Upstream Unveils AI-Powered Proactive Vehicle Quality Detection Solution Cutting Warranty and Recall Costs

Vehicle warranty claims and recalls pose a significant challenge for OEMs, costing billions–in 2023, global automotive manufacturers paid $51 billion in warranty claims and $140 billion in warranty reserves. As vehicles become increasingly connected and software-defined, the volume and complexity of data generated make it challenging to isolate component failures. However, improving quality issues with over-the-air updates can dramatically reduce long-term warranty and recall costs and incentivize OEMs to detect failures as early as possible.

"Vehicle quality issues have reached a critical juncture, becoming not only a significant safety concern but also a growing financial burden, costing automakers billions annually," said Yoav Levy, CEO and co-founder of Upstream Security. "Upstream's Proactive Quality Detection solution represents a leap forward by harnessing the power of connected vehicle data and AI, allowing OEM's after-sales quality teams and fleet operators to proactively detect and investigate automotive component failures. Leveraging our deep expertise in connected vehicle data and cybersecurity, we are committed to transforming the industry's approach to warranty and recalls —from reactive responses to proactive, data-driven and ML-powered analytics—ultimately enhancing long-term customer satisfaction."

Driven by Connected Vehicle Data and AI: Upstream's Groundbreaking Solution Enhances Vehicle Quality

Upstream's Proactive Quality Detection solution is built on the company's robust cloud-based cybersecurity and data management platform, purpose-built for automotive, which seamlessly integrates with OEMs' existing cloud workloads and data lakes and connected vehicle and dealership data streams. To ensure cross-organizational visibility and streamlined response, the platform allows connections with external systems to enable customer playbook automation and integration with warranty management systems.

Through its proprietary vehicle digital twin technology, a live representation of each vehicle on the road, the platform captures and enriches vehicle data in near real-time, consolidating data from diverse sources such as telematics, diagnostics, dealership repair orders, and warranty claims. This enriched dataset is processed through Upstream's Ocean AI, an advanced detection and investigation layer, which analyzes terabytes of historical and real-time data to profile vehicle behavior, uncover non-intuitive insights, and enable faster, more effective corrective measures.

Powered by purpose-built ML models, the solution empowers after-sales quality teams to monitor, analyze root causes (RCA), and prioritize quality issues efficiently. Upstream's proprietary Compound Impact Score (CIS) provides critical insights for quality field investigations, assessing the severity of issues, their predicted scale (identifying how many vehicles across the fleet may be affected), and potential safety implications. This data-driven triage system enables teams to address high-impact quality issues with precision and confidence.

About Upstream Security

Upstream delivers a cloud-based, AI-powered data management platform purpose-built for connected vehicles, smart mobility, and IoT ecosystem. The Upstream Platform transforms fragmented, distributed mobility data into centralized, structured, and contextualized data lakes, unlocking its full potential. By leveraging this data, Upstream empowers customers with advanced, AI-driven applications across various use cases, including proactive vehicle quality management, cybersecurity detection and response (XDR), fraud prevention, observability, usage-based insurance, and more.

Upstream Media Contact
Mushkie Meyer
[email protected]
US: +1 914 336 4035
UK: +44 203 769 4034

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