Honda and Ford Ranks highest in customer retention survey.

Are we starting to see a bit of light at the end of the Great Recession tunnel? Are car buyers ready to have a little fun, fun, fun again?

It would seem so, as new-vehicle owners are increasingly citing fun-to-drive vehicles as a top reason for remaining loyal to their current brand, according to the new 2010 Customer Retention Study released last week by J.D Power and Associates.

Ford and Honda ranked highest in the survey – tying for first place – when it comes to retaining vehicle owners, each retaining 62 percent of their owners.

The Winners

Ford's high retention rate was primarily driven by the Edge, F-Series and Fusion models. Two of those models – the Edge and the Fusion – are relatively new, having been introduced in the last few years.
"So, that's a good sign for Ford," observed Raffi Festekjian, director of automotive product research at J.D. Power and Associates. "Ford seems to be doing the right things. In our initial quality study this year, Ford ranked higher than it's ever ranked – 5th place."
For Honda, meanwhile, it was the Accord, CR-V and Pilot that primarily drove their high retention rate.
When comparing the two brands, the study revealed that Ford owners are more likely than are Honda owners to say that they've stayed loyal because their new vehicle is fun to drive or features snappy styling. Conversely, Honda owners were more likely than Ford owners to identify resale value and safety as the main reasons for buying another Honda.
"Honda has been a consistently strong performer in this survey. Hondas have always been on the top tier with it comes to retention – their owners pretty consistently cite safety and resale value," said Festekjian.
That said, the study showed that fewer owners are citing more practical reasons, like anticipated resale value, as a reason for their loyalty to their current brand. The importance of having fun-to-drive vehicles increased by eight percent compared to last year, while the importance of resale value dropped by 10 percent over that same period.
What Price Loyalty?
The customer retention study, which has been conducted for the last eight years, measures the rate at which car brands keep their existing customers and asks owners why they remain loyal. Customer retention is always key to a brand's success in the marketplace, especially during a recession or slow economic recovery -- times when every sale is crucial to the bottom line.
The study also measures how well the various brands "capture" consumers who were previously driving other brands -- or, as it's known in the car biz, "conquest." The importance of vehicles being fun-to-drive has also increased as a reason why some brands are able to lure new customers away from competitors. In the new study, styling was also cited when it came to conquesting.
The 2010 Customer Retention Study is based on responses from 123,601 new-vehicle buyers and lessees. Of those, 81,350 replaced a vehicle that they had purchased new. The study was conducted between February and May, and between August and October, of this year
"This is a key study, because it's important to understand the reasons that drive loyalty within the industry," said Festekjian. "Customer retention is the primary goal of every manufacturer. It obviously has a direct impact on sales, and it fosters a favorable word of mouth."
Best Of The Rest
Ford and Honda didn't "beat out" their competitors by much. In a three-way tie for second, Hyundai, Lexus and Toyota each scored retention grades of 60 percent. Kia boasted the strongest increase in customer-retention compared to last year – the Korean carmaker improved by 21 percentage points in one year, notching a score of 58 percent in 2010.
Toyota's yearlong woes -- the Congressional hearings into the acceleration problems, the myriad recalls, etc. -- did not seem to hurt their ability to retain customers. "Toyota has historically also been in the top tier, and their current customers remain pretty loyal," said Festekjian. "The challenge Toyota now faces is the ability to conquest new customers, because now those buyers now have some questions about Toyota. In this survey, Toyota did, in fact, see a drop in their conquesting."
It's The Economy
Festekjian confirmed that customer retention is also critical during tough economic times, or during a sluggish recovery like the current one. "With total sales down, and with consumers having so many more choices now, it's really important for the carmakers to know why they're retaining customers, because it's a lot easier to retain a customer than to conquest a new one," he said.

But, since the economy and car market are improving, if only slightly, car owners are increasingly returning to citing emotional, rather than practical, reasons for staying with their current brand or switching to a different one, Festekjian added. "Developing new models that are fun to drive, with more attractive styling, seems to be increasingly more critical for automakers, as they continue to try to retain and conquest customers as the auto market continues to recover."

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Mercedes delivers its first F-Cell vehicle.

While Nissan and GM were racing to deliver their first electric and extended range electric vehicles to customers this week, Mercedes-Benz quietly handed over the keys of an F-Cell hydrogen car to its new owner in California.
Mercedes-Benz posted photos of the delivery on its Facebook page, marking the first of 70 or so hydrogen vehicles that California drivers can lease from the luxury carmaker over the next few years. The compact F-Cell uses hydrogen to power the 134-horsepower electric motor and achieves a 240-mile zero-emissions range.
Drivers can lease the vehicle from Mercedes-Benz for $850 per month--a steep price for participating in a research program--but the upside is that they won't have to pay for gas. California hasn't approved the codes and standards for measuring and dispensing hydrogen, and until then the fuel is free for fuel-cell customers at public refueling stations. When the codes are finalized, California Fuel Cell Partnership spokesperson Chris White says hydrogen will initially cost about $5-6 per kilogram. The Mercedes-Benz F-Cell holds 3.7 kilograms, so a fill-up would cost about $20, but the price of hydrogen should be halved as production ramps up over the next few years.
Even as production increases, demand will remain small. Mercedes plans to lease a total of 200 F-Cells, and the U.S. is expected to receive only a third of the fleet. The company is still fielding applications for the next batch of F-Cells, and prospective customers can apply on Mercedes-Benz's microsite. However, because hydrogen fueling stations are few and far between, interested parties need to live in the Los Angeles or San Francisco Bay area.

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New auto sales expected to fall in 2011 to lowest level in 34 years

Sales of new automobiles in Japan next year are likely to decrease 9.9% from this year to 4,465,000 units, marking the lowest level in 34 years, an industry body said Friday.
The Japan Automobile Manufacturers Association attributed the envisaged decrease to termination of the government’s subsidies for environmentally friendly vehicles in September as well as to the uncertain outlook of the nation’s economy.
The estimated figure is a drop of more than 40% from 1990, when the annual total sales of new cars peaked at 7,777,493 units. It is also the lowest level since 1977, when annual sales logged 4,194,249 units.
By category, sales of automobiles other than minivehicles are forecast to witness a drop of 13.3% to 2,808,000 units, while sales of minivehicles are likely to fall 3.6% to 1,657,000 units.
Toshiyuki Shiga, chairman of the association, said at a press conference Friday that for several months from January next year, sales are expected to see a year-on-year monthly drop of over 10%.
‘‘We hope to see a year-on-year monthly increase from around fall through the launch of new cars and sales promotions,’’ he said, while adding that global sales would remain strong due to recovery in the U.S. market and robust demand in China.

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LPG for vehicles in the Philipines.

  Concerned about the high price of oil in the world market, the Department of Energy (DoE) pushed for the use of liquefied petroleum gas or LPG as an alternative fuel for automobiles.
The move was strongly pushed by DoE officials during the “2010 Energy Industry Forum” at downtown hotel and restaurant here over the weekend.
The energy forum is part of the continuing collaboration of the DoE and Department of Trade and Industry (DTI) to increase awareness among consumers.
Before some 155 energy stakeholders and local officials, DoE-Visayas official Jose Rey C. Maleza disclosed that there is a need to use LPG in an effort to mitigate the impact brought about by the high price of oil now confronted by all consuming public.
Maleza emphasized that there is no problem when converting automobile gas engine to an LPG-operated engine because they have the same heating capacity and needs with the conventional gasoline engine.
“Aside from that, based on simulation, the LPG-fueled automobile is faster compared to a gasoline-fueled automobile,” said Maleza.
Autogas is the common name for LPG when it is used as a fuel in internal combustion engines in vehicles.
The same equipment is also used for similar engines in stationary applications such as generators.
Some public community vehicle operators are already using the LPG as an alternative fuel for automobiles, and the DoE encourages more operators to use LPG to also minimize even their expenses.
However, the DoE officials at the Energy Stakeholders Forum warned that only Auto-LPG stations are authorized to sell LPG for automobile purposes and not for household use.
They added that domestic or household cylinders are not allowed to be refilled in any Auto-LPG dispensing stations.
Written by MIKE U. CRISMUNDO.

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Range Rover sport HSE.

THE Range Rover is one of the great British success stories.
As one of the great icons of modern times it’s a vehicle that is much feted - and much bought, writes Rob Auchterlonie..
And you don’t have to be an overpaid footballer or have blonde hair and a pair of Gucci sunglasses parked on the top of your head to own one.
You only have to glance at your average queue of traffic to see how popular the Range Rover Sport is. They’re everywhere, the discerning choice of motorists who want to buy British because in this instance British is tub-thumpingly best.
It’s been praised the world over and if you think you’re going to read anything other than that here then you’re mistaken.
Of course, it’s not faultless. You can look at any car and there will always be something that doesn’t quite ring true.
But the sum of the overall parts usually far outweighs any minus points. And that’s very definitely the case with Solihull’s finest.
For something capable of tackling terrain slightly more rugged than the A421 it’s a supremely comfortable vehicle. So much so that you could almost forgive George Michael dozing off behind the wheel. Actually, no you can’t. No one should be in charge of any form of motorised transport when they’re completely gazeboed on drugs or anything else. Not the sort of publicity Land Rover relish – they prefer the good stuff, like the announcement that the factories are safe, thousands of new jobs are to be created and that there’s widespread anticipation of the arrival of the baby Rangie, the new Evoque.
The Sport is the slightly stockier and snappier version of the full blown Range Rover, and while it might not quite appear to have the full blown ‘drive through the jungle’ credentials of its stablemates, there’s still a healthy 227mm of obstacle clearance and a 700mm wading depth when the river bank bursts. Or put another way, if you’re vertically challenged you’re going to need a hand up into the passenger seats.
From where you’ll be wafted to your destination amidst a classy mix of leather, wood, aluminium and a top notch sound system.
For the person in control (we won’t call him George in this instance) there are more buttons than on a big girl’s blouse when it comes to piloting the Sport, offering a setting for just about every conceivable road condition you might encounter.
Of course, a large number of owners will glance at them, panic and then reach forward to the touch screen to select their favourite music or the sat nav.
But it’s reassuring to know that there’s not a lot that can stop you reaching your destination in a Range Rover.
And when it comes to off road use, Land Rover sets the standard for others to follow, so on the latest models you get Hill Start Assist, which stops the car rolling backwards, and Gradient Acceleration Control.
There are two diesel engines to choose from, with either 211ps (520Nm) or 245ps (600Nm), both units being pretty refined and responsive when called upon. Throttle response is impressively quick and for a big vehicle the Sport still displays impressive on road poise.
This chunky car comes with an equally chunky key but you don’t need it – start up is via a push button on the dash. You just need to keep it in your pocket, or on the restaurant dining table for maximum impact.

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