Posted on September 2, 2010, at 3:21 pm
 Daimler Group’s Mercedes-Benz brand was the best-selling premium brand in the US market during August 2010, followed by BMW and Lexus brands, respectively, according to sales analysis from J.D. Power Automotive Forecasting.SM The strongest-selling models in the premium automaker’s lineup were the C-Class and the redesigned E-Class sedan and coupe.
Mercedes-Benz outsold BMW by just 134 units, while BMW outpaced Lexus by a mere 75 units, according to the J.D. Power sales analysis. Mercedes-Benz sales rose nearly 20% on a selling-day-adjusted basis,* and BMW deliveries were up nearly 6% from last year. Lexus deliveries declined by more than 11% in August from the same month last year.
Through the first eight months of 2010, however, Lexus remained the US market’s premium leader with 145,490 unit sales. Mercedes-Benz was behind Lexus by only 801 units, with 144,689 year-to-date deliveries. BMW was a close third with 139,236 unit sales. Cadillac was fourth, but also posted the best year-over-year and year-to-date increases, with a major infusion from its redesigned SRX.
*August 2010 had 25 selling days and August 2009 had 26 selling days.
Posted on September 2, 2010, at 3:06 pm
 Although total car and light-truck sales in August (995,180 units) sagged by 17.8% on a selling-day-adjusted basis* compared with last year’s same-month results (1,259,794 units)—when the federal government’s CARS cash incentive program was in effect—there was some positive news, based on J.D. Power sales analyses.
August deliveries (retail and fleet) improved by 2.6% from July 2010 sales results when comparisons are selling-day adjusted. In addition, year-to-date total deliveries have improved by nearly 9.0%, to 7,645,230 unit sales—up more than 588,000 unit sales in the same 8 months last year, which included August 2009 totals primed by “Cash for Clunkers” inducements.
“August was slightly below initial expectations but was able to come in at a level that is consistent with the overall recovery,” said Jeff Schuster, executive director of automotive forecasting at J.D. Power and Associates. He notes, “The month suffered from a number of variables that includes an underperforming economy; lower incentive levels; and the likelihood that some buyers delayed their purchase due to expected Labor Day sales and shortages of some models. The performance reminds us that the recovery will be slow, with ups and downs, but is progressing in the right direction.”
A few automaker, brand and model highlights:
- Seven of the 11 multi-franchise automakers outperformed the industry, which was down 17.8% from a year ago.
- Jaguar Land Rover** sales advanced the most (+30.3%) among multi-franchise automakers. Sales of the all-new Jaguar XJ Series climbed significantly, as did sales of the Land Rover LR4.
- Daimler (+11.7%) and Chrysler (+11.1%) Groups posted double-digit gains from a year ago. Mercedes-Benz C-Class and E-Class sales bolstered Daimler totals. Dodge Challenger and Nitro picked up steam, while the new Jeep Grand Cherokee doubled deliveries from July. Chrysler’s Town & Country and Sebring also posted better sales than last year.
- Volkswagen and BMW Groups’ results improved in single digits from August 2009. Sales of the BMW 7 Series and Z4 helped the German premium brand post higher August deliveries. Volkswagen Group had several strong performers, including the Audi A4 and Q5. Porsche Cayenne and Panamera sales boosted the premium sports car brand’s totals, while Passat and CC sales increased significantly.
- August’s two best-selling automakers were General Motors and Ford Motor Company. Ford with its Lincoln and Mercury brands posted the smallest year-over-year decline of 7.2% and also gained share in August—1.79 percentage points—to end the month with 15.62% of US sales. GM’s sales fell 21.5% from last year and ended August with 0.85% less share, but remained the market leader with 18.60% of industry sales in the month.
- Toyota, Honda and Nissan Groups posted the largest year-over-year sales declines (down 24% to 31%) in comparison to last August, when these same companies posted record results for the month. Toyota Group’s share fell to 14.9%—down nearly 3.0 points from a year ago. Honda’s share dipped by nearly 2.0 points to 10.93% in August 2010.
- At the brand level, Ford was the best-selling nameplate in the U.S. market in August, as well as through the first eight months of 2010, followed by Chevrolet and Toyota, respectively.
- All four independents sold fewer new cars and light trucks in August than last year. Fuji Heavy Industries’ Subaru brand posted a double-digit decline, as did Mazda. However, there was strong demand for the Subaru Outback, and Mazda CX-9 sales climbed significantly from last year. Also, in its second month, the Mazda 2 gained traction.
*August 2010 had 25 selling days and August 2009 had 26 selling days.
**Jaguar Land Rover sales are estimated.
Posted on September 1, 2010, at 2:59 pm
 Light-vehicle sales in the US in August cooled in comparison to a full-boil finish in August 2009, when the government’s CARS program was in place. Last summer’s CARS program, also known as “cash for clunkers,” offered $3,500 to $4,500 in cash incentives to consumers who traded in an older car or truck for a more fuel-efficient new vehicle.
In its most recent analysis, J.D. Power and Associates reports that total sales declined 17.84% from last year and that the August seasonally adjusted annual sales rate (SAAR) will hit 11.43 million units, down slightly from 11.5 million units in July 2010. The August sales pace is well below last year’s inflated 13.8 million-unit pace, which was even ahead of the pace in August 2008, according to J.D. Power research data.
“With mixed economic signals and flat incentive levels, there hasn’t been enough horsepower behind the recovery to motivate consumers to regain their confidence and purchase vehicles at a higher rate,” Jeff Schuster, executive director of global forecasting at J.D. Power and Associates, told Automotive News. He also said, “It’s likely that new-vehicle buyers are holding off on purchases in anticipation of Labor Day incentives, which may benefit September sales.”
A few early August sales results from the manufacturers:
- General Motors and Ford Motor Company posted double-digit sales declines from last August. GM’s Buick and Cadillac brand sales climbed in double digits, while Chevrolet sales slumped. Ford’s Lincoln brand posted an increase, mainly due to higher Town Car deliveries, which may be mostly fleet sales, and the Ford F-Series, which is the best-selling model in the U.S. market, outpaced results from August 2009.
- Chrysler Group sold more new vehicles this year with gains for Jeep, due in part to demand for its new Grand Cherokee, as well as increases for its Dodge and Ram brands.
- Most of the Asian automakers, including Toyota, Honda and Nissan Groups, posted double-digit declines in comparison to their stellar totals last August when sales were bolstered by the CARS program.
- A number of premium brands, in addition to Lincoln and Cadillac, also posted increases from last year. Mercedes-Benz and Porsche deliveries climbed in double digits from August 2009. Acura also sold one-fourth more models this year vs. last year, and BMW sales also improved.
- Independents, including Subaru and Mazda, posted lower sales than in August 2009.
Posted on September 1, 2010, at 6:45 am
India’s buyers of new vehicle models that were launched this year are significantly less satisfied with their dealership sales experience than are buyers of carryover models that have been on the market at least one year, according to the J.D. Power Asia Pacific 2010 India Sales Satisfaction Index (SSI) Study.SM
Lower satisfaction levels among owners of newly-launched models may be partly due to the fact that the purchase dealership did not deliver the new vehicle at the promised or requested time. Delivery time is one of the key factors among the seven that are measured in the 2010 India SSI Study, which is based on a sample of 6,178 new-vehicle owners.
The study also finds that owners of newly-launched models say they receive less attention (involvement) from the salesperson in relationship building measures—such as receiving thorough explanations to questions; being offered a test drive; or being contacted after the sale to check that everything was satisfactory after the owner has driven the new vehicle home.
J.D. Power Analysis: Excitement surrounding the launch of a new model can quickly be overshadowed in the minds of consumers if there is a lack of availability and if the salesperson fails to demonstrate adequate enthusiasm, knowledge and skill in selling and delivering these vehicles. In addition, given that owners of newly-launched models typically report longer waits for vehicle delivery than do owners of carryover models, manufacturers need to ensure prompt service delivery to exceed these heightened expectations.—Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore
 Maruti 800 Maruti Suzuki Ranks Highest in India SSI for Second Straight Year
For the second consecutive year, Maruti Suzuki, one of the leading volume brands in India, ranks highest in satisfaction with the new-vehicle sales experience, according to the 2010 India SSI Study.
Among the 11 brands ranked in the study, Maruti Suzuki receives a score of 819 (on a 1,000-point scale) and performs especially well in five of the seven study factors. “The success of Maruti Suzuki is largely attributed to the enthusiasm of salespeople at the dealership, as well as the brand’s ability to understand customer requirements and provide knowledgeable answers to queries,” said J.D. Power’s Arora. In an earlier commentary,* Arora pointed out that, “Maruti Suzuki is willing to make an investment and open new showrooms and service facilities. Loyalty, driven in terms of customers, dealers and employees, is clearly a heady mix. It really creates a good formula for success.”
Following Maruti Suzuki in the sales satisfaction index rankings with scores that are at or above the industry average are: Honda (816); Skoda (812); and Toyota (803), which is at industry average.
Overall, sales satisfaction has risen by 10 points from 2009 (to 803), and eight of the 11 ranked brands post year-over-year improvements. Additionally, the industry improves this year from 2009 in all seven study factors, with the largest gains in the areas of dealer facility and deal penetration.
For more details, please read the press release.
*Powergram (June 11, 2010)
Posted on August 31, 2010, at 10:02 am
 The delivery process and delivery timing continue to be the most important of seven factors* that drive customer satisfaction with the new-vehicle purchase experience in China, according to the J.D. Power Asia Pacific 2010 China Sales Satisfaction Index (SSI) Study.SM
“Considering the tremendous growth among dealerships in China—which have been growing at a rate of 1,000 stores annually for the past several years, and today number some 13,000—process consistency will become particularly important. Customers who visit a specific brand’s dealerships will expect the same levels of service at various locations,” said Hannah Chao, research director at J.D. Power Asia Pacific—China operations.
Among the seven factors examined in the study, delivery timing is the only area in which automakers experience a decline in satisfaction from 2009. “Heightened consumer demand has led to longer wait times at dealerships, while supply shortages have created anxiety regarding vehicle delivery timing,” Chao said, noting, “Delivery time in 2010 averages 4.7 days, compared with 2.8 days a year ago.”
This year’s study finds that providing higher levels of customer satisfaction may contribute to improved sales close rates and higher revenue for dealers. More than two-thirds (67%) of vehicle owners who are “highly satisfied” with the sales experience said they purchased a vehicle from the dealership vs. only 60% of customers who indicated low levels of satisfaction with the dealership.
“Clearly, high sales satisfaction brings financial returns, both directly and indirectly,” said Jacob George, managing director of J.D. Power Asia Pacific—Shanghai, noting that, “A positive sales experience sets the foundation for a long-term relationship with the customer, which pays off in higher close rates, higher recommendations, higher service utilization and higher repurchase rates.”
This year’s study evaluates 53 passenger vehicle brands and the experiences of 10,661 new-vehicle owners (during the first two to six months of ownership) in 33 major cities in China. A few brand satisfaction index rankings from the study are included:
- Audi ranks highest in sales satisfaction with a score of 869 (on a 1,000-point scale), performing especially well in six of the seven factors.
- Following Audi in the rankings are Skoda (846) and in a tie, BMW and FAW-Volkswagen (842).
- Overall satisfaction with the sales experience edged up slightly, to an average of 823 from 822 in 2009.
- Three local Chinese brands rank among the 10 highest-scoring nameplates. Hafei ranks fifth with a score of 841 and performs particularly well in delivery timing. Roewe, based in Shanghai, ties with Buick to rank seventh, each with a score of 836. FAW Jilin ranks 10th and receives a score of 833.
*The seven factors measured in the 2010 China SSI Study are: delivery process; delivery timing; dealer facility; salesperson; paperwork; deal; and sales initiation.
**Source: J.D. Power special report “China Automotive 2015: The Cost of Opportunity”
Key to Satisfying China’s New-Vehicle Buyers: Catering to Regional Differences
Providing high levels of customer satisfaction during the new-vehicle sales process in China is not a “one-size-fits-all” process, according to the J.D. Power Asia Pacific 2010 China Sales Satisfaction Index (SSI) Study.SM
Among new-vehicle buyers in Tier 1 cities of China (including Shanghai, Beijing, Shenzhen and Gangzhou—with a combined population of 30 million people), quality is the most important consideration when purchasing a vehicle. However, in Tier 3 cities (defined by the Chinese government as 242 municipalities with a combined population of 261 million people), recommendations from family members and friends are of primary importance to new-vehicle buyers.
Providing test drives has a strong positive effect on overall satisfaction across all regions, but particularly in Tier 1 cities. In 2010, 74% of buyers overall participated in a test drive, but only 69% of buyers in Tier 1 cities experienced a test drive, which indicates an opportunity for improvement, the study reveals.
“Taking regional differences into account is key to effectively appealing to buyers,” said Hannah Chao, research director at J.D. Power Asia Pacific operations in Shanghai. She adds, “For lower-tier markets, brands should focus their marketing strategies on generating effective, positive word-of-mouth recommendations, while in Tier 1 cities, more effort should be devoted to communication about vehicle features and vehicle quality.”
*China Tier 1, 2, and 3 City definitions are based on data from the China Automotive Dealers Association that appears in the J.D. Power special report “China Automotive 2015: The Cost of Opportunity.”
For more details, see the press release.
Posted on August 30, 2010, at 5:58 am
 Although there was a considerable rise in the proportion of auto insurance customers in Canada whose premiums were raised, customer satisfaction with these providers has improved by 26 points—to an average score of 727 (on a 1,000-point scale)—from the overall average in 2009, according to the J.D. Power and Associates 2010 Canadian Auto Insurance Customer Satisfaction Study.SM
A few findings are included from the study, which measures auto policyholder experiences with their primary insurer, and is based on responses from 9,551 insurance policy holders:
- Among private and government-run insurer segments evaluated in the study, overall improvement in satisfaction scores this year is driven by higher satisfaction in the price factor—one of five measured. This is noteworthy since a sizable proportion of policyholders say their premiums increased from 2009.
- Proactive communication pays off. Among the 61% of policyholders who were notified of a rate increase ahead of time in 2010, the satisfaction score averages 721, compared to a satisfaction average of 628 among policyholders who were not notified in advance of a rate increase.
- Customer satisfaction with insurers improved among all customer age groups this year vs. 2009. Policyholders who are 65 years of age and older have the highest levels of satisfaction, while those customers between the ages of 35 and 44 are the least satisfied.
- When searching for information about insurance companies, the youngest cohort—policyholders between the ages of 18 and 34—are considerably more likely to rely on recommendations from family, friends and online searches than any other age group.
J.D. Power Analysis: Auto insurance providers may be able to take lessons learned about rate increase communication and apply them to their advantage when new options under the Ontario insurance reforms take effect on Sept. 1. Although the new mandates will likely lower premium amounts for many policyholders, any changes in rates—positive or negative—should be communicated to customers well in advance to avoid any confusion or surprise. Additionally, communicating with policyholders through phone calls or personalized e-mails is more satisfying than sending information by mail.—Lubo Li, senior director and practice leader of Canadian financial services and insurance at J.D. Power and Associates.
Grey Power, Intact Insurance Rank Highest in Satisfaction with Insurers in Canada
Grey Power*, based in Toronto, Ontario, receives a score of 756 and ranks highest in customer satisfaction among private full-coverage auto insurers, performing especially well in three of five factors: price/premium; billing and claims. Following in this segment’s rankings are RBC Insurance and Johnson Insurance.
Within the second private insurance company segment—Quebec private auto insurers—Intact Insurance** receives the highest index score of 842. Intact’s score climbs by 97 index points from its score in 2009, and it performs particularly well in three factors: interaction (customer service), price/premium and claims. Promutuel and The Personal follow in this segment’s rankings.
*Grey Power, a provider of auto insurance products for mature Canadians, is part of Trafalgar Insurance Company of Canada, which is part of Intact Financial Corp., a major provider of auto, home and commercial insurance.
**Intact Insurance claims to be Canada’s largest auto, home and business insurance company protecting over 3 million customers.
For more details, please see the press release.
Posted on August 27, 2010, at 8:53 am
 Chevrolet Volt and Li-ion Battery Buzz continues about the plug-in Chevrolet Volt electric car that is set to reach dealer showrooms later this year. Recent news and corporate statements have focused on GM’s 100,000-mile/8-year guarantee for its lithium-ion (li-ion) battery and on questions about dealer pricing. Mike Omotoso, senior manager of global powertrain at J.D. Power and Associates, answers questions and provides insight about the Volt and its battery pack:
Q: Are automakers certain that these batteries will last 8 years? What can you tell us about the length of a li-ion battery’s life—as part of a vehicle’s powertrain? (How will it compare to the life of NiMH batteries in hybrids such as the Prius?)
A: Automakers are fairly certain that the batteries will last 8 years or more. If they had strong doubts, they would not provide guarantees that could end up costing them over $10,000 per vehicle if and when something goes wrong. Toyota has had very few failures with the NiMH batteries in the Prius, which the company has been selling in the US since 2000. The battery, and other hybrid components, in the Prius also have an 8-year/100,000-mile warranty, which may be why GM chose to match those numbers. Lithium-ion batteries are different, but after all the testing that GM has done for more than three years now, the automaker should be fairly confident that the battery in the Volt will last 100,000 miles under most driving conditions.
Q: GM will offer its standard 5-year/100,000-mile warranty for the gasoline engine in the Volt, and other parts will be covered under the standard 3-year/36,000-mile guarantee. Will this be confusing for consumers?
A: I don’t think that the different warranties will be confusing because consumers are already used to separate warranties for basic maintenance, powertrain and corrosion in gasoline-powered vehicles. For example, the 2010 Volkswagen Touareg has a 3-year/36,000-mile limited warranty; 5-year/60,000-mile powertrain warranty; and a 12-year/unlimited-mileage corrosion warranty. Most consumers realize that there are different major parts to the vehicles they buy and the warranties will differ accordingly.
Q: Will the first consumers to buy or lease a Chevy Volt only be early adopters with the $41,000 price tag (excluding federal and state tax credits)?
A: Almost by definition, the first consumers will be the early adopters. The Volt is a fairly expensive car for its size, so mainstream consumers will not buy it initially, if at all. It will be interesting to see how well the Volt sells after being on the market for 18-24 months, after the early adopters have bought their plug-in car. The Smart car was hot for the first couple of years that it was sold in the US, but then sales trailed off significantly. GM will be hoping to avoid a similar fate.
Q: Will dealer markups* (some are selling at MSRP and some much higher, according to The New York Times and other media) hurt sales of the new plug-in? AutoNation recently told Automotive News that it will fine its dealers if they charge more than sticker for the Volt.
A: I don’t think that dealer markups will hurt sales. Dealers tend to mark up any vehicle for which the initial demand exceeds supply. It happened with the new Chevrolet Camaro and the Dodge Challenger for the first few months, before production ramped up to match demand. Once the people who have to be the first ones on the block to have the new model have been taken care of, dealers will be forced to sell the car at MSRP or less.
Q: How much of the Volt’s cost will be covered by GM? And can this car be profitable in such small numbers—10,000 to be marketed in 7 states through the end of 2011 and production will expand to 30,000 units in 2012? That’s a much smaller sales volume estimate than for Prius, for example.
A: This is a difficult question to answer because GM will not reveal their production costs. They have spent at least $1 billion to develop the Volt, and they are unlikely to make a profit on the car in its first generation. This is not unusual; Toyota lost money on the first two generations of the Prius and only started to make a profit more than 10 years after developing their hybrid car. The Volt will definitely not be profitable if it only sells in small numbers. The 30,000-unit production target has been revised to 45,000 units, but I still think that the Volt will not be profitable until the second generation is developed with a significantly cheaper battery. This is at least five years away.
 Q: The SAE (SAE International**) is working on a standard for miles-per-gallon ratings for plug-in hybrids. GM says it is working with the EPA and the industry to come up with a mpg (miles per gallon) number that gives customers a reasonable idea of the Volt’s range. However, the prior forecast of 230 mpg for the Volt has been scrapped. Can you comment?
A: GM made a big splash with their ‘230 miles per gallon!’ announcement, and Nissan followed tongue-in-cheek by saying that the Leaf plug-in all-electric car [sticker of $32,780 set by Nissan Motor in March] would achieve 367 mpg. Neither number is realistic, mainly because you can’t really convert miles per gallon of gasoline to miles per unit of electricity. It is not an apples-to-apples comparison. At the end of the day, it’s the operating cost per mile that matters to the consumer. So if you spend $300 a year on gas (for the onboard generator/engine) and $300 a year on electricity to charge the battery for the Volt, the $600 total cost can be compared to say $1,400 a year on gasoline for a conventionally powered vehicle. Electricity cost is measured in cents per kilowatt hour, and consumers can monitor how many kilowatt hours of electricity they are using whenever they charge their vehicle. So you can do a dollar-to-dollar comparison for gas vs. electricity, but you can’t really compare miles per gallon.
*Note: Buyers of both the Chevrolet Volt and the Nissan Leaf are eligible for a $7,500 federal tax credit. Both cars are available for lease and purchase. Chevrolet has been taking pre-orders for the Volt for nearly one month, and according to media reports, the official Chevrolet website is offering the new electric car for $350 a month with a $2,500 down payment, or for as low as $33,500 after a $7,500 tax credit.
**SAE International, formerly called The Society of Automotive Engineers, has more than 121,000 members, including engineers, business executives, educators, and students from more than 97 countries.
Posted on August 25, 2010, at 12:05 pm
 Certigard* (Petro-Canada) ranks highest in satisfying automotive service customers in Canada, receiving an overall index score of 869 (on a 1,000-point scale), according to the J.D. Power and Associates 2010 Canadian Customer Commitment Index Study.SM Rounding out the brands that rank at or above the industry average of 815 are: Goodyear Auto Centers (838); Jiffy Lube (835); OK Tire (832); Napa Autopro (831); Toyota/Lexus Dealerships (825); Midas (822); Pennzoil (818); and in a tie, Fountain Tire and Mr. Lube (815).
*Petro-Canada and Suncor Energy Inc. merged in 2009 to become Canada’s largest energy company. Certigard is Petro-Canada’s brand for maintenance and repair services at Petro-Canada gas stations. Since the merger, many Sunoco stations were converted to the Petro-Canada brand.
For more details, please read the press release.
Posted on August 25, 2010, at 7:53 am
 Canadian owners of cars and light trucks, particularly owners of vehicles that are 4-7 years old, are spending less on routine maintenance and repair services this year than in 2009, according to the J.D. Power and Associates 2010 Canadian Customer Commitment Index Study.SM
The study finds that consumer-reported average annual expenditures on vehicle maintenance and repair services have declined by $1.4 billion—to $9.8 billion in 2010 from $11.2 billion in 2009.
“People are relying on vehicle durability and are postponing service events,” explains Ryan Robinson, director of the Canadian Automotive Practice at J.D. Power and Associates in Toronto. “Stagnant economic conditions also may be a reason that owners are postponing routine maintenance,” he said, noting, “Other factors contributing to this decline include longer manufacturer-recommended service intervals, improved vehicle reliability, and a slight decline in the average age of the 3- to 12-year-old vehicle fleet, due to strong new-vehicle sales during the 2006 and 2007 calendar years.”
Highlights from this year’s Canadian Customer Commitment Index Study, which is based on responses from more than 14,500 owners in Canada whose vehicles are between three and 12 years old, include:
- The average amount spent per service visit has declined by $65, to $287 this year from an average of $352 per visit in 2009.
- The number of service visits per year, especially for 4- to 7-year-old vehicles, has dropped significantly on a year-over-year basis.
- At the same time, revenue from repair work has remained stable this year, while routine maintenance revenue has declined considerably in 2010 vs. 2009.
- Among customers of brands with the highest levels of overall satisfaction, nearly 80% indicate they “definitely will” return to the service facility for work they will pay for (outside the scope of their vehicle warranty), while only 45% of customers of less-satisfying brands say they will return to the service facility for work that requires payment.
- Nearly two-thirds (65%) of owners who indicate that the facility’s service advisor discussed other service work that may be required in the future say they “definitely will” return to that facility for their next service visit.
Implication: High-performing brands enjoy nearly twice the rate of customer retention than the industry average. Given the degree of hyper-competition for vehicle maintenance and repair business in Canada—with more than 40 branded networks competing, in addition to thousands of independent providers—the business case for an individual service facility to improve the customer experience is compelling. Considering that service expenditures average $287 per visit, the revenue and profit enhancement from increased retention is significant.—Ryan Robinson, director of the Canadian Automotive Practice at J.D. Power and Associates, Toronto
*Note: Five key factors of the service experience are evaluated to determine overall customer satisfaction levels: the process of getting the vehicle in for service; service advisor performance; service facility; quality of work performed; and the process of vehicle return/pick-up.
Posted on August 24, 2010, at 12:25 pm
Premium (or luxury) car and light-truck models tend to score higher in satisfaction with the sound system, but also receive lower scores in multimedia quality. This may be due to luxury systems including more available features, which also creates a higher probability of problems occurring, according to the J.D. Power and Associates 2010 Multimedia Quality and Satisfaction Study.SM
The study finds that manufacturers of premium vehicles achieve the highest sound system satisfaction ratings, with Porsche Cars North America receiving the highest sound system satisfaction rating this year. In addition, the Mercedes-Benz S-Class has the highest overall sound system satisfaction score in the industry.
Four Multimedia Suppliers Earn Quality Awards
Four in-vehicle multimedia suppliers rank highest in the quality of their vehicle multimedia components in their particular segment,* based on results in the 2010 Multimedia Quality and Satisfaction Study. Rankings are determined by lowest problem scores per 100 vehicles (PP100). Highlights for highest-ranking companies follow:
Alpine Electronics of America Inc., a major manufacturer of in-vehicle entertainment systems, ranks highest in the AM/FM/Single CD Player segment with an overall PP100 score of 2.8, an improvement over its score from last year. Following Alpine in the segment rankings is Clarion; Fujitsu Ten Corp. of America and Mitsubishi Electric Automotive America tie for third.
Sanyo Automotive U.S.A., Inc. has the lowest number of reported problems with multimedia in the AM/FM/Single CD Player/Satellite Radio segment (3.0 PP100), which is 1.7 PP100 better than the industry average. Sanyo supplies systems for several Ford models. Continental Corp. and Hyundai Mobis follow in the rankings, respectively.
Fujitsu Ten Corporation of America receives the award for the highest quality multimedia supplier (AM/FM/Multi-CD Changer/Satellite Radio) with just 2.1 PP100, which is 3.1 PP100 better than the industry average. Pioneer ranks second, followed by Clarion in this component system category.
Denso and Panasonic Automotive Systems Company together supply the AM/FM/Single CD/Satellite Radio/Navigation System with the fewest PP100 in this category—6.4. In this particular split-sourcing arrangement, Denso provides the navigation system while Panasonic supplies the audio components. This component category has the highest average PP100—10.4 PP100—among award categories. This is due to a higher possible problem count with the addition of the navigation system.
*There are 28 multimedia configurations evaluated in the study, which includes different combinations of in-vehicle audio, entertainment and navigation systems. For a segment to be eligible for an award, it must comprise at least 10.0% of the industry market share, have at least four eligible suppliers, and at least 70% of the sourcing identified.
For more details, see the press release.
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Daimler Group’s Mercedes-Benz brand was the best-selling premium brand in the US market during August 2010, followed by BMW and Lexus brands, respectively, according to sales analysis from J.D. Power Automotive Forecasting.SM The strongest-selling models in the premium automaker’s lineup were the C-Class and the redesigned E-Class sedan and coupe.
