J.D. Power, a global data analytics and customer intelligence company in Troy, has acquired the data and predictive analytics business of We Predict, a United Kingdom-based provider of automobile service and warranty analytics. Terms of the deal were not disclosed.
We Predict’s software, which is used by auto manufacturers and suppliers to project future component failures and future warranty claims and costs, will be leveraged by J.D. Power to enhance its vehicle quality and dependability analytics, expand repair cost forecasting, and provide critical valuation data.
“Robust data and powerful analytics that help manufacturers, suppliers, and consumers better predict future repair costs are a key link in the auto industry value chain that will only become more important as fleets of new electric vehicles start rolling off the assembly line,” says Dave Habiger, president and CEO of J.D. Power.
“By augmenting our existing offerings with We Predict’s forecasting software, we will be able to deliver a more complete, detailed view of repair-related costs to better anticipate financial risk exposures.”
We Predict software uses machine learning and predictive analytics to develop detailed projections of future warranty claims and repair costs for the global automobile industry. Drawing on a database of billions of service records, We Predict can accurately forecast true vehicle ownership costs, residual values, repair and warranty claims costs, and more.
“J.D. Power invented the idea of using data and analytics to evaluate vehicle quality and dependability, so the opportunity to become a part of that team and bring our software and operational data into the offering is enormously exciting to all of us at We Predict,” says James Davies, CEO of We Predict. “The industry and consumers need accurate repair cost forecasting now more than ever and we look forward to being the leader in delivering those solutions.”
Davies will become vice president of repair analytics and data at J.D. Power and We Predict will become part of the global automotive division.
“As the automobile industry enters a phase of massive transformation in which electric vehicles and ever-more complex technologies are rapidly becoming the norm, warranty claims and repair costs are a critical variable for manufacturers and suppliers to incorporate into their forecasting,” says Doug Betts, president of the global automotive division at J.D. Power.
“By incorporating We Predict’s comprehensive data and powerful analytics into our vehicle quality, dependability and valuation platforms, we will be able to create the industry’s most robust and accurate view of future warranty claims and repair costs.”