Subaru, Lexus Top J.D. Power's 2019 Brand Loyalty Study
Subaru ranked highest among mass market brands—and highest overall—with a loyalty rate of 61.5%. Lexus ranks highest among luxury brands with a 47.6% loyalty rate, according to the latest J.D. Power Brand Loyalty Index. According to The Detroit Bureau, using data from the Power Information Network, the study calculates whether an owner purchased the same brand after trading in an existing vehicle on a new vehicle purchase or lease. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when trading in or purchasing their next vehicle. The rest of the mass-market top five included Toyota, Honda, Ram, and Ford. The luxury top five was rounded out by Mercedes-Benz, BMW, Porsche and Audi. In the overall ranking, Lexus, the luxury leader, would have finished seventh. Read more here.
VW Drops Last 2 Wagon Models Sold in the U.S.
Volkswagen will end production of the Golf SportWagen and Golf Alltrack wagons at the end of 2019, leaving the brand's U.S. dealers wagonless for the first time since 1965, reports Automotive News. The slow-selling two-wheel and all-wheel-drive wagons are victims of the growth of crossovers, which now account for more than half of Volkswagen's sales in the U.S. The brand plans to add three crossovers over the next three years: the Atlas Cross Sport, the ID Crozz battery-electric vehicle and a subcompact crossover expected to arrive in 2021. Crossovers "have definitely assumed the mantle of family haulers from the station wagons and minivans we remember from our childhoods," Volkswagen of America CEO Scott Keogh said in a statement. "But as we look towards the future, both our expanded [crossover] lineup and the upcoming ID family of electric vehicles will bring the opportunity to combine the style and space people want in a variety of ways." Read more here.
Reinventing the Wheel to Keep Up with Robocars
The car industry is reinventing the wheel to prepare for autonomous vehicles, reports The Detroit News. Japan’s Sumitomo Rubber Industries Ltd., whose roots stretch back to when Henry Ford was building his Model T, is developing a “smart tire” that can monitor its own air pressure and temperature, and eventually respond by itself to changes in road conditions. Yet it’s more than just tires that are being changed. Koito Manufacturing Co., AGC Inc. and Lear Corp. are putting semiconductors and sensors inside headlights, glass and seats to make them as intelligent as the cars driving themselves. Alphabet Inc.’s Waymo LLC, Intel Corp.’s Mobileye NV and Baidu Inc. dominate the core technology for autonomous driving, yet suppliers still count on finding their own space in the business. Parts for advanced driver-assistance systems and autonomous driving are expected to become a $57 billion market within a decade, according to BIS Research, and old-school companies born during the early days of the automobile know they must either adapt or risk extinction. Read more here.
Mercedes-Benz USA Taps Struwe as CFO
Christian Struwe, a 22-year Daimler veteran, has been named CFO of Mercedes-Benz USA, reports Automotive News. In his new role, Struwe leads MBUSA's finance and operations. His responsibilities include overseeing finance, risk management, treasury, payroll, procurement, information technology, taxes and facility management. Struwe replaces Harald Henn, who left Mercedes-Benz USA for Mercedes-Benz U.K. Struwe most recently was director of controlling for Mercedes-Benz Cars in Stuttgart. He joins MBUSA at a time of transition. In September, Nicholas Speeks, 60, will take over the U.S. business, succeeding former MBUSA CEO Dietmar Exler. Struwe becomes CFO of Mercedes' second-biggest market as parent Daimler faces financial headwinds. This month, Daimler cut its profit forecast for the fourth time in 13 months, as it set aside more money to cover a regulatory crackdown on diesel emissions and vehicle recalls involving Takata airbags. Read more here.
As Cars Get Safer, Drivers Take More Risks
Here's a scary thought for those who take to the highway. As cars become safer, with new and more advanced features, drivers use them to engage in ever more risky behavior. One such activity: taking your eyes off the road for the "length of time it takes to travel a football field," or even longer. According to CBS, a new survey by the nation's largest auto insurer, State Farm, entitled "Are We Driving Dumber in Smarter Cars?" found that drivers with cars equipped with adaptive cruise control or lane keeping assistance said they were almost twice as likely to use video chat while behind the wheel compared with those whose cars didn't have this advanced technology. Read more here.
Federated Insurance's Claim of the Month – Could It Happen to You?
An auto dealership keeps two sets of key fobs for its inventory. One set is kept in a secure location, the other is not. After an inventory check, the dealership discovered 27 vehicles were stolen by employees of an overnight cleaning company over a period of a week.
CLAIM AMOUNT: $800,000
The loss of one piece of inventory in an auto dealership can cost tens of thousands of dollars, so tight security is critical to your business’s bottom line. One of the most secure ways to store the keys to your vehicles is in an automated security system. Access to that system should be carefully managed.
Smart practices help protect your inventory. Keep your cars — and by extension, your profits — safe by locking down your key-control system. Visit federatedinsurance.com for more info.
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