Detroit's Big Three have slashed warranty claims more than 40 percent in recent years -- further evidence that the automakers, long plagued by repair problems and consumer perceptions that their products are inferior, are narrowing the quality gap with foreign competitors.
The reduction in warranty claims saves the automakers much-needed money -- perhaps several hundred dollars per vehicle sold -- and boosts resale values. Those savings, in turn, contribute substantially to the operating profits of General Motors Co., Ford Motor Co. and Chrysler Group LLC, and are helping repair their reputations among consumers.
"That's pure operating profit," said auto analyst Joe Phillippi of AutoTrends Consulting in Short Hills, N.J.
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