KIA Reaches Top 5 in CSI

After Kia achieved the second-highest increase of any brand in 2010, many outsiders might have expected Kia to fall back, or at best, stay the same in the 2011 J.D. Power and Associates Customer Satisfaction with Dealer Service Index (CSI) released earlier this month. However, thanks to the great efforts of  the Kia Salesmen, Servicemen and Managers, Kia was again among the most-improved makes with a huge 28-point improvement, vaulting our brand up 8 places to another all-time high rank of 5th of 21 mass-market OEMs! Here are a few highlights: 

• Kia is 26 points above the mass-market average, ahead of Honda, Toyota, and Ford.
• Kia has 3 consecutive years of dramatic improvement, up 78 points and 16 rank positions, by far the most in the industry over that time.
• Kia now leads all non-luxury Asian brands.
• For the second consecutive year, Kia improved in every index question, and especially so in the highest-weighted areas of Service Initiation (up 39 points) and Service Quality (up 29 points.)

 

I would also like to note that two more of Walker Automotive's brands, GMC and Buick, finished in the top 3.

Honda Tops Consumer Reports Survey

Honda, Subaru remain top automakers in Consumer Reports ranking

Automotive News
February 28, 2011 - 2:00 pm EST

UPDATED: 2/28/11 4:10 pm ET

WASHINGTON (Bloomberg) -- Honda and Subaru topped Consumer Reports' annual rankings of automakers for 2011, while better reliability and enhanced resale values helped Ford improve the most since last year.

Honda Motor Co. posted the best overall score of 74 out of 100 points in the Consumer Reports' ranking. Honda was followed by Subaru with 73 points and Toyota Motor Corp. with 71 points. Volvo placed fourth with 68 points, followed by Ford with 67 and Hyundai.

Chrysler Group LLC had the worst ranking among the car makers with 43 points. Mercedes-Benz, BMW and General Motors also placed near the bottom of the rankings.

The Ford Mustang was the No. 1 pick among sports cars, placing a U.S. manufacturer at the top of that list for the first time in six years. Top picks in other categories include Honda Motor Co.'s Fit for the new category of budget cars, Hyundai Motor Co.'s Elantra for small cars and Nissan Motor Co.'s Altima for family sedans for the second year.

"The (best picks) come from many different manufacturers," Consumer Reports' Director of Automotive Testing David Champion said in an interview. "At one time, it used to be dominated by Honda and Toyota."

According to the magazine, no Honda product scores less than average in reliability. Currently, Consumer Reports recommends 76 percent of the Honda vehicles it has tested. But some new Honda models have been unimpressive, the magazine said, including the new CR-Z coupe and Insight hybrids. The two hybrids didn't score well enough in tests to be recommended.

The redesigned Odyssey, the magazine's top-ranked minivan, also dropped a few points in its test score, compared with the previous year.

Subaru has the highest average road-test score -- 81 -- as measured by the magazine. And while the Japanese automaker only markets a half-a-dozen models, they all do well in Consumer Reports' road tests and nearly all are reliable. The Forester is a top-rated small SUV, and the Legacy sedan has been improved with each generation. Only one model, the sporty Impreza WRX, has below-average reliability, the magazine said.

Toyota, which last week recalled 2.17 million vehicles for floor mats that may jam accelerator pedals, claimed three of the 10 top picks, the most of any automaker. Toyota's RAV4 is the top small sport-utility vehicle, its Prius is the top environmentally friendly car for the eighth consecutive year, and its Sienna is the top family hauler.

Toyota's Prius scored the best for fuel economy at an average 44 miles per gallon. Five vehicles -- the Cadillac Escalade, the Ford Expedition EL Eddie Bauer, the Lincoln Navigator Ultimate, the Nissan Armada SV and the Nissan Titan SV -- tied for the worst with 13 mpg.

The magazine said GM's average test score for all tested models improved to 67 from 65 last year. But the automaker still markets a few lackluster models, the magazine said, including the Chevrolet Impala sedan and Colorado pickup.

Chrysler finished last in the rankings with an average test score of 50.

An automaker's overall score is based on a composite of road-test and predicted-reliability scores for all tested vehicles. The magazine's road test score is based on more than 50 tests and evaluations, covering performance, safety, fuel economy, comfort, and convenience. Reliability scores come from Consumer Reports' Annual Auto Survey, which included histories of 1.3 million vehicles.

The rankings by Consumer Reports influence car buyers and are published in the magazine's annual auto issue. Consumer Reports, published by Consumers Union, uses vehicle owner reliability surveys from 1.3 million people, government and insurance-industry crash tests and its own evaluations of how vehicles function for its ratings.

Ford F-150 Recall

WASHINGTON (AP) -- Under government pressure, Ford Motor Co. said Wednesday it will recall nearly 150,000 F-150 pickup trucks to fix air bags that could deploy without warning.


The recall covers trucks from the 2005-2006 model years in the United States and Canada for what the auto company calls a "relatively low risk" of the air bag deploying inadvertently.

The recall, however, is much smaller in scope than what the government had requested. The National Highway Traffic Safety Administration, citing 77 injuries, told the company in a November 2010 memo that the recall should cover 1.3 million F-150 trucks from the 2004-2006 model years.

The F-150 is the flagship of Ford's popular F-Series pickup trucks, the best-selling vehicle in America. The government expanded its investigation into the air bag problems in January 2010.

A Transportation Department spokeswoman said the agency was currently reviewing Ford's response to see if the recall was adequate. If the government determines that the recall is too limited, it could lead to a rare public hearing to decide whether Ford should expand its safety action.

NHTSA said in a Nov. 24 memo that it knew of 238 cases in which the air bags improperly deployed and noted that Ford made production changes to the trucks in 2006 and 2007 to fix the air bag wiring and other issues.

Government regulators said in the memo that Ford did not believe the issue "warrants any corrective action" because the number of reports and incidents were low, owners received "adequate warning" from the air bag warning light and the "resulting injuries are minor in nature."

Ford spokesman Wes Sherwood said in a statement Wednesday that the recall covered trucks built at the Norfolk, Va., assembly plant from November 2004 through June 2005.

Sherwood said the majority of the complaints involved trucks built during the first shift of production at the Norfolk plant and the rates of air bags accidentally deploying were much higher in trucks built at the Virginia plant than those built at plants in Michigan and Missouri.

Ford said an air bag wire located in the steering wheel could have been improperly positioned so it would chafe, expose bare copper and create the possibility of a short circuit that would light up the airbag warning lamp.

Ford said most of the air bag issues happened within the first few seconds of the vehicle starting up and the company said it was aware of "one customer that jumped from the vehicle" after the air bag deployed while the truck was parked in a driveway.

The recall, which was first reported by the Detroit News, is expected to begin in early March. Owners will be notified and told to bring their truck to their dealer.

WHO HAS THE BEST HEAVY DUTY? WE DO!

GMC Sierra Denali HD Wins Edmunds Shootout

The 2011 GMC Sierra Denali HD prevailed in Edmunds Inside Line’s latest tough truck testing, vanquishing the 2010 Dodge Ram 3500 and 2011 Ford F-350 Super Duty to take the top prize. Each diesel-powered, four-wheel-drive crew cab pickup was subjected to tow testing on the 11.5-mile Jacumba Grade in Southern California, and a battery of track testing.
Dan Edmunds, Inside Line’s director of vehicle testing, praised the Sierra Denali HD for having “plenty of power, torque and poise.”

“The 2011 GMC Sierra Denali wins because it does the important truck things well,” Edmunds wrote on Inside Line. “It accelerates, brakes and just plain drives better in just about any situation, towing or not… On top of that, it costs significantly less to buy and it drinks less fuel.”

Toyota Recalls 1.7 Million

Toyota recalls 1.7 million cars globally, including 245,000 Lexus sedans in U.S.


Hans Greimel


Automotive News
January 26, 2011 - 5:00 am EST


TOKYO -- Toyota Motor Corp., struggling to restore its reputation for top quality, today recalled nearly 1.7 million vehicles globally for a variety of fuel system related problems, including 245,000 Lexus IS and Lexus GS sedans in the United States.

The North American vehicles are being called back to inspect for possibly faulty installation of fuel pressure sensors. In cases where the sensor is not fastened tightly enough, fuel can leak between the gasket that connects the sensor to the fuel delivery pipes, Toyota said.

Lexus dealers in the United States will inspect vehicles for fuel leaks. If none is found, they will tighten the sensor. If leaks are confirmed, the gasket will be replaced and the sensor tightened.

The move affects the following vehicles in the United States: 2006-2007 model year Lexus GS300/350; 2006-early 2009 Lexus IS250; and 2006-early 2008 Lexus IS350.

Today's actions bring the total number of Toyota recalls since fall of 2009 to 18 million vehicles.

“After Toyota's recalls last year, the company is more sensitive to recall issues and conducting them as early as possible,” Satoru Takada, a Tokyo-based analyst at TIW Inc., told Bloomberg.

The move covering the fuel-pressure sensor covers 354,524 vehicles worldwide, including the Toyota Crown and Mark X sedans in Japan.

Also today, Toyota conducted a global recall targeting faulty fuel pipes and fuel check valves. That action affects 1.34 million vehicles, but none in North America.

Toyota said there have been no accidents related to any of the recall-related problems.

About 1.2 million of the vehicles in the second recall were sold in Japan, including the RAV4 SUV and the Voxy and Noah minivans. About 135,000 vehicles are in Europe, mostly the Avensis sedan and wagon manufactured at Toyota's plant in Britain.

A design flaw in those vehicles means that fuel pipes may develop cracks and leak. Some of the vehicles also have faulty check valves meant to prevent the reverse flow of fuel.

PRESS RELEASE: Toyota Announces Voluntary Recall of Certain 2006-2007 Lexus GS 300/350, 2006-2009 IS 250 and 2006-2008 IS 350 Vehicles to Inspect the Fuel Pressure Sensor Installation Click here for Customer FAQ for Lexus IS and GS Fuel Pressure Sensor Re

Toyota Motor Corporation announces separate recall involving certain vehicles not sold in North America

TORRANCE, Calif., January 26, 2011 – Toyota Motor Sales (TMS), U.S.A., Inc., today announced that it will conduct a voluntary Safety Recall involving approximately 245,000 2006 through 2007 Lexus GS300/350, 2006 through early 2009 Lexus IS250, and 2006 through early 2008 Lexus IS350 vehicles sold in the U.S. to inspect the fuel pressure sensor installation.

Due to insufficient tightening of the fuel pressure sensor connected to certain engine fuel delivery pipes (those with Nickel Phosphorus plating), there is a possibility that the pressure sensor could loosen over time. If loosening occurs, fuel could leak past a gasket used in the connection between the sensor and the delivery pipe and through the threaded portion of the sensor.

Lexus dealers will inspect the vehicle for fuel leakage and if no leakage is found, will tighten the fuel pressure sensor with the proper torque. If a fuel leak is confirmed, the gasket between the sensor and the delivery pipe will be replaced and the sensor will be tightened with the proper torque. The inspection and possible gasket replacement will be conducted at no charge to the vehicle owner.

Owners of the involved vehicles will receive a safety recall notification by first class mail once the parts that may be needed have been obtained. Lexus will also post this information on its website. Detailed information about this recall is available through Lexus Customer Satisfaction at 1-800-25 LEXUS or 1-800-255-3987 or at www.lexus.com/recall.

Toyota Motor Corporation (TMC) today announced a separate recall involving 1.3 million vehicles worldwide to remedy a different condition on a different fuel delivery pipe and a high pressure fuel pump check valve. TMC's recall announcement does not involve vehicles sold in North America.

Kia to Introduce Two New Models Within Six Months

Ryan Beene


Automotive News
December 20, 2010 - 12:01 am EST

MIAMI -- Kia plans to replace its slow-selling Amanti sedan this year -- close on the heels of the similarly sized, redesigned Optima sedan now being rolled out. But the exact timing of the launch is undecided.

The Amanti replacement, tentatively called the Cadenza, had been expected in April. Kia officials now say only that that car will be launched in the first half of 2011.

Bringing out the two sedans in rapid succession could create a problem, although U.S. executives say the vehicles are aimed at different customers.

The base Optima LX and midgrade Optima EX sedans have begun arriving at dealerships, and the Optima Hybrid will debut in the first quarter as the first hybrid in Kia's lineup.

The Kia Cadenza, which replaces the Amanti, is aimed at sedans such as the Toyota Avalon and Buick LaCrosse.

The Cadenza, already on sale in South Korea as the K-7, is longer and wider than the Amanti and is expected to be powered by a 3.5-liter V-6 engine. The Amanti name will disappear.

Potentially, the Optima and Cadenza "could have some overlap," Orth Hedrick, director of product planning for Kia Motors America, said here at the Optima Turbo launch. "But in our mind, they're aimed at two different buyers."

Hedrick said the Optima is targeted at mainstream buyers of mid-sized sedans, while the Cadenza will go after a different group. He declined to specify the company's plans for the Cadenza, but its look and dimensions would place it in a category similar to the Toyota Avalon and Buick LaCrosse.

At 196 inches, the Cadenza is less than five inches longer than the Optima. It sits on a 112-inch wheelbase, compared with the Optima's 110 inches.

Meanwhile, Kia is also scheduled to launch a redesigned Rio subcompact next fall and give its Soul small crossover a slight freshening next summer.

"This is absolutely the fastest product cadence that I've personally been involved with, and it just keeps coming," said Hedrick, formerly a product planner at Nissan North America and Toyota Motor Sales U.S.A.

Kia, which has launched six new or redesigned products since early 2009, has increased its market share for three straight years. It also recently spent about $1 billion on a plant in West Point, Ga., where it is hiring 1,000 employees.

So company executives say they were perplexed when the financial blog Wall Street 24/7 recently named Kia as one of 12 brands that will disappear in 2011, along with the likes of Blockbuster, Merrill Lynch and Moody's.

The blog argued that Kia sells "low rent" vehicles. Michael Sprague, vice president of marketing for Kia Motors America, called the notion "ridiculous."

Said Sprague: "Most logical people look at these kinds of lists and ignore them."

CHRYSLER AND FORD RECALL VEHICLES

Automotive News

December 30, 2010 - 2:01 pm EST


CHRYSLER RECALL

DETROIT (Reuters) -- Chrysler Group LLC recalled more than 144,000 vehicles in three separate filings with federal regulators posted today.

In the largest of the three recalls reported to U.S. regulators, Chrysler said 65,180 Dodge Journey vehicles for the model year 2009 could have faulty wires within the front door wire harness.

Should those wires break, it could interrupt the circuits for the side impact sensors and de-activate the side airbag, Chrysler said in a notice to the U.S. National Highway Traffic Safety Administration.

Chrysler also recalled 56,611 Ram 1500 trucks for the model year 2011 because the rear axle bearing could seize, increasing the risk of a crash.

Additionally, the automaker recalled 22,274 model year 2008 to 2011 Dodge Ram 4500 and 5500 vehicles because the left ball stud could weaken and hurt the driver's ability to steer the truck.

FORD RECALL

Automotive News
December 30, 2010 - 10:00 am EST

UPDATED: 12/30/10 12:36 pm ET

DETROIT (Reuters) -- Ford Motor Co. is recalling about 20,000 new vehicles in North America, mainly its heavy duty pickup trucks, due to the chance that an electrical short could cause a fire, Ford and U.S. federal regulators said today.

Ford will inform owners of its F-series pickups, small sports utility vehicles Edge and Lincoln MKX of the potential problem by Jan. 10, according to a filing with the U.S. National Highway Traffic Safety Administration.

About 15,000 of the affected vehicles were sold in the United States, and most of the rest in Canada, said Wes Sherwood, Ford spokesman.

Sherwood said the automaker is not aware of any injuries, crashes or fires resulting from the issue.

In a six-day period, a supplier not identified by Ford made body control modules that may produce an electrical short, Ford told NHTSA in a filing.

Sherwood said the suspect vehicles were built between late October and mid-November.

"If an electrical short develops, an overheating condition may occur which can result in an unattended vehicle fire," the NHTSA filing said.

Of the nearly 20,000 vehicles affected, 13,200 are Super Duty F-Series trucks, which are the F-250, the F-350 and the F-450 models.

Some 476 F-150 pickup trucks were affected. That model is the biggest selling vehicle in North America.

About 6,200 Edge and MKX models are affected, Sherwood said. Edge and MKX are also known as crossover vehicles, because they are built on a car platform rather than a truck platform as are larger SUVs.

Ford will pay for repairs performed at Ford dealerships. Sherwood said the repair time is relatively short, but he did not specify how long each repair will take or how much they will cost the automaker.

Insurance Institute Top Safety Picks

(Adapted from The Associated Press, Ken Thomas, December 22, 2010) 

WASHINGTON (AP) -- South Korean automaker Kia was one of the vehicles to lead the insurance industry's annual list of the safest new vehicles, used by safety-minded consumers looking to buy a new car.


The Insurance Institute for Highway Safety recognized 66 vehicles on Wednesday with its "top safety pick award" for the 2011 model year, the most-ever awarded by the Virginia-based group. The number was more than double the 27 vehicles selected last year.

Hyundai Motor Corp. and its affiliate Kia Motors Corp., and Volkswagen AG and its Audi brand received the most awards with nine, followed by eight awards apiece by General Motors Co., Ford Motor Co. and Toyota Motor Corp. The awards, used in advertising to attract car buyers, bolster Hyundai and Volkswagen as they attempt to build a larger foothold in the United States.

Kia was recognized for the Optima midsize car, the Forte and Soul small cars, and the Sorento and Sportage SUVs.

GM's winners include the Chevrolet Malibu, Cruze and Equinox; Cadillac CTS and SRX; Buick LaCrosse and Regal and GMC Terrain. Chris Perry, vice president of Chevrolet marketing, said the award would build on "the already strong global safety reputation of the Cruze."

The vehicles were chosen for protection in front, side and rear crash tests. To qualify for the award, the insurance industry group also requires the vehicles to have anti-rollover electronic stability control, or ESC, and receive top scores in roof strength tests.

Institute president Adrian Lund credited automakers for "quickly rising to meet the more-challenging criteria for `Top Safety Pick.'" He said several automakers have requested tests for new models coming out early next year and Lund predicted more winners would be added

New Sierra HD Concept

All Terrain concept hints at GMC Sierra HD's brawny future

Mike Colias

Automotive News

December 17, 2010 - 7:14 am EST


DETROIT -- GMC is showing off an off-road, heavy-duty pickup concept that hints at bold, muscular styling for the next-generation Sierra HD.

The GMC Sierra All-Terrain HD concept, underpinned by the 2011 Sierra 2500 HD's re-engineered four-wheel-drive chassis, sports a wider track, brawny grille and an extra 3 inches of ground clearance. It was unveiled yesterday at a media preview for next month's Detroit auto show.

The concept was given the same 6.6-liter Duramax diesel engine mated to an Allison 1000 six-speed transmission used in the Sierra HD. A restyle of the Sierra HD is expected in 2014 or 2015.

“You certainly could take it as a hint” of where the next-generation Sierra HD is headed, GMC design manager Carl Zipfel said.

While the massive 35-inch tires, mounted on 20-inch aluminum wheels, and Fox off-road shocks likely would be for “more of a niche or special edition” vehicle, Zipfel said many of the styling features could stick in Sierra restyle.

An all-terrain GMC pickup would compete with the Ford F-150 SVT Raptor and the Ram Power Wagon. It also would offer General Motors Co. an off-road vehicle to replace Hummer.

“It's [for] that premium customer who demands towing and hauling capability and off-road capability in one package,” Zipfel said.

Flared fenders and a streamlined front bumper fully expose the tires and allow for more ground clearance -- 21.1 inches. A beefed-up, forced-induction hood feeds more air to the engine.

The crew cab truck's 5-feet-8-inch bed, taken from GMC's light duty lineup, is nearly a foot shorter that the Sierra HD for better off-road handling. It includes a pair of lighted storage compartments on the sides of the bed.

Motorized, illuminated assist steps for both the cab and cargo bed offer easier access and maximize ground clearance.

GMC didn't say if or when it would green light the pickup.

Lisa Hutchinson, GMC product marketing director, said in a statement: “Although it is strictly a concept, it is a pretty realistic one.”

Toyota Reputation Takes a Hit - GMC and Kia Rise

Toyota reputation drops among U.S. new-car buyers, J.D. Power says


Laurén Abdel-Razzaq

Automotive News
December 14, 2010 - 4:37 pm EST

UPDATED: 12/14/10 6:41 pm ET

DETROIT -- An increasing number of new-car shoppers are staying away from Toyota showrooms because of the company's quality and safety problems, according to a study by J.D. Power and Associates.

The market research firm's 2010 Avoider Study, which was released today, found that 19 percent of new-vehicle shoppers surveyed said they avoided Toyota because of “bad reputation of manufacturer” -- a startling increase of 17 percentage points from a year ago.

Fifteen percent of respondents cited a “bad experience with this manufacturer,” up 12 percentage points from 2009. And 15 percent said they were “concerned about the future of this vehicle brand,” up 11 points from 2009.

Respondents could cite several reasons why they did include a brand in their search.

“In terms of reliability perception, Toyota has always done well in the past,” said J.D. Power and Associates analyst Kerri Wise. “A couple of areas where Toyota really took a hit were in terms of bad reputation of the manufacturer and bad experience with the manufacturer.”

.........................................................................................................................................................
U.S., Koreans make strides

U.S. and Korean car brands have been the most successful at improving customer perceptions of reliability this year, according to the new J.D. Power study, which measures which brands and models customers choose not to consider when shopping for a new vehicle.

Among the most improved brands in terms of consumer perception of reliability this year are Ford, GMC, Hyundai, Kia and Ram. Audi, Scion and Smart also made significant strides among consumers. Each of these brands reduced customer avoidance by four or five percentage points from last year.

Wise said people who have never had firsthand experience with Toyota are more likely to have a poor perception of the company, while people who have owned or own a Toyota are likely to continue considering the automaker.

In an odd twist, only 16 percent of buyers said they avoided Toyota because they “didn't want a foreign/import vehicle,” a reduction of 16 points from 2009, when 32 percent of the buyers avoided Toyota for that reason.

Perceptions slow to change

Wise said one-fifth of customers surveyed avoided a vehicle because of reliability concerns, and these perceptions are slow to change.

“It can take three to five years to change perception and this is after brands have improved in their actual reliability,” said Wise.

The brands that have higher perceived reliability are doing a few things well. They are improving the reliability of their vehicles, using word-of-mouth references and hitting the right notes with their marketing messages, the researcher said.

Exterior styling is the most frequently cited reason for avoiding a model -- 35 percent of new-vehicle owners said it was important to them. The next most important reasons are the cost of the model (23 percent), doubts about reliability (20 percent), dislike of the interior styling (19 percent) and a unfavorable perception of a manufacturer's reputation (16 percent). Some brands produced scores above 100 percent because respondents were allowed to cite more than one factor.

Maintenance costs

For shoppers looking at premium models, concerns over maintenance costs was also an important factor, even though many of these brands come with free maintenance as part of the purchase price.

Some redesigned car models that came out in the past year were much more successful compared to the models they replaced. They include the Cadillac SRX, the Ford Taurus and the Kia Sorento, the study found. They also outshine other vehicles in their respective segments.

Wise said this indicates certain automakers have been successful in changing customer perceptions.

“While most redesigned models have higher consideration than the previous-generation models, some models are far surpassing their predecessors, and in the process, are attracting many additional customers to the brand,” she said.

J.D. Power and Associates surveyed 25,000 owners who registered a new vehicle in May 2010. The firm conducted the survey between August and October. This is the eighth consecutive year the Avoider study has been conducted.

Honda Tops in Customer Loyalty - mKia Coming on Strong

Ford, Honda tops in U.S. customer retention; Kia rising fast



Brand loyalty survey finds that 'fun' is becoming more important

Laurén Abdel-Razzaq

Automotive News
December 9, 2010 - 3:42 pm EST

Ford and Honda have vaulted past Mercedes-Benz to tie for the highest customer retention rate among automotive brands in the United States this year, according to a new study.

The two mass-market brands retained 62 percent of buyers this year, J.D. Power and Associates said in its annual Customer Retention Study released today.

Ford rose five spots from 56 percent in 2009 while Honda increased one spot from 64 percent last year. Mercedes fell five spots, from 66 percent in 2009 to 59 percent in 2010, J.D. Power said.

The firm said Ford's higher retention rate was driven mostly by the Edge, F-Series and Fusion models. Honda's retention was driven by the Accord, CR-V and Pilot, the firm said.

“Ford, specifically, (is) producing products that have vehicle appeal, that have good styling and are fun to drive,” said Raffi Festekjian, director of automotive product research at J.D. Power and Associates. “For Honda, it's still more about resale value.”

Kia Motors had the largest increase in brand loyalty from last year, jumping by 21 percentage points to a 58 percent retention rate.

Overall, the average customer retention rate for the industry remained at 48 percent, even though some brands shifted in the rankings. Of the 32 brands ranked by the study, 16 improved their retention rates from last year, 14 declined and four did not change.

Fun to drive

A growing number of new-vehicle buyers consider a fun driving experience when it comes to being loyal to a certain brand, J.D. Power said.

According to the study, the desire for a fun driving experience as a reason for brand loyalty has increased in importance by 8 percentage points -- to 55 percent of respondents. In contrast, sticking with one automaker because of resale value has become less important, decreasing 11 percentage points to 45 percent.

“Last year we saw that resale value was important, consumers were a little bit more tight with their money, so that led to people staying with their brand” Festekjiansaid.. “Now we're seeing a shift in people who are interested in going back to some of the fundamentals of styling.”

Power said the top reason for remaining loyal to a brand this year was “seating arrangements,” chosen by 70 percent of the respondents -- unchanged from last year. Other top reasons were look/style, 65 percent; safety, 64 percent; deal incentive, 59 percent; and quality, 59 percent. Those results changed little from last year.

J.D. Power and Associates looked at more than 123,600 responses from new-vehicle buyers and lessees, of which more than 81,000 were replacing a vehicle they had purchased new. Power conducted the study between February and May and again between August and October. This is the eighth year J.D. Power and Associates has conducted this study.

Conquest rates

Besides customer retention, the study also looked at the rate at which auto brands capture customers from their competitors -- what J.D. Power and Associates calls “conquesting.”

Domestic brands have made strides during the past two years in grabbing customers from import brands. This year, 14 percent of domestic brand buyers previously owned an import, compared with 10 percent in 2008.

Despite the fun-to-drive factor, look and styling remain the top reasons consumers will stick with one brand, Festekjian said.

Although it is difficult to predict future trends, Festekjian said, right now customers are looking at a combination of factors in determining whether to stick with one auto brand. Brands that have good quality, good appeal and can bring people into showrooms are still important, he said.

“Consumers are shifting now to where they want it all,” Festekjian said. “They want the vehicles to be fun to drive and maybe aren't thinking of it so much as a vehicle to get me from point A to point B.”

Automotive News

Automotive News

Honda Accord Wins Top Safety Award

Honda Accord assigned highest rating in revised U.S. crash tests


Automotive News
November 10, 2010 - 3:29 pm EST

WASHINGTON (Bloomberg) -- Honda Motor Co.'s Accord received the best possible safety rating among 2011 model-year passenger cars tested for crashes under new U.S. evaluation standards, edging ahead of Toyota Motor Corp. and Hyundai Motor Co. sedans.

The mid-size Accord, Honda's top-selling U.S. model, got an overall five-star rating, according to results posted on the U.S. National Highway Traffic Safety Administration's website.

Of 40 models tested so far, six rated five stars overall. The Accord is the first to get five stars in each of three crash categories tested by NHTSA.

Transportation Secretary Ray LaHood said last month that the ratings are aimed at boosting overall safety and ensuring the results more accurately reflect the crashworthiness of new cars and light trucks. Changes include the use of female crash- test dummies for the first time, along with male versions, to collect data about injuries to the chest, head, neck and legs.

The 2011 Accord sedan received five stars on side and frontal crashes and rollovers, according to NHTSA.

Hyundai's Sonata, with an overall five-star rating, scored the top score on side-crashes and rollovers and four stars in frontal crashes, NHTSA said last month. Toyota's Camry, the best-selling U.S. passenger car, rated three stars overall, earning three stars for side and frontal crashes and four stars for rollovers.

The agency continues to test 2011 model-year cars and trucks and is adding the results as they are complete. The results are available at www.safercar.gov.

Walker Recognized by Better Business Bureau

The Better Business Bureau Serving Central Louisiana will recognize Walker Automotive and 11 other Central Louisiana companies at the Annual Better Business Bureau Torch Award Luncheon on Friday, November 12, 2010.


Businesses are evaluated for their commitment to customer service through exceptional standards for ethical business practices. The awards committee looks at how the company benefits customers, employees and the community.

Walker's Mission Statements exemplifies its commitment to customer service.  Employees understand that Walker is committed to creating a culture of quality and service and that the primary goal is to exceed all customer expectations.  Walker is committed to honesty, integrity, quality and excellence. 

Walker was founded in 1919 as Alexandria Auto Company, Inc. by Foster Walker Sr.  After returning from World War I, Foster Walker Sr. began selling Durant, Reo and Star automobiles from a gas station in Downtown Alexandria.  That business eventually became Walker Oldsmobile Company and is now run by Foster Walker III.  Ninety years after its inception the dealership has expanded from its meager origins to three locations, 8 manufacturers, three service departments and a collision center.  Over the last 9 decades, Walker has won numerous national and factory awards for all aspects of its business and offers new and pre-owned vehicles ranging from quality entry level models to German luxury vehicles.  

New Legislation for 2011

As 2010 closes and a New Year dawns attention inevitably focuses on changes that will have to be made for the New Year that will impact business. Congress routinely makes laws and then sets implementation dates for the first day of the New Year. So it is around this time that businesses begin the adaptation process for any new legal or regulatory changes that are looming.


For 2011, the car business (and other financial institutions) will need to comply with two new significant regulatory changes that will affect how information is distributed to consumers that finance vehicles, repairs or parts. If you have purchased a vehicle lately, you realize that there is a mountain of accompanying paperwork associated with the purchase. Be assured that in most cases it is not the dealer requiring all of the paperwork. Dealers are mandated by a maze of federal and state laws and other federal and state regulations. When the ball drops on 2011 you can expect just a little more paperwork courtesy of two new federal regulations requiring compliance from car dealers who offer credit sales to customers.

Most consumers’ car purchases are made with credit. Before a bank will lend money, they will determine creditworthiness based on the customer’s credit score. The credit score, or FICO, is a three-digit number designed to gauge creditworthiness. Lenders use this number to determine if an individual is worthy of receiving credit and, if so, at what interest rate. The score ranges from 300 to 850 and is calculated using a complicated formula consisting of private information including income, credit history, debt and other factors. The credit report contains the consumer’s name, address, social security number, employment information and other personal and private information. Usually, a consumer with a lower credit score and higher risk rating will get a higher interest rate and other less favorable credit terms. The score is basically a rating of default risk attributed to a customer. A high score means low risk of default and a low score means high risk of default.

One new rule, “The Risk Based Pricing Rule”, requires any company that uses a credit score in connection with accepting or denying credit to deliver notice to a consumer whose credit application has been approved (but generally on less favorable terms) to the existence of negative information in the credit report. Basically, the report will alert consumers to negative information in their credit report that may have affected the terms of the credit. Those terms could be affected by increasing the interest rate charged, limiting the length of the loan, or requiring additional money down before accepting the credit application. The purpose of the regulation is to improve the accuracy of credit reports by giving consumers the information contained in the report and thus an opportunity to correct errors. More detailed information can be obtained at www.ftc.gov.

The second rule that will be implemented is the “Privacy Rule”. While this rule has been in place for a number of years, the notice forms have now been standardized to allow consumers an easier way to determine how companies use their personal information. It has taken the Federal Trade Commission nine years to promulgate rules for this action since implementing it in 2001. Basically, the rule requires lenders to alert their consumers how personal information such as social security numbers, addresses and other non-public information is shared with outside companies and related organizations. The new notice is easier to read and is formatted in such a way that consumers can easily determine how their information is treated. Some sections allow consumers to “opt-out” of any sharing and the new report will alert the consumer to that option. More information on this rule can also be found at www.ftc.gov/privacy.

Both rules favor the consumer and make the financial process more transparent. Consumers will now be armed with more information about their credit score and, in turn, be able to correct inaccuracies. Additionally, consumers will be able to make more informed decisions about the control of their personal information after an initial transaction. While both rules are consumer friendly, they will make the financial process just a little longer through no fault of your dealer.

BMW to Recall 198,000 Autos in U.S. for Brake Defects

Neil Rowland - Automotive News Online October 1, 2010

WASHINGTON -- BMW of North America is recalling 198,000 vehicles to fix leaks that can develop in their power-braking system in the second safety setback for the company this week.
The company said in a statement today that the recall will include BMW 5 Series, 6 Series and 7 Series vehicles powered by V8 and V12 engines in 2002-2010 models. Also covered will be Rolls-Royce Phantom vehicles from the 2003-2010 model years.

The leaks can reduce the effectiveness of the power brakes, though no accidents or injuries have been reported, the statement said. Mechanical braking is still available to slow and stop the affected vehicles.

The BMW North America recall announced today is one of its biggest ever, company spokesman David Buchko said.

BMW's announcement follows by days a disclosure by federal regulators that they have opened an investigation of as many as 80,000 BMW 2004 and 2005 Mini Cooper models for possible loss of power-steering control.

The National Highway Traffic Safety Administration disclosed Tuesday that it has received 54 complaints and “a confidential number of field reports.”

“When the power steering assist stops working it requires increased force to steer the vehicle,” NHTSA's statement on its Web site said.

The complaints indicated that the power-steering problems may be related to a power steering pump failure, the agency said.

General Motors Recalls Crossovers

WASHINGTON -- General Motors Co. said today it is recalling 243,000 crossover vehicles over concerns their second-row safety belts could be defective. GM said the recall covers 243,403 vehicles -- the 2009-2010 Chevrolet Traverse, Buick Enclave, GMC Acadia and Saturn Outlook -- "to inspect second-row safety belts for damage that in rare cases could make an occupant think the belt is properly latched when it isn't." Some vehicles may have a condition where the second-row seat side trim shield restricts the upward rotation of the seat belt buckle when the seat back is returned to a seating position after being folded flat, GM said. "Because of the potential for a false-latch condition, we want customers to return their vehicles to have the recall repair performed as soon as possible," said Jeff Boyer, GM executive director of safety. Owners will begin receiving letters this month to schedule appointments with dealership service departments. Read more from The Detroit News.

Mzda Recall

MONTEREY, Calif. -- Mazda Motor Co. is recalling more than 200,000 Mazda3 and Mazda5 vehicles from the 2007-2009 model years because of faulty power-assist steering pumps and pipes. Mazda alerted the National Highway Traffic Safety Administration of the recall on Thursday, Robert Davis, Mazda's senior vice president of product development and quality, told Automotive News. The recall comes after NHTSA opened an investigation in June into power steering failures in the Mazda3 from the 2007-2009 model years. NHTSA received 33 complaints of power-assist steering failures in Mazda3 vehicles from the 2007-2009 model years, and loss of steering control was reported as the cause of three crashes, according to NHTSA investigation documents. Vehicles that experience a power steering failure “will require more physical effort to steer, but at no time is the vehicle undrivable,” Mazda said on its Web site. It also posted a video explaining what drivers should do if the problem happens. Owners of the vehicles can go to dealerships to replace the power steering pump and pipes connecting it to the steering rack. Read more from Automotive News.

Are your Rearview Mirrors Adjusted Correctly

Financial Literacy and Interest Rates

A recent article in an automotive trade magazine preached the benefits of teaching financial literacy to younger members of society. The purpose, of course, is to enable the a younger population to handle the financial stresses that they will encounter as they get older. Quite simply, most adolescents (and many adults) have no clear idea how to balance a checkbook, develop a good credit rating, or successfully manage credit. One of the areas that many customers question is why the interest rate on a particular vehicle loan is at a certain level. Expectations of low interest rates are often quashed when customers learn how financial institution personnel and computers determine interest rate levels.

Many variables affect the interest rate a particular lender is willing give to a customer. The first and foremost consideration is the customer’s credit or “beacon” score. Credit score has been a subject of many of my previous articles and without rehashing all of the particulars, customers applying for credit need to be aware of their true credit score. A credit score is determined by multiple factors but most importantly the timeliness with which bills are paid. Pay them late and your score goes down. Don’t pay them at all and the score plummets. Pay them on time while carrying a lot of credit and the score remains marginal.

The only place to receive your true credit score is from one of the scoring agencies like Transunion or Equifax. Sites like “freecreditreport.com” use their own scoring system and often inflate scores and mislead customers to sell one of their products. Accordingly, the best thing to do is to start by getting your correct information from a reputable source.

When buying a car, the decision to buy new or used often affects the interest rate. While a customer may save money on the price of a pre-owned vehicle, interest rates are usually higher because the rates are not supported by the manufacturer’s “captive” finance companies. The only exception is with manufacturer’s “certified pre-owned” programs. These vehicles are often supported by special interest rates from the manufacturers as an incentive to attract brand loyalty. The goal is to get a buyer in the seat of one of their products and the attractant is the special interest rate and warranty coverage attached to the make and model of vehicle. To qualify for these rates, customers must possess a better than average credit score. A lower credit score usually translates into a higher interest rate.

Multiple other factors affect may affect your the interest rate. Banks and lenders like to see customers put money down on the purchase. The days of “zero down” are not gone, but are slowly becoming extinct. Down payments are attractive because the purchaser has a little of their own money in the game as a sort of “good faith” in the purchase. When a customer advances money in the form of a down payment, the chances of an early default on the loan are reduced. This makes the customer a better credit risk, and, in turn a better candidate for a lower rate.

Credit score alone is not determinative of the rate that a bank or lender will offer. Many customers have good credit scores because of consistent payment history. However, a closer look at the credit bureau will reveal the customer is barely hanging on. In some circumstances only minimum payments are made to lenders and the debt to income ratio is high. The debt to income ratio can be defined as a calculation that analyzes how much of an individual's monthly income is used for payment of debt. A lot of debt with a lot of income still makes the ratio high and the customer becomes more of a credit risk resulting in a higher interest rate. Additionally, the length a credit file has been established has a bearing on the interest rate. A person with good credit but minimal credit history will probably have a higher interest rate. This occurs because the lender cannot make an accurate assessment of risk based on the limited credit information in the file.

I was able to write down about twenty-five other factors that were considerations for interest rate levels before writing this article. Of course, most of this is determined from an algorithm in a computer database that crunches the individual factors and then returns a proposed loan amount and interest rate. Human credit analysts still assist and make individual determinations. Because of space limitations, I cannot include them all but other considerations should be noted. Some other factors that the computers and the analysts consider will be:

• Accounts being individual or joint;
• Total monthly and household income;
• Current employment status and length of time with an employer;
• Educational level;
• The length or term of the loan;
• Previous car credit and length of car credit;
• Ownership or rental of residence;
• Length of time the credit file has been established.

All of the items that are determinative of your interest rate may also affect your credit score. Educating yourself and being financially literate will assist you in paying down debt and raising your credit score. Then the next time you apply for a car loan you can be one of the people who falls into the category of “a well qualified buyer” that is always refered to in the hastily spoken disclaimer at the end of the advertisement. For more information on this and other topics visit my blog at www.walkerwill.blogspot.com.