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General Motors Takes First and Last Place in New J. D. Powers Customer Retention Study

New J. D. Power Survey Rates GMs TrailBlazer/Ascender SUV Clones near Top and Bottom

General Motors execs should have partied happily on New Years Eve being that its Chevrolet division just topped J.D. Power and Associates inaugural 2003 Customer Retention Study (CRS), ahead of Toyota, Honda and every premium brand.

The CRS documented that 60.8 percent of Chevrolet owners would continue with the brand the next time they purchased a new vehicle, due mostly to bowtie truck loyalists. The top Chevy was its functional Avalanche SUT (sport utility truck) with a 74.5 percent stated retention rate.

Other Chevrolet products to place well were the TrailBlazer SUV, Impala midsize sedan and full-size Silverado pickup truck, with close to 70 percent retention rates.

Chevrolet hopes to improve its car retention with new models this

Chevrolet, and their functional Avalanche SUT, topped J.D. Power and Associates inaugural 2003 Customer Retention Study. (Photo: Rob Rothwell, American Auto Press)
year including the Cobalt sedan and coupe introduced at the Los Angeles Auto Show last week.

Second on the list was Toyota at 59.3 percent, followed by Mercedes-Benz at 58.7 percent, Ford at 58.1 percent, and finally Honda at 57.1 percent. Also of note, both Korean automakers, Hyundai and Kia, the latter of which scored poorly in 2003s J. D. Power and Associates Vehicle Dependability Study, seem to be satisfying customers nonetheless with 54.3 percent and 49.9 percent ratings respectively.

As far as European brands go only Mercedes-Benz and BMW placed above average in the survey, joined by Lexus and Cadillac

Both Korean automakers, Hyundai (Santa Fe shown) and Kia, seem to be satisfying customers with 54.3 percent and 49.9 percent ratings respectively. (Photo: Trevor Hofmann, American Auto Press)
in what were twelve nameplates achieving above average ratings over 49.3 percent.

So which company ranks last? Ironically its GMs Japanese Isuzu division that brings up the tail with a dismal 3.5 percent. What makes it even more ironic is that the brands biggest seller is its Ascender SUV, a near clone of Chevys TrailBlazer that placed among the highest in the study.

Another GM affiliate, Suzuki, does much better at 20.7 percent but places second from last just the same. Fords Japanese division Mazda fairs poorly too, with only a 22.2 percent retention rating. No doubt Mazdas placement will pick up with a host of new products including last years Mazda6 and the recently launched Mazda3.

Another surprise was Volvo. Its 31.9 percent score placed

Ironically GMs Japanese Isuzu division ranked last, with a dismal 3.5 percent. Whats even more ironic is the brands top seller is a virtual clone of Chevys TrailBlazer, that placed near the top of the study. (Photo: General Motors)
last among European brands, losing out to Saab and Volkswagen which both scored under 40 percent retention.

J. D. Power and Associates compiled the study based on information taken from 177,000 recent new vehicle purchasers.

So what do the results mean? Are retention rates always indicative of group of customers collective satisfaction with a specific brand or the sales and service experience its dealers offer? Yes but not necessarily, according to Joe Ivers, a J. D. Power and Associates partner. He states that one of the strongest persuaders for changing brands is when a specific nameplate doesnt offer a vehicle type the customer is interested in.

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