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Discussion in 'Chit-Chat' started by NMuzj100, Aug 16, 2005.
Now THAT is funny...
Yeah, check this out:
Incentives a Short - Term Fix for Automakers
By THE ASSOCIATED PRESS
Published: August 16, 2005
Filed at 6:34 a.m. ET
DETROIT (AP) -- A new survey of U.S. vehicle owners released Tuesday indicates that while this summer's employee discounts may give automakers short-term sales gains, improving quality is more important in the long run.
Toyota Motor Corp. got the top score of 87 out of 100 in the University of Michigan's American Customer Satisfaction Index, which rates automakers based on owners' satisfaction. Owners were asked about their overall satisfaction and their satisfaction level compared to their expectations. They also were asked to rate how their vehicle compares to their ideal vehicle.
Honda Motor Co., BMW AG and General Motors Corp.'s Cadillac and Buick brands rounded out the top five performers. Ford Motor Co.'s Ford brand got the lowest score of 75.
Half of the brands improved their scores from last year, including Hyundai Motor Co. and GM's Pontiac brand. One-quarter stayed the same, while one-quarter saw their scores drop, including Nissan Motor Co. and Ford's Lincoln and Mercury brands.
University of Michigan professor Claes Fornell, who compiles the index, said Hyundai's rapid climb shows that focusing on quality can significantly improve satisfaction ratings. Hyundai was at the bottom of the index with a record low score of 68 in 1999, Fornell said. Quality and styling improvements and the introduction of the industry's first 10-year, 100,000-mile warranty catapulted Hyundai to No. 6 in this year's ratings, with a score of 84.
''That's something to hold up for Detroit, that this can be done. It's possible,'' Fornell said. ''You don't have to give away cars.''
Fornell said the Big Three U.S. automakers should spend less on incentives and more on quality improvements. U.S. automakers spent an average of $4,239 per vehicle on incentives in July, compared to $2,372 for European brands and $1,619 for Asian brands, according to Autodata Corp.
Since July, GM, Ford and DaimlerChrysler AG's Chrysler Group have been offering employee prices for all customers on most 2005 vehicles. Those incentives have a positive effect on customer satisfaction, but it's not large or sustainable, Fornell said. Fornell said Toyota was raising its prices this summer but still got the highest satisfaction score.
''It's a dangerous path that the domestic industry is on, and it certainly looks like they're not making the right moves,'' Fornell said.
GM and Ford have both said they intend to lower their prices and rely less on incentives in the 2006 model year. The Chrysler Group has been trying a similar strategy for several years.
Ford's Lincoln and Mercury brands ranked highest in last year's survey but fell to seventh this year. Lincoln Mercury spokeswoman Sara Tatchio said Lincoln and Mercury have gotten high marks in other recent surveys, including dependability rankings by J.D. Power and Associates.
''We always want to do very well with surveys and certainly we don't like a downward trend, but it's good to know we're still in the top ten,'' Tatchio said.
The survey questioned 8,096 people by phone between April 1 and June 30, and customers gave the vehicles an average rating of 80. The result has a margin of error of plus or minus 0.3, Fornell said.
Read: Our cost cutting has worked out perfect, sure we've lost quality but we're still in the top 10 and that's good enough for us.
I actually can imagine all the automakers trying to acheive a vehicle that goes 100k with zero maintnence or warranty work and then immediately dies with no parts or service available (except perhaps dealer recycling of the old car).
I heard on the radio that the top 5 JD Powers long term (not initial) quality ratings were
Okay, Lexus, sure. But BMW reliability ?? Fun cars but every one I total at work has had the transmission replaced on it by the previous owner. And Cadillac? This means that brand would be higher than honda and toyota. Now I know Honda has gone down relative to other companies (the gap has gotten smaller) but surely two GM brands aren't above them ?!
Addemendum: I know for a fact this is what I heard, but I found updated information:
(from here: http://www.jdpower.com/pdf/2005069.pdf )
I have a problem with a study that tracks only vehicles in the first three years. This may be the amount of time that average americans own their cars, yes, but I prefer to keep mine longer. If you do more longer term research on what cars are still on the road 10 or 15 years later, you might get a much different picture.
Oh I completely agree. A new Buick Rainier may be as tight as a new 4 runner... for the first 30 months.
They should check the cars after 5 years, then 7, then 10...
Long term test results? Look around. What cars do you see still on the road after 10, 15, 20 years?
Consumer reports has a different view.
Scion (one model only)
Hyundai - but with a wide range that dives well below average, something the makers ahead of it do not have
They have Jaguar second to last above Land Rover (one model only)
They have BMW near the bottom with a range that comes close to average.
Cadilac is a little below average.
I rented a few Sonatas while traveling this year, and I must say they drive nicely. The last one I was in had 17k and could pass for brand new, but what it will be like with an extra 0 on the odo is unkown.
Enough people are saying it, but GM still seems to be deaf to the notion of building better vehicles instead of financing people into submition.
A while back there was an article in MotorTrend (I think, maybe CD) that discussed GM and claimed that Toyota made enough profit last year to buy GM outright (15b) and will likely be the #1 world automaker within the next decade. A GM big wig was quoted saying something along the lines of 'we've been #1 for the last 73 years, so because of that we'll be #1 for the next 73'. Yeah, that's the right attitude
The interesting thing about that list is the top three are Toyota.
Anybody know the difference between JD Powers and Consumer Reports in what they look for? Does a mechanical problem count against a car more then a problem with the stereo system?
See, I'm in OK. The majority of cars I see that are 10 yrs or older on the road are domestic trucks. Many of them are held together by chewng gum and bailing wire, but they ARE on the road.
THe only place I have seen more POS cars driven on the road was in Kentucky !!