. The participants got an update on latest available software technologies to support warranty handling processes and to detect with the help of big data analytic tools patterns of quality related issues already in a very early stage.
Wolfgang Deissenroth, the chairman of the CLEPA warranty working group, brought the audience back to the nuts and bolts of the warranty processes agreed between suppliers and vehicle manufacturers by showcasing practical examples. Marsh highlighted the future challenges in covering warranty cases from an insurance perspective.
In the last part, Bosch and the Caruso data marketplace introduced a completely new way of monitoring quality and component behaviour in the field by using connectivity technology and a neutral trustee. Such a system will allow suppliers and vehicle manufacturers to detect and predict possible failures in a very early stage to allow immediate countermeasures and to reduce or avoid warranty claims.
The concept is supported by leading automotive suppliers and the VDA and a pilot phase is planned to start in early 2019. The CLEPA warranty working group will further monitor and support this concept.