U.S. automakers gain APEAL — and appeal Domestic brands are starting to win hearts, minds, and pocketbooks

[spookyturtle 9,465]

If you look at "Things Gone Right" and "Things Gone Wrong," things seem to be going pretty well for U.S. automakers after decades of quality problems and questionable designs.

There are growing signs that U.S. motorists are taking a closer look at domestic iron — and that they’re starting to like what they see.

Ford, General Motors and, to a lesser degree the struggling Chrysler, have all been faring unexpectedly well in a series of recent studies designed not just to measure quality but whether a maker’s products surprise and delight the customer. Significantly, Detroit makers have exceeded their Asian rivals on both counts, lately.

The 2010 APEAL (Automotive Performance, Execution and Layout) study by J.D. Power and Associates looks at what the industry likes to call “Things Gone Right,” or TGR. The products that score well are those that satisfy their owners with good design, solid performance, unexpected fuel economy and a variety of well-executed creature comforts.

For the first time since 1997, domestic brands surpassed their import rivals, notes David Sargent, Power’s chief analyst. The Big Three, he added, “have performed three important actions during the past two years that have led to their gains. 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 freshening and redesigns.”

While a good showing in a single study might be dismissed as a fluke, Detroit makers also scored a slam dunk in another TGR-style study, the Ideal Vehicle Awards from another California market research firm, AutoPacific, Inc. The IVA aims to uncover what AutoPacific President George Peterson describes as the vehicles “owners would change the least.”

Detroit fielded winners in 16 of 27 vehicle segments, including products like the new Ford Taurus SHO and the big Ford F-150 pickup. European makers claimed six segment winners, with Japan taking only five. The Koreans, despite gaining sales and showing big improvements in quality, were shut out entirely in the 2010 IVA.

There’s little doubt that Detroit’s improving quality has played a big part in increasing the domestic industry’s overall appeal. For the first time ever, the Big Three outscored their import rivals in another closely watched J.D. Power survey of owners, the Initial Quality Study. The 2010 IQS, released a month ago, is a more traditional Things-Gone-Wrong, or TGW, analysis, specifically looking at what the industry euphemistically calls “problems” with individual vehicles.

Problem gaps narrow

A couple decades ago, owners of domestic products typically reported double, triple, even four times more problems with their cars, trucks and crossovers compared to Asian buyers. The gap has been narrowing fast, in recent years, and for the 2010 models, the typical Detroit product averaged 108 problems per 100 vehicles — 108 PP100 in Power-speak — compared to 109 for the imports. Statistically insignificant? Perhaps, but a huge reversal of fortunes, and one more clear indicator of a larger trend.

Of course, the imports haven’t been helped, on the whole, by Toyota’s recent problems. The embattled Asian automaker dropped from sixth to 21st in the new IQS, and it didn’t fare any better in Power’s newest APEAL. It ranked 32nd in the study, ahead of only Jeep, one of the most troubled domestic brands.

Toyota has never been a strong player in Things-Gone-Right studies. As analyst Peterson says, it is a relatively “plain vanilla” brand, which has traditionally gained ground based on a solid reputation for quality, reliability and resale value. But as those slip, it is clearly having an impact.

“Toyota was the only major manufacturer (other than Chrysler) not up by double digits” during the first three months of 2010, noted Jeffrey Anderson, Director of Consulting & Analytics for Experian Automotive, which analyzed the first quarter’s U.S. new vehicle registration numbers.

Anderson cautioned that Toyota is still “conquesting” former Big Three customers, but other industry analysts believe that things may be starting to go the other way. More significantly, Toyota is not the only maker losing steam as Detroit makers, Ford and GM in particular, increase their overall appeal.

“Our competitive set is expanding,” boasts Ford’s global marketing chief, Jim Farley, adding that the maker’s dealers are seeing “increased cross-shopping,” not only with Toyota but with other import brands.

Another factor is likely to influence the trend: resale values. Traditionally, Detroit makers tended to lag their rivals, especially in key segments like midsize sedans. The difference could add up to thousands of dollars at the end of a three-year cycle. That was a strong factor for many buyers who based their decisions on hard numbers and less on emotional factors.

But now, with Detroit gaining on all fronts, domestic brands are starting to win both hearts, minds – and pocketbooks.

http://www.msnbc.msn.com/id/38346050/ns/business-autos/

[spookyturtle 9,465]

Where's the love? Of course most would be happy if the American auto industry disappeared, but I find it great news that things are starting to look up. But defending America tends to get one suspended.

[IndigoSkies 168]

Ford Edge looks decent.

[Mr. Big Dog 10,747]

It is a good trend. I must admit, however, that I didn't give domestic cars a lot of attention when shopping for a pre-owned car recently. I settled on a '07 Sonata after having been very happy with the Santa Fe we bought for my wife a couple of years ago. And I do like the Sonata I now drive. Also in consideration were the Altima, Accord, Camry and Passat.

[^_^ 5,021]

It is a good trend. I must admit, however, that I didn't give domestic cars a lot of attention when shopping for a pre-owned car recently. I settled on a '07 Sonata after having been very happy with the Santa Fe we bought for my wife a couple of years ago. And I do like the Sonata I now drive. Also in consideration were the Altima, Accord, Camry and Passat.

We bought a Hyundai four years ago, we were looking for a commuter car that came with small monthly payments and ended up getting the Elantra. So far, I've been very happy with the decision. It's by no means a fun ride but in terms of value for my dollar it's been phenomenal.

[alienlovechild 75]

A couple decades ago, owners of domestic products typically reported double, triple, even four times more problems with their cars, trucks and crossovers compared to Asian buyers. The gap has been narrowing fast, in recent years, and for the 2010 models, the typical Detroit product averaged 108 problems per 100 vehicles — 108 PP100 in Power-speak — compared to 109 for the imports. Statistically insignificant? Perhaps, but a huge reversal of fortunes, and one more clear indicator of a larger trend.

It's still going to take a long time to win back American consumers who were burned by poor quality cars in the past.

[^_^ 5,021]

It's still going to take a long time to win back American consumers who were burned by poor quality cars in the past.

Especially if their confidence in imports isn't shattered and imports remain affordable (that latter point may be the easier point of attack if the feds want to 'stimulate' demand for american cars).

Edited July 23, 2010 by Legacy member

[The_Dude 1,142]

Especially if their confidence in imports isn't shattered and imports remain affordable (that latter point may be the easier point of attack if the feds want to 'stimulate' demand for american cars).

I would at least consider a ford next time I am in the market for a car. GM hasn't done much to improve their standards and as such, I wouldn't consider a GM car made after 1970.

[spookyturtle 9,465]

I would at least consider a ford next time I am in the market for a car. GM hasn't done much to improve their standards and as such, I wouldn't consider a GM car made after 1970.

How about a new ZR1 Vette? Or a Caddy CTS V?