Case Study: Major Auto Manufacturer achieves $53M annual savings and 400% faster warranty processing with Pegasystems

Major auto manufacturer transforms warranty program with Pega

A major global automaker struggled with fragmented warranty operations spread across eleven decentralized legacy systems in four regions and 29 languages, which made claims management slow and error-prone. The company handled about 18 million end-to-end claims per year, with 8–10% of its $17–$19 million warranty spend tied to weak controls and an estimated 10–12% of legitimate claims processed incorrectly, exposing the business to duplicate, inaccurate, and fraudulent payouts.

The automaker implemented Pega Warranty™ to consolidate rules, create a single global core with local rule layers, and integrate dealer DMS feeds and a dealer portal for end-to-end processing. The new system enabled accurate, consistent claims handling, automated payments, and faster issue detection — delivering a 400% improvement in processing speed, $53 million in annual operating and claims cost reductions, and the ability to quickly author and adapt rules globally.