Something you jusi don't talk aboul
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We like to remember our successes rather than our failures, so "warranty claims" don't rank top of some manufacturers' list: of favourite subjects. But at Leyland Vehicles they take a more positive view, a: David Wilcox explains
LTHOUGH most commercial &tides sold usually develop at ast one minor fault during their tarranty period, the whole ubject of warranty claims is igh on the list of "things you on't talk about".
Perhaps it's because rnanufacHers don't like to admit openly let something is likely to go prong with their products. Men I phoned Ford Motor ompany and asked to discuss r r a n ty , an embarrassed pokesman came back with ome not very encouraging oises.
Leyland Vehicles, to their .edit, took an altogether more ositive view and were only too leased to grasp the nettle of arranty claims.
Roger Dougherty, who is Leynd Vehicles' supply and distriJtion manager, together with Monument, warranty opera)ris manager, first explained at the object of the warranty department was more than just meeting claims.
Said Rod: "Of course, we aim to meet our obligation to the customer — via the distributor — as quickly as possible. But we have two other functions as well.
"First we examine much of the material or failed components to justify the claim. Obviously, we try to minimise the amount paid out which means checking claims are correct, and, in the case of bought-in proprietary parts, claiming off the appropriate manufacturer.
"Our other function is to generate warranty statistics. We collate the warranty claims so that we can build up a picture of the failure rate and performance of components. We can then pass these figures on to the rnanufacturing people, primarily quality control and purchasing departments."
Leyland Vehicles have been upgrading their warranty operation and it is now centralised at Lancaster House, Leyland. This deals with warranty claims from all over the world for the whole range of Leyland lorries. The actual warranty claim form has been standardised so that it i the same for every model i every country.
The terms of the Leylan Vehicles warranty are generall 12 months' unlimited mileage i the UK or, for lorries sold i Europe, 12 months' unlimite mileage with 24 months ur limited mileage warranty on th driveline.
Overall, the trend has been tc wards extending the warrant period; Leyland dropped it mileage limit 18 months ago be cause that was the way the corn petitors were heading. Rage Dougherty said that it had beei a worthwhile move because re moving the mileage limit hai cost very little extra in addition warranty claims.
Would Leyland be extendinc the warranty period any further Roger wouldn't comment, bu did point to the 24 months drive le warranty for Leyland lorries 'Europe. "One of the problems F extending the warranty is that gets more difficult to ensure at the conditions of the warinty, such as maintenance in:rya's, are being upheld, partiularly when vehicles are )sold."
Leyland Vehicles' warranty exenditure is around two and a alf per cent of revenue. Broadly peaking, if this ratio is applied ) the price of the vehicle, that's 625 on the price of a £25,000 nit.
Rod Monument described this gure as "dramatically better" ran it used to be; in the recent ast it was nearer four per cent. In terms of the number of aims there has also been a reuction — from almost 1,000 a ay three years ago down to its urrent level of 600 to 650 claims day. Before you drop the jourel in horror, let me put that gure in perspective. That's the atal number of claims made vorldwide, not just in the UK, nd includes all the Leyland arry range as well as agricultual tractors.
Furthermore, Leyland insists at one claim form is used for ach individual fault, whereas ther manufacturers may allow everal faults to be listed on one 3rm.
Commercial vehicles usually ave a greater percentage of ought-in proprietary parts than cars, and Leyland Vehicles are dealing with about 60 outside manufacturers supplying anything from electrical components to complete engines.
As part of its new approach to the warranty operation, Leyland has tightened up on its process for passing on warranty claims in respect of these bought-in components.
Leyland Vehicles will reimburse the distributor for the work done under warranty, but will then claim this amount from the appropriate component.. supplier. Evidence of Leyland's new and less-forgiving attitude is that it is now recovering from the component suppliers ten times what it used to three years ago.
When a new vehicle develops a fault within its warranty period, Rod Monument told me that operators do not necessarily get it put right immediately. "Unless it's an engine fault or something urgent, many operators tend to save up the minor problems and take the vehicle back to the distributor near the end of the warranty period.
"This keeps his downtime low, but it means we don't get to know about the faults so quickly so it doesn't give us a chance to rectify the problem on future vehicles as soon as we would like."
To speed up the warranty system, Leyland has recently applied strict time limits to the distributors for making claims.
When an operator buys a new lorry, the contract is between the operator and the distributor, not the operator and manufacturer. So, in the case of a warranty claim, it is the distributor who is legally responsible to the operator. It is also the decision of the distributor — usually the service manager — whether or not the fault is covered by the terms of the Leyland warranty.
If he decides that it is covered, he will carry out the necessary repair/replacement free 01 charge to the operator. Having done the work, it is then up tc the distributor to claim for thE parts and the labour from Ley. land, and he must post his war. ranty claim form to Leylanc within 21 days of carrying out the repair.
I asked Rod Monumen. whether the faulty part was re. turned to Leyland as well. "WE ask for about 65-70 per cent o failed parts or material to be re turned," he replied. "Some of thr warranty work is only adjust ment or labour, and we don' usually ask for paper gasket; and that sort of thing to be re turned. Nor do we want part: sent from outside the UK."
The parts to be returned arr put in a cage pallet, togethe with a copy of the warrant claim form and returned to Ley land Vehicles, usually via thr parts delivery vans which call or the distributors.
There is also a time limit fo this; material must be returner to Leyland within 30 days o carrying out the work or else thr claim is likely to be rejected.
Said Rod Monument: "Thi time limits are set to make sur, the whole system works quickly If the warranty claim is for , complete TL12 engine, for in stance, that's a lot of money tie' up and so it's in the interest c everyone — especially the distr butor — to get the claim settle, fast."
The main copies of the war ranty claim form go to the war ranty claims department at Lar caster House, Leyland. Here, th first stage is to microfilm ther so that they occupy less spac and can be easily found.
Then the details of the clair are punched into a computE vdu and the computer wi produce a summarised readou highlighting any peculiaritie such as incorrect parts number chassis numbers that do not tie up with Leyland records, and s on.
A claims assessor will exr mine the computer readout an look at it in more detail (h finding the microfilmed copy r the original form) any clairr highlighted, plus a few at rar dom.