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STUDY: Ford owns brand loyalty in 2009; Scorned Saturn, Pontiac buyers will look outside of GM

Ford buyers appear to love their cars more than customers of any other automotive brand, returning back to the American automaker when it comes time to purchase their next vehicle. According to a study by Experian Automotive, six of the top 10 vehicles for customer brand loyalty wear badges from the Blue Oval. That includes the Ford Fusion (62.4 percent), Ford Edge (57.9 percent), Ford Five Hundred/Taurus (56 percent), Ford Freestyle (51.9 percent), Ford Escape (49.4 percent) and the Ford Focus (47.57 percent).
Other vehicles making up the top 10 include the Toyota Prius (52 percent), Chevy Impala (51.7 percent), Toyota Camry (47.8 percent) and Toyota Corolla (47.56 percent). This brings up an interesting question: With the closing of automotive brands like Saturn and Pontiac, where are those buyers to turn for their next automotive purchase?
Apparently, not back to General Motors. According to Experian, Pontiac owners are most likely to look to the Ford lineup for their next car or truck and Saturn shoppers will switch to Toyota or Honda - not particularly surprising given that Saturn was meant to compete with import brands. Experian predicts that GM's overall market share will fall from 20 percent to about 17.5 percent, with most of the slack being picked up by Ford, Honda and Toyota.

GM Recalling Another 2.7 Million Vehicles In Five Separate Campaigns

The recalls keep rolling in from General Motors, evidently keen to avoid repeating the mistakes of the ignition-switch debacle and clean house. This time they're all coming at once, with five separate recalls announced together covering approximately 2.7 million vehicles. The largest of the five actions involves over 2.4 million units of the previous-generation Chevrolet Malibu and Malibu Maxx, Pontiac G6 and Saturn Aura in order to fix brake light wiring harness, which have been found to be susceptible to corrosion. The recall is separate from the 56k Aura sedans which GM recently recalled over faulty shift cables, not to mention the previous massive recall of 1.3 million vehicles – some of them the same models – but appears to have resulted from the National Highway Traffic Safety Administration investigation that started with the G6 almost a year ago. The second-largest campaign involves the 2014 Chevy Malibu, specifically those fitted with GM's 2.5-liter engine and stop/start system, approximately 140,000 examples of which has been found to have problematic brakes. The issue does not appear to be connected to the recall of 8k Malibu and Buick LaCrosse sedans (also involving brake woes) which we reported upon last week. Four crashes have been reported in such models, but GM admits it's not yet clear if the problem was a contributing factor in the accidents. A further 112k Corvette models from the 2005-2007 model years are being called in for problems with their low-beam headlamps resulting from a flexing relay control circuit wire that's not meant to bend. GM says it is "aware of several hundred complaints" about this issue, but notes that there have been no reports of related accidents. In addition, over 19k examples of Cadillac CTS from the 2013 and 2014 model years are being recalled over windshield wipers that might not work after a jump start. Finally, GM is also bringing in 477 examples of its 2014 Chevy Silverado, Tahoe and GMC Sierra (though not the Yukon) to fix a problem with a tie rod in its steering rack. As ever, all recall repairs will be performed free of charge, and GM is now estimating that recall-related actions this quarter will result in an estimated $200-million charge against its second-quarter earnings. Read the full announcement from GM below for further details.

Report: Saturn owners offered $2,000 to stick with GM products

After its decision to euthanize Oldsmobile, General Motors knows exactly what happens when it mothballs one of its brands: GM loses market share to the competition. The General is trying to stop history from repeating itself with Saturn customers by offering $2,000 on the hood of every car and crossover donning the ringed planet badge. Automotive News says the offer actually started on February 2 and runs until the end of March. To be eligible for the $2,000 bounty Saturn owners must have leased or purchased their Saturn at least six months ago. Interestingly, those owners don't even have to turn in their Saturn to be eligible for the cash.
AN reports that research company R.L. Polk says even before Saturn went on the endangered species list, it lagged other GM nameplates in the all-important aspect of customer retention. The mass exodus from Saturn loyalty predictably intensified at the end of 2008 as customers became anxious over the future of the brand. For its part, GM insists that all Saturn warranties will be upheld and customers looking for service can still go to a GMC, Chevy, Buick or Cadillac dealership.
[Source: Automotive News - sub. req.]Read | Permalink | Email this | Comments