Case Study: Leading U.S. Auto Manufacturing Company achieves $53M annual warranty savings with Pegasystems

Warranty program saves auto OEM $53M a year

An iconic global automaker—one of the U.S. industry's largest with ~200,000 employees, 70 plants and nearly 12,000 dealers—faced a fragmented 30-year-old warranty environment (11 systems, 4 regions, 29 languages) that produced high error and fraud rates (estimated 8–12% of spend) and limited visibility into repair data. The company sought a single, global warranty program to reduce claims costs, minimize fraud, improve settlement accuracy, and surface systemic quality issues.

Pega consolidated and migrated legacy rules onto a single global rule set with localized layers, enabling more complex, consistent claims processing and real‑time visibility into repairs. The new platform sped processing by 400%, delivered an estimated $53 million in annual operating and claims savings, improved claims accuracy, and helped identify systemic quality failures—supporting a rollout to ~12,000 dealers and processing over 18 million claims per year.