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Brand APEAL: Porsche Leads for 11th Consecutive Year

July 23, 2015 by admin Leave a Comment

Porsche is globally recognized as the top automotive brand, a fact regularly affirmed by various consumer studies and surveys. Indeed, for the 11th consecutive year, Porsche finished on top of J.D. Power’s APEAL study for 2015.

Porsche Cayman.

Porsche Cayman.

APEAL stands for U.S. Automotive Performance, Execution and Layout study what looks at 77 vehicle attributes to determine what owners like and dislike about their new cars. Those attributes are comprised of categories including the design, content, layout, execution, and performance of the respective models.

For 2015, J.D. Power surveyed more than 84,000 new car buyers from February to May, in a bid to determine how buyers and lessees felt about their vehicles after 90 days of ownership. Power uses a 1,000-point scale and assigns a number to each model as well as an overall score for the make or brand.

This year, the average score has risen by four points to 798. Safety features contributed to the increase, including blind spot monitoring and warning systems. Both premium and mainstream brands are benefiting with the latter group closing the traditional satisfaction void with its high-end counterparts. Further, models equipped with advanced safety systems score an average of 38 points higher than those not so equipped.

Mini Cooper.

Mini Cooper.

“Unlike other technologies, such as voice recognition, that can be challenging to operate, most safety features provide information in a more intuitive way, giving owners a greater sense of security,” said Renee Stephens, vice president of U.S. automotive quality at J.D. Power. “Not only are models increasingly offering systems that improve safety and visibility, but owners are also using them on a regular basis. This can go a long way toward generating positive feelings about their vehicle overall.”

Power also found that consumers will happily pay more for certain safety features such as blind-spot warning and detection systems. That’s one perquisite consumers say that they’d be willing to pay as much as $750 to receive. Clearly, car manufacturers will hone their attention on that revelation.

Porsche led all comers with a score of 874 followed by 855 for Jaguar, 854 for BMW, 853 for Mercedes-Benz, and 852 for Audi. Porsche also had three of the top models in the 26 segments featured. Indeed, the Porsche Cayman led the Compact Premium Sporty Car category, the Porsche Macan took the Compact Premium SUV segment, and the Porsche Cayenne led the Midsize Premium SUV group.

Ford F-150

Ford F-150.

Among mainstream brands Mini placed first, finishing with a score of 825. Chevrolet and Ford, like Porsche, each had three segment leaders. Audi, BMW, Dodge, Mazda and Mini placed two group leaders each.

Once again, J.D. Power reaffirmed a problem that has plagued new car buyers in recent years: how to work the advanced technologies found in today’s cars. Frustration with those technologies will often impact model and brand scores, something Power says can be overcome at the dealer level.

Specifically, the research firm offered advice for consumers, including discovering the benefits of safety features before opting for them. However, in many cases, these features are standard or are included with particular trim level or package offerings.

Consumers should also familiarize themselves with the entire safety package, not just the items they think they will use. Power also urged consumers to keep track of the technological features that are of most interest to consumers, including those still needing to be perfected. The last tip points to a problem inherent in many vehicles — wonky GPS-based infotainment systems that can be difficult to decipher.

Like some of the other studies offered in recent years, the APEAL study indicates manufacturers are listening to consumer concerns and are actively keeping up with the latest auto trends, especially safety and in-cabin technologies. Some brands, such as Jaguar and Mini, have made much progress in recent years, reflecting positive changes to company culture that are in prevalence today.


See Also — Kia, Hyundai Star in 2015 J.D. Power Survey

Photos copyright Auto Trends Magazine.

Filed Under: Automotive News Tagged With: APEAL, CONSUMERS, J.D. POWER, MINI, PORCHE MACAN, Porsche, Porsche Cayenne, PORSCHE CAYMAN, STUDY, SURVEY

MTV Says: Millennials Love Their Cars!

January 26, 2015 by admin 1 Comment

Immediately following the Washington Auto Show — where some policy makers insist that young people are getting their licenses later and driving less than their counterparts of even 50 years ago — a study conducted on behalf of MTV strongly suggests otherwise.

Indeed, the “Millennials Have Drive” research study — released last week at the National Automobile Dealers Association (NADA) Convention and Expo 2015 in San Francisco— shows that young people are eager to drive. Moreover, they are placing driving ahead of such mainstays as social media and texting.

Car Ownership Study

The study, conducted last spring, was composed of 3,610 Millennials aged 18 through 34. Another 400 Generation Xers, roughly ages 35 to 50, and 403 baby boomers, ages 51 to 68, were also included. It was through focus groups, one-on-one interviews and subjective field studies, that much of the data used in the study were accumulated.

“Millennials are perhaps the most sophisticated consumers the world has ever seen – highly educated, demanding, and incredibly adept at using technology to make thoughtful purchases,” said Jeff Lucas, Head of Sales, Music and Entertainment, Viacom Media Networks. “We want to understand how Millennials’ attitudes toward car ownership are changing as they grow older, the economy improves and the auto sales landscape evolves.” Viacom owns MTV.

The MTV findings demonstrate that approximately eight in every 10 Millennials use a car more often than any other transportation mode to move them to where they are going. The researchers noted that these findings fly in the face of studies over the past few years that indicated a drop in interest in driving among younger people. They concluded that young people are “aging up into car ownership” and are in a better position to afford a new car as the economy improves.

Millennials Take to the Road

Notably, the study found that today’s young people claim to drive more miles per month than for any other generation. Those numbers show a 72 percent increase in the average number of miles driven in contrast to baby boomer drivers (934 miles vs. 544 miles) while also maintaining an 18 percent edge over Generation X drivers (934 miles vs. 790 miles).

The researchers described Millennial interest in driving as “passionate” as 70 percent of the youngest respondents articulated that they “like driving a lot” compared to 58 percent of baby boomers and 66 percent of Generation Xers. Furthermore, young people are demonstrating an even greater longing to purchase and own cars.

Some 82 percent of Millennials have shown excitement in finding, buying or leasing a new vehicle. Approximately 75 percent of young people indicated that “they couldn’t live without their current car.” They are also aspirants with 85 percent looking forward to “one day owning the car they’ve always wanted,” compared to 59 percent of baby boomers and 72 percent of Generation Xers.

A Better Buying Experience

Millennials are also embracing new cars and technologies at a greater rate than other generations. Some 73 percent of young people say they “love learning about new car models and functions” compared with 69 percent of baby boomers and 54 percent of Generation Xers.

In addition, the survey noted that there are some ways that dealers might enhance the buying experience for all consumers, especially Millennials. For instance, approximately 80 percent of respondents believe that the buying and leasing process should “take less time.” Also, most expressed dismay with current ratings and comparisons, finding them unclear. And 87 percent stated that the “buying process should be more transparent.”

And in a nod to aftermarket retailers, 87 percent of Millennials indicated that they like to customize their cars to make them unique. However, they would like to do so in more affordable ways.

Advertisers should also take note of what Millennials are thinking as 57 percent claimed that car advertisements influence their buying decisions. Yet, nearly half of young people said that such ads “do not speak to who they are.”

Subsequent Survey Set

The initial MTV survey will be augmented by a second survey, to be released later this year. However, the debate over young people’s car-buying habits may not be over. Indeed, this study flies in the face of what has been accepted in recent years and may be disputed by others with their own pool of data. Regardless, the US auto industry is in much better shape now than it was in 2009 when interest in new car buying was at the lowest we have seen in our time among all demographics.

See Also — MRY Study Reveals That We Still Love Our Cars

Filed Under: Automotive News Tagged With: ADVERTISING, BABY BOOMERS, CAR BUYING, DEMOGRAPHICS, GENERATION X, MILLENNIALS, MTV, STUDY, SURVEY

Flummoxed by New Car Technology? You Are Not Alone.

September 2, 2014 by admin 1 Comment

J.D. Power 2014 Multimedia Quality and Satisfaction Study reveals much.

New car owners love their technologies, but only when they work right. Today’s cars offer a varying range of audio, communication, entertainment and navigation (ACEN) systems with hand touches, finger gestures, buttons, knobs and voice commands among the ways that we communicate with our cars.

infotainment system technology

ACEN Systems: Not so Hot Technology

As ideal as the technology is, it may not always work according to promise. Those problems are something that were confirmed in the J.D. Power 2014 Multimedia Quality and Satisfaction Study released last week. The study queried vehicle owners about their experiences and opinion of ACEN systems during their first 90 days of ownership with a focus on quality, design and the features offered.

As is customary with similar J.D. Power surveys, the company assigns a score based on the number of problems per 100 vehicles tested or PP100. The lower the score, the higher the quality. Typically, those scores look at particular makes and models, but with this survey the study returned net results — no manufacturers were identified.


Chevrolet Silverado infotainment system technology

Technology Problems Per 100 Vehicles

For 2014, the problems with built-in voice recognition averaged 8.3 PP100, rising from 7.6 PP100 in 2013. Vehicle owners cited three significant problems with voice recognition communication issues:

1. ACEN doesn’t recognize or misinterprets verbal commands — identified by 63 percent of respondents;

2. ACEN doesn’t recognize or misinterprets names/words — identified by 44 percent of respondents; and

3. ACEN doesn’t recognize or misinterprets numbers — identified by 31percent of respondents.

Customers may experience one, two or all three problems.

ACEN problems have grown in recent years as such systems are adopted by car manufacturers. The problems have eclipsed other vehicle woes including wind noise, Bluetooth connectivity and navigation issues.

Fixable or Not?

Unlike many vehicle problems, voice recognition and device connectivity problems cannot be fixed at the dealer level. They represent a technological design that may or may not be repairable with a software upgrade. Instead, vehicle owners may have to make do with the shortcomings or find alternate use options such as buttons and knobs. That’s the advice of Mike VanNieuwkuyk, executive director of global automotive at J.D. Power, who confirmed, “Despite having alternative controls, this problem still negatively impacts owner satisfaction.”

VanNieuwkuyk noted that manufacturers continue to build voice recognition and connectivity systems that fall short of customer expectations. The poor results follow good manufacturer intentions, but does little to promote owner satisfaction.


Cadillac CUE technology

Bluetooth Connectivity Issues

J.D. Power found that Bluetooth connectivity problems loom large for many buyers, although the study revealed an improvement in quality based on a score of 5.7 PP100, down from 6.3 PP100 the previous year. The two largest connectivity problems were the system’s inability to recognize or connect the mobile phone or device, a problem in 40 percent of the complaints. Another 30 percent cited problems with automatically connecting when entering the vehicle. Just over half of the owners said that they have iPhone OS smart phones; 41 percent reportedly use an Android phone.

Troubles aside, 70 percent of new-vehicle owners are interested in built-in recognition. That number falls to 44 percent if the system costs at least $500. Thus, building an affordable and working system may help manufacturers win new customers.

J.D. Power surveyed 86,114 new car owners between Feb. and May 2014, with a focus on navigation, voice recognition, rear-seat entertainment and speakers. Respondents were also supplied with sourcing information to enable owners to review data and parse information about individual products and components.

Other Studies

J.D. Power: Powertrain Problems Impact Quality

J.D. Power: Porsche is the Top Brand for Initial Quality

Photos copyright Auto Trends Magazine.

Filed Under: Engineering & Technology Tagged With: AUDIO SYSTEMS, Bluetooth, INFOTAINMENT SYSTEMS, J.D. POWER, navigation, STUDY, SURVEY, Technology

University of Michigan: American Car Ownership Falls

January 27, 2014 by admin 4 Comments

Car ownership may have finally peaked, study reveals.

Americas love affair with cars remains, but it isnt as strong as it once was. Research conducted by the University of Michigan Research Transportation Institute (UMTRI) has found that the number of US households doing without a car has fallen in each year since 2007. The study comes on the heels of earlier UMTRI research that revealed Americans own fewer light-duty vehicles, are driving them less, but also consuming less fuel.

At the Wheel.
The number of homes without a car is on the rise.

Falling Car Ownership Rates

UMTRI took a look at a trend spanning from 2005 to 2012, noting near-consistent slippage in the number of US households owning light-duty vehicles (LDVs) beginning in 2007. LDVs compose cars, minivans, sport utility vehicles, and pickup trucks. Of the 30 largest US cities, 21 saw an increase in the number of households not owning a car, including the top 13 cities.

The proportion of households without a vehicle is likely influenced by a variety of factors, said Michael Sivak, a research professor at U-M. Examples of such factors include the quality of public transportation, urban layout and walkability, availability and cost of parking, income and price of fuel.

Urban Residents and Car Ownership

New York City has long led the list with the number of households not having a vehicle, coming in at 56 percent in 2012. Seven more cities have at least a quarter of households without a vehicle including Washington, DC, at 38 percent, Philadelphia at 33 percent, and Detroit at 26 percent.

Each city is located in the congested northeast or upper midwest corridors, with the exception of San Francisco. At 31 percent, San Francisco’s rate matched Baltimore, trailed Boston’s 37 percent and was ahead of Chicago’s 28 percent.

The Cost of Car Ownership

Analysts have been looking at the cost of car ownership for many years, a factor that can also contribute to the fall in car ownership. Indeed, in 2012 Consumer Reports (CR) found that over the first five years of a median cars ownership, it costs more than $9,100 per year to own one. Cars such as a Mini Cooper averaged $5,800 per year while large SUVs cost $13,000 or more per year to own.

In its survey, CR looked at six categories of car ownership led by depreciation representing 48 percent of ownership costs followed by fuel at 24 percent. Interest on loans at 11 percent and insurance at 10 percent followed. Taxes, as well as maintenance and repairs, accounted for 4 percent each.

CR also looked at one- and eight-year owner costs to show a drop in those costs over time. However, depreciation remains the largest cost throughout, accounting for 57 percent for the first year, gradually falling to 43 percent for the eighth year.

Desiring Affordable Transportation

Americas love affair with cars has long been based on affordable transportation. With the economy struggling to find footing and with consumers seeking to contain costs, the trend toward fewer vehicles on the road seems assured. That some households are doing without a car at all usually points to urban living where car ownership is as much as a hassle as it is a significant cost.

Notably, what often isn’t included in these reports is consumers attitude towards car sharing. This is an option that allows people to use a car for as long as they need it, from just a few hours to a few days. Thus, people have access to a vehicle without the burden of car ownership and of parking as is the case for city dwellers.

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Filed Under: Automotive News Tagged With: CAR OWNERSHIP, CONSUMER REPORTS, Michael Sivak, NEW CARS, RESEARCH TRANSPORTATION INSTITUTE, STUDY, SURVEY, UNIVERSITY OF MICHIGAN

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