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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.

GM announces 3 new recalls affecting 1.7M vehicles in North America [w/video]

Still embroiled in the ongoing ignition switch recall, General Motors announced today three more discrete recalls, affecting a grand total of 1,546,900 vehicles in the US. The Detroit News reports that some 1.7 million vehicles are affected overall in North America. The first and largest of the trio of new recalls concerns some 1.18-million Buick Enclave and GMC Acadia crossovers from the 2008-2013 model years, Chevrolet Traverse from 2009-2013 (pictured above) and Saturn Outlook vehicles from 2008-2010. All of the crossover utilities may have an issue with the wiring harness for their seat-mounted side airbags. Apparently, the vehicles are equipped with a Service Air Bag warning light that, if ignored, "will eventually result in the non-deployment of the side impact restraints." Those restraints include the side airbags, a front-center airbag if the vehicle is so equipped and seatbelt pretensioners. Dealers of affected vehicles will be instructed to remove driver and passenger side airbag wiring harness connectors, and then "splice and solder the wires together." The second recall affects 303,000 Chevrolet Express (pictured right) and GMC Savana vans from model years 2009-2014, and with gross vehicle weights under 10,000 pounds. Said vehicles do not comply with a head impact requirement for unrestrained occupants, and will need a reworking of the instrument panel material to be sent back on the road. It doesn't sound as though there's a quick fix for this one, as the GM press release states: "Unsold vehicles have been placed on a stop delivery until development of the solution has been completed and parts are available." Finally, the third recall affects 63,900 Cadillac XTS luxury sedans from model years 2013 and 2014. A brake booster pump may be susceptible to corrosion by way of the relay, potentially causing and electrical short, overheating, melting of plastic components and even engine fires. GM says it is aware of two engine fires in unsold XTS models and two cases of melted parts. Repairs for the issues affecting the XTS have not not mentioned by GM in the release. The Detroit News is also reporting that along with news of the triple-recall, GM is taking a $300-million credit to help pay for the repair costs, and to deal with the ongoing costs associated with the ignition switch recall. In an attempt to explain just what GM has been doing in the face of these very serious issues, newly minted CEO Mary Barra has addressed the issues in a new video.

10 of 18 midsize SUVs earn 'good' IIHS side impact safety rating

It's not terribly surprising that midsize SUVs earned better safety ratings than small SUVs in the latest side-impact tests performed by the Insurance Institute for Highway Safety (IIHS). Just how much better they scored, on the other hand, certainly raises an eyebrow. Ten out of 18 midsize SUVs earned the highest rating of 'good' in the stringent new test, altered for vehicles starting with the 2020 model year with a heavier barrier (4,200 pounds) that moves at a higher speed (37 miles per hour) and is fitted with a hard honeycomb frontal structure. By way of contrast, just one out of of 20 small SUVs earned a 'good' score.  SUVs that receiving 'good' scores were the Ford Explorer, Infiniti QX60, Lincoln Aviator, Mazda CX-9, Nissan Pathfinder, Subaru Ascent, Toyota Highlander, Volkswagen Atlas, Volkswagen Atlas Cross Sport and Volkswagen ID.4. For EV fans, it's worth noting the ID.4 was the only electric vehicle included in the test. The Buick Enclave and Chevrolet Traverse scraped away with 'acceptable' ratings while the Honda Passport, Honda Pilot, Hyundai Palisade, Jeep Wrangler 4-door, Kia Telluride and Nissan Murano were deemed merely 'marginal' in the tough new test. Only two models — the Mazda CX-9 and Volkswagen ID.4 — earned a "Good" rating in every test category.  Interestingly, the Jeep Wrangler would have scored a 'good' rating if it were equipped with side airbags for the rear seating positions. It would likely be an engineering challenge to equip its removable top and/or doors with airbags, but the lack of that safety feature allowed the head of the rear passenger dummy to hit the vertical support of the top. Otherwise, the Wrangler scored good ratings across the board. The new Ford Bronco, which makes more allowances for side-impact safety, has not yet been tested.  The popular Hyundai Palisade and Kia Telluride SUVs stand out in the test with 'poor' ratings for driver pelvis injuries. The Nissan Murano, a vehicle last redesigned for the 2015 model year, was the only vehicle tested that received a 'poor' rating for its structure and safety cage. Videos of the tests of 12 of these 18 SUVs can be found on the IIHS' YouTube page. Related video: Green Buick Chevrolet Ford Honda Hyundai Infiniti Jeep Kia Mazda Nissan Subaru Toyota Volkswagen Safety Crossover SUV IIHS Insurance Institute for Highway Safety