China Consumers Shift Purchase Consideration to European Models

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 ›

Vehicle Owners in Germany Less Satisfied; Mercedes Models Earn Most Segment-Level Awards

It’s been two years since the scrappage program was eliminated in the German auto market and satisfaction among owners of two-year-old vehicles in that country has slipped to an average of 807 (on a 1,000-point scale) this year from 813 in 2010, according to our 2011 Germany Vehicle Ownership Satisfaction Study (VOSS), which we conduct jointly with German auto magazine AUTO TEST.

Brian Walters

Among the four factors* measured in the study, only ownership costs has improved slightly. A 9-point fall in the vehicle quality and reliability factor is primarily due to a significant increase in reported problems—the rate of problems reported increased by 12 problems per 100 vehicles (PP 100) from 2010, mainly in the areas of vehicle exterior; heating; ventilation; and air conditioning.

On an encouraging note, we find that vehicle owners in Germany who say they are “delighted” with their dealer service experience are nearly 2.5 times as likely to return to the dealership for paid service work vs. less satisfied customers. Yet, there is a wide variance in service levels delivered by different brands. Continue reading ›

There’s Good News in Challenging Times for UK Vehicle Ownership Satisfaction

Brian Walters

Customer expectations for vehicle ownership satisfaction in the UK have been rising steadily during the past decade, according to J.D. Power research. In particular, owners have become more critical of design elements within their vehicles and are less tolerant of quality issues. Owners are placing more importance on the overall appeal of their vehicles. We also observe that owners are increasingly willing to shop around for service.

Yet, despite higher customer expectations and continuing economic pressure on automakers and consumers, vehicle ownership satisfaction in the UK has increased from 2010, with advances across all aspects of the ownership experience, according to our J.D. Power and Associates/What Car? 2011 UK Vehicle Ownership Satisfaction Study (VOSS).SM Our joint study with What CAR? is based on evaluations of more than 16,500 online interviews from UK vehicle owners after an average of two years of ownership. Continue reading ›

BMW Takes US Premium Sales Lead in First Four Months of 2011

David Cutting

BMW, offering 11 models in the US market, currently is the best-selling luxury, or premium, brand through the first four months of 2011, according to data from our Automotive Forecasting division. BMW’s year-to-date sales through April totaled 71,417 units, which was a 10% improvement over last year’s same time period. The German luxury automaker’s 5 Series midsize premium conventional model posted strong gains for the brand this year—sales rose more than 75%, to 15,986 units vs. 9,111 sales a year ago. Also, the redesigned X3 compact premium crossover (CUV) bolstered the brand’s totals with 7,987 unit sales so far this year. Additionally, all of BMW’s CUV models posted gains this year, while the volume-leading 3 Series, which was the best-selling premium model in the US market, posted a 12% sales decline (26,590 unit sales vs. 30,360 unit sales in 2010).

Mercedes-Benz, with a lineup of 15 models in the US new-vehicle market, was very close to its rival BMW, selling just 32 fewer units through the first four months. Mercedes delivered 71,385 premium cars and light trucks in January through April 2011, up 7% from last year’s 66,857 unit deliveries. In addition to being the best-selling luxury brand, the Mercedes C-Class and E-Class passenger cars were among the 10 best-selling luxury models in the United States during this same time frame. The Sprinter van has sold 3,764 units in year-to-date sales, but is not included in the above figures as it is not considered to be a premium model. Continue reading ›

What About the Other Swedish Brand in China—Geely and Volvo?

In addition to the Saab-Hawtai discussions, China’s other well-known Sino-Swedish automotive partnership has been plugging along since Zhejiang Geely Automotive Group acquired Volvo Cars from Ford Motor Co. for $1.5 billion in August 2010.

Sales of Volvo models in China reached nearly 30,000 units in 2010, up 32% over the prior year, likely making . . . Continue Reading What About the Other Swedish Brand in China—Geely and Volvo?

Lincoln Ranks Highest Among Brands in Vehicle Dependability

Fourteen of 34 brands included in this year’s U.S. Vehicle Dependability Study (VDS) outperform or match the overall industry average for problems per 100 vehicles (PP100). Nine of these 14 brands are premium nameplates, while five are non-premium or mass-market brands.

David Sargent

For the first time in the history of the VDS, . . . Continue Reading Lincoln Ranks Highest Among Brands in Vehicle Dependability

High Quality Customer Service is a Major Brand Differentiator

Five premium automotive brands—Cadillac, Jaguar, Lexus, Lincoln and Mercedes-Benz—are among 40 brands that stand out in customer service excellence from 1,200 brands that were evaluated for our first cross-industry special report, “Achieving Excellence in Customer Service.”    

Chance Parker

Among the five luxury auto brands that have been named J.D. Power 2011 Customer Service Champions, we determined from customer feedback that Cadillac and Lincoln, for example, have changed discussion with customers in a positive way by focusing on the value they provide rather than their pricing. Both brands perform especially well in one of the five drivers of excellence in customer satisfaction and advocacy—Price. In addition, three of the premium auto brands—Cadillac, Lexus and Mercedes-Benz—stand out among the 40 Customer Service Champions in the area of Presentation—with products, showrooms and marketing efforts differentiating them in the eyes of their customers.   

J.D. Power and Associates identifies the J.D.Power 5 PsSM as the features in which each of these 40 Service Excellence Champions excel:  People, Presentation, Price, Product and Process.  To be a champion, brands didn’t just need to master one or two of these features, but customers also had to indicate the brand excelled in them.  Continue reading ›

US Auto Industry Gets a Sales Boost in January

Despite a number of winter storms, US consumers turned out in January to lease or purchase 17.2% more new cars and light trucks than in the same month of 2010—slightly higher than already upbeat forecasts earlier in the month from J.D. Power and Associates.

Retail deliveries were strong in January 2011—up 25.3% from January . . . Continue Reading US Auto Industry Gets a Sales Boost in January

China is Volkswagen Group’s Major Growth Platform

 

Volkswagen Group China wants to protect its position as the leading volume automaker in China, which is now the largest passenger-vehicle market in the world. In 2010, the automaker said it sold 1.92 million vehicles in China and Hong Kong, vs. 1.4 million unit sales in 2009, through its two joint venture companies . . . Continue Reading China is Volkswagen Group’s Major Growth Platform

Production-Ready “Green” Vehicles Debut at Los Angeles Auto Show

It was “Electric Avenue” during the press preview days (Nov. 17-18) at this year’s Los Angeles Auto Show (LAAS) at the city’s Convention Center, which is open to the public through Sunday, November 28. Fuel efficiency, low emissions and range anxiety were buzz words as automakers introduced 50 new models and concepts and displayed . . . Continue Reading Production-Ready “Green” Vehicles Debut at Los Angeles Auto Show