Improvements to the quality of the Group’s products have led to: p an accelerated fall in the cost of factory quality control and touch-up, with a gain in Europe and Latin America (through an increased number of vehicles without fault in fi nal validation and a reduction in damage sustained during transport); p a reduction in its warranty expenditure in 2016 by 7% since 2012 under a comparable volume and product mix; (reporting scope of the consolidated companies); p continued control of warranty costs at DPCA (JV DONGFENG – PSA in China) which will allow it to absorb in 2017 the move from the two-year contractual guarantee to a three-year contractual warranty back in September 2013; p a reduction in warranty provisions of €221 million in 2016; p an increase of more than 60% in sales of extended warranty with service agreements since 2010.