Category: United States

New-Vehicle Sales Still Restricted by Low Supply in November; Demand Sustains Record-High Levels of Prices and Profits

2021-11-24

jillian.breska

New-vehicle retail sales for November 2021 are expected to decline when compared with November 2020, according to a joint forecast from JD Power and LMC Automotive. Retail sales of new vehicles this month are expected to reach 933,700 units, a 12.6% decrease compared with November 2020 when adjusted for selling days. November 2021 has one more selling day than November 2020. Comparing the same sales volume without adjusting for the number of selling days translates to a decrease of 8.8% from 2020.

The Total Sales Forecast

Total new-vehicle sales for November 2021, including retail and non-retail transactions, are projected to reach 1,061,900 units, a 14.8% decrease from November 2020. Comparing the same sales volume without adjusting for the number of selling days translates to a decrease of 11.1% from 2020.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 13.6 million units, down 2.2 million units from 2020.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“For November—as has been the case since August—new-vehicle sales are being constrained by available inventory. Retail inventory on dealer lots is expected to end below one million vehicles for a fourth consecutive month, with sales in each month being dictated by the number of vehicles delivered to dealerships rather than reflecting actual demand. The lack of vehicles in inventory this month is particularly significant as the typical Black Friday sales surge will be difficult to support. Nevertheless, strong underlying demand for new vehicles, coupled with rising pent-up demand due to the inventory shortage, is sustaining record transaction prices and profits for each unit sold.

“Retailers continue to sell a large proportion of vehicles almost as soon as they arrive in inventory. This November, a record of nearly 55% of vehicles will be sold within 10 days of arriving at a dealership, while the average number of days a new vehicle sits on a dealer lot before being sold is on pace to fall to 19 days, a record low and down from 48 days a year ago.

“This scarce inventory is being met with powerful demand that continues to maintain prices—and profit per unit sold—at record levels. Average transaction prices are expected to reach a November record of $44,043, a sixth consecutive month above $40,000, and 18.1% higher than November 2020 when prices hit $37,284.

This is partly due to record-low manufacturer incentives. The average manufacturer incentive per vehicle is on pace to be a November low of $1,612, a decrease of $2,089 from a year ago. Expressed as a percentage of the average vehicle MSRP, incentives for November 2021 are trending toward a record-tying low of 3.6%, down nearly five percentage points from a year ago and the second time on record below 4.0%.”

Despite retail volumes in November being down significantly, the higher prices mean that buyers are on track to spend $41.1 billion on new vehicles this month, the highest on record for the month of November.

Total retailer profit per unit—inclusive of grosses and finance & insurance income—is on pace to reach a record $5,164, an increase of $3,060 from a year ago and a second consecutive month above $5,000. Grosses have been above $4,000 for five consecutive months. Despite the drop in sales volume, this record profit per unit sold will result in November 2021 being the most profitable month on record for retailers. Total aggregate retailer profit from new-vehicle sales is projected to be up 226% from November 2019, reaching $4.8 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 value for November is trending towards $9,549, an increase of $4,332 (83%) from a year ago and the first time above $9,000. Also, interest rates are favorable when compared with a year ago. The average interest rate for loans in November is expected to decrease 30 basis points to 4.01%. Even with lower interest rates and increased trade-in values, the average monthly finance payment is on pace to hit a record high of $670, up $74 from November 2020.

“Looking forward to closing out 2021, retail sales again will be dictated by the number of vehicles shipped from plants and ports to dealerships. However, indications are that shipments will not rise materially. Therefore, the traditional year-end sales push will be somewhat non-traditional. Overall, even with the extremely constrained supply in the second half of 2021, the industry will still sell more vehicles than in 2020. However, 2021 sales will not come close to the sales volume potential that could have been realized if production and supply were at historical levels. The silver lining is that many of the shoppers who could not find a vehicle in 2021 will likely still be in the market in 2022.”

Sales & SAAR Comparison

U.S. New Vehicle	November 20211, 2	October 2021	November 2020
Retail Sales	933,699 units (-12.6% lower than November 2020)2	927,129 units	1,023,374 units
Total Sales	1,061,904 units (-14.8% lower than November 2020)2	1,051,442 units	1,194,788 units
Retail SAAR	11.5 million units	11.5 million units	13.0 million units
Total SAAR	13.6 million units	13.1 million units	15.8 million units

¹ Figures cited for November 2021 are forecasted based on the first 11 selling days of the month. 
² November 2021 has 24 selling days, one more than November 2020.

The Details

• The average new-vehicle retail transaction price in November is expected to reach $44,043. The previous high for any month, $44,417, was set in October 2021.
• Average incentive spending per unit in November is expected to reach $1,612, down from $3,701 in November 2020. Spending as a percentage of the average MSRP is expected to fall to 3.6%, down five percentage points from November 2020.
• Average incentive spending per unit on trucks/SUVs in November is expected to be $1,640, down $2,065 from a year ago, while the average spending on cars is expected to be $1,497, down $2,191 from a year ago.
• Buyers are on pace to spend $41.1 billion on new vehicles, up $3.0 billion from November 2020.
• Truck/SUVs are on pace to account for a record 81.2% of new-vehicle retail sales in November.
• Fleet sales are expected to total 128,000 units in November, down 28.3% from November 2020 on a selling day adjusted basis. Fleet volume is expected to account for 12% of total light-vehicle sales, down from 14% a year ago.

Global Sales Outlook

Jeff Schuster, president, Americas operations and global vehicle forecasts, LMC Automotive:
“The global light-vehicle selling rate for October 2021 improved to 77.0 million units, up from 73.5 million in September—but still 15 million units below October 2020. Global volume declined 16% year over year, as markets remain mixed and the supply shortages continue to plague the industry. The volume decline has accelerated in Western Europe, down 27% from October 2020, while China greatly outperformed expectations, falling just 7% from a year ago. India also improved and was off just 21% from October 2020. The United States, South Korea and Eastern Europe were down 21-22% year over year. November 2021 is expected to show slight improvement from October but is expected to be down 14% year over year. The selling rate is projected to increase marginally to 77.2 million units.

“The supply shortage is being managed in very creative ways, from building vehicles without certain content to bringing chip development and production in-house for better supply chain visibility. However, the improvements in vehicle production are inconsistent around the world. China and India both saw stronger vehicle production in October, but North America and Europe remain constrained. Even as plants restart after being down for several weeks, they are not running near normal levels. While the solutions are intended to minimize the disruption now or in the future, consumers will continue to find it difficult to purchase the exact vehicle they want for several months to come. The outlook for 2021 has been quite fluid but the forecast this month remains at the 80-million-unit level—with a 200,000-unit improvement—representing a decline of 4% from 2020. The recent performance in China suggests that there may be some upside potential in the world’s largest market as the year closes. With the chip shortage appearing to level off, we have increased the 2022 forecast by 400,000 units to 85.2 million.”

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

 

Gas Utility Residential Satisfaction at All-Time High but Decline Looms, JD Power Finds

2021-11-25

jillian.breska

As customer satisfaction with gas utilities reaches an all-time high in 2021, rising natural gas prices and a shift away from billing forgiveness may affect future satisfaction levels, according to the JD Power 2021 Gas Utility Residential Customer Satisfaction Study,^SM released today.

“Residential gas utility providers did a phenomenal job of keeping customers satisfied through the pandemic with increased communication, billing forgiveness programs and conservation tips,” said Mark Spalinger, director of utilities intelligence at JD Power. “Looking forward to these next 12 months with natural gas prices and customer usage increasing, utilities must continue to help customers manage their monthly usage and provide clear information regarding billing to avoid satisfaction declines.”

Study Results

• East Large Segment: New Jersey Natural Gas (for a seventh consecutive year)
• East Midsize Segment: Elizabethtown Gas (for a seventh consecutive year)
• Midwest Large Segment: DTE Energy (for a second consecutive year)
• Midwest Midsize Segment: WPS
• South Large Segment: Texas Gas Service
• South Midsize Segment: TECO Peoples Gas (for a ninth consecutive year)
• West Large Segment: Southwest Gas (for a second consecutive year)
• West Midsize Segment: Intermountain Gas Company (for a second consecutive year)

The 2021 Gas Utility Residential Customer Satisfaction Study is based on responses from 58,793 online interviews conducted from January 2021 through October 2021 among residential customers of the 85 largest gas utility brands across the United States, which represent more than 62.9 million households.

For more information about the Gas Utility Residential Customer Satisfaction Study, visit https://www.jdpower.com/business/resource/us-gas-utility-residential-customer-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

 

JD Power Study on Fully Automated Self-Driving Vehicles: Consumers Don’t Know What They Don’t Know

2021-11-25

jillian.breska

While the automotive industry continues to move toward fully automated, self-driving vehicles, the pace is not being matched by educational efforts that will help bring buyers into the modern mobility movement. According to the redesigned JD Power 2021 Mobility Confidence Index (MCI) Study,^SM released today, consumers possess inaccurate knowledge of fully automated self-driving vehicles.

Survey respondents were asked to select one of seven possible descriptions to define fully automated self-driving vehicles. Based on SAE International’s definition of Level 4 and Level 5 self-driving, two descriptions correctly defined a fully automated self-driving vehicle, which only 37% of MCI respondents selected. More than half (55%) of respondents selected descriptions that are aligned with driver assist technology, which describe lower levels of automation currently available in many product offerings.

The ability to accurately define a fully automated, self-driving vehicle is even lower (32%) among those with higher self-reported levels of automated vehicle (AV) knowledge. Survey findings show those who self-report knowing nothing at all about AVs are actually more accurate (37%) in defining fully automated self-driving vehicles.

“This is a ‘Danger, Will Robinson’ moment for the fully automated self-driving vehicle industry,” said Lisa Boor, senior manager of global automotive at JD Power. “There is a significant gap between actual and perceived AV knowledge.  Right now, consumers don’t know what they don’t know. Clear, consistent messaging from industry stakeholders is needed to improve the accuracy of consumer AV knowledge. The industry needs to be the catalyst for educating the public before running into such speed bumps. AV education must expand beyond current, traditional learning methods.”

The study index is based on six unique attributes of consumer comfort with fully automated, self-driving vehicles. The comprehensive metric measures consumer readiness for AV technology in several categories: personal vehicles; commercial vehicles; public transit; riding if unable to drive due to age or injury; sharing the road with other AVs; and consumer purchase intent.

This year, the study has been redesigned as an annual offering from JD Power, MIT Advanced Vehicle Technology Consortium (MIT AVT) and Partners for Automated Vehicle Education (PAVE). By merging the quarterly JD Power MCI Study with the annual MIT AVT Automated Driving Technologies Study, key metrics from both are maintained with a freshening of phrasing and survey terminology. The redesign also provides the opportunity to add several new topics not previously covered. The study is further strengthened by the participation and support of the PAVE coalition and its goal of raising public understanding of driverless vehicle technology.

Following are key findings from the 2021 study:

• Knowledge not the same as learning: Consumer interest in AVs increases 10 percentage points from the JD Power 2020 Q3 MCI Study, with 51% now having more general interest due to something they read or heard. However, only 29% of respondents have actively sought to find information about AVs. The majority (53%) of respondents believe the best way to learn about AVs is a driver’s education course for self-driving vehicles. A majority (58%) also say they are willing to complete specialized training for a special AV driver’s license. At the opposite end of the learning spectrum, 27% say they would prefer to learn by doing in a self-taught fashion. “These results demonstrate the power of knowledge,” said Tara Andringa, executive director of PAVE. “The more people see and learn, the more they want to know. And we can help to quench that thirst for learning by providing clear, hype-free facts and simple, consistent terminology.”
• Today’s experiences build tomorrow’s customers and expectations: Leading the way for greater self-driving vehicle expectations and consumer acceptance are experiences with current Advanced Driver Assistance Systems (ADAS). Today, 41% of respondents are comfortable with driver assist technology being the maximum level of automation, which is 27 percentage points higher than those who would be comfortable with fully automated self-driving vehicles. Adding to the challenge is that 19% of respondents believe that fully automated self-driving vehicles are available for purchase or lease today—an incorrect belief that is also shared by 16% of Tesla owners. “Tesla” was the most frequently mentioned word when respondents were asked what comes to mind when saying fully automated self-driving vehicles are available today.
• Consumer self-driving vehicle readiness rises: The score for confidence in fully automated self-driving vehicles improves to 42 (on a 100-point scale) from 34 a year ago and 36 two years ago. Positively trending is the excitement to use fully automated self-driving services when compared with the JD Power 2020 Q3 MCI Study: personal vehicles (+11 percentage points); delivery services (+3); taxi/ride-hailing services (+4); and public transit (+2). Nearly one-third (31%) of respondents say they are very comfortable or extremely comfortable with transporting goods in a fully automated, self-driving vehicle, and the comfort level increases to 47% among those with an active driving assistance feature on their current vehicle. Respondents also see the benefit in fully automated self-driving vehicles for those unable to drive due to age or injury—a newly added index attribute for this year’s study—as respondents’ comfort levels are 27% overall and 45% among those with active driving assistance on their current vehicle.
• Consumer comfort is higher for AV applications that may not involve them: Of all fully automated self-driving modalities measured, consumers are most comfortable with goods being transported commercially and riding in a fully automated self-driving vehicle if unable to drive due to age or injury. The attributes that are more likely to affect a consumer personally—AV public transit and riding in fully automated self-driving vehicles—have the lowest levels of comfort.

“Safety is paramount when building any self-driving experience,” said Bryan Reimer, Ph.D., research scientist in the MIT AgeLab and associate director of The New England University Transportation Center at MIT. “Organizations working as technology pioneers have the responsibility to create realistic and accurate consumer expectations for what their products can and cannot do. Small setbacks in public trust triggered by misuse of systems or a failure of a system to perform based upon misconceived consumer expectations may hamper deployments over the coming decades, depriving consumers of the convenience and safety benefits the technology can potentially offer. Consumer overconfidence and lack of knowledge to date can lead to risk taking that will cause the AV industry to hit a lot of potholes.”

The JD Power 2021 Mobility Confidence Index (MCI) Study is based on responses from 4,000 vehicle owners in the United States age 18 and older who completed a 15-minute online survey. The study results were balanced to basic census demographics to be nationally representative. The study was fielded in June-July 2021.

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

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

 

Digital Insurance Claims Management Languishes, JD Power Finds

2021-12-06

jillian.breska

Property and casualty (P&C) insurance claims were supposed to be the tip of the sword when it came to digital transformation. Instead, the industry is lagging far behind financial services and utilities providers when it comes to the digital customer experience. According to the JD Power 2021 U.S. Claims Digital Experience Study,^SM released today, none of the most important key performance indicators are achieving even a 50% success rate and adoption remains stubbornly low. During the course of this year, just 40% of claimants interacted with an estimator via digital channels and only 47% made a claim via a website.

“At a time when virtually every other industry is experiencing significant gains in digital customer engagement, the insurance claims process has not really evolved beyond the launch of digital photo estimation three years ago,” said Martin Ellingsworth, executive managing director of P&C insurance intelligence at JD Power. “It’s no secret the industry has been investing heavily in back-end technology such as straight-through processing, which should help set the stage for faster, more personalized digital claims management tools. But right now, there is still a great deal of room for improvement in these functions. It is also critical to note that satisfaction is highest when claimants have options to interact via the channel they choose and not feel forced into a one-size-fits-all experience.”

The U.S. Claims Digital Experience Study, now in its second year, evaluates digital experiences among P&C insurance customers throughout the claims process. It examines the functional aspects of desktop, mobile web and mobile apps based on four factors: appearance; clarity of the information; navigation; and range of services. The study is conducted in partnership with Corporate Insight, the leading provider of competitive intelligence and user experience research to the financial services and healthcare industries.

“The insurance industry really needs to look at what leaders in the banking and wealth industries are doing with their web and mobile apps as a guide for where customer expectations have moved during the past several months,” said Michael Ellison, president of Corporate Insight. “Simple, easy-to-use tools, like calculators and estimators that help customers set realistic expectations and provide important information throughout the process go a long way toward driving engagement and end-user satisfaction.”

Following are key findings of the 2021 study:

• Phone still dominates estimator phase, dragging down customer satisfaction: Just 40% of claimants interact with their claim estimator via digital channels, while 49% interact with their claim estimator via phone. The average overall customer satisfaction score among those claimants who use the phone is 861 (on a 1,000-point scale), lower than in any other interaction channel. Use of video chat with an estimator is associated with the highest level of overall satisfaction (882), yet it is experienced by just 26% of claimants.
• Key satisfaction metrics being missed: Digital claims management tools are hitting their key performance indicators for the estimation process just 35% of the time and for digital reporting just 40% of the time.
• Generational disparities magnified: Members of the Boomer¹ generation are using insurance digital claims tools less and experiencing lower levels of overall satisfaction than are members of Generations Y and Z.

The 2021 U.S. Claims Digital Experience Study is based on 3,043 evaluations by auto or home insurance customers who filed a claim in the past 12 months. The study was fielded from June through September 2021.

For more on the U.S. Claims Digital Experience Study, visit https://www.jdpower.com/business/insurance/us-insurance-claims-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.

Corporate Insight is the recognized industry leader in competitive intelligence, user experience research and consulting services to the nation’s leading financial services and healthcare institutions for more than 25 years. Its best-in-class research platform and unique approach of analyzing the actual customer experience help corporations advance their competitive position in the marketplace.

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

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); and Gen Y (1977-1994); and Gen Z (1995-2004). Xennials (1978-1981) and Millennials (1982-1994) are subsets of Gen Y.

 

Electric Utility Providers Can Increase Satisfaction by Supporting Local Economic Development Efforts, JD Power Finds

2021-12-15

jillian.breska

Overall electric utility residential customer satisfaction is 748 (on a 1,000-point scale) in 2021, a decrease from a record-high 751 in 2020, according to the JD Power 2021 Electric Utility Residential Customer Satisfaction Study,^SM released today. This year’s study shows only 32% of customers are aware of their utilities’ efforts to help economic development in their local communities.

“In today’s roller coaster economic environment, electric utility providers need to not only increase their efforts to help their local economies but also communicate more effectively about utility programs and activities,” said John Hazen, managing director of the utility practice at JD Power. “Utility customers want to hear about these efforts and, when they do, overall satisfaction is higher. Promoting economic development efforts can increase overall satisfaction by as much as 122 points.”

Study Results

• East Large Segment: PPL Electric Utilities (for a 10th consecutive year)
• East Midsize Segment: Penn Power
• Midwest Large Segment: Ameren Illinois
• Midwest Midsize Segment: Kentucky Utilities (for a sixth consecutive year)
• South Large Segment: Florida Power & Light (for a second consecutive year)
• South Midsize Segment: EPB (for a sixth consecutive year)
• West Large Segment: SRP (for a 20^th consecutive year)
• West Midsize Segment: Clark Public Utilities (for a 14^th consecutive year)
• Cooperatives Segment: Clay Electric Cooperative

The 2021 Electric Utility Residential Customer Satisfaction Study is based on responses from 100,999 online interviews conducted from January 2021 through November 2021 among residential customers of the 145 largest electric utility brands across the United States, which represent more than 101 million households.

For more information about the Electric Utility Residential Customer Satisfaction Study, visit https://www.jdpower.com/business/resource/electric-utility-residential-customer-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

 

 

Capital One Ranks Highest in Customer Satisfaction for Second Consecutive Year in JD Power National Banking Study

2021-12-15

jillian.breska

Convenience, tailored account offerings and helping customers save time or money emerge as core drivers of customer satisfaction at the nation’s largest retail banks. According to the JD Power 2021 U.S. National Banking Satisfaction Study,^SM released today, Capital One is delivering on these performance attributes most consistently, becoming the top-ranked retail bank in overall customer satisfaction for a second consecutive year.

“Customers have come to expect the nation’s largest retail banks to be able to meet them on their terms across all channels, delivering a flexible, highly engaging experience along the way,” said Paul McAdam, senior director of banking services at JD Power. “Retail banking customers say the most important steps banks can take to deliver that highly personalized level of service are to provide relevant account alerts and guidance on ways to save money and optimize spending. It is also noteworthy, in light of Capital One’s recent announcement that it is eliminating overdraft fees, that proactive efforts by banks to help customers avoid fees is one of the most powerful ways to personalize the banking experience.”

Study Ranking

Capital One ranks highest for a second consecutive year with an overall satisfaction score of 692 (on a 1,000-point scale). Capital One performs highest in providing digital channels; helping customers save time or money; delivering account offerings that meet customer needs; and allowing customers to bank how and when they want. PNC (684) ranks second and performs highest in resolving customer problems and instilling overall brand trust. TD Bank (673) ranks third, performing highest in the people factor, with representatives, tellers and call center agents who excel at customer relations.

The study, now in its fifth year, provides a comprehensive view of the customer experience with all retail bank product lines for nine national banks in the United States. It evaluates bank customer experience across seven factors: trust; people; account offerings; allowing customers to bank how and when they want; saving time and money; digital channels; and resolving problems or complaints.

The study defines a national bank as a U.S. bank holding company with domestic deposits exceeding $200 billion. The study is based on responses from 8,015 retail banking customers and was fielded from August through October 2021.

For more information about the JD Power U.S. National Banking Satisfaction Study, visit https://www.jdpower.com/business/financial-services/national-bank-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

 

JD Power Strengthens Insurance Thought Leadership Team with Hiring of Trusted P&C Executive Marty Ellingsworth

2021-12-15

jillian.breska

As the insurance industry rapidly evolves, JD Power has the insight and data from syndicated studies, advanced analytics, artificial intelligence (AI) and cloud information to not only educate providers, but also consumers. To assist in analyzing and disseminating this information to improve the industry and the companies that serve it, JD Power has hired property & casualty (P&C) insurance expert Marty Ellingsworth as executive managing director of global insurance intelligence. With his expertise in providing the insurance industry with customer experiences and expectations, Ellingsworth will be spearheading the thought leadership sector of the global insurance intelligence practice.

Ellingsworth brings more than 20 years of analytics and insurance experience to JD Power and has served as a thought leader in data, AI, and cloud at Celent (part of OliverWyman and Marsh & McLennan), an advisory firm at which he focused on insurance. He also held leadership roles in analytics with USAA, Verisk and Allianz (Fireman’s Fund), as well as a venture capital-backed insurtech pioneering text analytics and predictive modeling products. Prior to P&C insurance, he led analytics and network products in healthcare, and served as a scientific analyst while an officer in the U.S. Air Force.

“Marty brings a deep understanding of the U.S. insurance industry and the role that data, analytics and benchmarking can play in driving transformation,” said Keith Webster, president of global business intelligence at JD Power. “This will serve JD Power in our mission to educate and evolve the industries we benchmark to be more customer centric, innovative and successful every day.”

To view Ellingsworth’s online bio and headshot, visit https://www.jdpower.com/sites/default/files/file/2021-11/EllingsworthMarty.pdf

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

 

Lack of Supply Still Restricting New-Vehicle Sales in December; Prices and Profits Continue to Set Records

2021-12-23

jillian.breska

The Retail Sales Forecast

New-vehicle retail sales for December 2021 are expected to decline when compared with December 2020, according to a joint forecast from JD Power and LMC Automotive. Retail sales of new vehicles this month are expected to reach 1,105,800 units, a 17.4% decrease compared with December 2020 when adjusted for selling days. December 2021 has one fewer selling day than December 2020. Comparing the same sales volume without adjusting for the number of selling days translates to a decrease of 20.4% from 2020.

New-vehicle retail sales in Q4 2021 are projected to reach 2,923,600 units, a 17.7% decrease from Q4 2020 when adjusted for selling days.

New-vehicle retail sales for 2021 are projected to reach 13,074,500 units, a 6.5% increase from 2020 when adjusted for selling days.

The Total Sales Forecast

Total new-vehicle sales for December 2021, including retail and non-retail transactions, are projected to reach 1,245,600 units, a 20.5% decrease from December 2020. Comparing the same sales volume without adjusting for the number of selling days translates to a decrease of 23.3% from 2020.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 13.0 million units, down 3.5 million units from 2020.

New-vehicle total sales in Q4 2021 are projected to reach 3,302,700 units, a 19.9% decrease from Q4 2020 when adjusted for selling days.

New-vehicle total sales for 2021 are projected to reach 14,958,900 units, a 4.2% increase from 2020 when adjusted for selling days.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“Despite inventory shortages constraining December sales volumes, there are several good news stories for the industry. Retail inventory is showing some improvement, tracking at just more than one million units for the first time since July and transaction prices and retailer profits are at record highs.

“Retailers continue to sell most vehicles nearly as soon as they arrive in inventory. This December, a record of nearly 57% of vehicles will be sold within 10 days of arriving at a dealership, while the average number of days a new vehicle sits on a dealer lot before being sold is on pace to fall to 17 days, a record low and down from 49 days a year ago.

“While the inventory situation has improved modestly since November, supply remains well below the level at which consumer demand for new vehicles can be met. Intense demand with this limited supply is resulting in prices continuing to increase. Average transaction prices are expected to reach a record of $45,743, the first time ever above $45,000 and 20% higher than December 2020 when prices eclipsed $38,000 for the first time.”

Record transaction prices are partly due to near record-low levels of discounting. The average manufacturer incentive per vehicle is on pace to be a low for the month of December at $1,598, a decrease of $2,291 from a year ago. Expressed as a percentage of the average vehicle MSRP, incentives for December 2021 are trending toward a record-tying low of 3.5%, down nearly 5.5 percentage points from a year ago and the third consecutive month below 4.0%.

All told, consumers are on track to spend $50.6 billion on new vehicles this month, the second highest on record for the month of December and the fifth-highest amount for any month on record.

Dealers also are continuing to benefit from high transaction prices with total retailer profit per unit—inclusive of grosses and finance & insurance income—being on pace to reach a record $5,258, an increase of $3,277 from a year ago and a third consecutive month above $5,000. The gains in per-unit profit more than offset the drop in sales volume, which will make December 2021 the most profitable month on record for retailers. Total aggregate retailer profit from new-vehicle sales is projected to be up 254% from December 2019, reaching $5.8 billion, the first time over $5 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 December is trending towards $10,199, an 83% increase of $4,623 from a year ago and the first time above $10,000. Also, interest rates are favorable when compared with a year ago. The average interest rate for loans in December is expected to decrease nine basis points to 4.05%. Even with lower interest rates and increased trade-in values, the average monthly finance payment is on pace to hit a record high of $680, up $78 from December 2020.

“Full year 2021 will still show a solid sales increase from 2020. The year-over-year sales declines experienced every month in the second half of 2021 were not enough to wash the record sales pace in the first half of the year. Also, pricing and profitability for 2021 will achieve record levels for full year results. Overall, despite the inventory-related disruption to sales volume, the industry is closing out the year with record-breaking financial results.

“Looking forward to 2022, retail sales will continue to be dictated by the number of vehicles shipped from plants and ports to dealerships. Indications are that shipments will rise incrementally as the year goes on, allowing sales to rise from 2021 levels. However, pent-up consumer demand will keep inventory levels near historical lows. Therefore, 2022 is likely to be another year of record setting pricing and profitability.”

Sales & SAAR Comparison

U.S. New Vehicle	December 20211, 2	November 2021	December 2020
Retail Sales	1,105,832 units (-17.4% lower than December 2020)2	890,603 units	1,388,646 units
Total Sales	1,245,593 units (-20.5% lower than December 2020)2	1,005,689 units	1,624,743 units
Retail SAAR	11.7 million units	11.0 million units	14.3 million units
Total SAAR	13.0 million units	12.8 million units	16.5 million units

¹ Figures cited for December 2021 are forecasted based on the first 16 selling days of the month.
² December 2021 has 27 selling days, one fewer than December 2020.

The Details

• The average new-vehicle retail transaction price in December is expected to reach $45,743. The previous high for any month, $44,515, was set in November 2021.
• Average incentive spending per unit in December is expected to reach $1,598, down from $3,889 in December 2020. Spending as a percentage of the average MSRP is expected to fall to 3.5%, down 5.5 percentage points from December 2020.
• Average incentive spending per unit on trucks/SUVs in December is expected to be $1,607, down $2,291 from a year ago, while the average spending on cars is expected to be $1,562, also down $2,291 from a year ago.
• Buyers are on pace to spend $50.6 billion on new vehicles, down $2.3 billion from December 2020.
• Truck/SUVs are on pace to account for a record 80.2% of new-vehicle retail sales in December.
• Fleet sales are expected to total 140,000 units in December, down 38.6% from December 2020 on a selling day adjusted basis. Fleet volume is expected to account for 11% of total light-vehicle sales, down from 15% a year ago.

Global Sales Outlook

Jeff Schuster, president, Americas operations and global vehicle forecasts, LMC Automotive:
“Global light-vehicle sales declined 11% year over year in November to 6.7 million units, but the selling rate hit 80.1 million units, the second consecutive month with improvement. November’s rate was up 3.2 million units from October, but still more than 11 million units below the pace of last November. China continues to outpace the rest of the world, posting a decline of 8%, while Europe was down 17%. The United States, Japan and South Korea each posted declines near 16%. December is projected to maintain a selling rate of 80 million units, with volume off 13% from December 2020.

“A mild improvement in the chip shortage may be overshadowed by risk from the surge in Omicron variant COVID-19 cases. While vehicle shortage and the inventory crunch appear to have peaked, they continue to have a negative effect on demand. The uncertainty of potential restrictions and lockdowns in Europe and Asia could be problematic for global sales levels as we enter 2022. However, 2021 is now expected to finish at just above 81 million units, an increase of 4% from 2020, thanks to a recent increase in China and improvements in some markets in Western Europe. Even with the added risk, the outlook for 2022 has improved to 86 million units, an increase of 750,000 units from last month. We remain cautiously optimistic about the pace of recovery during the next 18 months.”

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

 

Mitigating Effect of Auto Inventory Shortages Imperative to Manufacturer Website Satisfaction, JD Power Finds

2022-01-06

jillian.breska

It is no secret that the U.S. auto industry is struggling with low inventory due to chip shortages and supply chain issues. Low inventory is not only affecting dealerships, but also manufacturer websites, according to the JD Power 2022 U.S. Manufacturer Website Evaluation Study,^SM —Winter, released today. Specifically, 53% of OEM websites saw a satisfaction decline in the feature that helps shoppers find a vehicle.

“Despite things that are out of the manufacturers digital control, like inventory issues, there are some best practices out there that can help mitigate these digital challenges,” said Jon Sundberg, director of digital solutions at JD Power. “Optimizing the website speed and including things such as waitlists, order when available or even simply stating issues upfront can make a big difference in website satisfaction.”

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

This wave of the study finds that overall satisfaction averages 724 (on a 1,000-point scale) for the premium segment and 711 for the mass market segment.

Study Rankings

Porsche ranks highest among premium manufacturer websites with a score of 746. Lincoln (744) ranks second and Cadillac (743) ranks third.

Subaru ranks highest in the mass market manufacturer website segment with a score of 733. Kia (729) ranks second and Dodge (728) ranks third.

The U.S. Manufacturer Website Evaluation Study—Winter, initially released in 1999, is based on responses from 11,150 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded in October-November 2021.

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

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

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

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

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

 

JD Power Leverages Recent Acquisitions to Launch Next-Generation Automotive Data Products

2022-01-15

jillian.breska

JD Power, a global leader in data analytics and consumer intelligence, is relaunching three major automotive data products maintained by the company’s Autodata Solutions division. These include solutions for vehicle identification number (VIN) descriptions, inventory management, and payment and incentives data for digital retail and desking applications.

The launch of ChromeData VIN Descriptions and ChromeData Certified Inventory are the result of the combined capabilities formed by the artificial intelligence (AI) and VIN-data engineering aptitude of EpiAnalytics, the comprehensive inventory management platform from Inventory Command Center (ICC) and the 30-year vehicle ChromeData catalog. The relaunch of ChromeData Lender Desk is a result of a major data expansion and upgrades to the offering that address the industry’s need for pricing and payment accuracy.

These developments allow JD Power to offer next-generation data products to the automotive industry. Each of these products offer seamless integration with the full ChromeData solution suite.

“Our recent acquisitions have elevated our leading ChromeData VIN Descriptions to a place where we provide exceptionally precise data for all the features, options, packages and equipment on a specific VIN, even in instances where use of OEM build data is not an option,” said Craig Jennings, president of the Autodata Solutions Division of JD Power. “This high-resolution data is being used in conjunction with our ChromeData Lender Desk service to provide precise pricing and payments for digital retailing, desking and loan origination and with our ChromeData Certified Inventory service to provide accurate branded vehicle listings across the industry.”

EpiAnalytics, a leader in using artificial intelligence and machine learning to transform unstructured data into critical business intelligence, was acquired by JD Power in March 2021. The company already had differentiated itself in the marketplace by delivering highly detailed, comprehensive vehicle build specification data associated with the 17-digit VIN.

“With online car shopping on the rise, the need for a definitive source to determine how vehicles are actually equipped as they roll off the production line is needed now more than ever,” said Jim Vecchio, head of VIN Products at JD Power. “We’ve taken our AI and machine learning capabilities and combined them with our comprehensive vehicle catalog data to deliver the industry’s most complete and accurate VIN decoding on the market today.”

ChromeData VIN Descriptions
ChromeData VIN Descriptions accurately identify and describe vehicles based on their VIN. Powered by deep and comprehensive vehicle data, configuration rules and industry-leading data-engineering capabilities, ChromeData VIN Descriptions are fully configurable and available in a tiered approach to provide precise data needed to serve—and streamline—the demands of a business and its operations.

ChromeData Lender Desk
ChromeData Lender Desk is a multi-level API data service solution that facilitates instant access to all OEM rates, rebates, incentives and independent lenders to power more effective vehicle advertising and better consumer experiences—whether it involves researching, shopping or purchasing in-store or online. No other service offers comprehensive, accurate and timely incentive and lender data at the same level of seamless integration.

ChromeData Certified Inventory
ChromeData Certified Inventory delivers consistent vehicle listings for effective digital merchandising. Integrated with hundreds of dealer inventory feed providers, our platform ingests data from dealer sources, consolidating disparate data feeds from multiple sources to create complete, normalized and comprehensive inventory records. These records include price mapping, vehicle data, photos, video, comments and more.

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