Category: United States

Mixed results expected for New Vehicle Sales in May, as Prices Rise but Sales Pace Falls

2018-05-28

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DETROIT: 29 May 2018 — The new-vehicle retail sales pace in May is expected to fall from year-ago levels, according to a forecast developed jointly by JD Power and LMC Automotive.  The seasonally adjusted annualized rate (SAAR) for retail sales is expected to be 13.4 million units, down 200,000 from a year ago.  Retail sales are projected to reach 1,270,200 units, a 1.0% decrease on a selling day adjusted basis compared to May 2017. (May 2018 has one more selling day than May 2017.) Without the selling day adjustment, retail sales would be up 3.0%.

“May represents another modest deterioration of the retail sales pace, but volumes still remain relatively strong from a historical perspective,” said Thomas King, Senior Vice President of the Data and Analytics Division at JD Power. “More notable is that average transaction prices are up $1,192 month to date, while incentive spending per unit is flat compared with the same period last year at $3,665 per unit.  This is good news for manufacturers given that the Memorial Day holiday weekend is one of the busiest car-buying periods of the year, with almost 250,000 vehicles sold over the holiday weekend last year.

With the extra selling day in 2018, consumers are expected to spend more than $41 billion on new vehicles in May, nearly $2.7 billion more than last year.

JD Power and LMC Automotive U.S. Sales and SAAR Comparisons

	May 20181	April 2018	May 2017
New-Vehicle Retail Sales	1,270,200 units (-1.0% lower than May 2017)2	1,055,415 units	1,233,279 units
Total Vehicle Sales	1,568,000 units (-0.6% lower than May 2017)2	1,352,742 units	1,516,990 units
Retail SAAR	13.4 million units	13.7 million units	13.6 million units
Total SAAR	16.6 million units	17.1 million units	16.8 million units

¹Figures cited for May 2018 are forecasted based on the first 17 selling days of the month.

²May 2018 has 26 selling days, while May 2017 had 25 selling days in the month.

• The average new-vehicle retail transaction price to date in May is $32,380, a record for the month, surpassing the previous high for the month of $31,188 set in May 2017.
• Average incentive spending per unit to date in May is $3,665 per unit. Through the first five months of the year spending is $3,898, up $128 from the prior year.
• Consumers are on pace to spend $41.1 billion on new vehicles in May, nearly $2.7 billion more than last year’s level.
• Trucks account for 67% of new-vehicle retail sales through May 20—the highest level ever for the month of May—making it the 23rd consecutive month above 60%.
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 68 through May 20, down two days from last year.
• Fleet sales are expected to total 297,700 units in May, up 0.9% from May 2017.  Fleet volume is expected to account for 19% of total light-vehicle sales, which is flat vs. last year.

Jeff Schuster, President, Americas Operations and Global Vehicle Forecasts at LMC Automotive, said, “The U.S. auto market’s ability to shrug off the volatility surrounding trade and tariff talks is remarkable. Despite the risks, volume is holding and a calmness prevails. Expectations of a managed slowdown from the 2016 peak remain on target, but the industry’s biggest challenge over the next 18 months will be the collective discipline to manage fleet volume and incentive spending.”

LMC’s forecast for 2018 total light-vehicle sales is now rounding up to 17.1 million units from 17.0 million, a decrease of 1.0% from 2017. The retail light-vehicle forecast is consistent with last month at 13.8 million units, a decline of 1.6% from 2017. Fleet volume is expected to grow by 80,000 units, or 2.3%, and represents 19.4% of total light-vehicle sales.

U.S. Retail SAAR— May 2017 to May 2018

 

 (in millions of units)

Source: Power Information Network^® (PIN) from JD Power

 

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

About LMC Automotive www.lmc-auto.com.

Media Relations Contacts

Geno Effler; JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]

Emmie Littlejohn; LMC Automotive; Troy, Mich.; 248-817-2100; [email protected]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power or LMC Automotive. www.jdpower.com/corporate  www.lmc-auto.com

 

North America Airline Customer Satisfaction Improves for 7th Consecutive Year, JD Power Finds

2018-05-29

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COSTA MESA, Calif.: 30 May 2018 — Airline investments in newer planes, improved customer satisfaction with overhead storage compartments and cheaper fares have driven a seventh straight year of improved customer satisfaction, according to the JD Power 2018 North America Airline Satisfaction Study.^SM. Overall passenger satisfaction with airlines improves to 762 (on a 1,000-point scale) in 2018, a record high.

“With a single exception, airlines in North America show consistent improvements across all the factors, from booking a ticket to handling luggage,” said Michael Taylor, Travel Practice Lead at JD Power. “Operationally, it’s never been a better time to fly. Passengers perceive greater value in ticket prices, checking in has never been easier, passengers are more satisfied with the actual aircraft and airlines have improved their baggage-handling performance.

“The exception is in the in-flight services factor, which includes food, beverage and entertainment systems,” Taylor added. “Today’s passengers expect trouble-free connectivity for personal devices and airlines are challenged to keep pace with the technology that can achieve that goal. This is important because passengers are far more likely to have a positive experience with an airline if they are entertained during their flight.”

Following are some of the key findings of the 2018 study:

• Record-high customer satisfaction: Overall satisfaction with airlines in 2018 increases by 6 points to 762, continuing a seven-year trend of steady performance increases. Both traditional and low-cost carriers have improved.

• Newer, bigger, better: Annual improvement in overall customer satisfaction is driven by increased satisfaction with the aircraft (+15 points); a better experience with boarding/deplaning/baggage (+10) and reservation (+11); and satisfaction with costs & fees (+8). The attribute contributing to improved customer perceptions of the aircraft is availability of overhead storage, an area in which the study’s top-ranked airlines have recently invested significantly.

• “Please discontinue the use of electronic devices”: Airlines continue to struggle to meet customer expectations for device connectivity, with in-flight services scoring lower than any other factor in the study. Compared with aircraft offering seatback screens, passengers using their own mobile devices to access in-flight services are less satisfied with the variety of in-flight entertainment available and availability of in-flight services. Keeping pace with improvements in Wi-Fi technology is a difficult and expensive proposition for the airlines.

Study Rankings

Among traditional carriers, Alaska Airlines ranks highest for the 11th consecutive year, with a score of 775. Alaska Airlines performs particularly well in all seven factors of the study, with a great deal of improvement coming from investments in new overhead bins that fit roll-aboard bags better than traditional bins. Delta Air Lines (767) ranks second.

Among low-cost carriers, Southwest Airlines ranks highest for the second consecutive year, with a score of 818. Southwest Airlines performs particularly well in all seven factors, driven in large part by investments made in fleet improvements. JetBlue Airways (812) ranks second.

The carriers showing the most improvement in overall customer satisfaction from last year are Allegiant, which increases 58 points to 725, and Air Canada, which increases 25 points to 734.

The North America Airline Satisfaction Study, now in its 14^th year, measures passenger satisfaction with airline carriers in North America based on performance in seven factors (in order of importance): cost & fees; in-flight services; aircraft; boarding/deplaning/baggage; flight crew; check-in; and reservation.

The study measures passenger satisfaction among both business and leisure travelers, and is based on responses from 11,508 passengers who flew on a major North American airline between March 2017 and March 2018. The study was fielded between April 2017 and March 2018.

Join the conversation on social media using #AirlineStudy and follow JD Power on Facebook, Twitter and LinkedIn.

For more information about the North America Airline Satisfaction Study, visit http://www.jdpower.com/business/resource/jd-power-north-america-airline-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

JD Power-Drucker Institute Alliance to Deliver Greater Value to Customers, Stakeholders

2018-05-29

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COSTA MESA, Calif.: 1 June 2018 — JD Power, a leading global provider of consumer insights, today announced an alliance with the Drucker Institute to contribute data analysis for the customer satisfaction element of the annual Drucker Institute Company Ranking.

“Effective corporate management requires reliable and accurate data analysis to make intelligent decisions,” said Dave Habiger, President and CEO at JD Power. “Given our shared philosophy that the customer is the focal point of every business, there is a natural synergy between JD Power and the Drucker Institute. Our passion and pursuit of measuring customer feedback aligns strongly with the Drucker Institute’s mission to improve overall corporate performance.”

The annual Drucker Institute Company Ranking, which is published at the end of each year, ranks nearly 700 large-cap U.S. companies using data from more than a dozen providers. Rankings are determined through the lens of 37 indicators that fall under five dimensions of corporate performance: customer satisfaction, employee engagement and development, innovation, social responsibility and financial strength. The metrics are based on a core set of principles from the late Peter F. Drucker who was an educator, consultant, author and long-time Wall Street Journal columnist.

“Mr. Drucker famously wrote, ‘To satisfy the customer is the mission and purpose of every business,’” said Zachary First, Executive Director at the Drucker Institute. “We believe JD Power supports this same principle. Along with bringing JD Power’s expertise into the Drucker Institute Company Ranking, our goal is to initiate a similar ranking of large, publicly traded Japanese companies. Many executives in Japan revere the wisdom of Peter Drucker, and we believe they would welcome the chance to work with the Drucker Institute to deliver greater value to their customers and stakeholders.”

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Drucker Institute is a social enterprise based at Claremont Graduate University. Its mission is strengthening organizations to strengthen society. Its proven ability to help executives move quickly from ideas to action to results echoes what Drucker urged his own consulting clients: “Don’t tell me you had a wonderful meeting with me. Tell me what you’re going to do on Monday that’s different.” To learn more, visit www.drucker.institute.

Media Relations Contacts
Geno Effler; JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
Zachary First; Drucker Institute; Claremont, Calif.; 909-607-9212; [email protected]

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

 

Two-Minute Warning: Customers Expect Home Improvement Retailers to Engage Quickly, JD Power Finds

2018-05-31

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COSTA MESA, Calif.: 13 June 2018 — Menards ranks highest in customer satisfaction among home improvement retailers for the first time, according to the JD Power 2018 Home Improvement Retailer Satisfaction Study,^SM released today. Consumer spending on home improvement is on the rise, with an expected increase of 5.3% in 2018, to approximately $387 billion.^[1]

The study measures customer satisfaction with home improvement retailers by examining five factors (in alphabetical order): merchandise; price; sales and promotions; staff and service; and store facility. Satisfaction is measured on a 1,000-point scale.

Following are some key findings of the 2018 study:

• The “two-minute warning”: From the time a customer enters a store, that person expects to receive assistance from a store employee within two minutes, otherwise, satisfaction begins to decline. Overall satisfaction declines significantly when a customer waits more than two minutes to have his/her question answered, compared with waiting less than two minutes (821 vs. 882, respectively).

• Satisfaction drives loyalty: Among delighted customers (overall satisfaction scores of 901 and above), 80% say they “definitely will” repurchase from the retailer, compared with the study average of 48%. Additionally, 83% of delighted home improvement retailer customers say they “definitely will” recommend the retailer to others, compared with the study average of 49%.

• Delightful experience influences recommendations: Among delighted customers, the average number of positive recommendations is 4.0, compared with the study average of 2.6.

Home Improvement Retailer Satisfaction Rankings

Menards (836) ranks highest in customer satisfaction among home improvement retailers and performs particularly well in the merchandise; price; and sales and promotions factors. This marks the first time Menards ranks highest. Ace Hardware (832) ranks second, performing highest in staff and service. Lowe’s (828)ranks third, performing highest in merchandise and store facility.

The 2018 Home Improvement Retailer Satisfaction Study is based on responses from 2,972 customers who purchased home improvement-related products from a home improvement retailer within the previous 12 months. The study was fielded in March 2018.

For more information about the JD Power Home Improvement Retailer Satisfaction Study, visit http://www.jdpower.com/business/resource/us-home-improvement-retailer-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Banking and Credit Card Apps Set New Standard for Mobile Customer Satisfaction, JD Power Finds

2018-06-06

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COSTA MESA, Calif.: 8 June 2018 — U.S. banks and credit card companies are setting a new standard for customer satisfaction with mobile apps, winning a rapidly growing user base and achieving the highest satisfaction scores of any industry in which JD Power measures satisfaction. According to the JD Power 2018 U.S. Banking App Satisfaction Study^SM and U.S. Credit Card App Satisfaction Study,^SM both released today, overall customer satisfaction with banking and credit card apps increases this year as more customers adopt digital as their primary interaction channel.

“As mobile apps rapidly become the primary interaction channel for retail bank and credit card customers, getting the formula right in terms of usability, feature sets and customer engagement has become the key to stronger advocacy and loyalty,” said Bob Neuhaus, Senior Director of Financial Services at JD Power. “While overall satisfaction is improving, one area where both banks and credit card companies continue to struggle is in making sure customers completely understand all features. Currently, fewer than 80% of customers indicate they have a complete understanding of the feature-rich apps being offered by their banks and credit card companies.”

Following are some key findings of the 2018 study:

• Bank and credit card apps guide the way in mobile: The overall customer satisfaction score for retail banking mobile apps is 867, up 12 points from 2017 and credit card mobile apps is 874, an increase of 2 points (on a 1,000-point scale). With 43% of bank customers using their mobile app in the past three months, mobile has become a critical interaction channel for the industry.

• Understanding feature-laden apps is important: The ability to completely understand all app features has the greatest effect on overall satisfaction among banking and credit card app users. Complete customer understanding of the mobile app is associated with a 116-point improvement in overall satisfaction for banking apps and a 114-point improvement for credit card apps. Despite this significant influence, fewer than 80% of customers indicate a complete understanding of all features offered by their banking and credit card apps.

• The more you use it, the more you like it: Overall customer satisfaction is higher among customers who utilize their apps 12 or more times per month, ranging from 44-55 points, when compared with those utilizing their apps three or fewer times per month. 

• Highest-performing apps have rich feature set: The highest-performing apps in the study have a combination of high functionality and high performance, which means they have features such as multiple security login options, built-in chat functionality and account management functions, all of which are user-friendly and well-designed.

Study Rankings

Capital One ranks highest in overall satisfaction in the retail bank category for a second consecutive year, with a score of 888. BB&T (879)ranks second and Chase (876) ranks third. Illustrating the tight competition in the mobile app space, just 39 points separates the highest-ranked and lowest-ranked performers in the study.

American Express ranks highest in overall satisfaction in the credit card category with a score of 894. Discover ranks second with a score of 886 and Capital One ranks third with a score of 884.

The 2018 U.S. Banking App Satisfaction and U.S. Credit Card App Satisfaction studies measure overall satisfaction with mobile banking and credit card applications based on five factors (in order of importance): ease of navigation; appearance; clarity of information; range of services; and availability of key information. The studies are based on responses from 6,272 retail bank and credit card customers nationwide. Both studies were fielded in April-May 2018.

To learn more about the U.S. Banking App Satisfaction Study, visit http://www.jdpower.com/business/resource/us-banking-mobile-app-satisfaction-study

To learn more about the U.S. Credit Card App Satisfaction Study, visit http://www.jdpower.com/business/resource/us-credit-card-mobile-app-satisfaction-study

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Auto Insurance Customer Satisfaction Reaches Record High, JD Power Finds

2018-06-12

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COSTA MESA, Calif.: 14 June 2018 — Despite steadily increasing premiums, auto insurance customers are more satisfied with their carriers than ever. The reason? According to the JD Power 2018 U.S. Auto Insurance Study,^SM insurers are beginning to get the customer interaction formula right, offering a mix of digital and live interactions that keep customers engaged with their brands across all channels.

“Cost is not the sole indicator of customer satisfaction in the auto insurance industry,” said Robert Lajdziak, Insurance Practice Business Consultant at JD Power. “Low prices may attract new customers, but it’s service that keeps them. The auto insurers that increase customer satisfaction across all facets of the customer experience make price just one part of the overall relationship.”

More frequent use of digital interaction channels—particularly for monthly billing—also has played a major role in driving higher levels of satisfaction. “Customer satisfaction is at its highest when customers take care of transactions themselves and save the high-value interactions for live channels,” Lajdziak said. “However, the increasing demand and use of digital self-service options is putting pressure on agents to evolve their value proposition to offer more products and services to help customers with complex needs and risks.”

Following are some of the key findings of the 2018 study:

• Record-high customer satisfaction breeds loyalty: Overall customer satisfaction with U.S. auto insurers improves in 2018 and is now at a record-high level of 826 (on a 1,000-point scale). This increase in customer satisfaction is inversely correlated with a decline in auto insurance shopping rates, which have reached a record low.^[1]

• Insurers delivering strong omnichannel experience: Customer satisfaction improves across all factors measured in the study, with the biggest gains in billing process and policy information (+11 points); policy offerings (+10); price (+6); and interaction (+3). The gain in the billing process and policy information factor is partly driven by increased satisfaction with electronic statements and monthly billing.

• Preference for digital interaction channels grows: Overall satisfaction tends to be highest when customers interact via a mix of online and offline methods of communication. The preference for digital forms of communication is greatest for low touch-point interactions, such as verifying payment receipt (73% digital preference); making payment (70% digital preference); and ordering proof of insurance cards (66% digital preference).

• Transparency is key when premium increases are introduced: When there is an insurer-initiated premium increase, it is important to communicate that an increase is coming. When customers are pre-notified of a premium increase, overall satisfaction is 797. When they are not notified—which happens 49% of the time—overall satisfaction drops 49 points to 748.

• Usage-based insurance programs grow significantly: Usage-based insurance programs, which leverage telematics technology to set insurance premiums based on how far and how safely a customer drives, are gaining converts. This year, 10% of insurance customers indicate participating in usage-based insurance programs, up from 8% in 2016 and 2017. While the most common reason for participating in a usage-based program is to obtain a discount, speeding alerts, vehicle tracking and driver coaching are gaining importance among customers currently using such programs.

Study Rankings

Following are the highest-ranked auto insurance brands by region:

California: Ameriprise
Central: Shelter
Florida: MetLife
Mid-Atlantic: Erie Insurance
New England: Amica Mutual
New York: New York Central Mutual
North Central: Auto-Owners Insurance
Northwest: PEMCO Insurance
Southeast: Farm Bureau Insurance—Tennessee
Southwest: CSAA Insurance Group
Texas: Texas Farm Bureau

The 2018 U.S. Auto Insurance Study examines customer satisfaction in five factors (in order of importance): interaction; policy offerings; price; billing process and policy information; and claims. The study is based on responses from 44,622 auto insurance customers and was fielded from February-April 2018.

For more information about the U.S. Auto Insurance Study, visit http://www.jdpower.com/business/resource/jd-power-us-auto-insurance-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Price and Experience Key Reasons Customers Select Online Flower Retailers, JD Power Finds

2018-03-22

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COSTA MESA, Calif.: 21 March 2018 — Online flower retailer customer satisfaction continues to be contingent on competitiveness of pricing, and online store services and delivery of the brand, according to the JD Power 2018 Online Flower Retailer Satisfaction Report,^SM released today. Customer satisfaction, however, has decreased from 2017, due to declines in customer service and online store services and delivery. Overall satisfaction among online flower retailer customers decreases to 823 (on a 1,000-point scale) from 829 in 2017.

The report measures overall satisfaction with online flower retailers among customers who completed a purchase from an online flower retailer website within the past 12 months. Satisfaction is examined across seven factors (listed in order of importance): competitiveness of pricing; online store services and delivery; in-stock availability of merchandise; usefulness of information; variety of merchandise offered; website/online store; and contact with customer service.

Among the retailers included in the report, ProFlowers ranks highest, earning an overall satisfaction score of 834. This is the fourth consecutive year that ProFlowers ranks highest, showing superior performance in the website/online store and in-stock availability of merchandise factors.

Notable in the report is thatamong delighted customers (overall satisfaction scores of 900 and above), 80% say they “definitely will” repurchase flowers from the brand, compared with the report average of 56%. Additionally, 90% of delighted customers say they “definitely will” recommend the brand to others, compared with the report average of 66%.

Report Rankings

ProFlowers (834) ranks highest in overall customer satisfaction, performing highest in two of the seven factors: website/online store and in-stock availability of merchandise. ProFlowers also performs well in usefulness of information, variety of merchandise offered, and online store services and delivery.

The 2018 Online Flower Retailer Satisfaction Report is based on responses from 1,038 customers who made an online purchase from an online flower retailer in the past 12 months. The report was fielded in February 2018.

For more information about JD Power solutions for the retail industry, visit http://www.jdpower.com/business/ratings/industry/retail.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

New Vehicle Sales Pace in March to Post Gains for First Time in 2018

2018-03-27

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DETROIT: 28 March 2018 — The new vehicle retail sales pace in March is expected to rise from year-ago levels, according to a forecast developed jointly by JD Power and LMC Automotive. The seasonally adjusted annualized rate (SAAR) for retail sales is expected to be 13.4 million units, up 200,000 from a year ago.  Retail sales are projected to reach 1,275,000 units, a 0.2% increase on a selling day adjusted basis compared with March 2017.

“Despite the disruption from inclement weather on the East Coast, the industry is expected to post year-over-year retail sales gains for the first time in 2018,” said Thomas King, Senior Vice President of the Data and Analytics Division at JD Power. “While this breaks a streak of three consecutive months of decline, the industry is boosted by a quirk in the calendar due to an additional selling weekend.” On a national basis, retail sales through the first three weeks of March are up 0.5% from last year, but in the Northeast, sales are down 0.5% over the same period. 

Average incentive spending, however, continues to rise and month-to-date is $3,849, up $74 vs. the same period last year.  Spending on trucks and SUVs (+$160) is driving the increase while spending on cars is down $54.

• The average new-vehicle retail transaction price month-to-date is $32,129, a record for March, surpassing the previous high of $31,391 set in March 2017.
• Consumers are on pace to spend $41 billion on new vehicles in March, more than $2 billion greater than last year’s level.
• Incentives as a percentage of MSRP are at 10.3% so far in March, exceeding the 10% level for 20th time in the past 21 months.
• Trucks account for 66% of new-vehicle retail sales through March 18—the highest level ever for the month of March—making it the 21st consecutive month above 60%.
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 70 through March 18, which is flat vs. last year.
• Fleet sales are expected to total 335,300 units in March, down 1.2% from March 2017.  Fleet volume is expected to account for 21% of total light-vehicle sales, flat vs. last year.

Jeff Schuster, Senior Vice President of Forecasting at LMC Automotive, said, “Auto sales remain on track for the expected marginal decrease on the retail side of demand for the year. The shift from cars to SUVs is expected to be more pronounced as we forecast SUVs to pick up 2.5 percentage points of share to 45%. Risk remains concentrated on NAFTA negotiations and tariffs, though optimism of a NAFTA deal is growing. Interest rates are rising as expected and we are looking for a total of four rate hikes in 2018, a headwind making borrowing more expensive and raising monthly payments.”

LMC’s forecast for 2018 total light-vehicle sales is just under 17.0 million units, a decrease of 1.3% from 2017. The retail light-vehicle forecast remains at 13.8 million units, a decline of 1.6% from 2017.

U.S. Retail SAAR— March 2017 to March 2018

 

(in millions of units)
Source: Power Information Network^® (PIN) from JD Power

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

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

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power or LMC Automotive. www.jdpower.com/corporate  www.lmc-auto.com

 

Smartphones Come Out Ahead in Satisfaction Among Online Vehicle Shoppers, JD Power Finds

2018-04-02

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COSTA MESA, Calif.: 3 April 2018—Overall satisfaction with using third-party automotive websites on a smartphone has shown significant year-over-year improvement compared with the desktop experience, according to the JD Power 2018 U.S.  Automotive Website Evaluation Study Cross-Device.^SM

“Five years ago, we would have been amazed to see higher satisfaction for vehicle research and shopping on a 5-inch screen,” said Amit Aggarwal, Senior Director, Digital Practice Lead at JD Power. “Year over year, smartphone users are visiting more content areas to configure vehicles, compare vehicles, search for inventory, view technical specifications and more.”

The 2018 Automotive Website Evaluation Study Cross-Device^SM concurrently evaluates automotive third-party websites from two perspectives across platforms (desktop/smartphone): overall site function and the importance of various site features to online shoppers. This study examines which current site functions and designs are most effective in helping shoppers narrow their consideration set and increasing their likelihood to recommend and return to the website.

Study Rankings

Desktop and smartphone rankings (separately awarded) are based on the combined index scores of the four measures that comprise the overall website experience: navigation; appearance; information/content; and speed. Satisfaction is based on a 1,000-point scale.

Autotrader ranks highest in overall satisfaction with automotive third-party desktop websites with a score of 789. TrueCar (782) ranks second and Cars.com (778) ranks third.

Kelley Blue Book ranks highest in overall satisfaction with automotive third-party smartphone websites with a score of 809. Edmunds.com (807) ranks second and Carfax (804) ranks third.

The 2018 Automotive Website Evaluation Study Cross-Device^SM is based on responses from 4,392 evaluations of automotive manufacturer websites by new- and used-vehicle shoppers who indicate they will be in the market for a vehicle within the next 24 months, with 2,130 being desktop evaluations and 2,262 being smartphone evaluations. The study was fielded in January 2018.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; 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

 

Fuel Efficiency, Design and Styling Key Selling Factors to Attract Gen Y Customers, JD Power Finds

2018-04-09

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Rising fuel costs are changing the purchase behavior of new-vehicle buyers in Mexico, especially among Gen Y^[1] customers, according to the JD Power 2018 Mexico Sales Satisfaction Index (SSI) Study,^SM released today. Among Gen Y customers, fuel efficiency is the second-most important reason for purchasing a specific make and model, preceded by attractive styling. Among all generations of new-vehicle buyers, fuel efficiency is the No. 1 most influential purchase reason this year, moving up from No. 4 last year.  

“While older customers put more emphasis on their previous experience with a brand when choosing a vehicle to purchase, younger customers don’t have as much prior experience to rely on, so they focus on other aspects of the vehicle,” said Gerardo Gomez, Senior Director and Country Manager at JD Power de Mexico. “Dealers looking to attract a younger segment of buyers need to emphasize such vehicle characteristics as fuel efficiency and styling when dealing with them. Much like in the United States, consumer preferences have shifted away from cars and toward SUVs, but the increased cost of fuel may slow the demand of SUVs and other large vehicles.”

A new metric, Net Promoter Score^® (NPS),^[2] which measures customer loyalty and predicts business growth, is included in the 2018 Mexico SSI Study to further show the role sales satisfaction plays in whether a customer will recommend a brand or tell others to avoid it. The study survey asks customers about their likelihood to recommend both their vehicle make and model on a 0-10 scale. Based on their responses, customers are grouped into either the detractor (0-6), passive (7-8) or promoter (9-10) group. Satisfaction among customers who are promoters of their vehicle model is 172 points higher (on a 1,000-point scale) than among those who are detractors, which demonstrates that, to create brand promoters, dealers must provide an excellent sales experience.

Following are some of the study’s key findings:

• The salesperson is a key factor in high satisfaction: Among the five measures examined in the study, salesperson earns the highest satisfaction score (873) among new-vehicle buyers. The two highest-rated attributes in the measure are courtesy and attentiveness.
• Useful content while shopping online matters: Automotive internet shoppers citing an automotive manufacturer or dealer site as the most useful type of site they visited say that photo galleries, vehicle pricing and model information were the most useful content. These findings are consistent with shoppers in the United States where, according to the 2017 New Autoshopper Study^SM, model information is the most useful content when shopping for a new vehicle on the internet, followed by vehicle pricing and photo galleries. This is true of shopping content on all auto shopping sites, not just OEM and dealer sites. In fact, 46% of automotive internet shoppers in Mexico visited the manufacturer website of the brand they eventually bought.

Study Rankings

GMC ranks highest among luxury brands, with a score of 889. Mercedes-Benz ranks second (879), followed by Audi (875).

Mazda ranks highest among mass market brands, with a score of 894. Kia ranks second (883), followed by Hyundai (866).

The study, now in its fifth year, is a comprehensive analysis of the new-vehicle purchase and delivery experience, and examines customer satisfaction with the selling dealer across five measures (listed in order of importance): vehicle delivery (26%); working out the deal (24%); salesperson (19%); dealership facility (18%); and test drive (14%). Overall satisfaction is calculated on a 1,000-point scale.

The 2018 Mexico Sales Satisfaction Index Study is based on the evaluations of 3,303 new-vehicle owners in Mexico after one to 12 months of ownership. The study was fielded from September 2017 through March 2018.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contact
Brais Alvarez; Mexico City, Mexico; +52 55 4162 2827 / +52 1 55 7474 4074; [email protected]
Silvia Mosqueda; Mexico City, Mexico; +52 1 55 5368 2177; [email protected]
Geno Effler; U.S.A.; 714-621-6224; [email protected]

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