Chrysler Warranty Claims Down by 29 Percent on Newest Vehicles

Chrysler said it stands to save hundreds of millions of dollars just by making better cars.

The company has found that warranty claims on vehicles built since February, when it started a new quality program, are down 29 percent. Based on these numbers, Chrysler can set aside less money to cover warranty repairs on its new vehicles.

The savings are the first fruits of Chrysler’s new attentiveness to quality since being bought by Cerberus last year. The automaker hired chief customer control officer Doug Betts from Nissan to overhaul the way it solved quality issues. Betts’ new program involved organizing eighteen teams to focus on every key feature of Chrysler’s vehicles.

While the returns have been immediate, Betts said Chrysler is adopting a long term perspective. It hopes the improvements eventually translate to a rise in the third party quality studies where it has consistently lagged behind both foreign and domestic competition.

Source: Detroit Free Press