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 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 5, 2011, at 6:59 am
 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 ›
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 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 6, 2011, at 10:43 am
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
Posted on August 30, 2011, at 6:32 am
 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 ›
Posted on July 21, 2011, at 12:30 am
 Mike Omotoso Recent news reports have indicated that General Motors has decided to sell a diesel version of the Chevrolet Cruze compact car in the US market. Reportedly, the diesel powertrain will help boost Cruze fuel efficiency to 50 mpg on the highway, based on several wire service reports. In June, Chevrolet sold nearly 25,000 new Cruze compacts with conventional gasoline powertrains, and it was one of the best-selling models in the US market.
GM to Offer Clean Diesel Powertrain
We know that General Motors’ diesel engine will use a common-rail direct-injection system, and it will be a clean diesel. In fact, all diesel passenger cars sold in the United States must be clean diesel, and ultra-low sulfur diesel has been sold across the country since late 2006. As news reports suggest, it will be two or three years before a diesel version of the Cruze can be sold here because it has to be re-engineered to meet US emissions standards. Continue reading ›
Posted on July 8, 2011, at 11:26 am
 Tim Dunne Among consumers in China who expect to buy a new vehicle within the next 12 months, the consideration rate for European models has risen significantly in recent years, and is stronger than consideration rates for both Japanese brand and Chinese domestic models, which have diminished, according to our 2011 China New-Vehicle Intender Study.
Study results reveal that the proportion of new-vehicle intenders in China who indicate they will consider purchasing a model from a European automaker has risen to 32% in 2011, up from 25% in 2009. In addition, a larger number of these intenders have positive perceptions of the vehicle safety and improvements in engine and transmission technology for European models. Respondents to the study also confirm receiving strong recommendations for European models from family and friends. In China, positive recommendations from family and friends is traditionally the most important driver for new-car buyers when selecting a new vehicle. Continue reading ›
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