Warranty News Headlines
January 1, 2003 to today
- Effectiveness of body armor made with Zylon questioned; tests suggest the fabric wears out before its warranty expires.Associated Press, December 22, 2003
- The machinists who make housecalls: From power plants in the Arctic to cruise ships at sea, In-Place Machining is the go-to company when big iron breaks down.
Fortune Magazine, December 22, 2003- Circuit City Stores Inc. sales down 1% to $2.41 billion in quarter ended Nov. 30; extended warranty revenue 3.1% of sales, down from 3.7% a year ago.
This Week in Consumer Electronics, December 22, 2003- Attorney Robert Gerard calls National Warranty Insurance Group a vast Ponzi scheme, files lawsuits against NWIG chairman Don Erway and family in Nevada and California courts.
Lincoln (NE) Journal-Star, December 21, 2003- U.S. Internal Revenue Service scrutinizes tax returns of auto dealers involved with producer-owned reinsurance companies (PORCs), also known as affiliated reinsurance companies (ARCs), in the wake of collapse of National Warranty Insurance Co., a Risk Retention Group (RRG).
Lincoln (NE) Journal-Star, December 21, 2003- UK Competition Commission reports on Dixons extended warranties monopoly; retailers must display and advertise service plan prices, allow 45 days to cancel contract, and give consumers 30 days after purchase to sign up. Retailers also must now distribute information leaflets outlining consumer rights and alternatives to point-of-sale-purchased extended warranties.
Summary, December 18, 2003- Warrantech Corp. founder Joel San Antonio withdraws his proposal to take the company private and suggests the company concentrate on resolving accounting issues.
Press Release, December 15, 2003- National Warranty Insurance Group and liquidators file separate motions regarding million-dollar legal defense fund set up for 13 officers and directors.
Lincoln (NE) Journal-Star, December 14, 2003- Warranty Gold. Ltd. lists 2,027 creditors who filed claims in its bankruptcy proceedings between Nov. 14 and Dec. 8, 2003.
Notice of Claims, December 12, 2003 (PDF file)- Six Sigma: Are you a believer? Textron claims to have saved $5 million in six months. Fidelity Wide Processing thinks Six Sigma is going to save them at least $6 million this year.
CIO Magazine, December 11, 2003- A nasty fix for Apple Computer: Customer care given low marks by Mac owners, disgruntled iPod owners film themselves defacing street advertisements.
Business Week, December 11, 2003- Several customers of the recently-closed Auto Brokers Northwest dealership in Kennewick, WA, say they bought extended warranties from the company, but the dealership pocketed the money. Most said their policies were written only after they made their first claim.
Tri-City Herald, December 11, 2003- AutoZone Inc. says operating margins increased 1.3%, net income up 16%; retailer saved $14.1 million or 10 cents per share by working with its vendors to reduce warranty exposure.
Press Release, December 9, 2003- Critics belittle online car-buying safeguards. Vehicle histories and fraud protections offered to buyers said to instill false confidence.
MSNBC, December 4, 2003- Automotive Industry Action Group aims new TREAD Act reporting guide, entitled "THE-8: TREAD Act VMRS System and Assembly Code Map," at truck and heavy equipment manufacturers.
Press Release, December 4, 2003- Warranty Gold posts texts of motions made to the United States Bankruptcy Court, Western District of Texas, in its Chapter 11 bankruptcy filing (Case Number 03-15721).
WarrantyNews.com, December 4, 2003- Relex Software Corp. releases Relex FRACAS 2.1, a software package that gathers and tracks product failure data in a centralized database. New edition includes a dashboard interface for project managers, audit trails, user-defined alerts, three different tiers of user licences, and licence activation over the Web.
Press Release, December 3, 2003- Some lemon laws really are lemons, says book author and lawyer Vince Megna. Washington DC's is bad, but Maryland and Virginia are above average, he says.
Washington Post, December 2, 2003- How F&I managers can conceal the purchase of an extended warranty in a new car sales contract, using "leg" to reduce the apparent price.
Public Citizen report, page 15, Dec. 2003- Extended warranties are rarely a good investment, except for treadmills and laptops.
Consumer Reports, Dec. 2003November 2003- Liquidators of National Warranty Insurance Risk Retention Group point fingers at SC&E Administrative Services over service contract claims defaults. Attorneys for Texas Department of Insurance and Department of Licensing and Regulation say final responsibility to pay rests with NWIG.
Lincoln (NE) Journal-Star, November 26, 2003- Filmmakers Casey and Van Neistat film themselves walking around New York City stenciling the words "iPod's unreplaceable battery lasts only 18 months" on all the Apple Computer advertisements they could find. Short film is posted at their Web site Ipodsdirtysecret.com
CNET News.com, November 26, 2003- Washington Post personal technology columnist Rob Pegoraro discusses laptop and desktop computer warranties, part of the newspaper's annual guide to personal computers.
Washington Post, November 24, 2003- ArvinMeritor Inc. ends Dana Corp. hostile takeover attempt after Dana rejects $18 best and final offer.
Press Release, November 23, 2003- The liquidators of the insolvent National Warranty Insurance Risk Retention Group have appointed five representatives of its largest creditors and members to a liquidation committee. No customers were appointed.
Lincoln (NE) Journal-Star, November 21, 2003- Ford Motor Co. initiates "product improvement program" for 2000-2001 Ford Focus, stalling problem blamed on fuel delivery module, warranty extended on affected parts for 10 years.
Reuters via MSNBC, November 20, 2003- Mazda, AutoNation, and Suzuki veteran Bill Ewing joins automotive consulting practice at Syncata Corp.
Press Release, November 20, 2003- Syncata finds 92% of vehicle and equipment manufacturers unprepared for looming TREAD Act compliance.
The Auto Channel, November 20, 2003- Automotive Industry Action Group says companies should move beyond mere TREAD Act compliance to reap the full benefits of the law, such as leveraging the data to reduce manufacturing and warranty costs.
AIAG Press Release, November 19, 2003- Warranty Corporation of America appoints Kharl Mena vice president of sales, where he will be responsible for WaCA's sales and strategic alliances in the consumer product channel.
Press Release, November 18, 2003- SAP America Inc. enhances Business One, adds new contract management capabilities to track customer equipment purchases and service contract agreements. SAP Business One now allows small business managers to run their entire business from their desktop, viewing customer, partner, sales and inventory information, or to check whether a given piece of equipment still is under warranty or is covered by a service plan.
Press Release, November 17, 2003- SC&E Administrative Services Inc. is not paying or processing extended warranty claims, ignores IID's subpoena.
Iowa Insurance Division Web Site, November 17, 2003 (PDF file)- Massachusetts Attorney General to sue Second Chance Body Armor Inc., manufacturer of a popular bulletproof vest that may not stop gunfire. Company said tests of vests made with Zylon fabric suggest they could wear out long before five-year warranty expires.
Boston Globe, November 17, 2003- Warranty Gold Ltd. files for Chapter 11 bankruptcy protection and is asking the U.S. Bankruptcy Court for permission to void about 67,000 extended warranty policies.
Austin Business Journal, November 14, 2003- Warranty Gold stopped paying claims on policies written before June 6, angry customers have flooded authorities with complaints, dozens of lawsuits have been filed in small-claims courts and elsewhere.
Austin American-Statesman, November 14, 2003- Warranty Gold posts details about its Chapter 11 bankruptcy filing on a special Web page, says all auto extended warranty policies written since June 7 are still good, administered by First Automotive Service Corp. and insured by Dealers Assurance Corp.
Web page, November 14, 2003- Comdata Corp. acquires assets of Fleet Team Inc., brings together transaction technology and truck fleet maintenance records on a vehicle-by-vehicle basis, captures warranty information.
Press Release, November 14, 2003- Nokia to pursue counterfeit battery makers; consumer group that mistakenly tested mobile phones with counterfeits installed will redo evaluations.
Press Release, November 13, 2003- Standard and Poor's cuts Ford Motor Co. credit rating to one notch above junk, cites Ford Europe, credit write-offs and warranty accruals as reasons. Ford stocks and bonds rally on the removal of uncertainty.
Reuters via CNN, November 13, 2003- U.S. Justice Dept. launches review of body armor made with Toyobo Company's Zylon fabric after manufacturer concedes the material loses strength after two years despite five-year warranty. States ask Second Chance Body Armor Inc. for full refunds.
National Troopers Coalition, November 12, 2003- Standard & Poor's Rating Services cuts Ford Motor Co. to BBB-, says reduced warranty accruals and reduced recalls are largely responsible for year-over-year improvements in the company's financial picture, thus reducing the quality of those improvements.
Press Release, November 12, 2003- Warranty Gold Ltd. files for bankruptcy.
Lincoln (NE) Journal-Star, November 12, 2003- Warranty Gold Ltd. creates Web site called WarrantyNews.com to distribute information about its bankruptcy and reorganization. Posts Proof of Claim Form and Supplement Claim Information Sheet, which must be downloaded and completed by creditors before March 17, 2004.
WarrantyNews.com, November 12, 2003- Toyota and Ford in a virtual tie for number two spot in worldwide market share.
The Detroit News, November 11, 2003- Hyundai Motor America tells dealers at Las Vegas meeting that its 10-year/100,000-mile powertrain warranties will remain available until at least 2008.
AP via ABC News, November 11, 2003- Advances in car technology bring high-class headaches as high-tech electronics and computers fail in the luxury vehicles that are the first to get them.
USA Today, November 11, 2003- Supplier Black Belt Program contributes to quality gains at Chrysler Group; Collaborative efforts lead to quality improvements, cost avoidance, and positive return on investment for Chrysler Group and its suppliers.
AutoFan Magazine, November 11, 2003- TeleTech Holdings Inc. to provide customer service, sales, warranty and private label credit card support for Circuit City Stores Inc.
Press Release, November 10, 2003- W3 Solutions and Tech Data announced an agreement for W3 to administer international service plan program for IT products.
Press Release, November 7, 2003- $100,000 discrepancy found in National Warranty Insurance Risk Retention Group legal fund.
Lincoln (NE) Journal-Star, November 7, 2003- Warrantech Corp. reports revenue in quarter ended September 30 grew 9% to $42.3 million while net income fell 12% to $781,406 or 5 cents per share. International revenues doubled.
Press Release, November 6, 2003- Test Drive: Bigger, faster new Toyota Prius hybrid vehicle is a really slick piece of work that enforces no significant compromises, though the cornering and braking are still problems. Includes eight-year, 100,000-mile warranty.
USA Today, November 6, 2003- Microsoft's risky bounty gambit: Offering rewards for the heads of virus writers might only spur them on, or cause corporate customers to demand product warranties for software licenses.
Business Week, November 6, 2003- Entigo Corp. names Covisint veteran Charlie Eggerding as its vice president of sales.
Press Release, November 5, 2003- Lawyers face off on NWIG money. National Warranty Insurance Risk Retention Group tells U.S. Bankruptcy Court disputed $1.15 million was for directors and officers indemnification.
Lincoln (NE) Journal-Star, November 5, 2003- Liquidators of the insolvent National Warranty Insurance Risk Retention Group of Lincoln want the U.S. Bankruptcy Court to order NWIG's directors to give back $1.15 million from a legal defense fund they set up for 13 managers, directors and employees just before the distressed company sought court protection last spring. NWIG refuses to turn over money.
Lincoln (NE) Journal-Star, November 4, 2003- Buick Regal among 12 most reliable midsize cars in Consumer Reports survey; Mini Cooper, Chevy SUVs, VW, Hummer and Jaguar among least reliable vehicles. (also see http://www.usatoday.com/money/autos/2003-11-03-reliablechart.htm
USA Today, November 3, 2003- Warrantech Caribbean Ltd., a subsidiary of Warrantech Corp., says it will no longer administer the Universal Auto Care Program in Puerto Rico, but it plans to unveil a branded vehicle service contract program there in 2004.
Press Release, November 3, 2003- Consumer Alert: Watch out for extended auto service warranties.
Washington Insurance Commissioner, 3-Nov- Integrating Closed-Loop Supply Chains and Spare-Parts Management at IBM.
Interfaces, Nov. - Dec. 2003October 2003- Westar Energy Inc. signs Cascor Inc. to handle the Kansas-based utility's in-house fleet warranty administration program.
Press Release, October 30, 2003- Warranty Gold Ltd., following bankruptcy of its former underwriter National Warranty Insurance Co. (NWIC), is allegedly not paying claims on auto extended warranty contracts written before June 6, though it continues to collect premiums and write new contracts.
Consumer Affairs, October 27, 2003- D.H. Brown Associates Inc. reviews NinaTek's Nlighten Web-based analytic application.
Analyst Review, October 27, 2003- NHTSA's Office of Defects Investigation sticks to its TREAD Act deadline. One time historical data is due January 15, 2004, covering the period between July 1, 2000 and June 30, 2003.
NHTSA EWR News, October 27, 2003- Buyers Guide: Navigating Wireless Access Point Options. Table of Manufacturers and Products (Warranties Summarized).
Network Computing, October 23, 2003- Warranty Corporation of America to use SmartCall telephone automation technology from Motive Communications Inc. for problem resolution and troubleshooting.
Press Release, October 21, 2003- Don's Photo Ltd. chain to sell W3 Solutions' Complete Product Guard extended service programs in seven western Canada retail outlets.
Press Release, October 21, 2003- NEW Customer Service Companies selects ServiceBench ClaimCenter for online processing of extended warranties for 25,000 service centers.
Press Release, October 20, 2003- Liquidators of National Warranty Insurance Risk Retention Group say "don't call us," advise consumers who own vehicle service contracts insured by NWIG to take their issues to the auto dealers and companies that sold the contracts.
Lincoln (NE) Journal-Star, October 19, 2003- Active Web Services deploys warranty processing, TREAD Act reporting, and service parts management system for Big Dog Motorcycles LLC in 45 days.
Press Release, October 16, 2003- Sears moves contractor assignments to the Internet, dispatching and paying contractors using ServiceBench's Web-based software.
InternetWeek.com, October 16, 2003- T-Mobile USA finds that some Sidekick devices with color screens have a faulty hinge that potentially limits the life of the product.
CNET News.com, October 15, 2003- Two Republican lawmakers seek TREAD Act exception for small trailer manufacturers, inserting language into a transportation appropriations bill that passed the House.
Washington Post, October 13, 2003- Apexon Inc. announces Product Quality Planning, a Web-based solution for global manufacturers that offers strategic and proactive quality assurance that reduces design-to-production time and improves product quality predictability.
Press Release, October 13, 2003- Warranty, no guarantee: The collapse of National Warranty Insurance Group raises new questions for consumers about the reliability of extended warranties -- a big business with limited regulation.
St. Petersburg (FL) Times, October 12, 2003- Syncata Corporation releases new versions of its CoreTREAD Reporting Engine and TREAD Reporting Engine, aimed at vehicle and equipment manufacturers looking to comply with NHTSA Early Warning Reporting requirements.
Press Release, October 9, 2003- Gedas USA signs Cypress Corp. as partner for document management services aimed at IT firms.
Press Release, October 8, 2003- New chip in IBM laptops detects sudden drops, parks hard drive heads before unit hits the floor, avoids damaging data, and cuts warranty costs.
CNET News.com, October 6, 2003- Vancouver, Canada-based World Wide Warranty changes company name to W3 Solutions and redesigns Web site to include information on its extended warranty management services in both English and French.
Press Release, October 6, 2003- VAC Service Corp. promotes Jeff Hayden, Barry Gosset, and Catrina Beader to new positions.
Press Release, October 2, 2003September 2003- Aon Warranty Group to provide underwriting, marketing and claims administration of its extended service contracts for Whirlpool Corp.'s major home appliance brands.
Press Release, September 29, 2003- How Palm, Coca-Cola and Crutchfield excel at online customer relationship management.
Internet Week, September 29, 2003- AMR calls TREAD Act a "multibillion-dollar black hole," says its timetable and current execution are fundamentally flawed. The automotive industry will be unable to comply with either the letter or spirit of the law. Cost of compliance estimated at $1.7 billion.
AMR Research Alert, September 26, 2003 - The machinists who make housecalls: From power plants in the Arctic to cruise ships at sea, In-Place Machining is the go-to company when big iron breaks down.
December 2003