Posted on February 22, 2012, at 10:56 am
 Geoff Broderick What’s the first thing most first-time visitors notice when de-planing through the gates at Shanghai’s Pudong airport, or Beijing’s Capital airport? It’s the size of the place. Everything is big, even by American standards: big halls, big seating areas, big restaurants, long queues and people everywhere.
What’s the second thing a foreigner notices upon arrival? There is so much coming-and-going—with people moving in all directions (their shoes loudly clacking against the ground), groups of people gathered together engaged in shrill conversation, and the constant call of the airport’s public address announcer calling out flight update information—everything appears to be occurring in a state of perpetual pandemonium.
But once you become adjusted to the pace and din of China—inside the airport and outside during day-to-day living—the pandemonium becomes much easier to understand and digest. It is chaotic, to be sure, but it is an organized chaos, with its own unique Chinese ebbs and flows. Continue reading ›
Posted on February 21, 2012, at 7:55 am
Marvin Zhu, a senior analyst with LMC Automotive, who writes for China Automotive Monthly published by J.D. Power Asia Pacific, offers insight about the changing strategies of automakers in China.
 Automakers in China are changing their way of thinking in a market that is diversifying. Foreign brands are starting a new campaign to expand capacity.Volkswagen Group is going to set up new plants in Ningbo and Xinjiang, while Nissan Motor Co. will add a Dalian plant for Infiniti. General Motors, Ford, PSA, Hyundai, Honda, BMW and Toyota Groups are all going to have new plants ready for vehicle production in 2012. As these companies’ performance in other markets is expected to be less than robust, the booming Chinese market is much more of a sure bet. Continue reading ›
Posted on February 17, 2012, at 7:57 am
Raffi Festekjian
Several major nameplates have performed well in dependability, but still face challenges with customer perceptions of their models’ reliability, when analyzing results from J.D. Power’s 2008 Avoider and VDS Studies* in comparison with the same studies in 2012.
Although Buick, Cadillac, Ford, Hyundai and Lincoln have achieved consistently strong levels of . . . Continue Reading Perceived Reliability Still Lags Actual Dependability for Some Brands
Posted on February 16, 2012, at 10:11 am
 David Sargent During late 2008/early 2009, in the middle of one of the roughest recent economic recessions in the United States,* initial quality of new vehicle models (2009 model-year) was especially strong, based on results in our 2009 Initial Quality Study (IQS). This high initial quality for 2009 models has translated into high levels of vehicle dependability for 2009 models that are now three years old , according to our 2012 Vehicle Dependability Study (VDS).
This strong performance is encouraging because it means that the gap between new-vehicle initial quality and long-term dependability continues to narrow. Long-term dependability, as defined by original owners’ evaluations of problem incidence in their three-year-old vehicles**, averages just 132 problems per 100 vehicles (PP100) in 2012 and has improved by 13% from the 2011 average of 151 PP100—which is the lowest problem rate since the study was introduced in 1990. Continue reading ›
Posted on February 15, 2012, at 1:31 pm
Three premium nameplates rank highest in long-term dependability, according to our 2012 Vehicle Dependability Study (VDS). At the individual brand level, Lexus ranks highest, receiving a score of 86 PP100, which is an improvement of 21% from 2011. In addition, the Lexus LS has the fewest problems in the industry, with just 72 PP100. . . . Continue Reading Three Premium Brands Rank Highest in Long-Term Dependability
Posted on February 15, 2012, at 1:29 pm
 At the corporate level, Toyota Motor Corporation continues to perform well in long-term dependability and garners eight segment-level model awards—more than any other automaker this year, according to our 2012 Vehicle Dependability Study (VDS), which is based on responses from more than 31,000 original owners of 2009 model-year vehicles after three years of ownership.
The Japanese automaker’s models with the fewest problems in their respective award segments are: the Lexus ES 350 (in a tie with the Lincoln MKZ); Lexus RX 350; Scion tC; Scion xB; Toyota Prius; Toyota Sienna; Toyota Tundra; and Toyota Yaris. Continue reading ›
Posted on February 13, 2012, at 8:44 am
 Leslie Cocco Coping with changing government regulations—such as increases in CAFÉ (corporate average fuel economy) standards—and adjusting and aligning OEM production and distribution with a declining number of dealer locations in the US market, were two topics on the minds of automaker and retailer executives during afternoon presentations and a panel discussion at our recent 1-day 2012 International Automotive Roundtable in Las Vegas, NV.
Volkswagen of America’s President and CEO Jon Browning touted VW’s global success, claiming that the company was the fastest-growing automaker in the US market in 2011. He attributed VW’s success largely to the company’s marketing efforts, which began with the launch of the new Jetta that is built in Nashville, TN, and continued to be propelled by VW’s popular Super Bowl commercials last Sunday. Browning said VW’s marketing strategy: “Telling human stories with a touch of humor” is a strategy that the company plans to use throughout 2012. In the spirit of the Super Bowl weekend, Browning also showed off some old and new Super Bowl TV commercials, which brought applause from the Roundtable audience. Continue reading ›
Posted on February 10, 2012, at 7:00 am
 Aimee Canlas The future of automotive retailing is being shaped by evolving consumer needs and by changing technology, spurred by the increasing adoption of mobile devices in addition to the entry of younger consumers into the market, suggests John Humphrey, J.D. Power’s senior vice president of global automotive operations.
Humphrey discussed both opportunities and challenges that will face automotive retailers now and in the future during his global automotive outlook that kicked off our 2012 International Automotive Roundtable held at the Wynn Hotel in Las Vegas last week.
He pointed out that the proportion of Generation X and Generation Y vehicle buyers* in the U.S. market has been steadily increasing since 2000, and is expected to reach 42% of the market in 2015. These two demographic groups display characteristics that may make it particularly challenging for dealers to build customer relationships, loyalty and retention. Continue reading ›
Posted on February 7, 2012, at 8:14 am
 Zeeshan Hasan In our 2011 Sales Satisfaction Index Study (SSI), J.D. Power asks buyers questions about what level of detail they prefer when receiving feature demonstrations during the vehicle delivery process, and how they would like to learn about their new vehicle’s features and controls after they have taken delivery.
A majority of buyers (81%) identify that they would prefer a “detailed” or “moderate” explanation at delivery, while only a small portion (19%) indicate that they would prefer a “brief” explanation. This is further demonstrated by the fact that while technology demonstrations add, on average, 5 to 6 minutes to the length of a vehicle delivery, the added demonstration time also improves a buyer’s overall delivery satisfaction by at least 100 points, improving their satisfaction with the thoroughness and timeliness of delivery. Continue reading ›
Posted on February 3, 2012, at 3:57 pm
 Leslie Cocco The global automotive industry, including North America, is better able to keep production in line with demand than in the past, according to John Humphrey, senior vice president and general manager of J.D. Power’s global auto operations. John told participants at our 2012 International Automotive Roundtable today that J.D. Power is largely bullish about the auto market in the near future, projecting global sales of 79.2 million light vehicles in 2012, and rising to 99 million unit sales in 2015.
Humphrey stated that more than half (55%) of global auto sales in 2015 are projected to be in emerging markets, and he pointed out that drivers of this growth include the return of sub-prime-credit customers to the market, decreasing credit restrictions, and increasing demand.
 John Humphrey Humphrey also said there are risks to this growth: geopolitical tensions in the Mideast Gulf region; the negative impact of the Euro debt crisis; unemployment; the economic slowdown in China; and the lack of infrastructure in emerging markets.
Humphrey also discussed the inevitable change in the market in relation to Gen Y consumers. Changes that he mentioned are technology-driven, and relate to the way that young shoppers expect to do their shopping—online, via mobile, and Apps—and the expectations they have for technology in vehicles. A majority, or 79%, of shoppers are going to third-party sites, rather than OEM or dealer sites, which makes brand management and messaging a challenge, he said. Continue reading ›
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