Chicago Automobile Trade Association

Newer cars need less warranty work: J.D. Power

November 23, 2010
Quality improvements across the automotive industry are reducing the need for warranty repairs at new-vehicle dealerships, in turn transforming the nature of the dealer service business, according to a new J.D. Power and Associates study. The study finds the balance of work at dealerships is tilting more toward regular scheduled maintenance as opposed to repairs. The mix of routine maintenance business has increased to 57 percent in 2003 from 47 percent in 1999. But as sales growth outpaces growth in service capacity and accessibility, some customers report frustration getting their vehicles into the dealership in a reasonable and convenient time. "Dealers who now have more customers are being challenged to find ways to keep their customers flowing efficiently through their service bays," said Joe Ivers of J.D. Power. "Efficiency problems can also have a negative effect on other unrelated aspects of the service experience, even with regard to a customer's critique of the vehicle itself." The CSI study examines experiences with the dealer service department during the first three years of vehicle ownership, which typically represents the majority of vehicle warranty periods.


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