Press Release
Request from the Ministry of Justice: Extension of the warranty
“Cars, smartphones, washing machines: It feels like new products are breaking down faster and faster these days,” wrote Automobilwoche on January 8, 2021, in response to the Ministry of Justice’s call to extend the warranty period from two to three years.
What does this mean for manufacturers? What challenges will arise, and what is the best way to address them?
A statement from Tobias Budde, quality expert at KBC:
Extending the warranty means that issues such as “long-term quality,” “durability,” and “service life” must be given even greater consideration than before, starting with the requirements management phase of the respective product development process.
Manufacturers must place even greater emphasis on preventive quality management methods throughout the entire product development process, from concept design through to procurement. This is the only way to minimize the resulting increase in warranty costs and, consequently, the negative impact on provisions, the balance sheet, and earnings.
When it comes to selecting measures for the early phase, many manufacturers already have solid insights from markets with extended warranty and guarantee periods (48 months in the U.S., 36 months in the U.K., etc.).
Our clear recommendation is therefore to proactively use these findings to identify potential courses of action and measures at an early stage in order to keep quality costs in the field low. And not to wait until action becomes necessary due to the federal government’s extension of the statutory warranty period.
Please feel free to contact us if your company is planning such initiatives. We are your experts in warranty costs and quality management.
