Pro-Rated Battery Warranty Credit Overpayments
Definition
EV battery warranties often feature free replacement (12 months) plus pro-rated coverage (13-60 months), where miscalculations lead to inflated payouts.
Key Findings
- Financial Impact: AUD 20-50% excess on pro-rated credits (months 13-60); typical AUD 10k per high-volume dealer[4]
- Frequency: Per warranty claim processed
- Root Cause: Complex pro-rated formulas varying by OEM, applied manually
Why This Matters
The Pitch: Australian battery makers overpay AUD 50,000+ yearly in pro-rated credits due to calculation errors. Automated reserve systems prevent over-crediting.
Affected Stakeholders
Service Manager, Accounts Payable
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Warranty Provision Over/Under Accrual Losses
Battery Warranty Reserve Miscalculation Penalties
Cost of Poor Quality in Battery Cell Procurement
Material Waste in Battery Procurement
Production Bottlenecks from Quality Failures
AUSTRAC AML/CTF Reporting Failures
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