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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 Industry

    AGOURA 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