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The Detroit News reports that warranty costs for U.S. automakers are down by 40 percent or more since 2007. Part of that decline comes from shrunken sales, but the biggest contributor to the growing trend is improved quality. Ford has seen its warranty costs drop by 40 percent since 2007, while General Motors is at 45 percent and Chrysler has seen a 48 percent decrease. Doug Betts, senior vice president in charge of quality for Chrysler, told DetNews that the Pentastar saw its warranty costs dr

Automakers want top-notch quality in their vehicles because a good reputation for quality sell more cars. The pleasant side effect of high quality is spending less to repair your own vehicles. Millions of dollars can be saved per one percentage point improvement in warranty costs. Cerberus was quick to crack down on quality woes when it took over Chrysler, and the early fruit of its labor is hundreds of millions of dollars in warranty costs avoided. Chrysler cars and trucks are hitting the deale