Case Study

Reducing a $25M Warranty Claim by 50%!

The Problem:

An OEM demanded $25 million from a Tier 1 supplier, citing warranty failures in sunroof assemblies

Supplier Response:

The supplier attempted to challenge the chargeback but was unsuccessful.
To avoid losing future business, the supplier sought insurance coverage.

NovaVantage's Solution

Conduct failure validation – proving parts met design specifications

Challenge over-repair costs – Found that OEM repair procedures inflated warranty costs unnecessarily.

Uncover OEM responsibility gaps – shifting liability away from the supplier.

Tremendous toolset based on data and expert knowledge to reduce costs

NovaVantage's Impact

The total warranty claim can be proven to be reduced from $25M to $12.5M.

The case set a precedent for future technical claim negotiations.

While very case is different, there are many similarities where we can help identifiy excess cost, mitigate risk and help negotiate reduced warranty claims.

Ender Aslangeciner

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