Something doesn't add up. As mentioned earlier, manufacturers do not have the option of subjectively denying warranties based on current financial conditions. Warranties are booked as debits in COGS on a balance sheet. It's deferred/unearned revenue. If the warranty has an expiration, at the expiration the revenue is recognized & booked. In a lifetime warranty, this obviously never happens and is carried on the balance sheet perpetually.
Why do I mention this? Because it's not as simple as saying "Times are tough". Future warranty expenses are ALREADY built into the company's finances. It's not like "oh, we haven't had the cash flow we'd like lately so we can't make good". It should have/has been accounted for already. There's no need to go digging into the pocket for new money to cover it.
In short, either you're being bullshitted or something else is going on. End-run Roman and go right to Fender.
Vass
Why do I mention this? Because it's not as simple as saying "Times are tough". Future warranty expenses are ALREADY built into the company's finances. It's not like "oh, we haven't had the cash flow we'd like lately so we can't make good". It should have/has been accounted for already. There's no need to go digging into the pocket for new money to cover it.
In short, either you're being bullshitted or something else is going on. End-run Roman and go right to Fender.
Vass
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