How warranties actually work.

[JET]

Having been a service manager at a few different companies I have also seen another aspect. The warranty holder can give direction to the adjuster and tell them to not cover most claims. Adjusters can even get bonuses if they only pay xx percent of claims.

The truth is that an extremely small percentage of people will actually take a claim to the next level and take them to court. What do they do when that happens? They just pay the claim as a settlement out of court and they aren't out any more money than if they just paid the claim originally. It is a MAJOR win for the company financially, granted it can hurt their reputation.

Now look at Mitsu's situation, they are hurting pretty badly for money and don't have a great reputation anyway. Which direction do you think they are going to lean for warranty payments?