How will Ford replace lost car sales without the dependable vehicle recall insurance claim money? Pot of Gold is disappearing quickly to Hurricane/flood claims. A tragic storm very sorry for victims.
8 replies (most recent on top)
Todays news now Tesla has a recall. How are Tesla sales going? Copy cats.
Businesses insure against any potential future income losses. Recalls are a known possibility that may or may not happen. What is interesting to insurance companies would be the timing of sales go down but insurance claims for recalls going up at the same time.
Who would sell that kind of insurance to FMC.
They self insure all everything as they think they are too big to fail. Our test cars and management lease cars were always insured by American Road which was just FMC in Dearborn.
So, you are saying ford takes out insurance for unknown recalls...I think they set aside fake moneys for recalls there is no way they knowingly insure for that cr-p.
So the meeting would go like this.... Hey lets not meet the emissions targets and buy some insurance in case we get caught. Sounds good... on the upside we can save this much but the fines will be this much. Get your engineers and management to sign off on that and lets review it up the chain of command.
Corps insure heavily in case of recalls. Quite handy stream of income when sales are down. Look at past practice of tiny recall repairs. Nothing expensive or more than a 2 minute fix but generates HUGE$$$$$. Recent was a l.e.d. security bulb for other competitor.
Batsh*t crazy
I think the OP is the one that used to post about the Pinto.
Today’s word salad
As a simple software engineer that lives on stack overflow and chatgpt all day, can you please provide an educational reference as to what you are talking about?