The latest survey on so called new vehicle appeal claims that the automakers selling in the U.S. are now offering the most tantalizing products in history. The J.D. Power survey – financed by automakers – begs the question: if the new cars and trucks are so bloody enticing why is the U.S. auto market stuck in the doldrums?
U.S. auto sales declined in June for the second straight month. The economy, ongoing high unemployment rates and low consumer confidence are all less than appealing if you want to sell the second biggest item – a car- after housing in the U.S.
Worrisome for automakers was the decline in the seasonally adjusted annual selling rate (SAAR) to an anemic 11.45 million light vehicles, the lowest it has been in more than a year. Retail sales dipped to a mere 9 million units. (See U.S. Auto Sales Decline in June as Shortages and Cautious Consumers Result in a Weak Market and Overall Economy and Passenger Car Sales Down in EU Again as Economy Struggles)
The 2011 Apeal (sic) or U.S. Automotive Performance, Execution and Layout (APEAL get it?) Study finds that overall vehicle appeal has reached an all-time high since the study’s inception in 1996, with the industry average increasing to 781 on a 1,000-point scale (up from 778 in 2010). Furthermore, recently launched all-new and redesigned models are substantially more “appealing” than their carryover counterparts, widening the gap in score for a second consecutive year in what were disastrous economic years for the auto industry and the U.S. economy. In 2011, the gap is 29 points, compared with 18 points in 2010 and 10 points in 2009. This improvement, Power claims, is partially driven by higher ratings for vehicle styling and fuel economy provided by owners of recently launched vehicles.
“The auto industry has taken a battering during the past few years,” said David Sargent, vice president of global vehicle research at J.D. Power and Associates. “However, it is clear that throughout this period, automakers have never lost sight of the fact that survival—and ultimately success—only comes from winning over customers in the showroom. Offering highly appealing vehicles is one of the primary means to succeed.”
BMW and Dodge each were awarded three segment-level titles. The BMW models receiving are the X3, Z4 Roadster and 5 Series. Dodge received awards for the Challenger, Charger and Durango. The Charger, Durango, X3 and 5 Series are all redesigned for the 2011 model year. Ford and Honda capture two model-level awards each, with Ford receiving awards for the all-new Fiesta and F-150 LD and Honda receiving awards for the slow selling Ridgeline and redesigned Odyssey.
Also receiving “awards” are the Chevrolet Volt, Hyundai Equus, Land Rover Range Rover, Lexus IS, Mini Countryman, Nissan Armada (another sales and investment disaster) , Porsche Cayenne, Scion xB, Suzuki Kizashi and Volkswagen GTI. Of these, the Countryman, Equus and Volt are all-new models, while the Cayenne is redesigned. The Equus achieves the highest APEAL score of any model in the industry in 2011. This is the first year that a model other than the BMW 7 Series, Lexus LS or Mercedes-Benz S-Class has led the overall model ranking. For what ever this is worth?
