J.D. Power and Associates Reports: The Desire to 'Buy American' Drives Many New-Vehicle Shoppers to Purchase Domestic Rather Than Import Nameplates


WESTLAKE VILLAGE, CA USA


WESTLAKE VILLAGE, Calif., Sept. 26 /PRNewswire/ -- Despite the fact
that import vehicles make up nearly 49 percent of the U.S. auto market, the
country of origin still plays a crucial role in consumer choice of which
make and model to purchase, according to the J.D. Power and Associates 2007
Escaped Shopper Study(SM) released today. The study provides a
comprehensive evaluation of why consumers may consider one model, but
ultimately purchase another.

Nearly 80 percent of new-vehicle buyers limit their consideration set
to include only domestic models or only import models. Among those who
cross-shop for both import and domestic models, consumers who ultimately
buy a domestic frequently do so because they simply decide they do not want
an import. Buyers of domestic new-vehicles also frequently decide against
import brands for financial reasons, most often citing that the import
didn't offer aggressive rebates or other incentives.

Conversely, import buyers who reject a domestic model more frequently
point to perceived vehicle attribute deficiencies as key reasons for
rejection, such as concerns for reliability, gas mileage or poor resale
value.

"These findings point to continued difficulties for the Big Three in
Detroit as they try to win back some of the market share they lost to the
imports," said Kara Steslicki, research manager of the automotive retail
practice at J.D. Power and Associates. "It also suggests that too few U.S.
consumers have caught on to the fact that cars and trucks offered by
Detroit automakers are in many cases as good, if not better, than their
rivals from Asia and Europe. Reliability and resale value perceptions are
difficult to change overnight, especially considering that people are
already rejecting domestic vehicles because of this. To win back market
share, domestics are faced with two alternatives: either continue
outspending imports on incentives, or find vehicle specific opportunities,
such as styling or promoting a positive dealer experience, that can have an
immediate impact on consumer perceptions of the brand."

The study also finds the following new-vehicle shopper behavior patterns:

-- Nearly 40 percent of all new-vehicle shoppers cite price as a key
reason for rejecting a model. Interior (10%), the dealer experience
(10%) and quality/reliability concerns (9%) follow as the most
influential reasons for rejection.
-- Approximately 45 percent of new-vehicle shoppers took a test drive
prior to rejecting a model, and nearly 25 percent of consumers tried
to negotiate pricing before ultimately purchasing a different model.
-- More than 60 percent of rejecters indicate they researched a model on
the Internet. Additionally, more than 20 percent of shoppers claim the
Internet influenced their decision to reject a model.
-- Shoppers who researched a model by using the Internet or by reading a
magazine review are nearly half as likely to mention interior issues
as the most influential reason for rejecting a model when compared
with shoppers who actually visit a dealership (11% versus 5%,
respectively).
-- While price is a key issue among both hybrid and non-hybrid rejecters,
consumers who shop for a hybrid are less likely to reject for price
(53%) than consumers who shop for a non-hybrid model (59%).

"Consumers who shop for a hybrid essentially go into the dealership
expecting to pay a higher price for their vehicle, so it's not surprising
that the gap between hybrid and non-hybrid shoppers rejecting models due to
price is minimal," said Steslicki.

The 2007 Escaped Shopper Study is based on responses from 31,355
new-vehicle buyers surveyed between May and July 2007.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
an ISO 9001-registered global marketing information services firm operating
in key business sectors including market research, forecasting, performance
improvement, training and customer satisfaction. The firm's quality and
satisfaction measurements are based on responses from millions of consumers
annually. For more information on car reviews and ratings, car insurance,
health insurance, cell phone ratings, and more, please visit
http://JDPower.com. J.D. Power and Associates is a business unit of The
McGraw-Hill Companies.

The title of the article is very misleading. Makes it sound like a trend vs a minor statistic. These 3 quotes give a great explanation on the current state of affairs :) Maybe GM will pull its head out of its own ass like Ford has done.

"Among those who
cross-shop for both import and domestic models, consumers who ultimately
buy a domestic frequently do so because they simply decide they do not want
an import. "

"Buyers of domestic new-vehicles also frequently decide against
import brands for financial reasons, most often citing that the import
didn't offer aggressive rebates or other incentives."

"Conversely, import buyers who reject a domestic model more frequently
point to perceived vehicle attribute deficiencies as key reasons for
rejection, such as concerns for reliability, gas mileage or poor resale
value."


"

The title of the article is very misleading. Makes it sound like a trend vs a minor statistic. These 3 quotes give a great explanation on the current state of affairs :) Maybe GM will pull its head out of its own ass like Ford has done.



Maybe you oughta to explain what exactly GM is doing wrong and how it can pull its head out of its own ass.

From what I can see, Ford is behind GM as far as turnarounds are concerned.

Maybe you oughta to explain what exactly GM is doing wrong and how it can pull its head out of its own ass.

From what I can see, Ford is behind GM as far as turnarounds are concerned.

Ford is far ahead. They've done the needed layoffs and as a company has finally accepted guilt. They are striving to be a lean, mean, and profitable company. While GM still seemingly has no direction whatsoever and most of its cars are complete garbage; and worst yet, it won't admit its failings. See the almost the entire Pontiac and Chevy line for details.

It also suggests that too few U.S.
consumers have caught on to the fact that cars and trucks offered by
Detroit automakers are in many cases as good, if not better, than their
rivals from Asia and Europe.

uh... really?

Buy American....uh....I can't do it! I just can't do it!

Is there a correlation with one of the Big Detroit Automakers offering a Lifetime Powertrain warranty?

Doubtful. That lifetime warranty is so chock-full of loopholes for the dealer, you'd think it was made of swiss cheese. *badum bum*

Doubtful. That lifetime warranty is so chock-full of loopholes for the dealer, you'd think it was made of swiss cheese. *badum bum*

but, but, the ad is wonderful, and no one in America would lie to me:egads:

Maybe there is something wrong with me, but I have absolutely NO desire to purchase an american car. I can't wrap my head around the argument of "buy american because it is/you are american". Come up with a better product that won't quit after 6 monts and i'll consider it.

Maybe it's my inner libertarian but, simply being the home team isn't enough.

I can't say I agree with some of the GM comments, I think they make pretty good vehicles. The new Escalade is among my favorite SUV's along with the MB GL. The CTS has also come a looong way and of course... The Vette.

It seems that the reason why people don't buy american cars is because they are perceived as unreliable and the reason why people don't buy japanese cars is not because of the car itself but the fact that it's "japanese".

It seems that the reason why people don't buy american cars is because they are perceived as unreliable and the reason why people don't buy japanese cars is not because of the car itself but the fact that it's "japanese".

disagreed

How about people (such as myself) who have bought more than their own share of american cars, found them to be unreliable, then switched over?

I used to buy only American cars (by that I mean one of the cars from Detriot's big 3, because a lot of these "imports" are actually built here anyway). I didn't just wake up one morning and decided that I wasn't buying American anymore.

And if Toyota started making cars with subpar reliability, I would not hesitate to leave them either.

It seems that the reason why people don't buy american cars is because they are perceived as unreliable and the reason why people don't buy japanese cars is not because of the car itself but the fact that it's "japanese".

I have to agree with you some here. I always state that it is amazing some Japanese cars or brands as a whole do well offering ugly or lackluster products just b/c its badged Japanese.

If its badged American, it fails, gets bashed and goes to hell.

Also, with this global economy, people don't even know what they are buying. THat 300C was built in Canada, that Camry/Accord is built in America.

Maybe it's my inner libertarian but, simply being the home team isn't enough.

High-5 on that one big guy. Ron Paul 4Life ;) :D :p

Buyers of domestic new-vehicles also frequently decide against
import brands for financial reasons, most often citing that the import
didn't offer aggressive rebates or other incentives.

This is an ignorant group of people when it comes to car buying. They don't understand "longterm ownership costs" or "total ownership costs". They look at ONE thing - The REBATES and final upfront price. It's one big reason why American car companies still exist at all. "Hey that Chevy has a $2,000 rebate!", "and Toyota isn't offering one". "Well, the Chevy it is!!" :egads:

They forget they will save thousands in repair costs, save on gas, save on having to buy another vehicle sooner, get more money back for much better resale value, ect, ect... for buying the Toyota. But with many Americans, it's NOW, NOW, NOW.

Well, consumer ignorance is the American Auto maker's only hope of survival.

[QUOTE=JLSC4;2950876]This is an ignorant group of people when it comes to car buying. They don't understand "longterm ownership costs" or "total ownership costs". They look at ONE thing - The REBATES and final upfront price. It's one big reason why American car companies still exist at all. "Hey that Chevy has a $2,000 rebate!", "and Toyota isn't offering one". "Well, the Chevy it is!!" :egads:

They forget they will save thousands in repair costs, save on gas, save on having to buy another vehicle sooner, get more money back for much better resale value, ect, ect... for buying the Toyota. But with many Americans, it's NOW, NOW, NOW.

Well, consumer ignorance is the American Auto maker's only hope of survival.
[/QUOTE

American cars tend to cost less to fix, parts are cheaper and easily attainable, and it's easy to find someone who can work on them. Ifyou were taking a road trip and your car broke down in the middle of nowhere, how far would you have to travel to find a mechanic to work on your import then you have to wait a week for the parts to come in because it has to be shipped from japan. Plus it's a safer bet to drive american and not worry about people giving you nasty looks for driving an import in places like detroit, the midwest, or any small town america.

This is an ignorant group of people when it comes to car buying. They don't understand "longterm ownership costs" or "total ownership costs". They look at ONE thing - The REBATES and final upfront price. It's one big reason why American car companies still exist at all. "Hey that Chevy has a $2,000 rebate!", "and Toyota isn't offering one". "Well, the Chevy it is!!" :egads:

They forget they will save thousands in repair costs, save on gas, save on having to buy another vehicle sooner, get more money back for much better resale value, ect, ect... for buying the Toyota. But with many Americans, it's NOW, NOW, NOW.

Well, consumer ignorance is the American Auto maker's only hope of survival.

Speak for yourself buddy. You don't have a clue. American car companies may have some of the worst marketing and management, but I don't think you have to worry about "repair costs or gas anymore". Resale is still an issue but only comes into play if you're going to sell the car soon. Otherwise, if you're going to drive to 200K miles, they'll be very little differences.

American cars tend to cost less to fix, parts are cheaper and easily attainable, and it's easy to find someone who can work on them. If you were taking a road trip and your car broke down in the middle of nowhere, how far would you have to travel to find a mechanic to work on your import then you have to wait a week for the parts to come in because it has to be shipped from japan. Plus it's a safer bet to drive american and not worry about people giving you nasty looks for driving an import in places like detroit, the midwest, or any small town america.

In some cases, American brands may cost less to fix but today there is barely a difference when comparing non-luxury brands. And if you have to fix your American branded car more often, how is it cheaper?

As for the lack availability of parts or mechanics, that scenerio is from the distant past. I have a 15 year old Lexus that whenever I needed a repair, it could be done anywhere and within a day. And this is an old import specialty car. If you can't find a mechanic to fix a Toyota than there's a problem.

Man, I would hate living in those areas you mentioned that don't give you the freedom to buy what you want. :thumbdn:

Speak for yourself buddy. You don't have a clue. American car companies may have some of the worst marketing and management, but I don't think you have to worry about "repair costs or gas anymore". Resale is still an issue but only comes into play if you're going to sell the car soon. Otherwise, if you're going to drive to 200K miles, they'll be very little differences.

Very little difference to 200K? Sorry, but I'm not the one without a clue.

And since when do the "Big Three" compare to Toyota and Honda for gas mileage?

And I wasn't talking about you when I commented on ignorant car shoppers. There are a ton of car buyers that don't know what they are doing. Surely you must realize this. Read my post in which I explain how some of them shop for cars.

I laugh when someone brags about buying American, then I tell them it was built in some other country with parts from another. Then they don't speak to me for a while. :D

I laugh when someone brags about buying American, then I tell them it was built in some other country with parts from another. Then they don't speak to me for a while. :D

Yeah, lol. :p

I guess the loyalists in Detroit and the midwest/south don't know that many Japenese and some German cars are built by American hands on US soil while their "American" cars are built elsewhere and IMPORTED to the US. Haha.

Yeah, lol. :p

I guess the loyalists in Detroit and the midwest/south don't know that many Japenese and some German cars are built by American hands on US soil while their "American" cars are built elsewhere and IMPORTED to the US. Haha.

I don't think the loyalists are confined just to Detroit, midwest and the south. I'm sure they can be found everywhere.

Very little difference to 200K? Sorry, but I'm not the one without a clue.

And since when do the "Big Three" compare to Toyota and Honda for gas mileage?

And I wasn't talking about you when I commented on ignorant car shoppers. There are a ton of car buyers that don't know what they are doing. Surely you must realize this. Read my post in which I explain how some of them shop for cars.

You absolutely are without a clue. GM engineers all their modern powertrains to run 250K+ miles (actually, infinite life). That wasn't the case when the whole company was run by bean counters (for almost 3 decades).

Incase some people are't aware, there's a turnaround happening with domestic auto companies. While their name is tarnished, the quality of their newer products are very good - especially with regards to the powertrain.

And as far as gas mileage is concerned - why don't you compare cars and let me know where a company like GM is severely lacking (other than subcompacts)

Yeah, lol. :p

I guess the loyalists in Detroit and the midwest/south don't know that many Japenese and some German cars are built by American hands on US soil while their "American" cars are built elsewhere and IMPORTED to the US. Haha.

A) I have ONLY owned Japanese cars to this point. I'm no American "loyalist".

B) I don't live in the "Midwest" or "detroit"

C) Compare GM's 54 plants and engineering facilities to that of Toyota's 10 plants and majority of engineering abroad. Toyota is doing a great job of advertising how "American" they are. Guess what - they're Japanese, not American. Period.

D) The domestics have a giant crutch - the UAW. Had things gone bad in the latest negotiations, the domestics would have been forced to move even more plants abroad.

Trust me, if unionization happened at any of Toyota's plants, they'd dissapear from this country in the time it took you to finish reading the rest of this sentence.

E) Some of you seem to root for the demise of the American auto industry - the very industry that is responsible for a HUGE number of innovations you enjoy today in cars. I hope you realise the far-reaching implications of just what might happen in the event of the collapse of the American auto industry.

You absolutely are without a clue.

Please continue to debate but everyone please avoid making comments that can incite flames. Thanks.:)

You absolutely are without a clue. GM engineers all their modern powertrains to run 250K+ miles (actually, infinite life). That wasn't the case when the whole company was run by bean counters (for almost 3 decades).

Incase some people are't aware, there's a turnaround happening with domestic auto companies. While their name is tarnished, the quality of their newer products are very good - especially with regards to the powertrain.

And as far as gas mileage is concerned - why don't you compare cars and let me know where a company like GM is severely lacking (other than subcompacts)

A) I have ONLY owned Japanese cars to this point. I'm no American "loyalist".

B) I don't live in the "Midwest" or "detroit"

C) Compare GM's 54 plants and engineering facilities to that of Toyota's 10 plants and majority of engineering abroad. Toyota is doing a great job of advertising how "American" they are. Guess what - they're Japanese, not American. Period.

D) The domestics have a giant crutch - the UAW. Had things gone bad in the latest negotiations, the domestics would have been forced to move even more plants abroad.

Trust me, if unionization happened at any of Toyota's plants, they'd dissapear from this country in the time it took you to finish reading the rest of this sentence.

E) Some of you seem to root for the demise of the American auto industry - the very industry that is responsible for a HUGE number of innovations you enjoy today in cars. I hope you realise the far-reaching implications of just what might happen in the event of the collapse of the American auto industry.


Why are you so supportive of American cars but haven't even owned one? You obviously believe that Japenese cars are superior as that is all you've owned.

I'm well aware of the vast improvements being made at GM, Ford, and Chrysler and am happy about that. I DO NOT want them to die off by any means. Please don't assume that. At this point though, I will not by anything except a Toyota or Honda.

I've driven 100's of different cars from every country (I work at an Acura dealership and drive different cars all day long). From first hand experience, nothing compares to Japenese engineering. Even BMW's and Benz's that I drive dissapoint me after driving Acura and Lexus.

Trust me, I'd like to someday be proud to drive American again but they still have a ways to go. The thing is, Japenese companies will also continue to improve making it that much more difficult for the Big Three to catch up in all areas.

:)

You absolutely are without a clue. GM engineers all their modern powertrains to run 250K+ miles (actually, infinite life). That wasn't the case when the whole company was run by bean counters (for almost 3 decades).



Talk, though, is cheap.

The proof will be in the pudding. GM has mixed a few ingredients together and CALLED it pudding......but pudding takes time to cook. When it comes out of the oven at 250K miles, THEN we'll know.

Why are you so supportive of American cars but haven't even owned one? You obviously believe that Japenese cars are superior as that is all you've owned.

:)

Pretty simple. Because up until now, I found American cars lacking.

Yeah, lol. :p

I guess the loyalists in Detroit and the midwest/south don't know that many Japenese and some German cars are built by American hands on US soil while their "American" cars are built elsewhere and IMPORTED to the US. Haha.This was in the letters to the editor/opinions section of my local newspaper today. LOL

Patriots and cars

To all the people who fly the American flag from their homes, vehicles and businesses. To all the World War II Veterans who proudly served and cringe at the horrendous atrocities and torturing bestowed upon our American troops and prisoners of war. To all the Vietnam veterans who also share those nightmares. To those who scream and complain about the Michigan economy. Even to those whose rationale has taken them into the realm of selfish complacency: I wish to recognize their devoted patriotism, their team support, their moral priorities and pride in their country. Oh, by the way, they should not forget to wash and wax that Toyotas sitting in their driveways!

Bottom line? Who gets the check?