J.D. Power: Saturn Parts Managers Rank Their Franchise Highest in the Industry
14 October 1997
J.D. Power and Associates Reports: For the Second Consecutive Year, Saturn Parts Managers Ranked Their Franchise Highest in the IndustryAGOURA HILLS, Calif., Oct. 14 -- According to the J.D. Power and Associates 1997 Parts Managers' Satisfaction Index Study(SM), released today, Saturn's 20-point lead over the rest of the industry is still intact despite falling in the rankings one point to 131. Honda and Acura follow Saturn's lead respectively. The study points out that 61 percent of Saturn parts managers claim to be "extremely satisfied" while only 10 percent of parts managers overall termed themselves "extremely satisfied" in dealings with manufacturers. The J.D. Power and Associates 1997 Parts Managers' Satisfaction Index Study(SM) is designed to help manufacturers understand their parts policies and procedures on in-dealership satisfaction. Since 70 percent of profits are generated from the parts and service department in a dealership as well as 14 percent of sales, a successful parts business is key for dealers. The study reveals that quality is again the key to parts managers satisfaction, and the quality of OEM parts still leaves something to be desired. "Parts managers report that there is relatively little difference in quality between their manufacturers' parts and those available on the aftermarket (from non-OEM sources)," commented Rose-Anne Moore, group director of J.D. Power and Associates. "It is not surprising, then, that more than half of parts managers report regularly buying parts from aftermarket (non- OEM) sources. The exception is collision parts (fenders, bumpers, hoods, etc.); parts managers believe that the quality of the manufacturers' own collision parts is significantly better than that of parts available on the aftermarket -- and they are therefore much less likely to look elsewhere for that category of parts," Ms. Moore said. The following are the six key factors which affect parts managers' satisfaction with the manufacturer: * Quality, (36%) * Manufacturer Support, (23%) (field representation and training) * Ordering Process, (17%) * Accuracy and Availability, (13%) * Parts Systems, (6%) * Pricing, (5%) While the factors remain unchanged from 1996, weights have shifted slightly. Manufacturer Support is now number 2 in importance industry-wide, up from third last year, and is the number 1 factor in satisfaction for parts managers from Asian franchises. Tenure by the field representative has a significant impact on satisfaction. In fact, of the more than two-thirds of parts managers who reported that their current representative has been on the job less than two years, only 18 percent said they were "extremely satisfied" with their representative's performance. On the other hand, 40 percent of parts managers whose field representative had five or more years experience were "extremely satisfied". More than 2,600 parts managers nationwide participated in the J.D. Power and Associates 1997 Parts Managers' Satisfaction Index Study(SM). They completed a comprehensive eight-page questionnaire that delved into areas as general as the type of market in which their dealership is located, (rural/suburban or metro/city) and as specific as the number of business days typically required to get delivery of back-ordered recall parts. The factors affecting in-dealership satisfaction will be further explored next month when J.D. Power and Associates releases the benchmark Service Managers' Satisfaction Index(SM). J.D. Power and Associates is an international firm best known for its marketing information services in key business sectors including market research, forecasting, and customer satisfaction. The firm's quality and satisfaction measurements are based on actual customer responses from over a million consumers annually. With its headquarters in Agoura Hills, California, the firm also has U.S. offices in Torrance, California; Michigan; and Connecticut. Its international locations include Japan, Korea, England, Canada and Brazil. 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 or J.D. Power and Associates survey results without the expressed prior written consent of J.D. Power and Associates. J.D. Power and Associates 1997 Parts Managers' Satisfaction Index(SM) Saturn 131 Honda 111 Acura 107 Volvo 107 Infiniti 107 Lexus 106 Mercedes-Benz 106 Mitsubishi 106 Dodge 105 Chrysler/Plymouth 104 Jeep/Eagle 104 Volkswagen 102 Audi 101 Toyota 101 Oldsmobile 100 Industry Average 100 Finishing below industry average in alphabetical order are: BMW, Buick, Cadillac, Chevrolet/Geo, Ford, GMC, Isuzu, Lincoln/Mercury, Mazda, Nissan, Pontiac, and Subaru. Note: Hyundai, Jaguar, Kia, Land Rover, Porsche, Saab, and Suzuki have not been ranked due to insufficient sample size. SOURCE J.D. Power and Associates