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 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 27, 2012, at 11:46 am
 Acura’s website ranks highest in usefulness in the J.D. Power and Associates 2012 Manufacturer Website Evaluation Study (MWES)SM—Wave 1. The premium brand website receives a score of 808 (on a 1,000-point scale), and performs particularly well in two of the four index measures: navigation and speed.* Continue reading ›
Posted on January 17, 2012, at 7:38 am
 Raffi Festekjian Female new-vehicle owners and younger buyers—those between the ages of 23 and 47 years old—are less likely to choose the same vehicle brand for their next purchase in comparison with males and older owners, according to findings in our 2012 Customer Retention Study. 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 December 29, 2011, at 7:00 am
 Marvin Zhu After two years of strong growth, the car market in China has begun to slow. Chinese brands, which have grown considerably over the past few years, seem to have lostmomentum faster than their joint-venture counterparts. According to the J.D. Power Asia Pacific 2011 China New Vehicle Intender Study,SM the purchase intent toward local brands has fallen from 26% in 2009 to just 20% this year.
Although the local OEMs have continued launching new products, more and more car buyers are voting with their feet, as they find most of those “new models” are facelifts or copies of other popular models. Meanwhile, the joint ventures are offering cars of similar size at increasingly competitive prices. Continue reading ›
Posted on December 14, 2011, at 8:47 am
 The introduction of Hyundai’s all-new small car, the Eon, which was previously known by its code HA H800, will heat up the mini car battle in India. The Eon is expected to be a strong challenger to market leader Maruti Suzuki’s Alto. The Eon, an entry-level hatchback aimed at capturing first-time car buyers in India, was developed over 4 years at a cost of INR 9.56 billion (US $181 million).
In order to meet the requirements of car buyers in this growth market, Hyundai Motor’s research and development team in Hyderabad worked with Hyundai’s engineers in South Korea to design and develop the Eon exclusively for India. The result is a model that is stylishly designed and promises fuel economy of 21 kilometers per liter (equivalent to 13.05 miles per liter or about 79.38 miles per gallon)under test conditions. Powered by an 814 cc 3-cylinder gasoline engine, the Eon is also competitively priced from INR 285,309 (US $5,400) for the base model Eon D-Lite to INR 396,262 (US $7,500) for the top-end Sportz version, which has additional features such as keyless entry and a driver air bag. Continue reading ›
Posted on November 26, 2011, at 9:20 am
Although green entries did not get all the attention at this year’s L.A. Auto Show this past week, a number of automakers featured fuel-efficient models. A few observations after the press previews and the show:
•  Honda remains a green leader and promoted its electric vehicle (EV) capabilities at the L.A. Auto Show. In addition to showing its new 2012 CR-V with better fuel efficiency, one of California’s best-selling automakers debuted an all-electric Fit subcompact for 2013. The new EV comes in a 5-door, 5-passenger package and can be recharged using a 240-volt charger in less than 3 hours. The Fit EV can be leased from Honda for $399 per month. Some 1,000 EV demos will be placed on the road this year in a pilot program involving the city of Torrance, CA, Stanford University and Google. On another green note, Honda’s Civic Natural Gas model was named “2012 Green Car of the Year” by the Green Car Journal. Continue reading ›
Posted on November 22, 2011, at 11:14 am
Crossovers continued to pull their weight among major introductions at the L.A. Auto Show. A few of the introductions featured in the segment that is favored by nearly one of every four or five new-car buyers:
 • Ford introduced its new 2013 Escape with sleek styling changes that take cues from its Focus sibling and simpler, enhanced telematics—Sync with MyFord Touch—and more fuel-efficient 4-cylinder engine options as well as a remote liftgate feature. A new version of the Ford Flex midsize CUV also was unveiled, featuring a slightly less dramatic front end, but new inflatable seat belts to protect children and older passengers. Continue reading ›
Posted on November 12, 2011, at 8:39 am
 Mohit Arora Vehicle owners in Australia who wait less than 3 hours to have their vehicle serviced at an authorized service center are much more satisfied with the service experience than are those owners who are forced to wait longer, according to the J.D. Power Asia Pacific 2011 Australia Customer Service Index (CSI) Study.SM
In fact, service satisfaction* for shorter vehicle service wait times is 41 points higher (817 points on a 1,000-point scale) than for wait times of 3 or more hours (776). At the same time, the study reveals that nearly six in 10 customers (59%) have to wait more than 3 hours before their vehicle is returned to them after service, and customers wait an average of 6 hours for their vehicle to be serviced. Continue reading ›
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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 ›
