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Buyers resent low inventories, prices over MSRP, study says

Vehicle inventory low, vehicle transaction prices high, customers fretting … welcome, J.D. Power, to the era of supply and demand. In a recently published survey from one of the auto industryÂ’s top analytical firms, findings show that customers' satisfaction with vehicle purchases in the United States this year has dipped for the first time in 10 years. The 2022 U.S. Sales Satisfaction Index (SSI) Study found that overall sales satisfaction has dropped to 786 (on a 1,000-point scale) from 789 in 2021. In that year, higher than expected trade-in values softened the effect of new vehicle price increases. But in 2022, on top of trade-in prices shrinking, many dealers elected to charge more than the ManufacturerÂ’s Suggested Retail Price, a factor that did not sit well with buyers. “When dealers charge more than MSRP, particularly with long-term loyal customers, they risk a potential long-term negative effect on customer advocacy and service business," said Chris Sutton, vice president of automotive retail at J.D. Power. Satisfaction among buyers who paid more than sticker price is 757, while satisfaction among those who paid the sticker price or less is 850, the Power report said. The lack of dealership inventory was also a customer irritant, J.D. Power found, a point that automakers and their dealers may want to consider. Many have maintained, or considered maintaining, a smaller inventory in the wake of the pandemic, keeping costs down and driving more customers toward factory orders. Regarding those consumers shopping for electric vehicles, the survey said that more than a third of them “failed to get instruction on EV charging before they left the dealership, which notably affects satisfaction.” Said Sutton, “Salespeople donÂ’t need to show gas-powered vehicle buyers how to fill their tank, but they do need to show EV buyers how to charge their vehicle.” There are positives to the Power conclusions, however, especially for Alfa Romeo dealers. The Italian brand ranked highest in customer satisfaction among premium brands with a score of 833, with Porsche a very close second (831) and Lexus (819) third. Alfa is on something of a roll these days, with its compact Tonale crossover due for release in the spring, and a new sports car in the works. Meanwhile, in PowerÂ’s “mainstream brand”” segment, Buick ranked first with a score of 825, followed by Dodge (816) and Subaru (804), all performing higher than the industry average.

Subaru to stop building Camry for Toyota in the US

It was back in 2007 that Subaru of Indiana Automotive, under contract from Subaru minority shareholder Toyota, built the first Toyota Camry at its plant in Lafayette, Indiana. Rumblings of the end of that contract work have been around for a while, as Subaru talked of expanding capacity to build more units and add a line for the Impreza, and Toyota talked of moving Camry production to its Georgetown, KY plant. The news was official internally last November when SIA Executive Vice President Tom Easterday told the Louisville Courier-Journal that Camry production would end. Now, Automotive News reports that both automakers have admitted publicly that the end will come in 2016.
SIA currently has a 170,000-unit capacity devoted to the home-brand Legacy and Outback models, while a $400-million expansion increases that to 300,000 units to prepare the facility for Impreza production in two years. Freeing up the 100,000 units of production devoted to the Camry means a 400,000-unit capability, which is far more than Subaru needs at the moment, but the Toyota exit will allow it to expand any way it sees fit. Subaru has said it will absorb the workers on the Camry line and no jobs will be lost, the mayor of Lafayette saying the development could change the timetable for the expansion.

Subaru hits 500,000 sales in the US in 2014, a record for the brand

Having sold 336,441 cars in the US in 2012, Subaru said in early 2013 that it wanted to hit 500,000 annual sales here by 2015. After boosting sales to 424,683 in 2013, it's hit its half-mil target a year early: on December 29, 2014 Subaru sold its 500,000th car, and the sales year didn't end until January 2. The brand has never done that before in a calendar year, and on top of being an eighteen-percent improvement year-on-year, 2014 is Subaru's seventh year of growth. Every model is up for the year except for the BRZ and the Tribeca. The Outback and Legacy are on fire, practically doubling their sales numbers through the end of November compared to 2013. In addition to making better and better cars, Subaru credits nicer dealerships with better workflows, and improved marketing and advertising. If history is any indication, the final number could be appreciably above 500,000 even with just four days of selling left. Subaru only needed 36,230 sales in December to hit 500,000; it sold 45,273 cars in November, and for the past four years it sold more cars in December than November. Admittedly, November was its third best-selling month of the past five years. Leaders at the automaker are confident about this year as well, saying, "[we] expect 2015 to also be another record year." But our favorite line in the press release announcing the feat: "The current generation of Subaru vehicles grew in size compared to the previous generation in order to better suit the needs of the American buyer." Hey Subaru, you calling us fat? SUBARU OF AMERICA REACHES 500,000 SALES MILESTONE IN 2014 - Subaru sales in U.S. top 500,000 for the first time in a calendar year - 500,000th vehicle sold on December 29 - All models contributing to sales increase Cherry Hill, N.J. - Subaru of America, Inc. has reached a significant milestone in its history, by retailing 500,000 vehicles in a single calendar year. The milestone caps a remarkable seven year growth period for the brand in the U.S. in which the company has grown from 187,699 vehicle sales in 2008 to what will total over 500,000 sales in 2014, once the sales year closes on January 2. The growth in Subaru sales can be attributed to a combination of improved vehicle offerings, targeted and award-winning marketing and an improved retailer body.