PRESS RELEASE
J.D. Power Announces: Saturn Dealers Remain In Top For Dealer Attitude
Saturn Retains Top Spot in J.D. Power and Associates Latest Dealer
Attitude Study
AGOURA HILLS, Calif., Dec. 18 -- Saturn retains the
top spot for the fifth straight year in the latest J.D. Power and
Associates Dealer Attitude Study(SM) despite a four-point decline.
Showing strong gains in satisfaction among dealer principals are
Toyota Motor Sales, Chrysler Corporation and Mercedes-Benz. Excluding
Saturn, for the remaining General Motors franchises, the new is much
less positive. These franchises experienced declines in satisfaction
and fall below the industry average.
Driving GM's 8-point drop in satisfaction is concern regarding
GM's business policies and profitability. In 1996, the industry saw
sweeping changes within General Motors Corporation. Changes include
continuing realignment of its retail network, restructuring of field
organizations, adoption of a brand management philosophy and product
shortages due to the strike; and all come at a time of market share
erosion.
"Dealership owners are expressing their concern over the vast
changes implemented by General Motors this past year. Regardless of
whether or not these changes are the right moves for the future, the
dealership owner is concerned today," commented Ron Conlin, partner at
J.D. Power and Associates.
The study also points to communication challenges between the
manufacturer and its retailers. GM management's openness to its
dealer input was a focal point of dealer concern. Conlin continued,
"It would appear that GM dealer principals are being asked to
assimilate GM's new business policies without full knowledge of all
the repercussions, and they appear to be concerned."
Toyota Motor Sales, including the Toyota and Lexus franchises,
made the most impressive gains in dealer satisfaction this year.
Owners of Toyota and Lexus dealerships are very positive about the
profitability and strength of these two franchises.
With year-to-date sales up over 14 percent this year, dealer
satisfaction with all three of Chrysler Corporation's franchises has
markedly increased -- with the most notable increase occurring in the
evaluations of the Jeep/Eagle franchise.
Dealer owner evaluations of Mercedes-Benz also increased
dramatically this year as profitability measures improved resulting
from the more than 20 percent increase in sales on a year-to-date
basis as well as increased dealer satisfaction with Mercedes-Benz's
marketing support and parts and warranty support.
All indicators in the industry point to a continuing change and
consolidation at retail. The number of owners of new car dealership
franchises is continuing to decline through larger, higher volume
stores as well as the bundling of franchises at a single location by
dealership chains.
This annual J.D. Power and Associates survey is conducted among
the principal owner/investor of each business entity including the
single franchise dealer as well as the principal owner of the fast
growing chains of retail outlets that now have twenty to thirty or
more locations. The larger chains are business entities that have
annual revenues reaching billions of dollars annually, and they have a
mix of many manufacturer franchises in their portfolios. The
attitudes and opinions of these key decision makers have become an
important part of the survey report.
This year's study focused on dealer opinions regarding the
dramatic changes the industry is experiencing. The report features
dealer reactions to the well publicized "retail revolution" which
includes reactions to issues such as the emergence of used car
superstores, the increase in on-line car buying behavior, and the rise
of initial public offerings by outside investors. The study reports
that 42 percent of dealer owners agreed that the internet is a viable
means of selling new and used vehicles. High volume operators (the
top 5 percent volume dealers) are even more encouraged as 54 percent
of this group perceived the internet as a viable marketing tool.
The annual J.D. Power and Associates Dealer Attitude Study(SM) is
unique in that it is completed solely by dealer principals. This
year's study included responses from more than 3,600 dealer owners --
approximately one- quarter of all new car dealership management
organizations in the United States. This is the 11th year the firm
has conducted this independently funded study, which assesses the
attitudes of dealer principals.
J.D. Power and Associates is an international marketing
information firm with headquarters in Agoura Hills, California and
offices in Detroit, Michigan; Westport, Connecticut; Torrance,
California; Toronto, Canada; London, England; Tokyo, Japan, and Seoul,
Korea. J.D. Power and Associates is best known for marketing
information, consulting and measurement expertise in the areas of
consumer opinion and customer satisfaction. J.D. Power and Associates
can be accessed through the World Wide Web at http://www.jdpower.com.
Email: info@jdpower.com.
No advertising or other promotional use can be made of the
information in this release of J.D. Power and Associates survey
results without the express prior written consent of J.D. Power and
Associates.
J.D. Power and Associates
1996 DEALER SATISFACTION INDEX
INDEX SCORES OF NAMEPLATES
1996
Rank Industry 97
1 Saturn 157
2 Lexus 144
3 Jaguar 130
4 Toyota 125
5 Infiniti 122
6 Honda 116
6 Porsche 116
8 Mercedes-Benz 113
9 Acura 110
10 Dodge 108
11 BMW 107
11 Chrysler/Plymouth 107
13 Jeep/Eagle 106
14 Volkswagen 105
15 Subaru 102
16 Kia 101
16 Nissan 101
16 Volvo 101
19 Ford 99
19 Lincoln/Mercury 99
21 Hyundai 96
22 Audi 95
22 Buick 95
24 Chevrolet 91
24 Mazda 91
24 Pontiac 91
27 Geo 89
28 Mitsubishi 86
29 Saab 85
30 Isuzu 80
31 Cadillac 78
31 GMC 78
33 Oldsmobile 73
34 Suzuki 67
#Land Rover not reported due to insufficient sample
CONTACT: Patricia A. Patano of J.D. Power and Associates, 818-889-6330
