Ann: Recall Campaign for CPX and VS1 Models in Europe, page-36

Point taken Deals it is a big issue but appears not to raise the need for concern about brand damage.

We certainly need to beware of confirmation bias but also need to steer well clear of assuming too much.

The best way I can find to manage both is through research and comparison with industry averages when these type of issues arise.

To put the cost in perspective the total estimated claim is 1.3% of last years sales revenues.

I could only find data on MVs which indicates 1.3% is at the bottom of the performance range. VW's worst performance in the 2 yrs I found data for came in at 5.3% and the star performer was the Chinese state owned Dongfeng at 0.6%.

Interesting to compare the brands and note that MB came to their senses when they realised that being the best in this competition wasn't necessarily the best business plan. No doubt there is a critical point where eliminating warranty claims is more expensive that fixing issues if they occur and is therefore not in the consumers best interests.

Great to learn VMT carry insurance. Which would appear to limit annual exposure to claims on the provision that the accounting standards require companies to make to 0.65% of sales, if the $800k is a normal excess. That puts it in line with stuff I have read that indicated that provisions of 1% of revenues are commonplace.