2003 JD Power Auto Customer Retention Study - Chevrolet Number One

Chevrolet Has the Highest Customer Retention Rates in the Industry

December 29, 2003

WESTLAKE VILLAGE, Calif.-The customer retention rate for Chevrolet is the
highest in the industry, according to the J.D. Power and Associates 2003
Customer Retention StudySM released today.

The inaugural study measures the ability of nameplates to retain their
owners who are once again in the market for a new vehicle.  On average, the
study finds that about one-half of consumers will repurchase the same
nameplate. 

Chevrolet ranks highest in customer retention, retaining 60.8 percent of its
owners.  Chevrolet models with the strongest retention rates include the
Avalanche, with 74.5 percent of owners purchasing another Chevrolet model,
TrailBlazer (73.8%), Impala (70.1%) and Silverado 1500/2500 (68.7%).

Chevrolet is followed in the ranking by Toyota (59.3%), Mercedes-Benz
(58.7%), Ford (58.1%) and Honda (57.1%).  Isuzu trails the industry,
retaining only 3.5 percent of its customers.

The study finds that one of the most influential reasons that customers do
not purchase another model in the nameplate's lineup is that the brand
doesn't offer the type of vehicle they were looking for.  A large number of
customers who defect to another brand do so because they believe their
previous manufacturer does not make the type of vehicle they want when they
re-enter the new-vehicle market.  

"Chevrolet is an example of a broad product line that offers customers many
options to fit their needs," said Joe Ivers, partner at J.D. Power and
Associates.  "While manufacturers tend not to expect each of their brands to
retain customers 'for life,' many have realigned themselves through mergers
and acquisitions to accumulate a portfolio of brands that give customers a
place to move up as they age and become more affluent.  However,
manufacturers vary in the degree to which they have integrated their brand
portfolio into a coherent cross-brand strategy."

Defections from a brand can occur due to owners' poor experiences with their
previous vehicles, or because they are "captured" by positive aspects of the
new brand they buy.  Among these "captured" customers, nearly two-thirds
purchase a model from a different brand because the new vehicle meets their
practical needs.  More than one-half feel the vehicle they buy has a better
look or style or because the brand is known for better quality than the
brand of their previous vehicle.

"Customer retention is critical to manufacturers, not just because the cost
of keeping a customer is generally lower than gaining a new one, but it's
also a test of whether the brand has staying power," said Ivers.  "Customer
retention can be predicted to a fairly strong degree based on the sales and
service experiences with the brand along with the vehicle's quality,
durability and appeal.  However, a large portion of vehicle owners are up
for grabs.  Being able to identify defectors, both within the brand and
those of the competition, can help a brand to develop and implement
remedies.  Also, identifying these 'fence-sitters' helps marketers know who
can be influenced one way or the other."

The 2003 Customer Retention Study is based on responses from 177,000
new-vehicle buyers, out of which 106,418 replaced a previous vehicle that
was originally purchased new.

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an
ISO 9001-registered global marketing information services firm operating in
key business sectors including market research, forecasting, consulting,
training and customer satisfaction.  The firm's quality and satisfaction
measurements are based on responses from millions of consumers annually.
Media e-mail contact: michael.greywitt@jdpa.com or john.tews@jdpa.com