A Case Study from Ford Motor Company
At this year’s Vehicle Service & Warranty Lifecycle Summit, Shannon Dare and Lisa Sheth — NA Warranty Cost Reduction Managers at Ford Motor Company — delivered one of the most data-driven and urgent messages of the event:
Repair costs are climbing faster than the systems built to manage them.
Their case study, “Managing the Rising Cost of Vehicle Repairs: A Warranty Perspective,” unpacked the accelerating pressures shaping today’s warranty landscape — pressures affecting OEMs, suppliers, dealers, and consumers alike.
What’s Driving Costs Higher? A Convergence of Challenges
Shannon and Lisa outlined the intersecting forces increasing both the complexity and the cost of warranty repairs across the industry:
- Vehicles are heavier, more complex, and built with advanced materials.
Modern construction improves performance and safety — but raises repair difficulty and cost. - Computerization continues to increase across major systems.
More software, more sensors, and more interconnected components mean more time and expertise required for diagnosis and repair. - A significant technician shortage is emerging.
Fewer skilled technicians mean longer repair cycles, higher labor rates, and operational strain. - Supply-chain pressures persist long after the pandemic.
Parts availability continues to impact repair speed, replacement options, and cost predictability. - EVs are reshaping the repair cost equation.
Electric vehicles bring a new scale of complexity — and cost.
Shannon and Lisa shared a critical data point:
EV repairs now represent nearly 40% of total repair cost, averaging $5,000–$10,000 — roughly 30% higher than comparable ICE repairs.
This shift is redefining warranty strategy for every OEM and supplier in the market.
Their Message to the Industry Was Clear
The pace of change isn’t slowing — and the cost curve isn’t flattening.
Shannon and Lisa emphasized that acting now is essential:
- Repair complexity is accelerating.
- Cost pressures are intensifying.
- Workflows built for yesterday’s vehicles can’t sustain tomorrow’s demands.
Warranty leaders must take a proactive approach, rethinking everything from repair strategy and supplier relationships to documentation, training, and technology adoption.
Key Takeaway
As repair costs surge, proactive warranty management is no longer optional — it’s mission-critical.
- EV trends are amplifying the challenge.
- Complexity is rising across every vehicle platform.
- The industry will need new strategies, new tools, and deeper cross-industry collaboration to sustain quality, control costs, and protect customer trust.
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