In a September 6 piece, Why you should avoid home warranties, Consumer Reports again takes a shot at service contracts. Noting a recent complaint filed by New Jersey regulators against Choice Home Warranty for allegedly making it difficult to obtain benefits, CR “recommend[s] avoiding service contracts” because those “that cover homes and cars, for example, can cost hundreds of dollars.” But what if the car or home costs many thousands of dollars? Isn’t spending a few hundred bucks on a service contract worth it to minimize risk and secure peace of mind? “No,” says CR, “it makes much more sense to buy reliable products and maintain them as the manufacturer recommends.” Now it’s clear, just buy things that won’t malfunction or fail. Continue reading
Tag Archives: recall
GUEST BLOGGER: Jim Martinez, RightStoryGroup
Rising sales show that the biggest threat to GM’s corporate reputation isn’t recalls, but rather critics willing to irresponsibly forecast the company’s demise. Continue reading
In a recent interview, former GM CEO, Bob Lutz, observed that recalls “captivate the media, but the U.S. public absolutely couldn’t care less.” Yet for many product makers, the prospect of a safety recall sends a chill down the spines and a queasy feeling into the guts of the folks in C-suite as well as the legal, marketing, and finance departments.
I think Lutz may be on to something. Continue reading