J.D. Power and Associates Reports: Dealer Satisfaction Continues Downward Trend for Fourth Year in a Row
10 December 1997
J.D. Power and Associates Reports: Dealer Satisfaction Continues Downward Trend for Fourth Year in a Row
Saturn Continues to Have Most Satisfied Dealers
AGOURA HILLS, Calif., Dec. 10 -- According to the just
released J.D. Power and Associates 1997 Dealer Attitude Study(SM), the overall
industry dealer satisfaction index score declined six points -- marking its
fourth straight year of decline. Saturn tops the dealer satisfaction index
again this year for the sixth year in a row, closely followed by Lexus and
Mercedes-Benz -- both showing significant gains.
The study reveals that the overall decline in dealer satisfaction is a
result of poor performance among domestic franchises and mainly from a few of
the dominant high volume franchises. According to the study, dealers have
become increasingly pessimistic over the last few years about their
profitability now and into the future. As more and more dealers become
pessimistic the industry will likely see greater consolidation of dealerships
as dealers either retire, or sell out to pursue other opportunities.
"Profitability is a key component of dealer satisfaction and is highly
correlated with the current trend of dealer pessimism," commented Loretta
Seymour, director of automotive sales research at J.D. Power and Associates.
"Even where unit profits remain constant, overall profitability declines as
costs rise in other areas. Manufacturers must show dealers that they are
working with them to improve their situation," Ms. Seymour said.
Among other notable findings in the study, Mercedes-Benz made the most
impressive gains in dealer satisfaction this year followed by Audi, Saab and
BMW. Owners of these franchises are very optimistic about the profitability
and strength of their franchises. Given the tidal wave of new Mercedes
products, it would not be surprising to see the franchise rank strongly next
year.
The J.D. Power and Associates 1997 Dealer Attitude Study is unique in that
it is completed solely by dealer principals. This year's study included
responses from almost 3,000 dealer owners -- approximately one-quarter of all
new car dealership management organizations in the United States. This is the
12th year the firm has conducted this independently funded study, which
assesses the attitudes of dealer principals.
The study looks at six measures in determining overall dealer
satisfaction. The following are the six measures in order of importance:
* Profitability
* Business Policies
* Marketing
* Sales Representatives
* Service Relations
* Parts/Warranty Policies
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 express
prior written consent of J.D. Power and Associates.
J.D. Power and Associates
1997 Dealer Attitude Survey(SM)
Saturn 155
Lexus 153
Mercedes-Benz 132
Honda 121
BMW 119
Toyota 119
Porsche 118
Audi 114
Subaru 111
Volkswagen 111
Volvo 108
Acura 106
Dodge 103
Hyundai 102
Saab 100
Chryser/Plymouth 99
Jeep/Eagle 98
Lincoln/Mercury 96
Industry Average 95
Finishing below industry average, in alphabetical order, are: Buick,
Cadillac, Chevrolet, Ford, Geo, GMC, Isuzu, Kia, Mazda, Mitsubishi, Nissan,
Oldsmobile, Pontiac and Suzuki.
Note: Infiniti, Jaguar and Land Rover not reported due to insufficient
sample.
Source: J.D. Power and Associates, 1997 Dealer Attitude Study(SM)
SOURCE J.D. Power And Associates