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. 

McKinsey Talks Operations offers more insights at the intersection of strategy and execution. Visit www.McKinseyTalksOperations.com to explore upcoming events and thought leadership from McKinsey's Operations Practice and join the McKinsey Talks Operations community. You can also connect with us on LinkedIn at www.linkedin.com/showcase/mckinsey-operations. 

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.&nbsp;
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.&nbsp;
McKinsey Talks Operations offers more insights at the intersection of strategy and execution. Visit <a href="https://mckinseytalksoperations.com/">www.McKinseyTalksOperations.com</a> to explore upcoming events and thought leadership from McKinsey's Operations Practice and join the McKinsey Talks Operations community. You can also connect with us on LinkedIn at <a href="https://www.linkedin.com/showcase/mckinsey-operations/">www.linkedin.com/showcase/mckinsey-operations</a>.&nbsp;

The next normal demands resilience, flexibility, and agility.

Join us on www.McKinseyTalksOperations.com where the world’s C-Suite leaders and McKinsey experts cut through the noise to uncover how to create a new operational reality. Each episode considers the challenges companies and economies are facing, and the opportunities leaders can seize for competitive advantage. We’ll look at how to connect boardroom strategy to the frontlines, ways to increase performance, where and when to infuse operations with technology, and why empowering the workforce with skills and capabilities is key to success.

McKinsey Talks Operations has much more content to offer on the Operations topics that connect strategy with lasting success. Visit www.McKinseyTalksOperations.com to explore events and insights from McKinsey’s Operations Practice, and join the McKinsey Talks Operations community. You can also connect with us on LinkedIn at www.linkedin.com/showcase/mckinsey-operations

The next normal demands resilience, flexibility, and agility.
Join us on <a href="http://www.mckinseytalksoperations.com">www.McKinseyTalksOperations.com</a> where the world’s C-Suite leaders and McKinsey experts cut through the noise to uncover how to create a new operational reality. Each episode considers the challenges companies and economies are facing, and the opportunities leaders can seize for competitive advantage. We’ll look at how to connect boardroom strategy to the frontlines, ways to increase performance, where and when to infuse operations with technology, and why empowering the workforce with skills and capabilities is key to success.
McKinsey Talks Operations has much more content to offer on the Operations topics that connect strategy with lasting success. Visit <a href="http://www.mckinseytalksoperations.com">www.McKinseyTalksOperations.com</a> to explore events and insights from McKinsey’s Operations Practice, and join the McKinsey Talks Operations community. You can also connect with us on LinkedIn at <a href="http://www.linkedin.com/showcase/mckinsey-operations" data-saferedirecturl="https://www.google.com/url?q=http://www.linkedin.com/showcase/mckinsey-operations&amp;source=gmail&amp;ust=1674896999531000&amp;usg=AOvVaw0Sp0r3t_R1DWVeTui08BhV">www.linkedin.com/showcase/mckinsey-operations</a>

The next normal demands resilience, flexibility, and agility. McKinsey Talks Operations, brings together the world’s C-Suite leaders and McKinsey experts cut through the noise to uncover how to create a new operational reality.

McKinsey Talks Operations

The next normal demands resilience, flexibility, and agility. Join us on McKinsey Talks Operations, where the world’s C-Suite leaders and McKinsey experts cut through the noise to uncover how to create a new operational reality. Each episode considers the challenges companies and economies are facing, and the opportunities leaders can seize for competitive advantage. We’ll look at how to connect boardroom strategy to the frontlines, ways to increase performance, where and when to infuse operations with technology, and why empowering the workforce with skills and capabilities is key to success.