Domestic car models outperform imports in vehicle appeal for first time in 13 years

RP news wires

For the first time since 1997, domestic auto brands, collectively, have surpassed import brands as a whole in vehicle appeal, according to the J.D. Power and Associates 2010 Automotive Performance, Execution and Layout (APEAL) Study released on July 15.

In 2010, the APEAL score for U.S. domestic brands averages 787 on a 1,000-point scale, 13 points higher than the score for import brands (automakers headquartered in Europe or Asia Pacific). By comparison, in 2009, import brands outpaced domestic brands by five points. Among premium models, import nameplates continue to retain a notable edge, but mass-market models from domestic brands outperform those from import brands.

Domestic brands have been improving steadily in vehicle appeal during the past four years, with the greatest improvement occurring between 2008 and 2010. Improvement in 2010 is driven primarily by high-performing models from Ford Motor Company and General Motors Corporation, including several models that are all-new or have undergone major redesigns.

"Domestic automakers have performed three important actions during the past two years that have led to their gains," said David Sargent, vice president of global vehicle research at J.D. Power and Associates. "Firstly, they have retired many models that demonstrated low appeal. They have also introduced new, highly appealing models to their lineups, and finally, they have improved their existing models through freshenings and redesigns."

New models introduced by import brands between 2008 and 2010 have similar APEAL scores as models retired by these import automakers during the same period (averaging 784 vs.781, respectively). In contrast, newly introduced domestic models have strongly outperformed the models retired by domestic brands (803 vs. 758, on average).

Historically, vehicle models achieving high APEAL scores have been shown to generate faster sales, higher profit margins, and less need for cash incentives. High levels of vehicle appeal also have a strong influence on customer recommendation rates. Among the most highly satisfied owners (APEAL scores averaging 950 or higher), 97 percent say they "definitely will" recommend their vehicle. However, among the least-satisfied owners (scores averaging below 400), only 8 percent say the same.

"When new-vehicle buyers go through the shopping process, vehicle appeal, along with price and perceptions of quality, is of major importance," said Sargent. "Attributes such as exterior styling are primary determinants of whether a model makes the customer's consideration list in the first place, while other attributes--particularly those related to the interior of the vehicle--are critical in determining which model is ultimately purchased."

APEAL Model-Level and Nameplate Rankings
Ford captures five segment-level awards (more than any other vehicle brand in 2010) for the Expedition, Explorer Sport Trac, Flex, Fusion and Taurus. Audi, BMW, Chevrolet, Mercedes-Benz and Volkswagen each garner two awards. Audi receives awards for the Q5 and Q7. BMW models receiving awards are the 3 Series and 5 Series. Chevrolet receives awards for the Avalanche and Camaro, while Mercedes-Benz earns awards for the E-Class Coupe and S-Class (for a fourth consecutive year) and Volkswagen receives awards for the GTI and Routan. The Mercedes-Benz S-Class achieves the highest APEAL score of any model in the industry.

Also receiving awards are the GMC Terrain; Honda Fit; Land Rover Range Rover; MINI Cooper (for a third consecutive year); and Nissan Cube.

Only two models rank highest in their respective segments in both the 2010 APEAL Study and the 2010 Initial Quality Study (IQS) released in June - the Chevrolet Avalanche and Ford Taurus.

Five award recipients in 2010 are all-new models: the Audi Q5; Chevrolet Camaro; GMC Terrain; Mercedes-Benz E-Class Coupe; and Nissan Cube. According to the J.D. Power Web Intelligence Division, at the time of its launch, the Chevrolet Camaro generated particularly high volumes of online discussion centered on new-vehicle appeal. Compared with other new models released in 2010, discussion volume for the Camaro is twice that of the second-most-discussed model.

Porsche is the highest-ranking nameplate in APEAL for a sixth consecutive year. Suzuki improves more than any other nameplate in 2010, compared with 2009.

The APEAL Study examines how gratifying a new vehicle is to own and drive, based on owner evaluations of more than 80 vehicle attributes. The 2010 APEAL Study is based on responses gathered between February and May 2010 from more than 76,000 purchasers and lessees of new 2010 model-year cars and trucks who were surveyed after the first 90 days of ownership. The APEAL Study complements the recently released J.D. Power and Associates Initial Quality Study (IQS), which focuses on problems experienced by owners during the first 90 days of ownership.

2010 APEAL Nameplate Ranking
  (Based on a 1,000-point scale)

  Porsche                                                            877
  Jaguar                                                             854
  BMW                                                                846
  Mercedes-Benz                                                      842
  Land Rover                                                         836
  Audi                                                               832
  Lexus                                                              827
  Acura                                                              822
  Lincoln                                                            820
  Cadillac                                                           818
  MINI                                                               816
  Infiniti                                                           805
  Buick                                                              802
  Volkswagen                                                         797
  Volvo                                                              795
  Ford                                                               794
  GMC                                                                792
  Chevrolet                                                          789
  Ram                                                                780
  Industry Average                                                   778
  Mazda                                                              774
  Mercury                                                            769
  Mitsubishi                                                         767
  Honda                                                              766
  Scion                                                              764
  Nissan                                                             763
  Dodge                                                              761
  Kia                                                                761
  Hyundai                                                            760
  Subaru                                                             755
  Suzuki                                                             750
  Chrysler                                                           748
  Toyota                                                             745
  Jeep                                                               727




  Top Three Models per Segment
  Car Segments

  Sub-Compact Car
  ---------------
  Highest Ranked: Honda Fit
  Scion xD
  Toyota Yaris

  Compact Car
  -----------
  Highest Ranked: MINI Cooper
  Volkswagen Golf
  Volkswagen Jetta

  Compact Sporty Car*
  -------------------
  Highest Ranked: Volkswagen GTI

  Compact Premium Sporty Car*
  ---------------------------
  Highest Ranked: Mercedes-Benz E-Class Coupe

  Entry Premium Car
  -----------------
  Highest Ranked: BMW 3 Series
  BMW 1 Series
  Acura TL (tie)
  Audi A4/5 (tie)
  Mercedes-Benz C-Class (tie)

  Midsize Sporty Car*
  -------------------
  Highest Ranked: Chevrolet Camaro
  Dodge Challenger

  Midsize Premium Car
  -------------------
  Highest Ranked: BMW 5 Series
  Mercedes-Benz E-Class Sedan
  Jaguar XF

  Large Premium Car
  -----------------
  Highest Ranked: Mercedes-Benz S-Class
  Porsche Panamera
  Lexus LS 460

  Midsize Car
  -----------
  Highest Ranked: Ford Fusion
  Buick LaCrosse
  Volkswagen Passat

  Large Car*
  ----------
  Highest Ranked: Ford Taurus
  Nissan Maxima

  NOTE: For a segment award to be issued, there must be at least three
  models with sufficient sample that comprise 80 percent of market
  sales within an award segment.  There were only two premium sporty
  car models with sufficient sample size. Thus, no premium sporty car
  awards have been presented.
  *No other model in this segment performs above the segment average.




  Top Three Models per Segment
  Truck / Multi-Activity Vehicle (MAV) Segments

  Compact Crossover/SUV
  ---------------------
  Highest Ranked: GMC Terrain
  Volkswagen Tiguan
  Chevrolet Equinox

  Compact MPV
  -----------
  Highest Ranked: Nissan Cube
  Chevrolet HHR
  Kia Soul

  Entry Premium Crossover/SUV*
  ----------------------------
  Highest Ranked: Audi Q5
  Mercedes-Benz GLK-Class

  Midsize Crossover/SUV
  ---------------------
  Highest Ranked: Ford Flex
  Honda Accord Crosstour
  Buick Enclave

  Large Crossover/SUV*
  --------------------
  Highest Ranked: Ford Expedition
  Nissan Armada

  Midsize Premium Crossover/SUV
  -----------------------------
  Highest Ranked: Audi Q7
  Porsche Cayenne
  BMW X5

  Large Premium Crossover/SUV
  ---------------------------
  Highest Ranked: Land Rover Range Rover
  Mercedes-Benz GL-Class
  Land Rover Range Rover Sport

  Large Pickup*
  -------------
  Highest Ranked: Chevrolet Avalanche
  Ford F-150 LD

  Midsize Pickup
  --------------
  Highest Ranked:
  Ford Explorer Sport Trac
  Honda Ridgeline
  Nissan Frontier

  Minivan*
  --------
  Highest Ranked: Volkswagen Routan
  Honda Odyssey

  NOTE: For a segment award to be issued, there must be at least three
  models with sufficient sample that comprise 80 percent of market
  sales within an award segment.  There were no large van models with
  sufficient sample size. Thus, no large van awards have been
  presented.
  *No other model in this segment performs above the segment average.
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