Posted on January 23, 2012, at 11:30 am
 Jenny Gu Soaring demand for luxury vehicles in China has seen many premium brands make the country their second home. Land Rover may be the next premium brand to begin local production, following on the path taken by Audi, BMW and Mercedes-Benz. Even automakers without a strong foothold in China are increasingly eyeing the country as a key engine for future growth.
Localized Production is Key to Success in China Market
Automakers need to localize in order to truly establish themselves in this market. As some global automakers and their local partners are busy ramping up production of localized luxury models, many other foreign carmakers are seeking Chinese partners, as is required by the government, to set up new joint ventures. Lexus, Infiniti and Land Rover are among those considering localization in China in the near future.
Localization made slow progress before 2009. Between 2005 and 2009, the number of luxury models produced in China rose from just eight to nine. However, in 2010, the number of luxury models that were locally produced climbed to 11, and is expected to reach 15 by the end of 2012. By 2015, we expect 22 luxury models to be locally built, which will mean that those models will account for 60% of luxury sales, up from 56% in 2009. Continue reading ›
Posted on January 14, 2012, at 11:31 am
 Among 33 automotive brands included in our 2012 Customer Retention Study, Hyundai ranks highest among all brands in retaining customers when they buy a new vehicle. The Korean brand improves its retention rate by 4 percentage points from 2010 to 64% in 2012.
Hyundai’s retention rate is primarily driven by loyalty to the Elantra and Sonata models. The non-premium brand’s increased retention rate also is shaped by its expanding model lineup, as well as the fact that perceptions of the brand’s quality and appeal have continued to improve during the past decade. Continue reading ›
Posted on January 9, 2012, at 8:32 am
 BMW and Mercedes-Benz brands treated the resolution of their 2011 sales battle in the U.S. market as if it were an election: The world had to wait about 24 hours longer than usual for monthly sales results before black smoke surfaced signaling that one brand had emerged as the sales leader.
 And the results confirmed that the BMW Group brand edged out the Daimler Group brand, but just barely, for the American luxury-sales crown for last year. BMW sold 247,907 vehicles in the United States last year compared to 245,192 unit sales for Mercedes-Benz—a difference of just 2,715 units, or about 1%. Continue reading ›
Posted on December 23, 2011, at 7:00 am
 David Sargent Earlier this month, BMW and Toyota Groups announced that they will work together to develop lithium-ion batteries for electric and hybrid cars. In addition, BMW will supply diesel engines to Toyota in Europe. Officials from both automakers signed a MOU at the Tokyo Auto Show for mid- to long-term collaboration on next-generation environment-friendly technologies.
The cost of new powertrain technology is very high and so it makes sense for automakers to form alliances in order to share development costs. This is especially so when the two automakers concerned have complementary strengths. BMW produces some of the most highly regarded diesel powertrains, which have been extremely successful in Europe. In turn, Toyota is a clear leader in electric and hybrid powertrains. Therefore, the agreement seems to make a lot of sense. Continue reading ›
Posted on November 26, 2011, at 10:12 am
 More than half a dozen mass-market and premium brands displayed models with higher-horsepower powertrains at this week’s L.A. Auto Show, many with the capability to hit speeds nearing 200 mph without limiters.
• Ford introduced a new Shelby Mustang GT500 with an engine that exuded 650 horsepower.
• The 2013 Chevrolet Camaro ZL1 convertible will be equipped with a 580-horsepower supercharged V-8.
• BMW showed one of its performance models, the M5, powered by its most powerful street engine—a 560-horsepower unit that can propel the M5 to 60 mph in 4 seconds, according to the automaker. Continue reading ›
Posted on November 1, 2011, at 10:53 am
 Models from Japanese automakers rank highest in seven of 11 award segments in this year’s China Initial Quality Study. Models of Chinese domestic brands rank highest in initial quality in the mini van and lower premium midsize segments. The study features analysis on 155 different passenger-vehicle models covering 56 different makes. Continue reading ›
Posted on October 25, 2011, at 9:08 am
 Jenny Gu Long-wheelbase luxury car models are most common in China. Audi established this segment in 2005 with the introduction of the long-wheelbase A6, which proved to be popular with buyers in China. Audi’s competitors soon followed with their own entries, and now China is the only market in the world to offer long versions of the BMW 3 Series, Mercedes-Benz E-Class, and Mercedes S80L.
Until recently, extended-base luxury cars were the most popular in China. But as the market has grown, car buyers’ tastes and preferences have begun to change and diversify. Buyers increasingly are beginning to favor standard-wheelbase vehicles. This trend has been spotted by BMW, which is now offering stretched and standard-wheelbase versions of its cars. We think this is both a bold and astute move.
The powertrain and trim levels between the two wheelbase versions are largely the same. Typically, however, the long version will exhibit slightly higher top speeds and better acceleration, while the standard version will have slightly better handling. Continue reading ›
Posted on October 10, 2011, at 8:48 am
 Taku Kimoto Nearly half of vehicle owners in Japan say they visit the dealership where they purchased their vehicle for service needs, such as routine maintenance, shaken inspections*, oil changes, and repairs, according to our 2011 Japan Customer Service Index (CSI) Study, which is based on responses from 11,759 customers who have owned their vehicles between 15 and 50 months.
Yet, after three years, the percentage of owners who continue to visit the dealer for shaken inspections declines by 15 percentage points. The study finds that customers who continue to visit the dealership for routine maintenance and shaken inspections tend to base their decision on trust in the dealership, rather than price. These customers are more likely to indicate that they were introduced to the service advisor and asked if service was satisfactory compared with customers who visit non-dealer facilities. Continue reading ›
Posted on September 29, 2011, at 10:28 am
 Honda and Suzuki brands each produce three of the models with the highest vehicle ownership satisfaction scores in the 10 award segments of the J.D. Power and Associates 2011 Mexico Vehicle Ownership Satisfaction Study.SM In addition, models from (in alphabetical order) Audi, BMW, Chevrolet, Dodge, Ford, Lincoln, Mazda, Mercedes-Benz, MINI, Toyota and Volkswagen brands rank among the top three in each award segment.—Jon Osborn, research director at J.D. Power and Associates Continue reading ›
Posted on September 27, 2011, at 7:50 am
 Through the first 8 months of 2011, light-vehicle output in North America climbed 8% from a year ago, to 8.5 million units. The Detroit-based automakers ramped up their production by 16%, while the Japanese automakers lost 8% due to shortages of parts following the March 11 earthquake in Japan. Output for the European OEMs climbed by 38% from a year ago, with the added production of the BMW X3 and Volkswagen Passat in North America. Demand for the new VW Jetta has also boosted European output. Continue reading ›
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