Ford Ranks Number one in Customer Loyalty

According to J.D. Power and Associates, the global marketing research firm, Ford and Honda are tied for first in customer loyalty. Their 2010 Customer Retention Study released on Dec. 9th, showed that 62% of Ford and Honda customers will replace their cars with the same brand. The study credits Ford's Edge, F-Series and Fusion models with driving their retention rating, while for Honda, the Accord, CR-V and Pilot did the job.
They were followed closely by Hyundai, Lexus and Toyota, who all scored a 60% retention rate. The laggard of the pack was SAAB with only 4%. Kia posted the greatest improvement from its 2009 score, with a jump of 21 percentage points to 58 percent in 2010.
Overall retention rates for the industry as whole remained stable at 48%, with 16 of the 34 brands studied making gains, and 18 brands either coming in unchanged or losing ground.
Domestic brand loyalty on average has improved slightly, with 2010 coming in at 69% vs. 68% in 2009. Loyalty among imported car owners is even higher, with a score of 90% retention.
Another key statistic tracked by J D Power and Associates, is what they call Conquest rate, or the rate at which automotive brands capture customers from their competitors. "While import brands still have notably higher customer conquest rates than domestic brands, the gap is beginning to narrow," said Raffi Festekjian, director of automotive product research at J.D. Power and Associates.

Highway 402 Winter Emergency

The news this week of the Highway 402 car pileup near Chatham Ontario is a reminder to everyone who lives in a north climate, that winter driving is a seriously matter. A simple trip for over 360 drivers turned into a nightmare, when they became stranded on the highway during an extreme snow storm. Over 200 people had to be rescued by Ontario Provincial Police and the Canadian Armed Forces.
Some managed to find their way to designated emergency, “warming centers” on their own, but some unlucky travelers spent the night in their cars, waiting for up to 30 hours for help. While most people spent the time in relative cold and discomfort, one unfortunate man was found frozen to death in a field, after having abandoned his trapped car in a snow bank.
So remember to drive appropriately for the road and weather conditions, and to always have the necessary emergency supplies on hand for you and your family on all your holiday outings.

Hyundai Going to Rebrand

The Hyundai Motor Corporation has hinting that they will be changing the company’s image and some of its models, in the near future. There is an expectation of some major announcements at the upcoming Detroit Auto Show.
After years of being an “also ran” in the car industry, the company is ready to challenge its competitors. “In the past 10 years, we have been very successful in building an image for quality. From now on, our direction will be defined as new premium or modern premium.” said executive vice-president Cho Won Hong, Hyundai's new global marketing chief, in a recent interview. While the company did not give much detail, it is clear that they wish to be seen as a higher class of automobile brand.
With a solid showing in the JD Power and Associate 2010 Customer Retention Study, a 60% retention rating, and their chief Japanese competitors facing some tough criticism in the media over the past year, Hyundai can only hope to keep the momentum going. Toyota has had to deal with some painful car recalls, and Honda has had to cope with the lackluster sales of its CR-Z, Insight and Acura ZDX in North American.
Hyundai has also stated that their newer high tech offerings the 2011 Sonata Hybrid and Turbo models have be have been selling very well and have a very promising resale value.


[Source: Globe and Mail, Hyundai Motor Corp., the JD Power and Associate]

Ford Canada CEO Predicts Growth in 2011

Ford Canada’s chief executive officer David Mondragon is optimistic about his company’s performance in the New Year. While industry wide car sales in Canada experienced a 5% dip from 2009 to 2010, Ford managed 20% sales growth in both its car and truck divisions.
Ford like all the other car manufactures faces the challenge of maintaining the right mix of vehicles. Before the 2008 financial crisis, automobile dealers relied on North American’s love of SUVs and pickups, which generally have a higher margin. Now, companies will have to offer vehicles that will satisfy consumers that are still concerned about the economy.
"We're growing with a balanced approach with cars, CUVs (Crossover Vehicles) and trucks, and that speaks volumes in terms of our growth potential in the future.” Mondragon said.
Part of Ford’s balanced approach is the new version of their popular Explorer that will be based on a car platform. "It will be state of the art technology, it will also get 30 per cent better fuel economy than the old Explorer," he said.
In the wake of the 2008 financial crisis both General Motors and Chrysler filed for bankruptcy and shed billions in debt and costs with the help of billions from the U.S., Ontario and Canadian governments. Ford did manage to avoid those drastic measures but still had to face major restructuring of their operations.
Ford Canada has assembly plants in Oakville and St. Thomas, Ont., two engine plants in Windsor, Ont., and parts distribution centers in Brampton, Ont., and Edmonton.
(Source: Ford Motor Company of Canada / THE CANADIAN PRESS)

Can Cars be Made Safer for Children?

With over 200 fatalities and more than 15,000 injuries from back-over crashes last year in the US, the Obama Administration is trying to drastically reduce the blind spot on all American built vehicles. The Transportation Department is proposing legislation that would require all passenger cars and buses built after September 2012, to have increased visibility behind the vehicle, so that driving backward will be much safer.

Both Regulators and The Alliance of Automobile Manufacturers (the main car industry trade group) agree that child safety is the major concern with this legislation, given that more than half of all the deaths associated with this situation are children. "There is no more tragic accident than for a parent or caregiver to back out of a garage or driveway and kill or injure an undetected child playing behind the vehicle," Transportation Secretary Ray LaHood said.

US regulators believe that the car industries primary response to this legislation will be the addition of a rear-view video camera with a small monitor mounted on the dashboard or rear-view mirror. It’s expected that this technology will increase the cost of a vehicle by about $200, or $1.9 Billion to $2.7 Billion for the industry as a whole. Regulators also assume that the car companies will be able to pass along the price of the safety feature to their customers.

This technology has been around for awhile. Toyota and Ford have already begun to use it in some of their models. There are also after market kits available, ranging in price from $180 to over $400 for a full feature RV or truck model.

[Source: Josh Mitchell, dowjones.com]

Can Cars be Made Safer for Children?

With over 200 fatalities and more than 15,000 injuries from back-over crashes last year in the US, the Obama Administration is trying to drastically reduce the blind spot on all American built vehicles. The Transportation Department is proposing legislation that would require all passenger cars and buses built after September 2012, to have increased visibility behind the vehicle, so that driving backward will be much safer.

Both Regulators and The Alliance of Automobile Manufacturers (the main car industry trade group) agree that child safety is the major concern with this legislation, given that more than half of all the deaths associated with this situation are children. "There is no more tragic accident than for a parent or caregiver to back out of a garage or driveway and kill or injure an undetected child playing behind the vehicle," Transportation Secretary Ray LaHood said.

US regulators believe that the car industries primary response to this legislation will be the addition of a rear-view video camera with a small monitor mounted on the dashboard or rear-view mirror. It’s expected that this technology will increase the cost of a vehicle by about $200, or $1.9 Billion to $2.7 Billion for the industry as a whole. Regulators also assume that the car companies will be able to pass along the price of the safety feature to their customers.

This technology has been around for awhile. Toyota and Ford have already begun to use it in some of their models. There are also after market kits available, ranging in price from $180 to over $400 for a full feature RV or truck model.

[Source: Josh Mitchell, dowjones.com]

Can Cars be Made Safer for Children?

With over 200 fatalities and more than 15,000 injuries from back-over crashes last year in the US, the Obama Administration is trying to drastically reduce the blind spot on all American built vehicles. The Transportation Department is proposing legislation that would require all passenger cars and buses built after September 2012, to have increased visibility behind the vehicle, so that driving backward will be much safer.

Both Regulators and The Alliance of Automobile Manufacturers (the main car industry trade group) agree that child safety is the major concern with this legislation, given that more than half of all the deaths associated with this situation are children. "There is no more tragic accident than for a parent or caregiver to back out of a garage or driveway and kill or injure an undetected child playing behind the vehicle," Transportation Secretary Ray LaHood said.

US regulators believe that the car industries primary response to this legislation will be the addition of a rear-view video camera with a small monitor mounted on the dashboard or rear-view mirror. It’s expected that this technology will increase the cost of a vehicle by about $200, or $1.9 Billion to $2.7 Billion for the industry as a whole. Regulators also assume that the car companies will be able to pass along the price of the safety feature to their customers.

This technology has been around for awhile. Toyota and Ford have already begun to use it in some of their models. There are also after market kits available, ranging in price from $180 to over $400 for a full feature RV or truck model.

[Source: Josh Mitchell, dowjones.com]

Ford uses recycled blue jeans in next Focus

Ford says it's using recycled clothing, especially jeans, as a way of greening up the Focus. It's not a new concept at Ford. The automaker already makes upholstery in some of its SUVs out of recycled plastic milk bottles.

"Ford is continually looking for greener alternatives," said Carrie Majeske, product sustainability manager. "One of our key goals is to use more recycled or renewable materials without compromising performance or durability. Recycled content is a way to divert waste from landfills and reduce the impact of mining virgin material."