Tag Archives: j.d power

Chinese Auto Industry Initial Quality at All Time High

Chinese automakers made large improvements in initial quality during 2012, narrowing the gap between domestic and international brands. As a result, the auto industry in the world’s largest auto market set a record low in overall average problems per vehicle. Continue reading

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October U.S. Sales Forecast Sunny at more than 12 million SAAR

New-vehicle retail sales in October are forecast at 943,200 units, a 13% increase in volume compared with October 2011. This works out to a seasonally adjusted annualized rate or SAAR of 12 million new cars and light trucks. If true, October will be the second consecutive month above 12 million units, the first time since April and May 2008 before the Great Recession set in. Continue reading

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Most Buyers Shopping for New Vehicles use Personal Computers

While the buzz in the computer world is all about the growth of mobile devices to access the Internet, so-called tablets and smartphones are only being used by one in five new-vehicle buyers. This compares to nearly all (99%) buyers who use a desktop or laptop computer at some point when shopping for new wheels. Continue reading

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U.S. September Vehicle Sales Projected Up. SAAR at 14.5 Million

September new-vehicle retail sales are projected to come in at 952,200 units, which represent a seasonally adjusted annualized rate (SAAR) of 11.8 million units. The forecast in September is more than 1 million units higher than September 2011. Total light-vehicle sales in September are expected to increase 11% from September 2011, with volume at 1,152,700 units for a SAAR of 14.5 million. Continue reading

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Consumer Reports Auto Tester David Champion Joins Nissan

Nissan today announced the hiring of former Consumer Reports Auto Test Center Senior Director, David Champion, for a newly created position of executive adviser, competitive assessment and quality. The Japanese automaker is launching five new vehicles in 15 months, and its quality reputation is decidedly uneven. Consumer Reports rates 13 of 25 Nissan and Infiniti models this year as recommended buys. The J.D. Power Vehicle Dependability report has both Nissan and Infiniti well below industry average. Continue reading

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China Sales Satisfaction Down. Audi, Nissan, Hyundai Lead

There is a decline in customer satisfaction in China as experienced salespeople are in short supply as auto dealerships continue to expand. Coupled with the slow down in Chinese vehicle sales this year, there is a “notable deterioration” in overall sales satisfaction among new-vehicle owners in China. Continue reading

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Japanese Makes Take Top Three Spots in China Customer Satisfaction

The Japanese, led by Guangqi Honda, took the top three ratings in the 2012 China Customer Service Index. Honda – and its government-mandated local partner – was followed by Dongfeng Honda Automobile and GAC Toyota. Dongfeng took five out of the first ten spots in the latest quality survey. Continue reading

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Consideration of European Cars Up in China. Japanese Down

The percentage of customers in China who intend to purchase a new European vehicle has increased notably to 35% in 2012 from 25 percent in 2009, in a new study just released. In contrast, the so-called consideration rate of Japanese models decreased to 24% in 2012 from 32% in 2009. Continue reading

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Large Airlines Continue to Disappoint Customers

Although satisfaction with low-cost carriers improves for a third consecutive year, increasing three index points from 2011 to average 754, satisfaction with traditional carriers declines 4 points to 647. Continue reading

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June U.S. Auto Sales to Increase by 15% to 11.9 m SAAR

June new-vehicle retail sales in the U.S. are projected to come in at 994,800 units, which represent a seasonally adjusted annualized rate or SAAR of 11.9 million units. Volume is expected to increase 15%, compared with June 2011, after adjusting for one additional selling day this month. While still far below the level of sales pre-Great Recession, total light-vehicle sales are forecasted at 14.5 million units with retail sales at 11.6 million units. Continue reading

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Owners Report Quality Improvements at Most Automakers

A growing problem area is lumped under the “audio, entertainment, and navigation” category where reported problems have increased by 8% from 2011. This continues a negative trend, with problems in this category increasing by 45% since 2006, while other categories have improved by 24% on average. Buyers aged 35 and under, who grew up with myriad consumer electronic devices are particularly vocal about the design failures of automotive electronics. This is a growing problem for the product development departments of automakers that are largely managed by older, white males. Continue reading

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Right to Repair Bill Passes Massachusetts Senate

A version of the bill, omitting dealerships, is currently before the Massachusetts house, with unknown prospects. However, more than 100,000 citizens signed a Right to Repair ballot initiative earlier this year. If the legislature does not pass a final bill, the state’s consumers will get their own chance to vote—on the November ballot. Recent polls have shown support level for Right to Repair as high as 87%. Continue reading

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Auto Dealer Profits Dropping in China

The Chinese auto market only grew by 5% during 2011, by far the lowest growth rate of the 21st century, as the communist central government deliberately slowed the economy in an attempt to fight inflation. Still, 2012 is forecast to result in sales approaching 20 million vehicles – 6 or 7 million more than the projected United States light vehicle market. Continue reading

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Spring Auto Selling Season Sags as April Sales Rate Slows

Even rich people are apparently now concerned about the large depreciation rates of their luxury vehicles, which drives up the cost of ownership as trade-in values or lease residuals droop. The improved content and features in recent non-luxury vehicles offer a better value for consumers returning to the marketplace, especially if their needs are not ego driven. The problem for automakers is compounded by market forces, which are prompting free maintenance on non-luxury cars, once the sole province of expensive vehicles. Continue reading

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U.S. Auto Sales Shift to Efficient and Less Profitable Cars

One potentially negative result because of the downsizing and easier credit trends is declining profits at automakers. The shift to smaller vehicles—in addition to the increase in financially less-qualified new–vehicle buyers, who tend to be younger and with less money to spend—means the average transaction price for new vehicles has dropped substantially in the recent quarter. Continue reading

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