Hola Dieter, Hispanics' Auto-Buying Examined in JDP Study

DETROIT January 14, 2003; John Porretto writing for the AP reports that Hispanics account for 8 percent of new car and truck buyers, though many are critical of the service they receive at dealerships, according to a new survey.

The report from J.D. Power and Associates says Hispanics, who represent 11 percent of the population, have become the largest minority group purchasing new vehicles.

Overwhelmingly, they choose imports, the survey shows.

"When put in the context of the phenomenal growth of the segment, the predisposition for imports among Hispanics becomes particularly important for domestic makers," said Bill Williams, senior director of marketing services at J.D. Power and Associates.

All of the major automakers use advertising directed at Hispanics.

Dieter Zetsche, president and chief executive of DaimlerChrysler AG's Chrysler arm, said this month his company had appointed an advertising team exclusively for California, the single largest automotive market. Half of all advertising dollars will be spent to attract Hispanic buyers, he said.

Irma Elder, who sells Fords, Jaguars and other brands at dealerships in Detroit and Tampa, said the idea is simple.

"Hispanic people are emerging as a tremendous buying force," said Elder, who was born in Mexico and has appeared in Ford advertisements aimed at the Hispanic community.

"I don't think you can focus a particular vehicle to Hispanics or Greeks or anyone else," she said. "But it's important to market to those groups and let them know they're important to us."

The number of U.S. Hispanics rose by 58 percent during the past decade to 35.3 million, according to Census figures.

The J.D. Power report is based on analysis drawn from several studies - using English-language questionnaires - as well as data from online focus groups.

J.D. Power said the report reflects the opinions of more than 12,000 Hispanic new- and used-vehicle buyers in several phases of the process - vehicle shopping, buying, service and reselling.

Sales studies were done in January and February of 2002. The service portion of the survey included people who owned vehicles between 1998 and 2001.

The report finds that Hispanic buyers rate fuel economy, purchase price and resale value significantly higher in their selection of a vehicle than non-Hispanics.

But they're much less enthusiastic about the overall experience with the vehicle service process, Williams said.

"Hispanics are particularly critical of their experience with dealer service, rating virtually every step of the process significantly lower than non-Hispanic owners, particularly in the performance of the service adviser (and) in the quality of the service work," he said.