Insane that Volvo doesn't just replace the car. The cost is trivial compared to the brand damage here. The complaint is so well documented and the customer is not being a jerk at all; not sure what Volvo's logic is.
Well if you don't replace the car you save 150K. But you lose a few million, let's say.
Those few million are invisible, the 150K you see right now and you know, for sure, you're saving it. Incidentally, this is how we got into this quality mess. Cutting quality seems like free money... except that it's not, it's just that nobody bothers to measure the opportunity cost.
And then one day you wake up and you're Chrysler, selling piece of shit vehicles for wayyy more than they're worth. And now your brand is worthless. But, at least you saved a few bucks ;P
They'll probably agree on a settlement where they don't admit any wrongdoing and give him a decent payout, but require him to take down the site and sign an NDA or something. So they don't necessarily need to replace all of them after that
If all he wants is a refund, that should do it. But if he's more interested in warning the world, hopefully he sticks to his guns and makes them give a straight up refund
> A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.
1. If they really have so many faulty cars on the road that's a serious hazard and any accidents where people die may end up destroying Volvo entirely because of negligence.
2. An economically reasonable answer might be refund the guy making the complaint and ofter all other owners $10k credit towards your next Volvo purchase or free 3 years of maintenance and service. Something like this might be enough to stem the bleeding while protecting the brand.
const_cast|7 months ago
Those few million are invisible, the 150K you see right now and you know, for sure, you're saving it. Incidentally, this is how we got into this quality mess. Cutting quality seems like free money... except that it's not, it's just that nobody bothers to measure the opportunity cost.
And then one day you wake up and you're Chrysler, selling piece of shit vehicles for wayyy more than they're worth. And now your brand is worthless. But, at least you saved a few bucks ;P
nicce|7 months ago
etskinner|7 months ago
If all he wants is a refund, that should do it. But if he's more interested in warning the world, hopefully he sticks to his guns and makes them give a straight up refund
ethagnawl|7 months ago
- Fight Club
thefourthchime|7 months ago
amoorthy|7 months ago
1. If they really have so many faulty cars on the road that's a serious hazard and any accidents where people die may end up destroying Volvo entirely because of negligence.
2. An economically reasonable answer might be refund the guy making the complaint and ofter all other owners $10k credit towards your next Volvo purchase or free 3 years of maintenance and service. Something like this might be enough to stem the bleeding while protecting the brand.