Honda tops in retaining customers: J.D. Power

Westlake Village, California - Honda leads the automotive industry in retaining the highest percentage of new-vehicle purchasers, according to a new study released by J.D. Power and Associates. The study, now in its sixth year, measures the percentage of new-vehicle buyers and lessees who replaced a previously-purchased new vehicle with another from the same brand. Improving by nearly two percentage points from 2007, Honda leads with 64.7 per cent, followed by Toyota at 63.2 per cent, and Lexus at 60.4 per cent. “Honda has historically been a strong performer in terms of customer retention, but 2008 marks the first time since the inception of the study that the brand has achieved the highest retention rate in the industry,” said Debbie Ortuño, manager of product research and analysis. “This comes at a time when all manufacturers are facing challenges presented by current market conditions, including sales declines and tight credit. In particular, Honda’s reputation for creating safe vehicles with high resale value has been instrumental in retaining owners.” Overall customer retention has declined slightly, to 48 per cent in 2008 from 49 per cent in 2007. In 2008, 13 of the 36 ranked brands have improved in customer retention rates from 2007, while 18 have declined and five have remained stable. Land Rover posted the greatest improvement from 2007 to 2008, improving by 18 percentage points. J.D. Power said the increase was driven primarily by incentives, attractive sales deals, and the look and styling of Land Rover models. Among retained customers, safety, fuel economy and deals/incentives have increased as reasons for repurchasing. Among those who went to a different brand, the reasons of fuel economy, ownership/maintenance costs, and deals/incentives had the greatest increases in importance since 2007. The study is based on responses from 147,238 new-vehicle buyers and lessees, of which 88,971 replaced a vehicle that was previously acquired new. The study took place from November 2007 to May 2008.

Ward’s 10 Best Engines for 2009 announced

Southfield, Michigan - Ward’s Automotive Group has announced the winners of its annual Ward’s 10 Best Engines for 2009, including the first-ever appearance of Hyundai on the list. The list also includes two diesel engines and one hybrid. The awards will be officially handed out at the North American International Auto Show in Detroit in January.

The winners, and the vehicles in which they were tested, are:

Audi 2.0-litre TFSI turbocharged DOHC I4 (A4 Avant)
BMW 3.0-litre turbocharged DOHC I6 (135i Coupe)
BMW 3.0-litre DOHC I6 Turbodiesel (335d)
Chrysler 5.7-litre Hemi OHV V8 (Dodge Ram/Challenger R/T)
Ford 2.5-litre DOHC I4 HEV (Escape Hybrid)
General Motors 3.6-litre DOHC V6 (Cadillac CTS)
Honda 3.5-litre SOHC V6 (Accord Coupe)
Hyundai 4.6-litre DOHC V8 (Genesis)
Toyota 3.5-litre DOHC V6 (Lexus IS 350)
Volkswagen 2.0-litre SOHC I4 Turbodiesel (Jetta TDI)

“ A decade ago, few consumers in the U.S. paid serious attention to hybrids or diesels,” said Tom Murphy, executive editor of Ward’s AutoWorld. “This year, they have to, if they don’t want to be pinched the next time fuel hits $4 a gallon. The diesels from VW and BMW and the Ford Escape Hybrid all got better than 30 mpg during our testing, and often they topped 40 mpg. And the diesels meet the strictest emissions regulations in the world. If Americans want to find a vehicle that consumes less fuel and is fun to drive, our list is a great place to start.” The ten top engines were chosen out of an initial 32 nominees. The list consisted of the 2008 winners, as well as all-new or significantly-improved engines. The editors evaluated and scored each engine against all others in a number of objective and subjective parameters over a two-month period. To be eligible, an engine must be available in a regular-production, U.S.-specification model on sale no later than the first quarter of 2009, in a vehicle priced no more than US$54,000, a price cap indexed to the average cost of a new vehicle.

“ Canada’s Longest Commuter” announced

Toronto, Ontario - Goodyear Canada has named Nova Scotia resident Leslee Nicholson as “Canada’s Longest Commuter” for the 430-km drive she makes three days a week to her job in Halifax. Nicholson spends 27 hours driving and average of $150 on gas every week. Goodyear launched the search for Canada’s longest commute in September, to raise awareness of the lengths many Canadians travel to and from work, and the importance of road safety. A poll commissioned by the tire manufacturer found that 25 per cent of commuters surveyed said they would accept a pay cut if it meant a shorter commute to work, while 13 per cent said they have wanted to quit their job because of the drive. The maximum amount of commuting time picked by most respondents that they would be willing to drive to and from work each day is under 30 minutes, while only 13 per cent said they could handle a 60- to 90-minute round trip. Nicholson will receive $5,000 worth of prizes, including new Goodyear tires, gas money, and a range of maintenance services and products.

Ford dealer takes out ads blasting foreign automakers

A South Carolina Ford dealer angered over the bailout of U.S. carmakers blames the nation's sour economy on Congress and criticized buyers of Japanese cars, calling the vehicles "rice ready ... not road ready" in a radio ad, according to a report in the Associated Press.O.C. Welch, who owns a dealership in Hardeeville, S.C., began airing the minute-long ad on a dozen radio stations in the area over the weekend. "All you people that buy all your Toyotas and send that money to Japan, you know, when you don't have a job to make your Toyota car payment, don't come crying to me," Mr. Welch says in the ad. "All those cars are rice ready. They're not road ready." That “rice ready” comment got the attention of Floyd Mori, executive director of the Japanese American Citizens League. He said Mr. Welch's remarks evoke anti-Asian sentiments often aimed at Japanese and Chinese immigrants to the United States from the 1930s through World War II. A Toyota spokesman said the company's cars consistently receive high marks for quality. The automaker employs 36,600 Americans, he said, and about 60 percent of Toyota vehicles sold in the United States are manufactured here. Mr. Welch said he had received more positive calls than negative ones. His dealership sold 15 new cars Saturday -- half of them to people drawn to the lot by the ad. Mr. Welch said he's mostly mad at politicians, blasting them in his ad as only being good for "slinging mud and spending our tax dollars." He said the government should offer tax incentives for consumers to buy new cars rather than spend money bailing out Ford, General Motors and Chrysler.