LEVC's EXTENDED WARRANTY PRICE HIKE: Inflation, global supply chain and geopolitics all to blame say LEVC
Inflation, global supply chain and geopolitics are all to blame for a recent price hike in LEVC TX extended warranty costs, say LEVC.
TaxiPoint sought clarification from the black cab manufacturer on the notable price increases rising from approximately £3,600 to £5,500 for years 6, 7, and 8 in 2024.
The increase has raised eyebrows and prompted questions among owners of the TX. The increases have even prompted a prominent taxi firm boss to debate abandoning extended warranties amid the soaring costs.
Responding to the enquiry, an LEVC spokesperson acknowledged the hike, attributing it to aligning more closely with "industry standards". The spokesperson elaborated that this adjustment was necessitated by several key factors impacting the automotive sector globally.
Among those are the soaring costs of materials, a direct consequence of rampant inflation. Coupled with ongoing disruptions in the global supply chain and an ever-shifting geopolitical landscape, these elements have collectively exerted unprecedented pressure on Original Equipment Manufacturers (OEMs), including LEVC.
Despite the increased cost, LEVC were keen to add that the policy goes “above and beyond the industry standard” with the LEVC extended mileage offered within the warranty, which sits at 250,000 miles.
An LEVC spokesperson told TaxiPoint: “Yes, the cost of the warranty has increased, putting it more in line with industry standards. A significant reason for this is the increase in the cost of materials caused by inflation, continued disruptions to the global supply chain, and constantly evolving geopolitical conditions impacting all OEMs.
“However, where our policy goes above and beyond the industry standard, is LEVC’s extended mileage offered within the warranty, which sits at 250,000 miles.”
This month, Paul Byron, owner of black cab rental firm HP Taxis, announced a significant change in his company's approach to handling LEVC TX taxi warranties, due to the steep increase in warranty costs and excess charges.
In a detailed video posted on social media, Byron, collaborating with Dean Warrington, owner of Wizann London knowledge school, shared insights about the escalating costs and the implications for drivers and buyers of the LEVC TX taxi. He explained that since the start of the new year, warranty prices for the LEVC TX have surged dramatically. In 2023, a three-year warranty for 5-year-old TX models was priced around £3,600. This figure has now skyrocketed to an eye-watering £5,500, accompanied by the introduction of a £250 excess charge for warranty-related work.
In the YouTube video, Byron articulated his new strategy of setting aside funds for maintenance instead of opting for warranty coverage, a decision that highlights the financial challenges and risks faced by taxi operators.
The LEVC TX is known for its high repair costs, especially if issues arise with the ERAD (Electric Rear Axle Drive) or heating systems. A replacement ERAD can cost around £5,000, a significant expense for taxi fleets and individual owners.
