Reuters article: Tesla warranty costs

[twonius]

A bit clickbait-y, i think they burried the context here http://www.reuters.com/article/us-tesla-warranty-idUSKCN0XO1M3

Link:
High warranty costs reflect Tesla’s struggle with quality

Last year, according to a Reuters analysis of data provided in the company's annual report, Tesla spent $1,043 per vehicle on actual repairs and set aside $2,036 in warranty accruals to cover future repairs on the vehicles it sold in 2015. It trimmed warranty expenses by 17 percent from 2014 and cut warranty accruals by 34 percent.

Meanwhile, GM spent just $400 last year for every vehicle it sold on warranty repairs and set aside $332 for future work. Ford spent $429 per vehicle and set aside $308. Daimler spent $970 per vehicle and set aside $1,294.

I think Daimler is the correct comparison here and Tesla comes out looking pretty good considering Tesla's lineup is all < 4 years old. MB on the on the other hand is selling cars like the G-class which hasn't changed significantly in 30 years along side other models which are refinements of earlier designs (rarely a clean sheet car + powertrain except maybe the AMG GT).

If you just broke out the new E-Class + GLE and compared to Tesla they'd probably be roughly equal. An MB doesn't warranty the powertrain for 8 years unlimited miles.

 

[SageBrush]

FUD

 

[twonius]

I had to google that
Fear, uncertainty and doubt - Wikipedia, the free encyclopedia

 

[flankspeed8]

FUD

Just because it portrays Tesla in a somewhat negative light makes it FUD? How so? Are these not facts and reasoned comparisons using available data from all of the referenced manufacturers? Do you disagree that Tesla has an initial quality problem? You have brand new Model X's sitting in service centers for WEEKS waiting for parts and tweaks AFTER they have left the factory. This does not come without cost, and I think we are starting to realize such costs. Certain numbers you can try and hide, but someone is going to find them.

I am all for calling out bias, lies and misrepresentations but to label it FUD in this case, IMO, is wrong and detracts from the real FUD.


Kind of like labeling every political opponent an extremist...over time, that word starts to lose meaning.

 

[mrdoubleb]

Just because it portrays Tesla in a somewhat negative light makes it FUD? How so? Are these not facts and reasoned comparisons using available data from all of the referenced manufacturers? Do you disagree that Tesla has an initial quality problem? You have brand new Model X's sitting in service centers for WEEKS waiting for parts and tweaks AFTER they have left the factory. This does not come without cost, and I think we are starting to realize such costs. Certain numbers you can try and hide, but someone is going to find them.

I am all for calling out bias, lies and misrepresentations but to label it FUD in this case, IMO, is wrong and detracts from the real FUD.


Kind of like labeling every political opponent an extremist...over time, that word starts to lose meaning.

It`s FUD because it throws in GM and Ford as repair cost/accrual comparison. Daimler, Audi, BMW and such are the right comparison due to vehicle class and price range - unless you think it`s fair to compare repair costs on a 30k GM to a 100K by any other manufacturer. Even so, it would only be fair to compare S class, A8, 7 series costs to Model S as even for the Germans, their average cost reflects cheaper models as well (with high volume) vs. top of the line.

 

[SageBrush]

It is FUD because no attempt is made to normalize costs.

As one obvious example, Tesla SCs are few and far apart so ranger, or transport costs to the repair facility are Tesla specific. Since the warranty loss provisions are being used as a surrogate for car quality the differences in service setup lead to BS results.

 

[deonb]

Last year, according to a Reuters analysis of data provided in the company's annual report, Tesla spent $1,043 per vehicle on actual repairs and set aside $2,036 in warranty accruals to cover future repairs on the vehicles it sold in 2015. It trimmed warranty expenses by 17 percent from 2014 and cut warranty accruals by 34 percent.

Meanwhile, GM spent just $400 last year for every vehicle it sold on warranty repairs and set aside $332 for future work.

Wait. Wait! WAIT!! Stop the presses!

You're telling me that a manufacturer that sells vehicles that averages $80'000 has a higher warranty repair cost than a manufacturer that sells vehicles that averages $15'200 ??

 

[Paddy]

Wait. Wait! WAIT!! Stop the presses!

You're telling me that a manufacturer that sells vehicles that averages $80'000 has a higher warranty repair cost than a manufacturer that sells vehicles that averages $15'200 ??

^^^^ this!!!

 

[MDMGSO47]

I have to MBs, and there annual cost have to be equivalent to Tesla. Anyone actually have comparison numbers?

 

[SageBrush]

I have to MBs, and there annual cost have to be equivalent to Tesla. Anyone actually have comparison numbers?

Somehow, I do not find that reassuring.

 

[kort677]

could the reason be that tesla assumes more of the costs of even non warranty fixes than MB does? MB shifts some of the repair costs onto the car owner.
As a data point, I've owned MBs for over 30 years, and have owned 2 model Ss for the last 3 years.

 

[kort677]

I have to MBs, and there annual cost have to be equivalent to Tesla. Anyone actually have comparison numbers?

Tossing aside wear and tear items like tires, brakes, windshield wipers I think that there is no way that the annual costs associated with keeping an MB or any equivalent ICE on the road is anywhere near the costs associated with keeping a tesla on the road. Oil changes alone run $200+ at the MB dealerships

 

[MDMGSO47]

I have to MBs, and there annual cost have to be equivalent to Tesla. Anyone actually have comparison numbers?

The auto correct feature on my iPhone is driving me crazy.

 

[MDMGSO47]

One thing that troubles me is the reference to the big auto companies selling EVs below cost to get into the market and potentially running Tesla out of business.

On the other hand, they still have to build a car people will buy. I also do not see how they can underprice a $35,000 Model 3. Look at the cost of a Volt.

" If you build an inferior product, the consumer won't buy it, and you can't stop them".

 

[SageBrush]

The auto correct feature on my iPhone is driving me crazy.

I'm not bothered by auto-correct. I just turn it off ;-)

 

[kort677]

One thing that troubles me is the reference to the big auto companies selling EVs below cost to get into the market and potentially running Tesla out of business.

which manufacturer is selling an ev below cost?

 

[techmaven]

Sigh. Mr. Lienert and Ms. Sage again. Apparently they have an agenda. There is no attempt to make apples to apples comparisons. A fair article would have attempted to normalize against like automotive segments. Or at the very least, chosen fair comps, like Jaguar, Porsche, BMW, Audi, Range Rover and the like. The ASP of Mercedes and BMW are skewed far lower than Tesla. Mr. Lienert should know this given his history in the automotive industry.

 

[DFibRL8R]

Is there an apples to apples comparison for Tesla? Would it be a Nissan leaf or a BMW/MB/Audi? The Tesla was supposed to be a simpler vehicle right? Thousands of fewer parts than an ICE vehicle. Seems like that should keep repair costs on the lower side as opposed to what we are seeing.

 

[kort677]

Is there an apples to apples comparison for Tesla? Would it be a Nissan leaf or a BMW/MB/Audi? The Tesla was supposed to be a simpler vehicle right? Thousands of fewer parts than an ICE vehicle. Seems like that should keep repair costs on the lower side as opposed to what we are seeing.

what exactly are YOU seeing? In close to four years of tesla ownership I have not paid a dime in maintenance costs beyond wear and tear items.

 

[DFibRL8R]

what exactly are YOU seeing? In close to four years of tesla ownership I have not paid a dime in maintenance costs beyond wear and tear items.

Well I'm at 77k, no extended warranty. Out of warranty I paid $895.74 plus tax to replace a failed door handle and $202.57 for a 12v Battery that on every other car I've ever owned was an east DIY job. I'm probably going to need some suspension work soon based on the groan coming from my LF suspension.