Warranty and goodwill costs at automotive OEMs have climbed more than 40 percent in recent years, now representing as much as two to three percent of total sales for many manufacturers. With billions of dollars at stake each year, these costs have become a strategic priority. 

In this Voices On episode of McKinsey Talks Operations, our deep-dive series featuring expert perspectives on the topics shaping operations today, host Daphne Luchtenberg speaks with Andreas Haunreiter, an associate partner in McKinsey's Munich office, to explore how automotive OEMs can reduce warranty and goodwill costs through stronger cross-functional management, smarter repair and supplier strategies, and the use of better data and AI-enabled processes to unlock significant improvements in profitability and operational performance. 

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