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 ›

Foreign Partners Still Control Branding in China R&D and Lineups

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 ›

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 ›

BMW and Mercedes-Benz Enjoy Nail-Biting 2011 Finish

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 ›

New-Vehicle Buyers Perceive Value in Extra Time Spent on Technology Demos

This year, overall satisfaction with the new-vehicle sales experience improves by 13 index points to an average of 648 (on a 1,000-point scale) from 635 in 2010, according to results in J.D. Power’s 2011 U.S. Sales Satisfaction Index (SSI) Study, which is based on responses from more than 24,000 buyers and lessees who purchased their new-vehicle in May 2011.

A likely reason for the double-digit increase in satisfaction is that automakers and dealers are upping their investments and renewing their focus on providing buyers with a more satisfying retail experience. All four buyer factors* measured in the new-vehicle purchase process improve this year from 2010.

The most significant gain this year is in delivery process, despite the fact that the average length of time to complete the delivery portion of a new-vehicle sale has increased by four minutes, to an average of 32 minutes. We find that a major reason for the longer delivery process is the high percentage of buyers (88%) who said they received an in-depth demonstration of technology in their new vehicle (including audio, entertainment, navigation and communication systems), which results in more time spent at the dealership. Continue reading ›

Trust is Key to Customer Service Satisfaction in Japan Study

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 ›

Crossovers Bolster US Light-Vehicle Sales Market This Year

Dave Cutting

Consumer demand for crossovers (CUVs) in the US market was especially strong during the first 8 months of 2011. In fact, nearly one of every four new vehicles purchased or leased this year was a CUV. Combined sales of all four CUV segments, including compact and midsize models, increased by nearly 326,400 units from sales in the same 8-month period a year ago. More than 2 million CUVs have been sold so far this year, representing nearly one-fourth (23.71%) of industry sales, which was up 1.78 percentage points from a 21.93% market share in the same period of 2010.

Compact CUVs, including mass-market and premium compact models, significantly outperformed the industry’s nearly 10% year-to-date sales gain from last year. Continue reading ›

Ford Brand and F-Series Still Top-Volume Leaders

Ford remained the best-selling nameplate in August and also the nameplate with the best-selling model in the US market—the F-Series pickup. Ford captured 15.4% of industry sales in August, up from 14.26% a year ago. Brand sales rose 11.7% from August 2010—to 164,843 units.

Chevrolet continued to hold onto the second-highest brand share in . . . Continue Reading Ford Brand and F-Series Still Top-Volume Leaders

Dealer Follow-Up for Feedback Can Raise Service Satisfaction in Taiwan

Follow-up contact to customers after service visits at dealerships in Taiwan can have a strong positive impact on customer satisfaction, according to our 2011 Taiwan Customer Service Index (CSI) Study, which measures satisfaction among new-vehicle buyers or lessees in Taiwan who visited their authorized dealership service center for maintenance or repair work during the first 12 to 24 months of ownership.

The study, which is based on responses from 2,795 new-vehicle owners who took their new vehicle to an authorized service center between September 2010 and June 2011, finds that satisfaction averages 35 points higher among customers who were contacted by the dealership after a vehicle service visit and asked for feedback on their experience, than among customers who report no contact from the dealership after a service visit.

Post-service contact is a critical component of the entire service experience, and can help dealerships discover any issues or problems customers may still be experiencing with their vehicle. Following up, whether through a phone call, letter, or SMS text, is also an opportunity to collect customer feedback for improvement initiatives at dealerships. Continue reading ›

BMW and Dodge Each Receive Three APEAL Segment-Level Awards

BMW and Dodge brands each receive three segment-level model awards—the most of any nameplates—in the J.D. Power and Associates 2011 US Automotive Performance, Execution and Layout (APEAL) Study.SM

Jon Sundberg

BMW models that delight their buyers or lessees the most after the first 90 days of ownership are: the BMW X3, Z4 Roadster and 5 Series. The last time that BMW earned three segment-level awards was in our 2007 APEAL Study.

Chrysler Group LLC’s Dodge brand also earns three segment-level awards. Two of the three models are redesigns—Dodge Charger and Durango—while the third model is the Challenger, which also is the highest-performing non-premium model in this year’s APEAL Study with a score of 867 (on a 1,000-point scale). This is the first time that Dodge receives three segment-level awards in a given year in the APEAL Study.

Ford and Honda capture two segment-level awards each, with Ford receiving awards for the F-150 and the all-new Fiesta, and Honda earning awards for the Ridgeline and redesigned Odyssey. In addition, 10 models from an additional 10 brands receive awards at the segment level in this year’s APEAL Study. The brands with one model award each are (in alphabetical order): Chevrolet, Hyundai, Land Rover, Lexus, Mini, Nissan, Porsche, Scion, Suzuki and Volkswagen. Continue reading ›