Mutually Beneficial Partnership Add Service Value:

Q: What factors are contributing to the growth of the automobile extended warranty market in Chile?

A: Factors such as the rise in vehicle prices, decreased reliability on automobiles post-pandemic (52% more average failures, according to JD POWER), and enhanced consumer awareness are driving growth in the warranty market. In Chile, this has resulted in an increased demand for our services, ensuring protection against unforeseen repairs.

Q: Young consumers are more attracted to caras-a- service or leasing instead of buying a new vehicle. Has this shift impacted your business?

A: The trend toward car-leasing and car-as-a-service has influenced our business but our flexible extended warranty plans cater to all types of car ownership, including these emerging trends in Chile, where warranties are offered by companies to protect against manufacturing problems. In addition, the market in Chile, in comparison to other Latin American markets, is progressive and customer-oriented. Technological inclusion in the country leads to more informed customers. In addition, we aim to create mutually beneficial partnerships with fleet managers and mobility platforms, offering tailored warranty solutions that provide added value to their services.

Q: A MarketWatch report indicated that pricing for extended warranties is trending upward. What is behind this increment in costs?

A: Rising extended warranty prices stem from increased repair costs due to three factors: The increased value of spare parts due to logistics problems originated in the pandemic and that continue to be a struggle for the supply chain. The increase in labor costs, as Chile's IPC (inflation index) has grown by 31% from January 2019 to today, which is reflected at the same rate, at least, for salaries and by default for workshop labor costs. The first factor is greater demand for mechanical services leading to an inorganic price rise.

Q: As vehicle technology evolves with the adoption of EV and autonomous technologies, how will warranties change and who will be in charge of responding to claims?

A: For EVs and autonomous vehicles, both OEMs and tech companies will need to cooperate in handling claims. We have tailor-made products for this type of vehicle depending on the OEM coverage for each brand. In addition, the growing popularity of used cars has increased demand for our services in Chile, demonstrating the consumer's desire for reassurance on vehicle longevity. GarantiPLUS has maintained its Chilean market position through consistent service quality, proactive customer engagement, and adapting to local market trends. In comparison to other Latin American markets, Chile's business models are more techdriven and customer-centric, factors we have integrated into our operations. Moreover, we are preparing a press conference in the next few months to announce our new strategy for the next five years.

Q: What differentiates GarantiPLUS from other businesses in the sector and how is the company working with distributors?

A: GarantiPLUS differentiates itself through high-quality service, transparency and tailored warranty solutions that cater to individual customer needs. We are the only ones that cover manufacturing problems at vehicle price and our products are free of mileage. In addition, we use data analysis to understand market trends, customer preferences and performance metrics. This information helps us adapt our business to better serve customers and streamline operations. We have huge amounts of data from the Latin American market that shares most of the same product lineup. Regarding distributors, we incorporate their feedback into our warranty services for a seamless customer experience. We are creating a network of authorized workshops to support our customers across the country.

Q: What are GarantiPLUS’ objectives for next year for Chile and Latin America?

A: Our objectives for next year include expanding our customer base, launching new warranty products tailored to the Chilean market and strengthening our presence in Latin America, working with Mexico, Colombia and Chile as hubs for the nearest markets. In addition, we are working closely with distributors to improve after-sales service, incorporating their feedback into our warranty services for a seamless customer experience. By the end of 2023, GarantiPLUS aims to be the leading provider of extended automotive warranties in Chile, ensuring customer satisfaction and strong market growth. As Country Manager, I ensure smooth operations, strategic planning and market development. My vision is to make GarantiPLUS a trusted brand in Chile for automotive warranties.