Warranties, extended warranties, and product quality

Article Abstract:

Entry of independent extended warranty insurers into the durable goods market depends upon willingness of consumers to secure extended warranties. When consumers are homogenous, entry may not materialize but when consumers are heteregenous, competition arises between insurer and manufacturer. The manufacturer may then classify its products into high and low quality and consumers into high and low valuation purchasers. The presence of an independent insurer offering extended warranties to both high and low valuation consumers may force the manufacturer to withdraw its product for low valuation consumers, consequently, affecting its warranty policy.

Warranties, Manufacturing industry, Warranty, Manufacturing industries, Economic aspects, Insurance industry, Insurance, Extended warranties

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VW will Produktion in Sarajewo ausweiten

Article Abstract:

Volkswagen of Wolfsburg, Germany, has resumed car production at the Vogosca plant of Volkswagen Sarajevo d.o.o. in Bosnia . The plant produces semi-knocked-down kits of the Skoda Felicia, initially at an annual rate of 5,000-10,000. From the year 2000 the output might be raised to up to 35,000 units and expanded to the production of completely knocked down units. The plant is also to produce vehicle parts for other VW factories. VW chairman Ferdinand Piech does not rule out the production of other cars of the VW group in Sarajevo after the year 2001. *

Comment:

Resumes car production at the Vogosca plant of Volkswagen Sarajevo in Bosnia after a 6-year stop

Facilities & equipment, Bosnia-Herzegovina, Bosnia and Herzegovina, Volkswagenwerk AG, Article

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Recovering from a bad reputation: changing beliefs about the quality of U.S. autos

Article Abstract:

Being recognized as a high quality manufacturer is of critical importance of those in markets for durable goods with quality features that stay uncertain throughout the product's life. Empirical findings using data from the US automobile industry indicated that a poor reputation related to US automobiles in the 1980s is continuing and has put downward pressure on prices of more recent models, in spite of quality enhancements.

Motor vehicles and car bodies, Quality Control Management, Quality management, Quality control, Public opinion, Durable goods

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