January 17, 2012

Toyota, Mercedes, BMW Retain top Auto Brand Values
Toyota, Mercedes-Benz, and BMW retained their ranking among the world’s top 15 global brands, while Volkswagen and Nissan made the biggest gains among automotive marques in an annual survey. According to Automotive News, Toyota kept its status as No. 11 on Interbrand’s Best Global Brands Report, with a value of $27.8 billion, up 6 percent from 2010. The values in the survey are determined by the brand’s financial performance, the role of the brand, and the brand’s strength, Interbrand said. The survey ranks the top 100 brands, and this year 11 automaker brands made the cut. Mercedes followed Toyota at No. 12 with a value of $27.4 billion, up 9 percent from 2010. BMW came in at No. 15 with a value of $24.5 billion, up 10 percent. Both Mercedes and BMW retained the same rankings from 2010. Honda gained a spot and finished 19th, with a value of $19.4 billion, up 5 percent. Volkswagen rose six notches, to No. 47, while VW’s Audi luxury brand (59) and Hyundai (61) each climbed four spots. Nissan joined the list at No. 90 this year with a value of $3.8 billion. Read more about the leaders in automotive brand values here.

TrueCar Reveals 'Sweeping Changes' to Services
On the heels of adjusting its model to flat-fee billing in Virginia and suspending operations in other states, TrueCar announced “proactive” changes on Monday to ensure compliance with state laws and emphasize “its commitment to state regulators, state dealer associations, and to better serve its dealer partners.” According to Auto Remarketing, TrueCar’s changes include creating a new billing model in certain states, adjusting advertising on the website, launching the TrueCar National Dealer Counci,l and rolling out a new consumer membership program. These changes are in conjunction with what TrueCar called a “listening tour,” where senior executives with the company have been meeting with organizations such as dealer groups, dealer associations, and manufacturers. The company said it has been in talks with several states about fee structure and/or advertising issues and emphasized that it “responding immediately to any state concerns as part of a comprehensive national strategy, with a goal of achieving 100 percent national compliance.” For the time being, TrueCar has temporarily halted operating in Colorado, Louisiana, Nebraska, and Oklahoma, which officials contend will allow it to make necessary improvements and protect dealer members. Click here for more on changes planned to TrueCar.com.

J.D. Power Releases Car Brandy Loyalty Report
One in three new-vehicle owners who switched brands say their previous brand didn’t make the type of vehicle they wanted, indicating that striking the right combination of model offerings and vehicle appeal is critical to retaining customers, according to the J.D. Power and Associates 2012 Customer Retention Study released last week. 24/7 Wall St. reports that the report, now in its ninth year, measures the rate at which automotive brands retain their existing customers and examines the reasons why customers remain loyal. The average retention rate across all brands was 49 percent. Hyundai, which has enjoyed remarkably large sales growth in the last three year, had a retention rate of 60 percent .Ford’s customer retention rate was 60 percent, as was Honda’s. Saab had a 7 percent retention rate, followed by Suzuki and Dodge. The 2012 Customer Retention Study is based on responses from 117,001 new-vehicle buyers and lessees, of which 73,733 replaced a vehicle that was previously acquired new. The study was fielded between February and May 2011 and August and September 2011. Click here to read all of J.D. Power’s report on which brands boast the highest customer retention. For more on the report, click here.

Automakers Again Driven by Good Design
In today’s hotly competitive automotive market, fuel economy has leapt to the top of the charts when it comes to factors that influence buyer decisions. But good design is also high on the chart and, according to research groups like J.D. Power and Associates, it may actually be more significant than it has been in years. MSNBC reports that good design is being credited with helping carmakers as diverse as Ford, Audi, and Hyundai gain ground in an industry that’s just recovering from one of its worst recessions in decades. A variety of concept cars, trucks, and crossovers are on display at the 2012 Detroit Auto Show, including a prototype of the reborn Acura NSX, which will return to production in 2014, as well as a thinly-disguised version of the next-generation Honda Accord Coupe that’s due to roll into showrooms later this year. Coming up with a winning design isn’t always easy. Stylists have to work around the basic “architecture,” or platform of a vehicle, which may severely restrict where they can place a windshield, or “A pillar” – the first pillar in the passenger compartment, which usually surrounds the windscreen. Read more on new automotive design here.

The Hyundai and Kia Manifesto
Motor Trend reports that Korean automakers Hyundai and Kia have been sweating the details for years, and their dogged efforts are paying off in the form of record sales and higher than ever U.S. market share. Hyundai, along with its Kia counterpart, are run separately from one another in the U.S. with the exception of technical development. But they've excelled at the same things: getting new models out quickly, and constantly updating and improving their existing lineups. The quality changes began making a big difference in the early 2000s thanks in part to reverse Q&A sessions with journalists on press drives. Although some of the media found the practice irksome, it has proven to be an effective way for the Korean brands to pinpoint flaws. Hyundai CEO John Krafcik pores over all manner of quantitative and qualitative data, never letting a product go too long without improvement. He's a fan of drawing diagrams on a sheet of paper instead of giving long-winded lectures, describing what he means down to the smallest detail. But he says he's not solely responsible for Hyundai's turnaround. "The company was headed in the right direction before I got here." Read Motor Trend’s coverage of the strategies that have helped Hyundai and Kia become leaders here.

Start off the New Year with the Best-In-Class
As an AIADA member, you are eligible to receive exclusive products, services, and unique discounts from our Affinity Partners. AIADA Affinity Partners provide an important contribution to the association, allowing us to better advocate on your behalf before the federal government. They also provide AIADA members with best-in-class products and services and are committed to serving the dealer market. Click here to learn more about how AIADA Affinity Partners support your business or visit AIADA.org/Member-Benefits. If you’ll be at the NADA Convention, check out our Affinity Partners: Federated Insurance: Booth 1216, Carfax: Booth 942, ADESA: Booth 1141, OfficeMax: Booth 1894, CNA National Warranty: Hospitality Suite at Vdara at City Center-Rafael Meeting Room 1 (Lobby Level). Don’t miss this opportunity to find out how AIADA’s Affinity Partners can help your business!

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