Brand loyalty - Chevy wins
01-01-2004, 10:03 PM
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Brand loyalty - Chevy wins
Chevrolet customers are keepers, Isuzu buyers least loyal: study
Tue Dec 30, 3:45 PM ET Add U.S. National - AFP to My Yahoo!
DETROIT, United States (AFP) - When it comes to winning over customers and keeping them, General Motors Corp.'s Chevy brand leads the pack, but Toyota is nipping at its heels, according to a new survey.
About half of all vehicle-owners will buy the same brand when they are shopping around for a new set of wheels, but Chevrolet owners are the most loyal, according to a customer retention survey by the auto analysis firm JD Power and Associates.
The brand had a 60 percent retention rate -- that is 60 percent bought a second Chevy brand vehicle, according to the survey of more than 104,000 consumers, published Monday.
Toyota's own brand came in second with a 59.3 percent retention rate, followed by Mercedes-Benz (58.7 percent), Ford's own-brand (58.1 percent) and Honda (57.1 percent).
"Customer retention is critical to manufacturers, not just because the cost of keeping a customer is generally lower than gaining a new one, but it's also a test of whether the brand has staying power," said JD Power analyst Joe Ivers.
Customers who leave brands tend to do so because of poor experience with their current car or because of effective marketing by their new suitor, Ivers said.
Nearly two-thirds purchase a model from a different brand because the new vehicle meets their practical needs, while 50 percent move to another brand because of better quality reputation or styling.
Significantly, both Hyundai and its affiliate Kia, both of which have been dogged by poor customer satisfaction and quality problems in the past, made the above-average cut, with close to or more than half of their customers coming back for more.
One reason Hyundai's brands may be competing with mainstream brands such as Ford and Chevy, is because Hyundai is rapidly expanding its brand's lineups to include more variety, such as sport-utility vehicles, minivans and large sedans, according to Ivers.
He said top brands offer a "broad product line that offers customers many options to fit (customer's) needs."
Luxury and European brands, both of which represent booming US sales segments, did not see an over-abundance of loyalty success in the JD Power survey.
DaimlerChryslers Mercedes-Benz was the highest-ranking luxury nameplate, ranking third, and joined BMW AG as the only two European brands above average.
Toyota's Lexus and GM's Cadillac divisions were the only other better-than-average contenders. Hot selling luxury brands such as Audi, Acura, Infiniti and Jaguar all fell below average.
Bottoming out the survey was Isuzu Motors, retaining a mere 3.5 percent of its buyers from one purchase to the next. Isuzu offers just three vehicles, all of them SUVs.
Suzuki Motor Corp. was third from the bottom, retaining 20.7 of its customers, while Volvo Car Corp. 31.9 percent is the lowest European brand in the survey, joining Saab Automobile and Volkswagen AG in the sub-40 percent retention category.
Source: Yahoo News
Tue Dec 30, 3:45 PM ET Add U.S. National - AFP to My Yahoo!
DETROIT, United States (AFP) - When it comes to winning over customers and keeping them, General Motors Corp.'s Chevy brand leads the pack, but Toyota is nipping at its heels, according to a new survey.
About half of all vehicle-owners will buy the same brand when they are shopping around for a new set of wheels, but Chevrolet owners are the most loyal, according to a customer retention survey by the auto analysis firm JD Power and Associates.
The brand had a 60 percent retention rate -- that is 60 percent bought a second Chevy brand vehicle, according to the survey of more than 104,000 consumers, published Monday.
Toyota's own brand came in second with a 59.3 percent retention rate, followed by Mercedes-Benz (58.7 percent), Ford's own-brand (58.1 percent) and Honda (57.1 percent).
"Customer retention is critical to manufacturers, not just because the cost of keeping a customer is generally lower than gaining a new one, but it's also a test of whether the brand has staying power," said JD Power analyst Joe Ivers.
Customers who leave brands tend to do so because of poor experience with their current car or because of effective marketing by their new suitor, Ivers said.
Nearly two-thirds purchase a model from a different brand because the new vehicle meets their practical needs, while 50 percent move to another brand because of better quality reputation or styling.
Significantly, both Hyundai and its affiliate Kia, both of which have been dogged by poor customer satisfaction and quality problems in the past, made the above-average cut, with close to or more than half of their customers coming back for more.
One reason Hyundai's brands may be competing with mainstream brands such as Ford and Chevy, is because Hyundai is rapidly expanding its brand's lineups to include more variety, such as sport-utility vehicles, minivans and large sedans, according to Ivers.
He said top brands offer a "broad product line that offers customers many options to fit (customer's) needs."
Luxury and European brands, both of which represent booming US sales segments, did not see an over-abundance of loyalty success in the JD Power survey.
DaimlerChryslers Mercedes-Benz was the highest-ranking luxury nameplate, ranking third, and joined BMW AG as the only two European brands above average.
Toyota's Lexus and GM's Cadillac divisions were the only other better-than-average contenders. Hot selling luxury brands such as Audi, Acura, Infiniti and Jaguar all fell below average.
Bottoming out the survey was Isuzu Motors, retaining a mere 3.5 percent of its buyers from one purchase to the next. Isuzu offers just three vehicles, all of them SUVs.
Suzuki Motor Corp. was third from the bottom, retaining 20.7 of its customers, while Volvo Car Corp. 31.9 percent is the lowest European brand in the survey, joining Saab Automobile and Volkswagen AG in the sub-40 percent retention category.
Source: Yahoo News
01-03-2004, 05:56 PM
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But still the big 3's markey share is falling:
Auto sales in '03 fall short
Demand slips despite strong December as foreign rivals continue to gain in U.S
By Brett Clanton / The Detroit News
December was a strong month for U.S. auto sales but it capped a mediocre year with annual car and truck demand expected to be at its lowest level in five years.
Major automakers report final December sales on Monday.
Despite the rebate frenzy that continued to grip the auto industry in 2003, U.S. sales for the year are expected to end up at around 16.7 million cars and trucks, down slightly from 16.8 million units in 2002.
U.S. auto sales have not fallen as low since 1998, when manufacturers reported 15.6 million vehicles sold.
“It’s not as bad as it sounds,” said George Pipas, Ford Motor Co.p.’s chief sales analyst. “We have to remember that the last four years have been extraordinary.”
Detroit’s automakers once again lost market share to Asian and European rivals in 2003.
“On the whole, not a pretty sight,” wrote David Healy, an analyst with Burnham Securities Inc., in a report published Thursday. General Motors Corp. almost failed in its bid to gain market share for the third straight year — despite offering big rebates — “and probably wound up with 27.8 percent of the total U.S. vehicle market, versus 28.4 in 2002 and 28 percent in 2001,” Healy added.
Ford fared worse, Healy wrote, falling to about 20.5 percent of the market in 2003, down from 21.1 percent in 2001 and 22.7 percent 2001. DaimlerChrysler AG’s Chrysler division dropped to 12.5 last year, from 12.9 percent in 2002 and 13 percent in 2001.
Foreign brands, meanwhile, continued their seemingly inexorable climb in the United States, capturing 37.8 percent of the market, up from 34.8 percent in 2001, Healy wrote. Each percentage point of market share equals roughly 170,000 cars and trucks.
Analysts said the market should improve this year, however, particularly for Detroit’s Big Three automakers as they each plan high-volume vehicle launches in 2004. And all automakers should get a bounce from the improving national economy.
U.S. vehicles sales will come in at a seasonally adjusted annual rate of 18 million units in December, down 2 percent from December 2002, but up big from November’s 16.8 million unit rate, Goldman Sachs analyst Gary Lapidus predicted in a report. He said fat discounts and rising consumer confidence are responsible for the brisk sales pace in December.
The sales pace might have been faster if snowstorms had not blanketed the East Coast in the first two weeks of December, said Paul Taylor, chief economist for the National Automobile Dealers Association. He called the region between Virginia and Maine “the mother load of new car sales.”
A final December sales total is hard to predict because “Christmas week contributes a large percentage of the volume,” Lapidus wrote.
While the U.S. auto market is showing signs of improving, Merrill Lynch auto analyst John Casesa said December sales for Detroit automakers may not keep pace with the industry’s overall recovery.
GM sales will be flat, or down 5 percent, Ford will drop 10 percent and Chrysler will fall 3 percent, he said in a report.
The industry did well this year despite a war with Iraq and lackluster economic climate, he said.
Ford’s Pipas said with the economy showing more signs of recovery and many new models set to debut this year, “the stage is set for a strong 2004.”
Ford will introduce about a half-dozen new models this year, including a redesigned Mustang and the Freestyle, a car-based sport utility vehicle. GM will launch 13 new models in 2004 and Chrysler will unveil nine of its own.
But Taylor, of the automobile dealers association, said new products will only be part of the equation in 2004.
“What remains to be seen is what the posture of the Big Three will be with regard to incentives,” he said.
Since the September 11 terror attacks, Detroit automakers have been forced to offer steep discounts on cars and trucks, hoping to move vehicles while the economy sunk and Asian rivals threatened to gain bigger market share.
The challenge in 2004 will be to wean consumers off incentives while still enticing them to choose U.S.-made brands over foreign nameplates, which pick up new buyers every year.
If automakers cut incentives, “the initial reaction of the consumer is going to be to wait it out” until discounts come back, said Bob Schnorbus, chief economist of J.D. Power and Associates.
Detroit automakers have been watching to see who moves first in reducing incentives, cautious to back away from discounts while the economy is still so unpredictable.
Pipas said with much riding on the year ahead, “I don’t think you’ll see any noticeable decline (in incentives).”
Deborah Silverman, GM’s manager of sales and marketing, was more vague about how the world’s largest automaker would respond. When it comes to incentives, “we’re going to be aggressive in the marketplace,” she said.
The other big question in 2004 will be when and if Japan’s Toyota will sell enough vehicles to unseat a Detroit automaker.
Based on December 2003 projections, Taylor said, “It looks like Toyota’s entry into the Big Three is still a year off.”
Through November, Toyota was trailing DaimlerChrysler, the third-biggest auto seller in the U.S. by only about 200,000 vehicles. Japan’s Nissan and Honda are also gaining fast. Taylor is already preparing for the days when the Big Three will be no more. He’s already trying out a new moniker for the nation’s top automakers. “Perhaps,” he said. “It’s time to start talking about a Big Six.”
You can reach Brett Clanton at (313) 222-2612 or bclanton@detnews.com.
Auto sales in '03 fall short
Demand slips despite strong December as foreign rivals continue to gain in U.S
By Brett Clanton / The Detroit News
December was a strong month for U.S. auto sales but it capped a mediocre year with annual car and truck demand expected to be at its lowest level in five years.
Major automakers report final December sales on Monday.
Despite the rebate frenzy that continued to grip the auto industry in 2003, U.S. sales for the year are expected to end up at around 16.7 million cars and trucks, down slightly from 16.8 million units in 2002.
U.S. auto sales have not fallen as low since 1998, when manufacturers reported 15.6 million vehicles sold.
“It’s not as bad as it sounds,” said George Pipas, Ford Motor Co.p.’s chief sales analyst. “We have to remember that the last four years have been extraordinary.”
Detroit’s automakers once again lost market share to Asian and European rivals in 2003.
“On the whole, not a pretty sight,” wrote David Healy, an analyst with Burnham Securities Inc., in a report published Thursday. General Motors Corp. almost failed in its bid to gain market share for the third straight year — despite offering big rebates — “and probably wound up with 27.8 percent of the total U.S. vehicle market, versus 28.4 in 2002 and 28 percent in 2001,” Healy added.
Ford fared worse, Healy wrote, falling to about 20.5 percent of the market in 2003, down from 21.1 percent in 2001 and 22.7 percent 2001. DaimlerChrysler AG’s Chrysler division dropped to 12.5 last year, from 12.9 percent in 2002 and 13 percent in 2001.
Foreign brands, meanwhile, continued their seemingly inexorable climb in the United States, capturing 37.8 percent of the market, up from 34.8 percent in 2001, Healy wrote. Each percentage point of market share equals roughly 170,000 cars and trucks.
Analysts said the market should improve this year, however, particularly for Detroit’s Big Three automakers as they each plan high-volume vehicle launches in 2004. And all automakers should get a bounce from the improving national economy.
U.S. vehicles sales will come in at a seasonally adjusted annual rate of 18 million units in December, down 2 percent from December 2002, but up big from November’s 16.8 million unit rate, Goldman Sachs analyst Gary Lapidus predicted in a report. He said fat discounts and rising consumer confidence are responsible for the brisk sales pace in December.
The sales pace might have been faster if snowstorms had not blanketed the East Coast in the first two weeks of December, said Paul Taylor, chief economist for the National Automobile Dealers Association. He called the region between Virginia and Maine “the mother load of new car sales.”
A final December sales total is hard to predict because “Christmas week contributes a large percentage of the volume,” Lapidus wrote.
While the U.S. auto market is showing signs of improving, Merrill Lynch auto analyst John Casesa said December sales for Detroit automakers may not keep pace with the industry’s overall recovery.
GM sales will be flat, or down 5 percent, Ford will drop 10 percent and Chrysler will fall 3 percent, he said in a report.
The industry did well this year despite a war with Iraq and lackluster economic climate, he said.
Ford’s Pipas said with the economy showing more signs of recovery and many new models set to debut this year, “the stage is set for a strong 2004.”
Ford will introduce about a half-dozen new models this year, including a redesigned Mustang and the Freestyle, a car-based sport utility vehicle. GM will launch 13 new models in 2004 and Chrysler will unveil nine of its own.
But Taylor, of the automobile dealers association, said new products will only be part of the equation in 2004.
“What remains to be seen is what the posture of the Big Three will be with regard to incentives,” he said.
Since the September 11 terror attacks, Detroit automakers have been forced to offer steep discounts on cars and trucks, hoping to move vehicles while the economy sunk and Asian rivals threatened to gain bigger market share.
The challenge in 2004 will be to wean consumers off incentives while still enticing them to choose U.S.-made brands over foreign nameplates, which pick up new buyers every year.
If automakers cut incentives, “the initial reaction of the consumer is going to be to wait it out” until discounts come back, said Bob Schnorbus, chief economist of J.D. Power and Associates.
Detroit automakers have been watching to see who moves first in reducing incentives, cautious to back away from discounts while the economy is still so unpredictable.
Pipas said with much riding on the year ahead, “I don’t think you’ll see any noticeable decline (in incentives).”
Deborah Silverman, GM’s manager of sales and marketing, was more vague about how the world’s largest automaker would respond. When it comes to incentives, “we’re going to be aggressive in the marketplace,” she said.
The other big question in 2004 will be when and if Japan’s Toyota will sell enough vehicles to unseat a Detroit automaker.
Based on December 2003 projections, Taylor said, “It looks like Toyota’s entry into the Big Three is still a year off.”
Through November, Toyota was trailing DaimlerChrysler, the third-biggest auto seller in the U.S. by only about 200,000 vehicles. Japan’s Nissan and Honda are also gaining fast. Taylor is already preparing for the days when the Big Three will be no more. He’s already trying out a new moniker for the nation’s top automakers. “Perhaps,” he said. “It’s time to start talking about a Big Six.”
You can reach Brett Clanton at (313) 222-2612 or bclanton@detnews.com.
01-03-2004, 06:00 PM
#4
I miss my 03 CL-S :(
On that Chevy loyalty thing, it would have been interesting if they split it up by model. I suspect it's mostly lower-end pickup trucks.
I know several families that own 2 or more S10s. Yet almost everyone I know that's bought a Chevy car hasn't bought another one.
With the exception of my grandfather who just traded in his Lumina for a Malibu, that is.
I know several families that own 2 or more S10s. Yet almost everyone I know that's bought a Chevy car hasn't bought another one.
With the exception of my grandfather who just traded in his Lumina for a Malibu, that is.
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