Automakers Change Their Strategy in China Market

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 ›

Perceived Reliability Still Lags Actual Dependability for Some Brands

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

Chrysler and VW Groups, Mazda Post Jackpot US Sales Increases in January

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 ›

Acura Earns Highest Score in Website Evaluation Study

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 ›

Females and Younger Owners More Apt to Switch Brands

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 ›

Hyundai Ranks Highest in Customer Retention

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 ›

Natural Disasters, Economic Changes Create Uncertainty in Asia Auto Industry

Mohit Arora

The Asia Pacific region has been experiencing a steady increase in light-vehicle sales, and by 2015, it is projected that light-vehicle sales in the region will reach 44.1 million units. This rosy outlook for the Asia Pacific region is underscored by China reigning supreme in 2010 with 17.2 million units in light-vehicle sales, surpassing the next largest market—the United States—by more than 5 million unit sales. In India, light-vehicle sales reached 2.7 million units, making it possible for India to surpass more mature markets such as France, the U.K. and Italy to become the sixth-largest light-vehicle market in the world. Continue reading ›

US Auto Market Experiences Solid Ending To a Good Sales Year

The US auto market finished 2011 on a robust note in spite of concerns about both the domestic and global economies, as well as significant setbacks to production and inventory levels for two major Japanese automakers following the devastating March 11 earthquake and tsunami in Japan.

Nearly 10% more new cars and light trucks were sold in the US market during the past year in comparison to 2010—12.75 million unit sales in 2011 vs. 11.56 million unit sales in 2010. The final (retail and fleet) sales tally was only slightly stronger than projected by J.D. Power’s Power Information Network® (PIN) and LMC Automotive a few weeks ago in their monthly forecast. Continue reading ›

Revving Up Production in US Market and Abroad

Several automakers announced during press previews at the L.A. Auto Show more aggressive plans to increase production at US assembly plants, partly to offset currency fluctuations and also to meet demand in the US and overseas. Highlights include:

• Volkswagen Group, which has a relatively new plant in Chattanooga, TN, where it builds the Passat that was named “Motor Trend Car of the Year,” is investing in the US market, according to Jonathan Browning, CEO and president, because VW expects to sell more than 300,000 vehicles in the United States this year. VW’s new CC, which will go on sale in the first quarter of 2012, is expected to be a “Top Safety Pick” with the Insurance Institute for Highway Safety (IIHS), Browning said. Continue reading ›

October US Auto Sales Offer Stable to Strong Results

In early reports, a few multi-franchise automakers posted stellar light-vehicle sales results in the US market in October vs. a year ago, in spite of a weak economy and lower consumer confidence levels. J.D. Power predicted in mid-October that the average annual sales pace for October would come in at 13.1 million units, and total US deliveries would rise almost 11% from October 2010.

Two of three Detroit-based automakers, General Motors and Ford Motor Co., posted single-digit gains from a year ago. GM and Ford’s small year-over-year sales gains were bolstered by strong performances from crossovers and trucks. Two of the big three Japanese automakers—Toyota and Honda Groups—posted lower totals than last year, partly due to constrained inventories, although Honda, hit by a recent shortage of parts following flood damage to one of its plants in Thailand, posted nearly flat sales. Continue reading ›