Alfa Romeo Forum - View Single Post

BlueEvo2 · 16-07-2007

Originally Posted by Nev

And Citroen the 10th best marque? No way!.

What we really need to see is the manufacturer's
warranty figures. (Fat chance.) As I would assume that most
problems (ones due to build quality and manufacturing errors)
are fixed in the 1st 2 years.

Also remember that failures on a product follow a "bathtub"
curve with most failures occurring during the start of
a product's life cycle (infant mortality) and at the end (wear out).

So selling warranties for the flat middle section of
the curve is damn profitable. (Surprise, surprise)

I completely agree with you Nev, that selling warranties in the mid-section of the curve is profitable. That's my point - as Warranty Direct do not want to lose money, and favour cars in the mid-cycle of the curve, and still have pay out the amounts they do, surely there's validity there?

I am of course aware of the possible view that some aftermarket warranty companies might inflate the number of "claims" to add to premiums, but it seems unlikely they'd pick the marques that Warranty Direct are reporting as not so reliable.

16-07-2007	#30 (Post Link)
BlueEvo2 AO Member Join Date: Sep 2006 Posts: 251 Member car: 166	Re: Other marque's reliability... Originally Posted by Nev And Citroen the 10th best marque? No way!. What we really need to see is the manufacturer's warranty figures. (Fat chance.) As I would assume that most problems (ones due to build quality and manufacturing errors) are fixed in the 1st 2 years. Also remember that failures on a product follow a "bathtub" curve with most failures occurring during the start of a product's life cycle (infant mortality) and at the end (wear out). So selling warranties for the flat middle section of the curve is damn profitable. (Surprise, surprise) I completely agree with you Nev, that selling warranties in the mid-section of the curve is profitable. That's my point - as Warranty Direct do not want to lose money, and favour cars in the mid-cycle of the curve, and still have pay out the amounts they do, surely there's validity there? I am of course aware of the possible view that some aftermarket warranty companies might inflate the number of "claims" to add to premiums, but it seems unlikely they'd pick the marques that Warranty Direct are reporting as not so reliable.