Category: AutomotiveUnited States

As Microchip Shortage Continues, Seats Wired for Heat Remain Cool, JD Power Finds

2022-08-18

jillian.breska

TROY, Mich.: 18 Aug. 2022 – The microchip shortage is putting pressure on automotive manufacturers in more ways than one, as heated seats move into the top five reported problems, according to the JD Power 2022 U.S. Seat Quality and Satisfaction Study,^SM released today. These noted problems are a reflection of either the heated seat not working properly or the microchip responsible for heating the seats has not been installed.

“The microchip shortage continues to plague the automotive industry and we’re seeing that especially in heated seat systems,” said Ashley Edgar, senior director of global automotive supplier benchmarking and alternative mobility at JD Power. “Consumers are aware of the supply shortage and its effect on heated-seat options but what’s missing is clear communication from the manufacturers and dealers about when the situation will be resolved.”

Seat quality is measured by the number of problems and level of satisfaction experienced per 100 vehicles (PP100) during the first 90 days of ownership, with a lower score reflecting higher quality.

The 2022 U.S. Seat Quality and Satisfaction Study is based on responses from 84,165 purchasers and lessees of new 2022 model-year vehicles who were surveyed after 90 days of ownership. The study was fielded from February through May 2022.

For more information about the U.S. Seat Quality Satisfaction Study, visit https://www.jdpower.com/business/automotive/us-seat-quality-and-satisfaction-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info

 

Vehicle Inventory Shortages Constrain August Sales Pace as Average Transaction Prices Reach All-Time High

2022-08-24

jillian.breska

The Retail Sales Forecast

New-vehicle retail sales for August 2022 are expected to decline when compared with August 2021, according to a joint forecast from JD Power and LMC Automotive. Retail sales of new vehicles this month are expected to reach 980,400 units, a 2.6% decrease compared with August 2021 when adjusted for selling days. August 2022 has one additional selling day compared with August 2021. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 1.3% from 2021.

The Total Sales Forecast

Total new-vehicle sales for August 2022, including retail and non-retail transactions, are projected to reach 1,136,800 units, a 0.6% increase from August 2021. Comparing the sales volume without adjusting for the number of selling days translates to an increase of 4.6% from 2021.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 13.3 million units, up 0.2 million units from 2021.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“Traditionally, August is a high-volume sales month as manufacturers launch marketing actions to clear out the last model-year vehicles and start sales of the new model-year products. This August, the industry is still constrained by insufficient inventory to meet robust consumer demand. The result is a retail sales pace that fails to fulfill its potential. However, the silver lining for retailers—and manufacturers—is that transaction prices and profits are continuing to reach record levels even in the face of rising interest rates.

“August is on track to be the 10th consecutive month that retail inventory closes below 900,000 units.  A significant portion of vehicles are still being sold before they arrive at the dealership. This month, 55% of vehicles will be sold within 10 days of arriving at a dealership, while the average number of days a new vehicle is in a dealer’s possession before being sold is on pace to be 20 days—down from 25 days a year ago.

“For August, new-vehicle prices continue to set records, with the average transaction price expected to reach $46,259—an 11.5% increase from a year ago and the highest on record. Therefore, even though the sales pace is down 2.6% year over year, buyers will still spend nearly $45.4 billion on new vehicles this month, the second-highest level ever for the month of August and up 13.0% from August 2021.”

It should be noted that August 2021 was the first month where inventory shortages had a significant influence on new-vehicle sales. Consequently, the year-over-year sales decline for August 2022 is smaller than it has been in recent months, whereas sales in August 2021 were more reflective of actual consumer demand.

“The lack of inventory, coupled with strong demand, continues to allow manufacturers to walk back discounts. The average incentive spend per vehicle is tracking toward $969, a decrease of 47.1% from a year ago. This will mark the fourth consecutive month under $1,000. Incentive spending per vehicle expressed as a percentage of the average vehicle MSRP is trending at 2.0%, down 2.3 percentage points from August 2021. One of the factors contributing to the reduction in incentive sending is the absence of discounts on vehicles that are leased. This month, leasing will account for just 17% of retail sales. In August 2019, leases accounted for 29% of all new-vehicle retail sales.”

Higher prices coupled with a rising interest rate environment are leading to monthly loan payments reaching new all-time highs. After breaking the $700 level for the first time ever in July, the average monthly finance payment in August is on pace to hit a record $716, up $78 from August 2021. That translates to a 12.2% increase in monthly payments from a year ago, which is above the 11.5% increase in transaction prices. The average interest rate for new-vehicle loans is expected to increase 137 basis points from a year ago to 5.51%.

“The increase in monthly loan payments would be greater were it not for the ongoing strength of used-vehicle prices, which increases the amount of trade-in equity that new-vehicle buyers are bringing to their next purchase. The average trade-in equity for August is trending toward a near-record high of $10,011, a 32.7% increase from a year ago and the third consecutive month above $10,000.

“Total retailer profit per unit—inclusive of grosses and finance and insurance income—is on pace to reach a monthly record of $4,976, an increase of $639 from a year ago. Eight of the past 11 months have seen retailer profit per unit at or above $5,000. This elevated per-unit profit level is more than offsetting the drop in sales volume as total aggregate retailer profits from new-vehicle sales for the month of August is projected to be up 16.5% from August 2021, reaching $4.9 billion, the best August ever and the fourth-highest amount of any month on record.

“In September, the constraints are expected to continue with sales being hampered by available inventory. In the near term, prices and per-unit profitability will remain strong. Shoppers waiting for Labor Day sales events with substantial discounts on outgoing model-year vehicles will be frustrated by the lack of markdowns and choice of vehicles. However, for the time being, there are plenty of new-vehicle buyers willing to pay higher prices and be less selective.”

Sales & SAAR Comparison

U.S. New Vehicle	August 20221, 2	July 2022	August 2021
Retail Sales	980,425 units (-2.6% lower than August 2021)2	978,311 units	967,486 units
Total Sales	1,136,756 units (0.6% higher August 2021)2	1,127,781 units	1,086,575 units
Retail SAAR	10.7 million units	11.2 million units	10.8 million units
Total SAAR	13.3 million units	13.3 million units	13.0 million units

¹ Figures cited for August 2022 are forecasted based on the first 17 selling days of the month.
² August 2022 has 26 selling days, one more than August 2021.

The Details

• The average new-vehicle retail transaction price in August is expected to reach $46,259. The previous high for any month—$46,173—was set in July 2022.
• Average incentive spending per unit in August is expected to reach $969, down from $1,834 in August 2021. Spending as a percentage of the average MSRP is expected to fall to 2.0%, down 2.3 percentage points from August 2021.
• Average incentive spending per unit on trucks/SUVs in August is expected to be $1,011, down $787 from a year ago, while the average spending on cars is expected to be $818, down $1,136 from a year ago.
• Buyers are on pace to spend $45.4 billion on new vehicles, up $5.2 billion from August 2021.
• Truck/SUVs are on pace to account for 78.4% of new-vehicle retail sales in August.
• Fleet sales are expected to total 156,300 units in August, up 26% from August 2021 on a selling day adjusted basis. Fleet volume is expected to account for 14% of total light-vehicle sales, up from 11% a year ago.
• Average interest rates for new vehicle loans are expected to increase 137 basis points from a year ago to 5.51%.
   

EV Outlook

Elizabeth Krear, vice president, electric vehicle practice at JD Power:
“Gasoline prices have fallen from an all-time high in June, so it’s not surprising that EV consideration has also dropped. The percentage of shoppers that are very likely to consider buying or leasing an EV in the next 12 months is 28%, down 1.6 percentage points from June. The six most-considered EV models are now all mainstream with the Ford F-150 Lightning moving ahead of the Toyota BZ4X as the most-considered EV.

“The average transaction price of an EV is $64,000, $19,000 higher than the average gas-powered vehicle. In July, price was the primary reason that shoppers rejected EVs. In fact, the proportion of EV rejectors saying price was the primary reason for rejection increased four percentage points from June.

“EV demand exceeds sales pace, as evidenced by both high EV consideration and long wait lists. Availability of tax credits will inevitably affect EV demand this year, but the high level of consideration relative to the limited availability suggests that these changes will not materially influence EV sales volume in the near term. While overall EV sales will continue to grow as availability increases, the potential exists for disruption of sales of specific models because the changes in tax credit availability will vary significantly by model.”

Global Sales Outlook

Jeff Schuster, president, Americas operations and global vehicle forecasts, LMC Automotive:
“Global sales growth accelerated in July, increasing 5.1% from a year ago thanks to China’s incentive-driven 31% year-over-year boost. The global selling rate climbed to 90.3 million units, the first time eclipsing the 90-million mark since December 2020. Light-vehicle volume was 6.9 million units as the daily selling rate increased to 327,189 from 297,251 in July 2021. Aside from the strong showing in China—with a selling rate that soared to 37 million units—other Asian markets continued to lead the recovery. The ASEAN market increased 51% from July 2021, while India and Korea increased 17%. Supply constraints and inflationary pressure contributed to a 9% decline in Western Europe and a 12% decline in North America. The ongoing conflict in Ukraine caused a staggering 74% decline in Russia.

 “The strength in China and other key market in Asia are expected to drive the August selling rate up to 91.5 million units, as volume growth is projected to hit 14%. We expect forecast increases of 3% in Western Europe and 6% in North America. As the year-over-year changes turn more positive, South America is expected to increase 15%.

“The surge of volume in China is expected to drive the forecast for 2022 global light-vehicle sales higher by nearly 1 million units to 81.8 million, tipping the market to an increase of 0.4% from 2021. China sales projections have been increased to 27.4 for the year, up 8% from 2021.”

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Emmie Littlejohn, LMC Automotive; Troy, Mich.; 248-817-2100; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info
About LMC Automotive www.lmc-auto.com

 

New-Vehicle Tech is a Double-Edged Sword: Risky to Satisfaction—Yet Necessary for Future Adoption, JD Power Finds

2022-08-25

jillian.breska

TROY, Mich.: 25 Aug. 2022 — Offering advanced technology content on vehicles often results in a steep increase in problems experienced, according to the JD Power 2022 U.S. Tech Experience Index (TXI) Study,^SM released today. Vehicle quality, as expressed in problems per 100 vehicles (PP100), is a common measure within both the TXI Study, focused on advanced vehicle technology as it first comes to market, and the annual JD Power Initial Quality Study^SM (IQS). Of the advanced technologies included in the 2022 TXI Study, 46% of them had at least one problem with a PP100 higher than the most problematic attribute included in the 2022 IQS, with some exceeding it several times over. A low PP100 score indicates better quality.

The notion that advanced technologies always lead to significant problems is a misconception. More concerning is that this could prompt automakers to slow their implementation of new technologies. This strategy could cause them to lose their competitive advantage, as not all encounter significant quality problems when integrating advanced technologies. In fact, the study findings indicate there can be a large variation in the number of problems encountered for a particular tech, meaning that some automaker executions are much better at meeting user expectations. For example, the rear seat reminder technology has a range of total problems spanning from 1.9 PP100 to 26.2 PP100, demonstrating that the tech can be developed with minimal owner complaints.

“Innovation is non-negotiable,” said Kathleen Rizk, senior director of user experience benchmarking and technology at JD Power. “The fact that the average PP100 for a technology is high should not discourage automakers from innovating, as there is often a wide range of total problems experienced for a technology across the brands. This means that some are innovating more flawlessly for a particular tech, while others struggle with their execution. Automakers should consider benchmarking brands that innovate well for a technology, which would allow them to identify and then integrate best practices. Effective innovators understand that new technologies can be introduced successfully with proper design and execution.”

The disruption from high-tech entrants such as Tesla and Polestar further accentuates the necessity for innovation. It is also essential because new-vehicle technology is a leading reason to purchase. When technology is executed effectively in a vehicle, it positively influences an owner’s decision to purchase another vehicle equipped with that same technology. One of the highest execution scores in the study is for the phone-based digital key, which also is ranked in the top three by owners wanting that technology on their next vehicle.

“JD Power transactional data shows that getting the right mix of technology features owners want is important to perception, profits and sales,” Rizk said. “When owners get the technology features they really want—and which meet their user-experience expectations—the results are positive and those owners tell their friends about the experience.”

Following are key findings of the 2022 study:

• Fingerprint reader most problematic tech in TXI’s history: Fingerprint reader, included in the study for the first time, is the lowest-performing technology across the key metrics of problems experienced (54.3 PP100) and has the lowest overall satisfaction score (6.08 on a 10-point scale). It surpasses interior gesture controls, which previously held the record for being the lowest-performing technology in each of the past two years. The poor performance of the fingerprint reader technology—resulting in many owners not wanting it on their next vehicle—is a missed opportunity, as many owners have used the fingerprint technology to access their smartphone.
• Tech desires reflect considerable regional differences: JD Power TXI studies conducted in the United States, Japan and China include many of the same advanced and emerging technologies, but future interest in those technologies vary by country. EV-based technologies are among the top five most desired technologies in America. Owners in China have more interest in infotainment and connectivity technologies, while emerging automation techs rank in the top five among owners in Japan.
• Dealers can add value to in-vehicle technology: The result of a dealer demonstrating almost all advanced and emerged technologies results in owners being less likely to abandon a technology after trying it. When a dealer educates a new owner, it elevates the entire ownership experience. In fact, the average vehicle model Net Promoter Score (NPS)¹ is higher for those owners who received dealer training for their advanced technologies than those who learned about them from outside sources (88 vs. 81, respectively, on a scale of -100 to 100). This highlights the important role dealerships play in creating awareness and acceptance of advanced technologies.
• Tesla’s unofficial score is highest in study: Tesla Motors is included in the industry calculation for the first time, with an Innovation Index score of 681 (on a 1,000-point scale). However, because Tesla Motors does not allow JD Power access to owner information in the states where that permission is required by law, Tesla vehicles remain ineligible for awards.

Highest-Ranking Brands

Genesis ranks highest overall and highest among premium brands with an Innovation Index score of 643. In the premium segment, Cadillac (584) ranks second and Mercedes-Benz (539) ranks third.

Hyundai ranks highest among mass market brands with a score of 534. Kia (495) ranks second, while Buick (482), GMC (482) and Subaru (482) each rank third in a tie.

Advanced Technology Award Recipients

The U.S. TXI Study analyzes 35 automotive technologies, which are divided into four categories: convenience; emerging automation; energy and sustainability; and infotainment and connectivity. Only technologies classified as advanced are award eligible.

• Cadillac Escalade is the premium model receiving the convenience award for camera rear-view mirror technology. Subaru Ascent is the mass market model receiving the convenience award, also for camera rear-view mirror technology.
• Lexus IS is the premium model receiving the emerging automation award for front cross traffic warning. Mitsubishi Outlander is the mass market model receiving the emerging automation award for reverse automatic emergency braking.
• MINI Cooper receives the award for energy and sustainability in the mass market segment for one-pedal driving.
• BMW X3 receives the award for infotainment and connectivity in the premium segment for phone-based digital key technology.

The 2022 U.S. Tech Experience Index (TXI) Study is based on responses from 84,165 owners of new 2022 model-year vehicles who were surveyed after 90 days of ownership. The study was fielded from February through May 2022.

The U.S. TXI Study complements the annual JD Power U.S. Initial Quality Study (IQS)^SM and the JD Power U.S. Automotive Performance, Execution and Layout (APEAL) Study^SM by measuring how effectively each automotive brand brings new technologies to market. The U.S. TXI Study combines the level of adoption of new technologies for each brand with excellence in execution. The execution measurement examines how much owners like the technologies and how many problems they experience while using them.

For more information about the U.S. Tech Experience Index (TXI) Study, visit https://www.jdpower.com/business/automotive/us-tech-experience-index-txi-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info

¹Net Promoter®, Net Promoter System®, Net Promoter Score® and NPS® are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

Brand Loyalty Strong among New-Vehicle Owners, JD Power Finds

2022-09-27

jillian.breska

TROY, Mich.: 27 Sept. 2022 — The majority of new-vehicle owners this past year navigated the low vehicle inventory crunch by purchasing the same brand of vehicle which in turn, kept loyalty high in both premium and mass market segments, according to the redesigned JD Power 2022 U.S. Automotive Brand Loyalty Study,^SM released today. The study has been expanded this year to report on brand loyalty insights by segment categories: premium car; premium SUV; mass market car; mass market SUV; and truck.

“The issue of tight supply chain and lower-than-normal production could have been quite disruptive to loyalty, but the highest-ranking brands excelled by staying focused on keeping owners in the brand,” said Tyson Jominy, vice president of data & analytics at JD Power. “There are multiple paths to keeping owners loyal, but every winning brand showed a commitment to launching fresh products, excellent processes focused on the vehicle owner, high residual values and offering vehicles with great appeal. And, for the most part, they’re all winning with market share.

“However, once the industry gets past the supply chain disruptions, another challenge—the EV race—is about to emerge and is likely shake up the brand loyalty status quo. There is an element of risk to brand loyalty that could erode for those sitting on the sidelines or not moving quickly enough.”

The study, now in its fourth year, uses data from the Power Information Network to calculate whether an owner purchased the same brand after trading in an existing vehicle on a new vehicle. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when trading in or purchasing their next vehicle. Only sales at new-vehicle franchised dealers qualify. The study was redesigned in 2022 to include brand loyalty across five segments: premium car; premium SUV; mass market car; mass market SUV; and truck.

Highest ranking brands

Porsche ranks highest among premium car brands with a 57.4% loyalty rate. Genesis (54.6%) ranks second.

BMW ranks highest among premium SUV brands with a 58.6% loyalty rate. Lexus (56.4%) ranks second. 

Toyota ranks highest among mass market car brands with a 62.2% loyalty rate. Kia (54.1%) ranks second.

Toyota ranks highest among mass market SUV brands with a 63.6% loyalty rate. Subaru (62.6%) ranks second.

Ford ranks highest among truck brands with a 63.8% loyalty rate, the highest loyalty rate in the study. Toyota (58.7%) ranks second.

The 2022 study calculations are based on transaction data from September 2021 through August 2022 and include all model years traded in.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info

 

September Sales Pace Shows Incremental Improvement; Highest September on Record for New-Vehicle Spending  

2022-09-27

jillian.breska

The Retail Sales Forecast

New-vehicle retail sales for September 2022 are expected to increase when compared with September 2021, according to a joint forecast from JD Power and LMC Automotive. Retail sales of new vehicles this month are expected to reach 958,948 units, a 5.4% increase compared with September 2021. September 2022 has the same number of selling days compared with September 2021.

New-vehicle retail sales for Q3 2022 are projected to reach 2,900,300 units, a 4.2% decrease from Q3 2021 when adjusted for selling days. New-vehicle retail sales for year-to-date Q3 2022 are projected to reach 8,710,600 units, a 14.9% decrease from year-to-date Q3 2021 when adjusted for selling days.

The Total Sales Forecast

Total new-vehicle sales for September 2022, including retail and non-retail transactions, are projected to reach 1,120,279 units, an 11.8% increase from September 2021.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 13.6 million units, up 1.5 million units from 2021.

New-vehicle total sales for Q3 2022 are projected to reach 3,374,500 units, a 0.2% increase from Q3 2021.  New-vehicle total sales for year-to-date Q3 2022 are projected to reach 10,156,000 units, a 13.3% decrease from year-to-date Q3 2021.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“Traditionally, September is a high-volume sales month as manufacturers implement promotions for Labor Day to clear out old model-year vehicles and start sales of the new model-year products. This September, while holiday promotions were nearly nonexistent, modest improvements in vehicle production allowed manufacturers to tap pent-up consumer demand. The result is a retail sales pace that shows a modest increase from a year ago but still falls below its potential due to tight vehicle availability. Although rising interest rates are putting pressure on affordability, transaction prices still rose and consumers spent more money on new vehicles this month than any previous September on record.

“A deeper dive into September results shows that while demand continues to exceed supply, several key financial results are either showing slower growth or have plateaued. Transaction prices rose 6% year over year, an impressive increase, but less than the 10% growth observed earlier this year. Dealer profits have declined modestly from their peak—down just more than $300 from three months ago—while trade-in equity has stabilized at just under $10,000 for the past two months. Overall, this points to some deterioration in per unit pricing and profitability in the coming quarters, as rising interest rates and economic conditions affect demand, coupled with a likely gradual improvement in vehicle availability. That said, future improvements in vehicle availability will increase future sales volumes, offsetting deterioration in per unit pricing and profit.”

September is on track to be the 16th consecutive month that retail inventory closes below one million units. Dealerships are continuing to pre-sell vehicles in their delivery pipeline. This month, 53% of vehicles will be sold within 10 days of arriving at a dealership, while the average number of days a new vehicle is in a dealer’s possession before being sold is on pace to be 20 days—down from 23 days a year ago.

It should be noted that September 2021 was the second month where inventory shortages had a significant influence on new-vehicle sales. Hence, while sales this month will increase compared to prior year levels, the annualized sales rate remains well below historical norms.

For September, new-vehicle prices remain at record levels, with the average transaction price expected to reach $45,622—a record for September, a 6.3% increase from a year ago and the fourth highest of any month on record. The increase in sales volume, coupled with the near record level transaction prices, is resulting in consumers being on track to spend nearly $43.7 billion on new vehicles this month—the highest level ever for the month of September and a 12% increase from September 2021.

For Q3 2022, average transaction prices are expected to reach $45,971, a 10.3% increase from Q3 2021 and the highest for any quarter on record. This increase in pricing was more than enough to offset the 4.2% decline in sales volume as retail consumers are on track to spend $133.3 billion on new vehicles in Q3 2022, a 5.6% increase from Q3 2021.

“The lack of inventory, coupled with strong demand, continues to allow manufacturers to maintain a low level of discounting. The average incentive spend per vehicle is tracking toward $936, a decrease of 47.8% from a year ago. This will mark the fifth consecutive month under $1,000. Incentive spending per vehicle expressed as a percentage of the average vehicle MSRP is trending at 2.0%, down 2.0 percentage points from September 2021. One of the factors contributing to the reduction in incentive sending is the absence of discounts on vehicles that are leased. This month, leasing will account for just 16% of retail sales. For reference, in September 2019, leases accounted for 29% of all new-vehicle retail sales.

“Higher prices coupled with a rising interest rate environment are elevating monthly loan payments. After breaking the $700 level for the first time ever in July, the average monthly finance payment in September is on pace to be $711, up $56 from September 2021. That translates to an 8.5% increase in monthly payments from a year ago, which is above the 6.3% increase in transaction prices. The average interest rate for new-vehicle loans is expected to increase 169 basis points from a year ago to 5.71%.

“The increase in monthly loan payments would be even greater were it not for the continued strength of used-vehicle prices, which increases the amount of trade-in equity that new-vehicle buyers are bringing to their next purchase. The average trade-in equity for September is trending toward $9,617, a 21.7% increase from a year ago.”

Total retailer profit per unit—inclusive of grosses and finance and insurance income—is on pace to be $4,726, flat from a year ago. Total aggregate retailer profits from new-vehicle sales for the month of September is projected to be up 5.3% from September 2021, reaching $4.5 billion, the best September on record.

For Q3 2022, total retailer profit per unit will reach a Q3 record of $4,839, a 10.0% increase over Q3 2021, and total aggregate retailer profits will reach a Q3 record of $14.0 billion, a 5.4% increase over Q3 2021.

“In October, production constraints are expected to continue. These constraints may result in a somewhat lumpy fourth quarter as partially built vehicles in storage are completed and released in batches to the retail channel. Higher interest rates will continue to put pressure on transaction prices and retailer profits. However, with 54% of vehicles still transacting above MSRP, there is still room for price compression without material damage to industry health.”  

Sales & SAAR Comparison

U.S. New Vehicle	September 20221, 2	August 2022	September 2021
Retail Sales	958,948 units (5.4% higher than September 2021)2	963,064 units	910,073 units
Total Sales	1,120,279 units (11.8% higher September 2021)2	1,126,453 units	1,002,466 units
Retail SAAR	11.9 million units	10.5 million units	11.2 million units
Total SAAR	13.6 million units	13.2 million units	12.1 million units

¹ Figures cited for September 2022 are forecasted based on the first 20 selling days of the month.
² September 2022 has 25 selling days, the same as September 2021.

The Details

• The average new-vehicle retail transaction price in September is expected to reach $45,622, a 6.3% increase from September 2021. The previous high for any month—$46,173—was set in July 2022.
• Average incentive spending per unit in September is expected to reach $936, down from $1,792 in September 2021. Spending as a percentage of the average MSRP is expected to fall to 2.0%, down 2.0 percentage points from September 2021.
• Average incentive spending per unit on trucks/SUVs in September is expected to be $966, down $807 from a year ago, while the average spending on cars is expected to be $825, down $1,040 from a year ago.
• Buyers are on pace to spend $43.7 billion on new vehicles, up $4.7 billion from September 2021.
• Truck/SUVs are on pace to account for 77.9% of new-vehicle retail sales in September.
• Fleet sales are expected to total 161,300 units in September, up 75% from September 2021 on a selling day adjusted basis. Fleet volume is expected to account for 14% of total light-vehicle sales, up from 9% a year ago.
• Average interest rates for new vehicle loans are expected to increase to 5.71%, 169 basis points higher than a year ago.
   

EV Outlook

Elizabeth Krear, vice president, electric vehicle practice at JD Power:
“Electric vehicle consideration drops again this month as gas prices continue to fall and interest rates rise. The percentage of shoppers that are “very likely” to consider buying or leasing an EV in the next 12 months is 26.3%, down 1.7 percentage points from July. Although these shoppers are easing off the pedal a bit, the percentage of shoppers who are “somewhat likely” to purchase an EV in the next 12 months increased 2.5 percentage points in August.

“The broader reach of EV consideration is due in part to the ongoing expansion of appealing product options. The Chevrolet Blazer EV made a scorching debut at No. 3 in the JD Power EV Consideration pulse survey. The GMC Sierra EV debuted at No. 16 and almost certainly accounted for the 3.4 percentage-point drop in the Ford F-150 Lightning’s consideration, moving it from No. 1 to No. 2. As the availability of EVs continues to grow, more customers are finding EVs that meet their needs, leading to more competition between brands and within segments on the path to greater EV adoption.

“While overall EV sales will continue to grow as availability increases, competition also will increase between brands, within segments and with price.”

Global Sales Outlook

Jeff Schuster, president, Americas operations and global vehicle forecasts, LMC Automotive:
“The China-led recovery in global light-vehicle sales continued in August, with the selling rate hitting 91.3 million units and topping July by more than one million units. Sales volume was up 14% year over year to 6.7 million units but remained 9% below the pre-pandemic August average. China’s sales increased 34% but strong growth was also seen across the ASEAN market, which increased 59%. India was up 27%. Both North America (up 3%) and Western Europe (up 1%) reversed the declines from a year ago thanks to some inventory relief.

“Global light-vehicle sales are expected to continue the positive trend in September, with volume up 15% from a year ago—but September 2021 was severely affected by the chip shortage and other supply disruptions. As a result, the selling rate is expected to fall to 84.3 million units, which is still 10.8 million units higher than September 2021. Given the constraints of a year ago, growth across the world is expected to be more synchronized, with main markets expected to increase in the 10-15% range. Asian markets are expected to outperform the rest of the world, with India’s volume projected to nearly double from the 2021 volume.

“The increase in China and other parts of Asia has stabilized the global market and offset expected losses in North America, Europe, Japan and Brazil in 2022. We continue to expect global light-vehicle sales to remain at 82 million units, but the increase is now just 0.2% from 2021. We have been concerned that the boost in China sales would greatly deplete inventory levels but inventory in China has increased in the past three months, while demand has been hitting record selling rates. Inventory shortages appear to be less of an issue, though pull forward effect is expected to slow growth in China as the year closes and we head into 2023. As the likelihood of a global recession increases, the expected 5% growth to 85 million units is at risk.”

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Emmie Littlejohn, LMC Automotive; Troy, Mich.; 248-817-2100; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info
About LMC Automotive www.lmc-auto.com

 

Fully Automated, Self-Driving Vehicles: Is Auto Industry Getting Ahead of Itself?

2022-10-03

jillian.breska

TROY, Mich.: 4 Oct. 2022 — As the automotive industry methodically advances toward greater vehicle automation, consumer readiness for higher levels of automation remains low—even declining slightly from 2021—making it challenging to bring vehicle buyers into the modern mobility movement. According to the JD Power 2022 U.S. Mobility Confidence Index (MCI) Study,^SM released today, while consumer readiness for automated vehicles (AV) is low among all transportation modalities, consumers show greater comfort with transport of goods rather than transport of people in fully automated, self-driving commercial vehicles.

Moreover, consumer understanding of automated vehicles remains virtually unchanged from a year ago, as 65% of consumers inaccurately define fully automated, self-driving vehicles. The significant deficiencies remain, as 56% of respondents incorrectly classified the driver-assist technologies available today as fully automated, self-driving technologies. The survey finds that consumers are lagging in understanding and preparation for higher levels of automation.

When asked about terminology used to describe different levels of automation, consumers showed further confusion regarding AV technologies. The study, which was conducted by JD Power, Partners for Automated Vehicle Education (PAVE) and the MIT Advanced Vehicle Technology (AVT) Consortium, shows that consumers prefer to use the same three terms (assisted driving, driver assistance and semi-autonomous) when describing multiple levels of automation (SAE Level 2^TM and SAE Level 3^TM).¹While the distinctive technical descriptions may serve the industry, they do not align with consumer understanding.

“Our message has remained consistent,” said Lisa Boor, senior manager of auto benchmarking and mobility development at JD Power. “Industry stakeholders must work together to ensure clear and consistent messaging, and the use of consumer-facing terminology is part of this. Understanding which words and phrases resonate with consumers can help manage misconceptions and improve consumer understanding of AVs, which is a common goal.”

Among the 37% of consumers seeking information on fully automated, self-driving vehicles, online sources are the most commonly used. These consumers used online searches (54%); online videos (45%); and vehicle manufacturer/developer websites (39%). The same online preferences are cited among consumers who have yet to seek AV information. However, unique to this group is the preference for industry/academic experts (33%) over family/friends (24%), traditional media (14%) and social media (14%).

“AV technology offers great potential to make our roads safer, to improve transportation equity and to provide more transportation options to more people,” said Tara Andringa, PAVE executive director. “But we won’t realize that potential unless consumers understand the technology and know how to use it safely. These results show that we need to double down on our efforts to help consumers understand the technology, and we need to give the public clear, understandable language to use to describe these new features.”

Following are key findings from the 2022 study: 

• Low consumer readiness for fully automated, self-driving vehicles: The index score for consumer AV readiness is 39 (on a 100-point scale), a 3-point decline from 2021. Consumers show low readiness levels on all metrics and have the lowest level of comfort riding in a fully automated, self-driving vehicle and using fully automated, self-driving public transit. Consumers consistently cite higher levels of comfort with  transporting goods or riding in a fully automated, self-driving vehicle if unable or unwilling to drive due to age or injury.
• Consumers receptive to AV training: More than half (55%) of consumers are willing to complete training to operate an AV, and for those who say they know “a great deal” about AVs, the percentage increases to 87%. Nearly three-fourths (73%) of consumers expect that additional training would be required to own and operate a fully automated, self-driving vehicle. The likelihood of completing additional training is higher among younger generations.
• Opportunity for more effective learning methods: Consumers say the information sources used to learn about advanced driver assistance systems (ADAS) features on their current vehicle are the owner’s manual (32%); online search (27%); and dealer explanation (26%). Traditional vehicle education sources, such as car dealers and written materials, are inadequate for learning about complex ADAS and AV technologies, resulting in consumers seeking new learning methods, including in-person and interactive learning.
• Current ADAS usage drives future intent: Just more than one-fourth (26%) of consumers say they use active driving assistance, and frequent usage significantly affects future intent, as 71% who frequently use the feature desire it on their next vehicle. Regular ADAS users consider themselves early adopters of new technology; this is especially true for those using active driving assistance technology.
• Consumer comfort with automation may be overstated: Surprisingly, the percentage of respondents who indicate that driver assist technology is the maximum level of automation with which they are comfortable remains unchanged at 41%. Even those who indicate comfort with the highest levels of automation express a lack of trust and concern that the developing technology is not proven. One respondent stated, “I am not ready to trust my life to a fully automated vehicle. Need time to trust the system’s capabilities.” More than three-fourths (76%) say they want more information on how the vehicle technology meets government standards to feel comfortable with automated vehicles.

“These results provide further evidence that many consumers lack a clear understanding of the current status of automated and assisted driving technologies,” said Bryan Reimer, Ph.D., research scientist in the MIT Center for Transportation and Logistics AgeLab and a founder of MIT’s AVT consortium. “Highly automated driving technology is still very much in an evolving and testing stage; there are issues and limitations being encountered—and corrected. The sooner consumers recognize that they can leverage a range of ADAS features today to support their role as a driver, while still having overall responsibility, the faster we may begin to prepare for a future in which we prioritize safe, convenient and sustainable mobility choices that include highly automated vehicles.”

The JD Power 2022 Mobility Confidence Index Study is based on responses from 4,000 vehicle owners in the U.S. age 18 and older who completed a 15-minute online survey. The study results are balanced to basic census demographics to be nationally representative. The study was fielded in June 2022 and is based on six unique attributes of consumer comfort with fully automated, self-driving vehicles. The comprehensive metric measures consumer readiness for AV technology in several categories: personal vehicles; commercial vehicles; public transit; riding if unable to drive due to age or injury; sharing the road with other AVs; and consumer purchase intent.

About JD Power 
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe, and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business.

About PAVE
Partners for Automated Vehicle Education (PAVE) is a 501(c)(3) nonprofit whose mission is to improve public understanding of advanced vehicle technologies in order to maximize the potential benefits in safety, mobility, and sustainability. PAVE members include automotive manufacturers, technology companies, and nonprofit organizations.

About MIT Advanced Vehicle Technology Consortium 
The Advanced Vehicle Technology (AVT) Consortium is an academic-industry partnership founded in 2015 within the Massachusetts Institute of Technology (MIT) Center for Transportation and Logistics. It is supported by over 25 different automakers, insurance companies, suppliers, and research organizations through a pre-competitive collaboration designed to develop a data-driven understanding of drivers’ behavior with, and utilization of, vehicle automation, driver safety systems, and other technologies. AVT research aims to support a future of safe, convenient, and sustainable mobility through more effective human-centered vehicle technology development and consumer understanding of appropriate technology usage.

Media Relations Contacts 
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected] 
Tara Andringa, PAVE; [email protected]
Arthur Grau, Massachusetts Institute of Technology; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

¹https://www.sae.org/blog/sae-j3016-update

 

Satisfaction Issues with Advanced Driver Assistance Systems Leads to New JD Power Study

2022-10-11

jillian.breska

TROY, Mich.: 11 Oct. 2022 — Advanced Driver Assistance Systems (ADAS) account for 13% of total industry problems with 23.1 PP100 (problems per 100 vehicles), according to the inaugural JD Power 2022 ADAS (Advanced Driver Assistance Systems) Quality and Satisfaction Study,SM released today. Specifically, lane departure warning/lane keeping assistance and forward collision warning/automatic emergency braking features have the most problems of all features, 6.3 PP100 and 4.6 PP100, respectively.

“As vehicle technologies continue to evolve, manufacturers are working hard at staying innovative,” said Ashley Edgar, senior director of global automotive supplier benchmarking and alternative mobility at JD Power. “Although innovation is important, it is equally important to ensure current technologies, such as collision intervention features, are functioning to the highest degree. If manufacturers want to increase the level of autonomy in the future, today’s features cannot be problematic.”

The ADAS Study is based on responses from 84,165 purchasers and lessees of new 2022 model-year vehicles who were surveyed after 90 days of ownership. The study was fielded from February through May 2022.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info

 

Overall Website Satisfaction Declines among Battery Electric Vehicle Shoppers as Demand for Tools Increases, JD Power Finds

2022-07-13

crescent.seward

TROY, Mich.: 14 July 2022 — Fast-loading technical specifications, comparison tools and payment/lease calculators are having a big effect on satisfaction among online shoppers, specifically those researching battery electric vehicles (BEVs), according to the JD Power 2022 U.S. Manufacturer Website Evaluation Study,^SM —Summer, released today. The study also finds an increase in satisfaction when shoppers engage with manufacturer website tools, though BEV shoppers are still less satisfied than non-BEV shoppers.

“While inventory shortages continue to be a major source of frustration, we’re seeing vehicle shopping tools have a greater effect on the BEV experience than ever before,” said Eric McCready, director of digital solutions at JD Power. “Consumers don’t want to visit multiple sites when researching a vehicle. With more than half of BEV shoppers using technical specification tools, there’s an opportunity for manufacturers to boost the shopping experience with tools to cover range, time to charge details, charging locations and calculators that reflect tax credit information and fuel savings.”

The JD Power U.S. Manufacturer Website Evaluation Study—Summer is a semiannual study that measures the usefulness of automotive manufacturer websites during the process of shopping for a new vehicle by examining four key measures (in order of importance): information/content; visual appeal; navigation; and speed.

This wave finds that overall satisfaction averages 711 (on a 1,000-point scale) for the premium segment and 705 for the mass market segment, down 13 and 6 points, respectively, from the previous wave.

Study Rankings

Lincoln ranks highest among premium manufacturer websites with a score of 737. Lexus (734) ranks second and BMW (730) ranks third.

Kia ranks highest for the mass market manufacturer website segment with a score of 729. Subaru (724) ranks second and Jeep (721) ranks third.

The U.S. Manufacturer Website Evaluation Study, initially released in 1999, is based on responses from 11,398 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded April through May 2022.

For more information about the U.S. Manufacturer Website Evaluation Study, visit
https://www.jdpower.com/business/resource/us-manufacturer-website-evaluation-study

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]  

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info

 

Economy/Range Satisfaction Gap Closes Between Gas-Powered Vehicles and Electric Vehicles Thanks to High Gas Prices, JD Power Finds

2022-07-20

crescent.seward

TROY, Mich.: 21 July 2022 — Satisfaction with fuel economy/range is typically stronger among owners of gas-powered vehicles than satisfaction with range/charging speed among owners of battery-electric vehicles (BEVs). This year, while BEV owners have a similar, albeit slightly lower, level of satisfaction with charge times and driving range as they did a year ago, high gas prices have led to a noticeable decrease in fuel economy/range satisfaction among owners of gas-powered vehicles, according to the JD Power 2022 U.S. Automotive Performance, Execution and Layout (APEAL) Study,^SM released today. The gap between economy/range is only 7 points (on a 1,000-point scale).

The drop in satisfaction with economy/range also has contributed to a one-point decline in overall new-vehicle satisfaction, the first decline since 2014 and only the fifth year-over-year decline in the 27-year history of the study.

“The most important factor leading to the industry decline this year is owners’ perception of their vehicle’s fuel economy,” said David Amodeo, director of global automotive at JD Power. “The study was fielded as fuel prices were experiencing a meteoric rise, and that pinch at the pump is conveyed in lower vehicle satisfaction. Battery-electric vehicles have not been negatively affected by the increase in fuel costs but do have issues related to battery range and charging time.”

Some BEVs have bucked that trend, though. The recently launched Kia EV6 compact SUV and Mercedes-Benz EQS large premium car are two BEV models that rank highest in their respective segments. However, most segment leaders in emotional appeal are conventional gasoline-powered cars, trucks, vans and SUVs. Newcomers to the market that top their segments are the Jeep Wagoneer large SUV, Jeep Grand Wagoneer large premium SUV, Kia Carnival minivan, Genesis GV70 compact premium SUV and Hyundai Santa Cruz midsize pickup.

Now in its 27th year, the APEAL Study complements the JD Power U.S. Initial Quality Study (IQS)^SM and the JD Power U.S. Tech Experience Index (TXI) Study^SM by measuring owners’ emotional attachment and level of excitement with their new vehicle. The APEAL Study asks owners to consider 37 attributes, ranging from the sense of comfort they feel when climbing into the driver’s seat to the exhilaration they get when they step on the accelerator. Vehicle owners’ responses to queries about these attributes are aggregated to compute an overall APEAL Index score measured on a 1,000-point scale.

Following are key findings of the 2022 study:

• Mass market brands decrease in emotional appeal: The 19-point gap in score between premium and mass market brands in 2021 has widened to 31 points this year, as mass market brands decline 4 points and premium brands improve 8 points.
• Repeats for top mass market and premium brands: Dodge is the highest-ranked mass market brand in APEAL for a third consecutive year with a score of 882, identical to its score a year ago. Porsche, a perennial top-performing premium brand in APEAL, ranks highest among all brands with a score of 888, a six-point improvement from 2021. “While these brands are very different, both Dodge and Porsche owners identify strongly with their vehicles,” Amodeo said. “That certainly contributes to their stellar APEAL Study results.”
• Electrified vehicles are not as appealing as gas vehicles: Hybrid vehicles and plug-in hybrid vehicles (PHEVs) have lower composite APEAL Index scores than conventional gasoline-powered vehicles. The score for PHEVs is 835 and is 832 for hybrids. In comparison, the composite index score for gasoline-powered vehicles is 846. Battery-electric vehicles (excluding Tesla) also underperform gasoline vehicles in APEAL with an index score of 838. Tesla vehicles are summarized separately from the BEV composite score because the brand’s dominance in the category would skew the results of all other BEVs. It is important to understand that certain attributes of Tesla models continue to outperform other BEVs, though there are notable challengers emerging such as the Mercedes-Benz EQS.
• Tesla Motors officially included for the first time: Tesla Motors is included in the industry calculation for the first time, with a score of 887. However, because Tesla Motors does not allow JD Power access to owner information in the states where that permission is required by law, Tesla models remain ineligible for awards.

Highest-Ranking Brands

Porsche ranks highest among premium brands with a score of 888. Genesis (886) ranks second and Cadillac (885) ranks third among premium brands.

Dodge ranks highest among mass market brands with a score of 882. Ram (863) ranks second and GMC (856) ranks third among mass market brands.

Jeep is the biggest gainer in the mass market rankings, placing seven rank positions higher than in 2021. Cadillac, Mercedes-Benz, Jaguar and Infiniti gain the most in the premium brand rankings, up three places year over year. Infiniti is the biggest gainer in terms of points, improving 24 points from a year ago.

Model-Level APEAL Awards

The parent company receiving the most model-level awards (for models ranking highest in their respective segments) is Hyundai Motor Group (seven awards), followed by BMW AG, Nissan Motor Co., Ltd., and Stellantis NV with three awards each.

The complete list of award recipients is:

• Hyundai Motor Group: Genesis G80, Genesis GV70, Hyundai Palisade, Hyundai Santa Cruz, Kia Carnival, Kia EV6 and Kia K5
• BMW AG: BMW X6, MINI Clubman and MINI Cooper
• Nissan Motor Co., Ltd.: Infiniti QX60, Nissan Murano and Nissan Versa
• Stellantis NV: Jeep Wagoneer, Jeep Grand Wagoneer and Ram 1500
• Ford Motor Company: Ford Bronco Sport and Ford Super Duty
• Mercedes-Benz Group AG: Mercedes-Benz GLA and Mercedes-Benz EQS
• Toyota Motor Corporation: Lexus IS
• Volkswagen AG: Porsche 911

The BMW X6 is the highest-ranking individual model

The BMW X6, Nissan Versa and Ram 1500 each receive model-level awards for a third consecutive year.

The 2022 U.S. APEAL Study is based on responses from 84,165 owners of new 2022 model-year vehicles who were surveyed after 90 days of ownership. The study was fielded from February 2022 through May 2022, based on vehicles registered from November 2021 through February 2022.

For more information about the U.S. APEAL Study, visit
https://www.jdpower.com/business/automotive/us-automotive-performance-execution-and-layout-apeal-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

 

“Clearing the Confusion” Coalition Unveils Expanded, Updated Recommendations for Universal Terms for Advanced Driver Assistance Technology

2022-07-25

crescent.seward

A coalition of the nation’s leading experts in automobiles and auto safety—AAA, Consumer Reports, JD Power, National Safety Council, PAVE, and SAE International—today released a set of expanded and updated recommendations for universal terms for advanced driver assistance system (ADAS) features.

The six overarching categories on the list are collision warning; collision intervention; driving control assistance; parking assistance; driver monitoring; and other driver assistance systems. Driver monitoring is the newest category, added this year. A virtual briefing for press and key industry stakeholders on the latest recommendations will be held today at 2 p.m. EDT.

ADAS features have become increasingly prevalent in new vehicles and have the potential to reduce traffic crashes and save thousands of lives each year. However, the terminology used by automakers to describe ADAS features varies widely, which can confuse consumers and make it difficult to understand the vehicle’s functions.

Further, when the capabilities of vehicle safety features are overstated or misrepresented with marketing language designed to reel in buyers, consumers may over-rely on these systems. Establishing common language for ADAS helps ensure drivers are fully aware these systems assist, not replace, an engaged driver.

The coalition is calling on automakers, regulators, safety organizations, journalists, and other stakeholders to adopt this recommended standard language in the near term to reduce driver confusion. The group is also asking for vital consumer education on the benefits, limitations, and capabilities of ADAS.

The “Clearing the Confusion” effort started in 2019 with an initial list of standardized names and was endorsed by the U.S. Department of Transportation in 2020. The coalition’s recommended terms are simple, specific and based on system functionality. It is updated as more systems are introduced and the coalition continues to work with stakeholders and policymakers. These terms are not intended to replace an automaker’s proprietary system or package names. Instead, they will help consumers access transparent and consistent information on window stickers, owner’s manuals, and other marketing materials for generic system functions. To learn the universal terms, click here.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info