Posted on March 27, 2012, at 7:03 am
 Tim Dunne During the past few years, exports of passenger vehicles from China have quietly been making gains, with total exports quadrupling from just 100,000 units in 2009 to more than 400,000 units in 2011. China’s exports are forecast to surpass 1 million units annually by 2019, according to LMC Automotive. China’s export performance in 2011 made it the fourth-largest exporting nation in Asia, behind Japan, Korea and Thailand.
China’s Auto Exports Grow More Slowly due to Local Market, Quality Issues
While China has been the center of production and exports for many of the world’s goods, the export of vehicles has not been as prominent. There are several reasons why auto exports have lagged: First, because the Chinese domestic market has been growing at such an unprecedented pace, automakers with local production have focused on capturing and building their share of the local market; and secondly, the quality of Chinese-made vehicles has needed to become more competitive with global quality standards. Continue reading ›
Posted on March 16, 2012, at 6:56 am
Although auto sales in the US market continue to recover after faltering during the recessionary years of 2008 through 2009, J.D. Power projects that service volume at dealerships will continue to dip through 2013 before rebounding. Our 2012 U.S. Customer Satisfaction Index (CSI) Study finds that the frequency of routine dealer maintenance and repair visits in addition to recall events declined this year vs. the 2011 study.
The challenge for automakers and dealerships will be to maintain high levels of satisfaction now and once service volumes rebound. We identify specific actions that dealerships can take to maintain high levels of satisfaction in periods when service volume is down. Some best practices:
Promote online scheduling of service appointments. Just 4% of customers set up their service appointment online this year, up from 3% in 2011.
Benefits:
• Customers who schedule a service appointment online are notably more satisfied with the service experience than are customers who call to make an appointment or who drop by the dealership without an appointment.
• Customers who schedule service online spend $36 more on service per year than do customers who do not make an appointment, and they spend $17 more per year than customers who call to make an appointment. Continue reading ›
Posted on March 14, 2012, at 9:12 am
 Zeeshan Hasan Overall satisfaction among vehicle owners with the dealer service industry as a whole improves significantly—up 19 index points from 768 in 2011 to 787 (on a 1,000-point scale) in our 2012 US Customer Service Index (CSI) Study, which is based on responses from more than 84,000 owners and lessees of 2007 to 2011 model-year vehicles.
This improvement, which includes double-digit advances in all five factors* and all 16 attributes evaluated in the study, falls in line with the overall improvement (+13 index points) in overall satisfaction with the new-vehicle sales experience as measured in our 2011 US Sales Satisfaction Index (SSI) Study. Some 28 of 33 brands that are eligible for ranking in the 2012 CSI Study improve their performance from last year, and eight of these brands’ scores advance by at least 20 index points.
A few more highlights from our latest CSI Study:
• Despite stronger US sales volumes in 2011 than in 2010, the average number of service visits declined again this year. However, although service visits are down, satisfaction with dealer service is way up. 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 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 1, 2012, at 2:43 pm
 Although January often is the weakest sales month of the year in the US auto market, many automakers posted double-digit sales gains over the same month in 2010, indicating a good beginning for 2012. It appears that total light-vehicle sales might rise by more than 11% over January 2011 and that would translate to a 14.1 million-unit seasaonally adjusted selling rate (SAAR), according to J.D. Power and LMC Automotive analysis.*
All multi-franchise automakers, except for General Motors, posted increases, as did two of four independents—Mazda and Subaru. Fiat-Chrysler and Volkswagen Groups led the January gains with year-over-year increases of 48% and 44%, respectively. Not only did Chrysler Group LLC report stronger sales for its Chrysler, Dodge, Jeep and Ram brands than a year ago, but the company also said it earned a net profit of $183 million in 2011 vs. a loss of $652 million in the prior year.** VW Group sales in January were bolstered by strong demand for the Passat, now built in Tennessee. Among the independents, Mazda was a star with deliveries soaring 68%. Continue reading ›
Posted on January 30, 2012, at 7:19 am
 Jon Osborn The percentage of new-vehicle buyers in the US market who avoided considering domestic models due to their origin has declined to just 6%—which is a historically low level, according to our 2012 Avoider Study, which includes responses from more than 24,000 owners who registered a new vehicle in May, 2011. At the same time, the study finds that the percentage of buyers who avoided imported models because of their origin has risen to 14% this year.
The lower level of avoidance of US domestic light-vehicle models due to origin reflects a “buy-American” sentiment that surfaced as the economic recession beginning in 2008 led to job losses in the US, which adversely affected major companies, such as the three Detroit automakers. In addition, the quality, dependability and appeal of domestic models has improved during the past several years as well, and this also may be a reason behind declining avoidance of these models. Continue reading ›
Posted on January 30, 2012, at 7:17 am
 Jon Osborn New-vehicle buyers’ perceptions of a vehicle’s reliability have consistently been major reasons for avoiding a particular brand or model, according to J.D. Power research.
Our recent 2012 Avoider Study finds that, among buyers who avoid a specific model due to concerns about quality and reliability, some 43% say they based their avoidance on “the brand’s vehicles, in general, are known to have poor quality/reliability.”
A slightly smaller percentage—38%—based their decision to avoid a brand’s model on ratings and reviews, while an even smaller percentage—14%—relied on prior ownership of that model. Continue reading ›
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 ›
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