Category: United States

Making Electric Vehicle Leap of Faith is Highly Satisfactory to New Owners, JD Power Finds

2022-01-27

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As automakers continue to build excitement with new electric vehicle (EV)¹ launches, first-time owners who have made the switch to battery electric vehicles (BEVs) are discovering that it is a positive experience. Satisfaction among owners who are new to BEVs averages 754 (on a 1,000-point scale), which is comparable to 766 among BEV veterans (those who have owned a BEV prior to their current one), according to the JD Power 2022 U.S. Electric Vehicle Experience (EVX) Ownership Study,^SM released today.

Additionally, factor satisfaction among first-time BEV owners is higher for service experience (+48), driving enjoyment (+15) and styling (+8) than among BEV veterans. At the same time, while first-time BEV owners have a learning curve to become familiar with driving range, BEV veterans have experience and knowledge with real-world vehicle range that results in higher levels of satisfaction with battery range (+78 points) and accuracy of stated battery range (+49).

The overall EVX ownership index score measures electric vehicle owner satisfaction in both premium and mass market segments. The 2022 study has been expanded to include 10 factors from seven in 2021. Those 10 factors are (in alphabetical order): accuracy of stated battery range; availability of public charging stations; battery range; cost of ownership; driving enjoyment; ease of charging at home; interior and exterior styling (new in 2022); safety and technology features (new); service experience (new); and vehicle quality and reliability.

“Making the initial leap of faith into owning a BEV is proving to be very satisfying,” said Brent Gruber, senior director of global automotive at JD Power. “We know from our research that many consumers have concerns during the purchase consideration process with aspects like battery range and vehicle charging. However, once someone has purchased a BEV, they’re pretty much hooked. What will keep first-time owners coming back to buy another BEV is the compelling experience with the safety and technology features, lower service and maintenance costs, and pure driving enjoyment. The new BEVs from traditional brands are helping to attract even more first-time buyers.”

The study finds that 96% of BEV owners whose overall ownership satisfaction exceeds 900 points say they will purchase another BEV in the future. More than half (62%) of these owners say they “definitely will” repurchase from the same brand. However, likelihood to repurchase the same brand lessens considerably as satisfaction declines. Among BEV owners whose overall ownership satisfaction is below 600 points, 78% of first-time owners and 89% of veteran owners indicate they “definitely will” consider purchasing another BEV, but the likelihood to repurchase the same brand drops to 6%.

Following are key findings of the 2022 study:

• Range satisfaction is key purchase reason: As EV batteries and driving ranges continue to improve, veteran BEV owners cite this aspect of ownership as the top purchase reason in both the premium and mass market segments, 86% and 87%, respectively. Further, when owners say BEV range never affects driving habits compared with range regularly affecting driving habits, satisfaction improves 119 points in the premium segment and 107 points in the mass market segment.
• Incentives—when easy to get—improve satisfaction: More than two-thirds (68%) of EV owners received a purchase incentive. Overall satisfaction is higher among owners who say incentives are very easy to get (760) vs. among owners who say incentives are somewhat/very difficult to get (712). Among owners who cite incentives as a key purchase driver, 79% received a federal tax credit/rebate, but only 59% of that group say it was very easy to receive. “Many EV incentives and rebates have to be handled by owners,” Gruber said. “Dealers can facilitate the process for first-time owners by providing necessary links and forms and then walk the customer through the steps for claiming the federal and state tax credits.”
• Quality and reliability vary in premium and mass market segments: While infotainment is the most problematic category for owners of mass market BEVs (26.2 problems experienced per 100 vehicles, or PP100), the leading problems in the premium BEV segment are exterior (14.6 PP100) and squeaks and rattles (13.4 PP100). “Quality and reliability are extremely important factors to which manufacturers will have to pay close attention,” Gruber said. “As the EV market matures, EV owners will compare the build quality to internal combustion engine (ICE) models. Our research finds that, in general, EVs aren’t problematic because of the model type, but problems experienced are often related to technology- and feature-laden models, which present some challenges for minimizing quality issues. There’s essentially more to go wrong.”

Study Rankings

Tesla Model 3 ranks highest overall and highest in the premium BEV segment with a score of 777. Tesla Model Y (770) ranks second. Overall satisfaction in the premium segment averages 770.

Kia Niro EV ranks highest in the mass market BEV segment for a second consecutive year with a score of 744. Ford Mustang Mach-E (741) ranks second. Overall satisfaction in the mass market segment averages 709.

The U.S. Electric Vehicle Experience (EVX) Ownership Study is driven by a collaboration with PlugShare, the leading EV driver app maker and research firm. This study sets the standard for benchmarking satisfaction with the critical attributes that affect the total or overall EV ownership experience for both BEV and PHEV vehicles. Survey respondents for the study include 8,122 owners of 2016-2022 model-year BEVs and PHEVs. The study was fielded in October-November 2021.

For more information about the U.S. Electric Vehicle Experience (EVX) Ownership Study, visit https://www.jdpower.com/business/automotive/electric-vehicle-experience-evx-ownership-study.

About PlugShare
Based in El Segundo, Calif., PlugShare maintains the most comprehensive census of EV infrastructure in the world. They make the PlugShare app for iOS, Android and the Web, the most popular EV driver app globally, in use by most drivers in North America and over one million EV drivers worldwide. PlugShare also provides sophisticated data tools, reports, custom consulting and comprehensive research on EVs for automakers, utilities, charging networks, government and the rest of the EV industry. It operates the world’s largest EV driver survey research panel, PlugInsights, now with over 63,000 members.

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

¹The electric vehicle (EV) category includes battery electric vehicles (BEVs); plug-in hybrid electric vehicles (PHEVs); and hybrid electric vehicles (HEVs).

 

JD Power Builds on EVs, Mobility, Connected Vehicles and Consulting with New Hires, Promotions

2022-01-27

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JD Power, a global leader in data analytics and consumer intelligence, today announced staffing changes within its automotive division that include the hiring of Elizabeth Krear as vice president of the new EV (electric vehicle) practice and Jack Dolan as vice president of product quality performance improvement. Long-time JD Power executive Dave Sargent is becoming vice president and head of the newly created connected vehicle practice and Kristin Kolodge is being promoted to fill the role vacated by Sargent as vice president and head of auto benchmarking and mobility development.

“The automotive industry is undergoing massive disruptions, and our customers are counting on us to help them make critical business decisions and seize opportunities,” said Doug Betts, president of the automotive division at JD Power. “Acquiring and redeploying talented leadership for these critical areas of vehicle electrification and connected vehicle data will help keep us on the leading edge of data analytics.”

Krear comes to JD Power from Stellantis where she was the global head of product planning for Jeep Grand Wagoneer and electrified body-on-frame SUVs and trucks. Her focus was on planning and developing electrified platforms for the EV transition of this most important product family at Stellantis. “Elizabeth’s understanding of what is needed for manufacturers—and what is missing—to make crucial EV decisions will be invaluable in developing products and services to support our customers,” Betts said.

Dolan joins JD Power after most recently being chief engineer at Lordstown Motors. Prior to that, he headed up the North American operations for A2Mac1, an automotive technical data benchmarking company. He worked for many years in the engineering department at Stellantis and was the chief engineer for several successful vehicles. “Jack’s experience is extensive,” Betts said. ”This department serves a lot of clients and geographic territory, so Jack will work alongside Geoffrey Mortimer-Lamb to cover it.”

Sargent will lead the development of use cases and products utilizing connected vehicle data to create value for auto manufacturers and other companies inside the automotive space. “Dave’s reputation as one of the most well-known and trusted names in the industry, combined with his diverse knowledge across the entire space, will be a tremendous asset in creating value in this all-new area,” Betts said.

Kolodge is being promoted to a role she understands thoroughly after seven years in the auto quality practice. She created the Tech Experience Index (TXI) Study^SM and leads most mobility activities, including the Mobility Confidence Index Study.^SM “Kristin’s knowledge of vehicles, technology and benchmarks—and her experience of having been an engineering manager for a manufacturer—makes her uniquely qualified to guide this area of the business,” Betts said.

All four executives will report to Betts in this new structure.

To view online bios and headshots, visit https://www.jdpower.com/business/all-bios.

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

 

Wireless Providers Learning to Adapt to Evolving Customer Needs and Expectations, JD Power Finds

2022-02-03

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Satisfaction with wireless providers is rebounding from 2021, showing the flexibility of providers to adapt to changing customer expectations, according to the JD Power 2022 U.S. Wireless Customer Care Study^SM—Volume 1, released today.

“The industry is getting a grip on what the new norm is and have invested time and energy in training customer service representatives to best handle incoming requests based on customer preferences and issues,” said Ian Greenblatt, managing director at JD Power. “Making the connection with customers is imperative to keep satisfaction scores going up to pre-pandemic levels. For example, this volume of the study shows us that T-Mobile has made strong efforts to improve problem resolution satisfaction through its social media channel, which is seen in an increase in its satisfaction scores.”

Study Rankings

T-Mobile ranks highest in the mobile network operators segment with a score of 823.

Cricket ranks highest in the mobile virtual network operators segment with a score of 824, followed by Metro by T-Mobile with 812.

Consumer Cellular ranks highest in the value mobile virtual network operators segment with a score of 855.

The 2022 U.S. Wireless Customer Care Study—Volume 1 is based on responses from 11,429 customers who contacted their carrier’s customer care department within the past three months.  The studies evaluate customer care experiences across 6 factors: store service; phone service; website service; app service; social media service; and text service. The studies were fielded from July through December 2021.

For more information about the U.S. Wireless Customer Care Study, visit https://www.jdpower.com/business/tmt/us-wireless-customer-care-performance-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]
John Roderick; East Coast; 631-584-2200; [email protected]

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

 

 

Korean Auto Manufacturers Lead the Way in Vehicle Dependability, JD Power Finds

2022-02-09

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Korean auto brands Kia, Genesis and Hyundai earn three of the top four rankings in the newly redesigned JD Power 2022 U.S. Vehicle Dependability Study^SM (VDS), released today. Buick and Toyota also make the list of the brands with the fewest reported problems after three years of ownership.

“Many owners are holding on to their vehicles longer, so long-term dependability is even more critical,” said David Amodeo, director of global automotive at JD Power. “Some automakers are performing much better than others at preventing problems from occurring. These problems include the vehicle’s mechanicals, exterior and interior—but also infotainment systems, driver assistance systems and all the other electronic systems in today’s vehicles.”

The 2019 model-year vehicles measured in this year’s study were first examined in the JD Power 2019 U.S. Initial Quality Study (IQS).^SM Seven of the 10 highest-ranked brands in the 2019 IQS are among the 10 highest-ranked brands in this year’s VDS.

The study, now in its 33^rd year, has been redesigned to include all of the features and technology that are available in current vehicles. The study covers 184 specific problem areas across nine major vehicle categories: climate; driving assistance (new in 2022); driving experience; exterior; features/controls/ displays; infotainment; interior; powertrain; and seats.

The study also now measures satisfaction with the vehicle’s condition after three years of usage; whether owners find their vehicle as appealing now as when they first bought it; and what software updates have been made to the vehicle.

“Automakers are increasingly looking at owners’ relationships with their vehicles as having similarities to other consumer technology,” Amodeo said. “For instance, cellphones update all the time with over-the-air software releases and, increasingly, automakers must take advantage of this approach to fix problems, improve features and add capabilities to keep owners satisfied. Automakers that are able to do this best will have a huge advantage.”

Following are key findings of the 2022 study:

• Owners of mass market vehicles experience fewer problems: Mass market brands average 190 problems per 100 vehicles (PP100), which is 14 PP100 lower than for premium brands (204 PP100). Premium brands typically incorporate more technology in their vehicles, which increases the likelihood for problems to occur. At the same time, the build quality of mass market vehicles has improved considerably and now matches that of the premium brands.
• Infotainment systems remain most problematic area: The infotainment category continues to be the most problematic, with an average of 51.9 PP100, which is more than twice as many problems as the next-highest category. Seven of the top 10 problem areas in the study are infotainment-related, including: built-in voice recognition (8.3 PP100); Android Auto/Apple CarPlay connectivity (5.4 PP100); built-in Bluetooth system (4.5 PP100); not enough power plugs/USB ports (4.2 PP100); navigation systems difficult to understand/use (3.7 PP100); touchscreen/display screen (3.6 PP100); and navigation system inaccurate/outdated map (3.6 PP100).
• Most dependable model: For a second consecutive year, the Porsche 911 is the highest-ranked model in the study. This is the third time in the past four years that the 911 has earned this honor, a remarkable achievement.

Highest-Ranked Brands

Kia ranks highest overall in vehicle dependability, with a score of 145 PP100. This is the first year Kia leads the overall ranking after ranking third overall in 2021. Other mass market brands ranking high for vehicle dependability include Buick (147 PP100), Hyundai (148 PP100), Toyota (158 PP100) and Dodge (166 PP100).

Genesis (155 PP100) ranks highest in the premium segment, followed by Lexus (159 PP100), Porsche (162 PP100), Cadillac (168 PP100) and Lincoln (180 PP100).

General Motors Company and Toyota Motor Corporation each receive five segment awards for models with the fewest reported problems in their respective segments. General Motors Company receives segment awards for the Buick Encore, Buick Envision, Chevrolet Impala, Chevrolet Silverado HD and Chevrolet Suburban. Toyota Motor Company receives segment awards for the Lexus NX, Lexus RX, Lexus UX, Toyota Corolla and Toyota Tundra.

Hyundai Motor Group receives three segment awards for the Hyundai Santa Fe, Hyundai Sonata and Kia Sorento.

The 2022 U.S. Vehicle Dependability Study is based on responses from 29,487 original owners of 2019 model-year vehicles after three years of ownership. The study was fielded from July 2021 through November 2021.

To learn more about the U.S. Vehicle Dependability Study, visit https://www.jdpower.com/business/automotive/us-vehicle-dependability-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

 

Wireless Customers Heading Back to Stores, JD Power Finds

2022-02-16

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Wireless customers are visiting stores in greater numbers to make purchases, according to the JD Power 2022 U.S. Wireless Purchase Experience StudySM—Volume 1, released today. The last two volumes of this study have shown more customers going in-store for purchases, with 35% doing so this volume, which is up 6 percentage points from 2021 Volume 1. Customers find the in-store experience pleasing and efficient, which is reflected in higher satisfaction with cost and promotions, as well as higher rates of completing the purchase during first contact.

“The method chosen for the wireless product purchase does make a difference in overall purchase experience satisfaction and the store is a more personal channel that can have a great impact on this,” said Ian Greenblatt, managing director at JD Power. “In-person store experience allows customers to receive more attention, further explanation of charges and promotions while also elevating purchase experience satisfaction and customer perceptions of their carrier.”

Study Rankings

T-Mobile ranks highest among mobile network operators with a score of 807.

Cricket ranks highest among mobile virtual network operators with a score of 826. Metro by T-Mobile (814) ranks second and Spectrum Mobile (804) ranks third.

Consumer Cellular ranks highest among value mobile virtual network operators with a score of 859.

The 2022 U.S. Wireless Purchase Experience Mobile Network Operator Performance Study and the U.S. Wireless Purchase Experience Mobile Virtual Network Operator Performance Study are based on responses from 9,890 customers who use any one of four purchase channels and evaluate the wireless purchase experience taking place via: phone calls; visits to a carrier store; the carrier website; or the carrier’s mobile app. Overall purchase experience satisfaction with both Mobile Network Operators and Mobile Virtual Network Operators is measured in two factors: Cost and Promotions and Purchase Process. The studies were fielded from July through December 2021.

For more information about the U.S. Wireless Purchase Experience Study, visit https://www.jdpower.com/business/tmt/us-wireless-purchase-experience-performance-studies

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]
John Roderick; East Coast; 631-584-2200; [email protected]

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

 

Digital Holdouts: Many Large Utilities Resist Mobile App Development and Web Redesigns at Own Risk, JD Power Finds

2022-02-17

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TROY, Mich.: 23 Feb. 2022 — In a rapidly transforming world where everything from banking to insurance to the dreaded trip to the DMV has gone digital, many utilities are still resisting the forces of modernity by continuing to offer outdated websites and low adoption of mobile apps. According to the JD Power 2022 U.S. Utility Digital Experience Study,^SM released today, that lack of innovation in utility customer engagement channels is coming at the expense of customer satisfaction.

Now in its fifth year, the study assesses how customers interact with their utility website and mobile app as well as with the online social, email, chat and text functions offered by the 36 largest electric, natural gas and water utilities in the United States.

“About one-third of large utilities still do not have an app,” said Jon Sundberg, senior digital manager at JD Power. “This is inexcusable in the current environment in which consumers are controlling virtually every other aspect of their lives via smartphones. Utilities have been among the slowest adopters of digital customer engagement technology, based on all the industries we track at JD Power, and that is showing up in the form of sinking customer satisfaction scores. However, there is a silver lining for the small number of utilities that do invest in tech, which are earning notably higher scores and building much stronger levels of engagement with their customers.”

Following are some of the key findings of the 2022 study:

• Missing out on app revolution: Approximately one-third of the utilities evaluated do not have an app even though apps have consistently outperformed other customer engagement channels among the utilities that do have them—and which also occurs in every other industry JD Power tracks. For example, overall customer satisfaction with the utility customer care channel is 843 (on a 1,000-point scale) for mobile apps vs. 817 for the utility website and 782 for phone-based interactions, according to the JD Power 2021 Electric Utility Residential Customer Satisfaction Study.^SM
• Utility digital experience declines while other industries surge: Nearly every industry studied by JD Power has undergone successful digital change initiatives during the past two years. For example, insurance digital experience scores have climbed 11 points and mobile wealth app scores have climbed 12 points. Utility digital experience scores, by contrast, have declined four points year over year, leaving them consistent with 2019 levels of customer satisfaction.
• Inability to perform complex tasks: With utility websites largely unchanged during the past year, customers continue to have problems with more complex tasks such as researching energy-saving information, updating service and locating information on leaks.
• Room to grow on functionality, ESG awareness: Some utilities are providing a roadmap to successful websites and mobile apps, as the top two performing utilities in the study outperform the industry in every task. They also have leveraged their digital channels to promote energy-saving measures and other sustainability-oriented content.

The 2022 U.S. Utility Digital Experience Study is based on evaluations from 10,122 customers of the 36 largest electric, natural gas and water utilities in the United States. To be included in the study, utilities must serve 1,250,000 or more customers. The study was fielded in November-December 2021.

For more information about the U.S. Utility Digital Experience Study, visit https://www.jdpower.com/business/resource/utility-digital-experience-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]
John Roderick; East Coast; 631-584-2200; [email protected]

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

 

Electric Vehicle Owners Have Higher Satisfaction with “Next Level” Home Chargers, JD Power Finds

2022-02-23

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With sales of battery electric vehicles (BEV)^[1] expected to increase in the coming years, a brighter spotlight also will shine on home chargers. At present, satisfaction is highest among electric vehicle (EV) owners for Level 2 portable chargers and Level 2 permanently mounted home chargers, each garnering overall satisfaction scores of 752 (on a 1,000-point scale), according to the JD Power 2022 U.S. Electric Vehicle Experience (EVX) Home Charging Study,^SM released today.

The study measures EV owners’ satisfaction in three charging segments:^[2] Level 1 portable; Level 2 portable; and Level 2 permanently mounted charging stations. Satisfaction is measured across eight factors: fairness of retail price; cord length; size of charger; ease of winding/storing cable; cost of charging; charging speed; ease of use; and reliability, all of which provide a comprehensive assessment of the owner experience and charger performance.

There is a 188-point gap in overall home charging satisfaction between EV owners who use a Level 1 charger (564) and those using a next-level Level 2 charger (752). Satisfaction improves the most year over year—11 points—among EV owners using a Level 2 portable charger, while Level 1 satisfaction declines 10 points from the 2021 study.

“Home charging is an important aspect of owning an EV and taking that to the next level by utilizing a Level 2 charger is key to optimizing the ownership experience,” said Brent Gruber, senior director of global automotive at JD Power. “When upgrading to Level 2 charging, some home electrical upgrades may be necessary. Making those changes will mean faster charging and result in a far more satisfactory EV ownership experience. With battery ranges increasing, it makes sense for many owners to make the upgrade if they haven’t already. All parties involved in the EV marketplace need to pay special attention to home charging since 84% of owners regularly charge at home.”

Following are key findings of the 2022 study:

• Charging performance has notable effect on satisfaction: The gap in satisfaction with charging speed is 361 points—a year-over-year increase of 9 points—going from a low of 326 for Level 1 portable chargers to a high of 687 for Level 2 permanently mounted chargers. This is exacerbated by the difference in speed of charging importance to overall satisfaction between Level 1 portable chargers (27%) and Level 2 permanently mounted chargers (15%).
• Satisfaction with cost varies by location: The regional gap in satisfaction with home charging costs among owners of Level 2 chargers is 162 points, ranging from a low of 632 in the New England region to a high of 794 in the Mountain region. The Pacific region has the second-lowest level of satisfaction with cost (719), with California (689) having the lowest satisfaction score in the Pacific region.
• Preconditioning can improve satisfaction: Preconditioning a vehicle—warming or cooling it with the HVAC system while the vehicle is charging—is a new metric in the study this year. Satisfaction scores among owners of Level 2 permanently mounted chargers who say they always precondition their vehicle averages 794, while satisfaction among those who say they never precondition their vehicle averages 753. For owners of Level 2 portable chargers, overall satisfaction is 795 among those who say they always precondition their vehicle and is 745 among those who say they never precondition their vehicle.
• Upgrading to Level 2 requires owners to take action: Three-fourths (75%) of EV owners say at least one component upgrade was needed to complete the home installation of a Level 2 charger. The most common upgrades are wiring (55%); outlet (45%); and electrical panel (28%).
• Many EV owners unaware of utility programs: Only 40% of owners with Level 1 home charging and 52% of those with Level 2 charging know if any EV programs are offered by their local utility. Satisfaction is higher when EV owners utilize a program through their utility, such as charging during off hours at lower rates; financial incentives for a Level 2 installation; or itemized costs for EV usage. “We’re on the verge of EVs approaching mainstream owners who are price conscious,” Gruber said. “The industry needs to be sensitive to the incentives beyond the purchase of the vehicle—and making sure owners are aware of them.”

Study Ranking
The study examines the home-charging experience of EV owners across all three charger segments, but only Level 2 permanently mounted charging stations are award eligible.

Tesla ranks highest among Level 2 permanently mounted charging stations with a score of 797. ClipperCreek ranks second with a score of 758. The segment average is 752.

The U.S. Electric Vehicle Experience (EVX) Home Charging Study, now in its second year, is driven by a collaboration with PlugShare, the leading EV driver app maker and research firm. This study sets the standard for benchmarking satisfaction with the critical attributes that affect the total or overall EV ownership experience for both BEV and PHEV vehicles. Survey respondents for the study included 8,216 owners of 2016-2022 model year BEVs and PHEVs. The study was fielded in October-November 2021.

For more information about the U.S. Electric Vehicle Experience (EVX) Home Charging Study, visit

https://www.jdpower.com/business/automotive/electric-vehicle-experience-evx-home-charging-study.

About PlugShare
Based in El Segundo, Calif., PlugShare maintains the most comprehensive census of EV infrastructure in the world. They make the PlugShare app for iOS, Android and the Web, the most popular EV driver app globally, in use by most drivers in North America and over one million EV drivers worldwide. PlugShare also provides sophisticated data tools, reports, custom consulting and comprehensive research on EVs for automakers, utilities, charging networks, government and the rest of the EV industry. It operates the world’s largest EV driver survey research panel, PlugInsights, now with over 63,000 members.

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

# # #

^[1] Electric vehicles (EV) include battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV).

^[2] JD Power defines charger segments as Level 1 portable; Level 2 portable; or Level 2 permanently mounted (permanent). Level 1 portable charging stations offer simple electric vehicle charging capabilities at home through a standard 120-volt electrical outlet. Level 2 portable charging stations offer faster charging capabilities at home through an upgraded 240-volt electrical outlet. Level 2 permanently mounted charging stations use an upgraded 240-volt electrical outlet via a permanently wall-mounted format.

 

February Sales Rate Remains Constrained by Low Inventory; Record Pricing and Dealer Profitability Continue

2022-02-25

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The Retail Sales Forecast

New-vehicle retail sales for February 2022 are expected to decline when compared with February 2021, according to a joint forecast from JD Power and LMC Automotive. Retail sales of new vehicles this month are expected to reach 922,100 units, a 5.7% decrease compared with February 2021. (Note: February 2022 has the same number of selling days as February 2021.)

The Total Sales Forecast

Total new-vehicle sales for February 2022, including retail and non-retail transactions, are projected to reach 1,057,300 units, an 11.1% decrease from February 2021.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 14.1 million units, down 1.7 million units from 2021.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“With retail inventory on pace to finish a fourth consecutive month below 900,000 units and ninth consecutive month below one million units, the new-vehicle supply situation is not displaying signs of near-term improvement. Therefore, sales in February are being determined by the number of vehicles delivered to dealerships rather than reflecting actual consumer demand.”

New-vehicle prices continue to maintain record levels as average transaction prices are expected to reach a February record of $44,460, an 18.5% increase from a year ago. Supply shortages are continuing to constrain incentive offers from manufacturers. For February, incentive spend per vehicle expressed as a percentage of the average vehicle MSRP is trending toward a record low of 2.8%, down 5.0 percentage points from February 2021 and the second consecutive month below 3.0%. From an absolute value standpoint, average manufacturer incentive spend per vehicle is on pace to reach $1,246, a decrease of $2,143 from a year ago.

“Vehicles continue to sell quickly and a growing number of those vehicles have been ordered by buyers. This month, nearly 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 54 days a year ago.

“Despite lower volumes, higher prices mean that retail consumers are on track to spend a healthy $41.0 billion on new vehicles this month, the highest on record for the month of February and 12.4% above February 2021.

“Dealers also continue to benefit from high transaction prices with total retailer profit per unit—inclusive of grosses and finance and insurance income—being on pace to reach $5,023, an increase of $2,837 from a year ago and the fifth consecutive month above $5,000. The gains in per-unit profit are offsetting the drop in sales volume as the total aggregate retailer profit from new-vehicle sales is projected to be up 117% from February 2021, reaching $4.6 billion.

“Record new-vehicle prices are being supported by exceptionally strong used-vehicle prices, as new-vehicle buyers benefit from more equity on their trade-in vehicles. The average trade-in equity for February is trending towards $9,663, a 93.0% increase of $4,657 from a year ago. As expected, interest rates are starting to climb but at a tempered level. The average interest rate for loans in February is expected to increase three basis points from a year ago to 4.28%. The average monthly finance payment is on pace to hit a record high of $668 for the month of February, up $71 from February 2021. That translates to an 11.9% increase in monthly payments from a year ago, which is still below the 18.5% increase in transaction prices.

“What we’re seeing in February–sales being constrained by available inventory–is expected to continue in March. The underlying question is which manufacturers will have the ability to produce enough vehicles to increase inventory levels. Ongoing supply chain disruptions, along with near-term announcements of production outages by several manufacturers, mean that the aggregate inventory situation is unlikely to change in March. For some manufacturers, the situation may deteriorate. This likely means that prices and per-unit profitability for retailers and manufacturers will likely remain healthy.”

Sales & SAAR Comparison

U.S. New Vehicle	February 20221, 2	January 2022	February 2021
Retail Sales	922,118 units (-5.2% lower than February 2022)2	876,186 units	977,520 units
Total Sales	1,057,262 units (-11.6% lower February 2022)2	992,927 units	1,189,228 units
Retail SAAR	12.7 million units	13.9 million units	13.4 million units
Total SAAR	14.1 million units	15.1 million units	15.9 million units

¹ Figures cited for February 2022 are forecasted based on the first 17 selling days of the month.

² February 2022 has 24 selling days, the same as February 2021.

The Details

• The average new-vehicle retail transaction price in February is expected to reach $44,460. The previous high for any month, $45,283, was set in December 2021.
• Average incentive spending per unit in February is expected to reach $1,246, down from $3,388 in February 2021. Spending as a percentage of the average MSRP is expected to fall to 2.8%, down 5.0 percentage points from February 2021.
• Average incentive spending per unit on trucks/SUVs in February is expected to be $1,240, down $2,144 from a year ago, while the average spending on cars is expected to be $1,267, down $2,137 from a year ago.
• Buyers are on pace to spend $41.0 billion on new vehicles, up $4.3 billion from February 2021.
• Truck/SUVs are on pace to account for a record 78.8% of new-vehicle retail sales in February.
• Fleet sales are expected to total 135,100 units in February, down 36.2% from February 2021 on a selling day adjusted basis. Fleet volume is expected to account for 13% of total light-vehicle sales, down from 18% a year ago.

Global Sales Outlook

Jeff Schuster, president, Americas operations and global vehicle forecasts, LMC Automotive:
“Global light-vehicle sales got off to a better-than-expected start in 2022, as January posted volume of 6.6 million units, just 1% behind January 2021. The selling rate increased to 83.9 million units, up from 82.1 million units in December 2021. Volume in China was up 4.6% in January, which is consistent with recent months of China outperforming most major markets. Some markets across Europe also saw marked improvement, including Germany and the UK. February is expected to finish at 5.7 million units, down 1.8% from February 2021. The selling rate is forecast to fall to 77.4 million units. The Russian invasion of Ukraine will negatively affect the close of the month and add another layer of substantial risk to the recovery in 2022.

“An already tight supply of vehicles and high prices across the globe will be under added pressure based on the severity and duration of the conflict in Ukraine. Rising oil and aluminum prices will likely affect consumers’ willingness and ability to purchase vehicles, even if inventory improves. We have made significant downgrades to the Ukraine and Russia forecasts due to the escalating conflict between the two and the repercussions associated with sanctions against Russia. The decline in Europe has pulled the outlook for global light-vehicle sales down by 400,000 units to 85.8 million units. Volume still is expected to increase 5% from 2021, but short-term risk has been escalated beyond the pandemic.”

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

 

P&C Insurers Encounter Digital Growing Pains amid Large Scale Disruption, JD Power Finds

2022-02-25

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TROY, Mich.: 28 Feb. 2022 — A crippling combination of near-record high catastrophic losses, massive supply chain disruptions and ongoing workforce challenges conspired to make the past year an incredibly tough one for property and casualty (P&C) insurers. According to the JD Power 2022 U.S. Property Claims Satisfaction Study,^SM released today, slower cycle times and growing pains associated with transitioning to digital servicing channels caused overall satisfaction scores to decline to a five-year low.

“Insurers really struggled last year, partly due to circumstances beyond their control,” said Mark Garrett, director, insurance intelligence at JD Power. “Longer cycle times, material shortages and personnel availability put added pressure on insurers to keep customers informed and expectations managed. Digital tools were a pivotal part of the process as customers increasingly turned to digital channels by submitting photos to assist in the estimation process and were far more willing to use the tools for status updates. Unfortunately, these digital tools are not always meeting expectations, resulting in support staff needing to get involved. That disconnect creates a major drag on customer satisfaction.”

Following are some key findings of the 2022 study:

• Overall satisfaction declines industry-wide: Overall customer satisfaction with homeowner insurance property claims falls to a five-year low of 871 (on a 1,000-point scale) as nearly every insurer’s scores were dragged down by slower cycle times, more complicated claims processes and communications challenges. On average, it took 17.8 days for claimants to have their repairs completed this year, up 2.9 days from a year ago.
• Digital claims show huge promise, but most claimants not fully using available tools: This year marks the first time a digital channel—email—overtook phone calls to and from the insurer as the most frequently used communication method. Furthermore, mobile apps had the largest increase in usage—+19 percentage points—from a year ago. However, despite these large increases, only 11% of customers fully utilize digital channels for all major steps of the claim process: digital FNOL (first notice of loss) plus digital estimation (submitting photos used for the estimate) and mobile apps or web channels for status updates. Those customers who used digital tools throughout the claim process saw their repairs get started nine days sooner, and overall satisfaction scores among such customers is 33 points higher than among customers who used no digital tools in the claims process.
• Many customers find themselves in hybrid digital limbo: While customers who have adopted fully digital channels experience shorter cycle times—and among whom overall satisfaction is higher, the opposite is true for those who have a partial digital/offline customer experience. Satisfaction scores are 47 points lower when customers submit photos but still need to arrange for an in-person inspection. Not only does this slow down the process, but those customers are more likely to say the process was more complicated than expected and that they experienced more process touch points.

Study Ranking

Amica Mutual and The Hartford rank highest in a tie in property insurance claims experience, each with a score of 886. Farmers (884) ranks third.

The U.S. Property Claims Satisfaction Study measures satisfaction with the property claims experience among insurance customers who have filed a claim for damages by examining five factors (listed in order of importance): settlement; claim servicing; FNOL; estimation process; and repair process. The study is based on responses from 5,724 homeowner insurance customers who filed a claim within the previous nine months. The study was fielded from April through December 2021.

For more information about the U.S. Property Claims Satisfaction Study, visit
https://www.jdpower.com/business/resource/us-property-claims-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]
John Roderick; East Coast; 631-584-2200; [email protected]

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

 

Noise and Infotainment Issues Contribute to Quality Problems Cited by New-Vehicle Owners in India, JD Power Finds

2022-03-02

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Among the total problems cited by new-vehicle owners in India, 33% are related to noise and infotainment functionality issues, according to the JD Power 2021 India Initial Quality Study (IQS),^SM released today.  After a hiatus since 2019, JD Power has re-launched the India Initial Quality Study in collaboration with NielsenIQ.

Initial quality is measured by the number of problems experienced per 100 vehicles (PP100) during the first month of ownership until six months, with a lower score reflecting higher quality. In this year’s study, the industry average stands at 148 PP100.

“As vehicles continue to come in with multitude of infotainment features, consumers’ sensitivity towards their seamless functionality and ease of use keep increasing,” said Sandeep Pande, lead of the automotive practice India at NielsenIQ. “At the same time, traditional problems like excessive fuel consumption, in-car noise and speed of HVAC cooling system continue to occur.

Following are additional key findings of the 2021 study:

• It is not only about the driver: Owners who usually have more than two people riding in their car usually cite a significantly higher problem incidence. Owners with up to two people have a PP100 of 95.1, while owners with more than two people in their car have an average of 183 PP100.
• Features/controls/displays (FCD) category has most design problems: The FCD category has the most design-related problems at 12.9 PP100. The key issues are related to inadequacy of horn sound and slow charging of the USB ports.
• Kilometers driven have a bearing on quality issues cited: Owners who have driven up to 5,000 kilometers in their new vehicle cite considerably fewer problems than those who have driven more kilometers (134 PP100 vs. 170 PP100, respectively).

Highest-Ranking Models

• Hyundai Santro ranks highest in the compact segment with 139 PP100.
• Maruti Suzuki Ignis ranks highest in the upper compact segment with 157 PP100.
• Hyundai Elite i20 ranks highest in the premium compact segment with 136 PP100
• Hyundai Venue ranks highest in the compact SUV segment with 123 PP100.
• Hyundai Creta ranks highest in the SUV segment with 122 PP100
• Mahindra Bolero ranks highest in the MPV / MUV segment with 99 PP100

The study measures problems experienced in two distinct categories: design-related problems and defects and malfunctions. The study includes specific diagnostic questions covering eight problem categories: exterior; driving experience; features/controls/displays; seats; audio/communication/entertainment/navigation; heating/ventilation/air conditioning; interior; and engine/transmission.

The 2021 India Initial Quality Study (IQS) is based on responses from 5,421 new vehicle owners who purchased their vehicle from January through December 2021. The months of April-June 2021 were not considered on account of the severe pandemic situation in India. The study was fielded from September through December 2021.

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.

NielsenIQ is the leader in providing the most complete, unbiased view of consumer behavior, globally. Powered by a groundbreaking consumer data platform and fueled by rich analytic capabilities, NielsenIQ enables bold, confident decision-making for the world’s leading consumer goods companies and retailers.

Using comprehensive data sets and measuring all transactions equally, NielsenIQ gives clients a forward-looking view into consumer behavior in order to optimize performance across all retail platforms. Our open philosophy on data integration enables the most influential consumer data sets on the planet. NielsenIQ delivers the complete truth.

NielsenIQ, an Advent International portfolio company, has operations in nearly 100 markets, covering more than 90% of the world’s population. For more information, visit NielsenIQ.com.

Media Relations Contacts
Geno Effler, JD Power; [email protected]; +1-714-621-6224
Kaustav Roy, NielsenIQ; [email protected];
Sandeep Pande, NielsenIQ: [email protected]

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