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2023 J.D. Power APEAL Study shows new-car customer satisfaction scores slip

J.D. Power survey results have been slightly up but mostly down for automakers this year, literally. In February, the 2023 Vehicle Dependability Study showed an overall decline compared the 2022 a month before the Customer Service Index Study did the same. The trend reversed in June with a better overall score on the 2023 U.S. Electric Vehicle Consideration Study than in 2022, then declined again the same month on with a lower overall score on the 2023 Initial Quality Study. The declines continue with the 2023 J.D. Power U.S. Automotive Performance, Execution and Layout (APEAL) Study, overall satisfaction among the 84,555 respondents down two points overall compared to 2022, to 845 out of 1,000 points. Because last year's score dropped compared to 2021, this year marks the first consecutive decline in the study's 28-year history. The study tries to "[measure] owners' emotional attachment and level of excitement with new vehicle" after 90 days of ownership by asking new owners to rate 37 attributes in 10 areas around the vehicle, such as the feeling they get when they hit the accelerator. Satisfaction with nine of the attributes is down this year versus last, fuel economy the only segment to show better results with 15 points more satisfaction. Styling and infotainment are big drags on satisfaction. Responses to new car exterior looks tallied 888 points, down from 894 last year, the largest drop in this year's study. On the digital side, less than half of those surveyed this year said they prefer using a manufacturer's built-in infotainment. From 70% of respondents in 2020 preferring to use a manufacturer's in-house software to play audio instead of Android Auto or Apple CarPlay, that's 56% in 2023. Going all-in on Google appears to have the best effect. J.D. Power said that vehicles with both Google's Android Automotive Operating System (AAOS) and Google Automotive Services (GAS) "score higher in the infotainment category than those with no AAOS whatsoever. AAOS without GAS receives the lowest scores for infotainment of the three categories."  Frank Hanley, senior director of auto benchmarking at J.D. Power, said, "Despite the technology and design innovations that manufacturers put into new vehicles, owners are lukewarm about them. While innovations like charging pads, vehicle apps and advanced audio features should enhance an owner’s experience, this is not the case when problems are experienced.

Tempted by the Demon, dealers find way to thwart Dodge, jack up prices

It's the eternal story of short supply, big demand - and car dealers eager to exploit that dynamic, especially when it involves a hot car. A few weeks ago, when Dodge announced that it devised a way to attempt to prevent price-gouging on those 840-horsepower 2018 Dodge Demons, you just knew the dealers would dream up some devilish end-run. And sure enough, despite the manufacturer's best intentions, Demon order slots are being offered with five-figure markups. Here's how things were supposed to work: With a run of just 3,000 cars, Dodge knew it had to do something to address dealer greed, so it announced an allocation system: Cars purchased at or below the $86,090 MSRP would be the first orders filled and delivered. If a dealer sells an allocated Demon for more than sticker, that car goes to the end of the line for production and delivery. Dodge also ensured dealers wouldn't stockpile or hoard Demons by limiting the number of orders a dealer can submit and allocating cars to dealers based on how many Challenger and Charger Hellcats the dealer has sold. But Automotive News reports that some dealers are using intermediaries to auction off their Demon allocations on eBay. Three sellers last week said they were representing dealers in South Carolina, Tennessee and Louisiana, and auctioning off the right to buy a car in one of the priority spots at MSRP. The minimum bid for the right to buy the car at sticker? From $10,000-25,000. And previous transactions on eBay might have run as high as $75,000. So early buyers are definitely paying an upcharge - but it's a thing apart from the bottom line on the order form, where it appears they are paying MSRP. In other words, a scheme that violates the spirit of what FCA tried to do. A source at FCA told Automotive News the automaker was monitoring the practice but could do little to stop it. And the report quoted a Hellcat owner who said his dealership was ignoring Dodge's strictures altogether and offered him a Demon at MSRP plus $60K. But take heart. Not all car dealers are cynically opportunistic - or rather, some see an opportunity for doing good, not making buck. Automotive News says Bill Marsh Chrysler in Traverse City, Mich., plans to sell its single allocated Demon for $1 under MSRP - and is auctioning off the right to buy it, with the dealership's existing customers eligible to bid. The auction's proceeds will benefit four Traverse City charities.

Stellantis wants to outfit cars with AI software to drive revenue

MILAN — Carmaker Stellantis announced a strategy Tuesday to embed AI-enabled software in 34 million vehicles across its 14 brands, hoping the tech upgrade will help it bring in 20 billion euros ($22.6 billion) in annual revenue by 2030. CEO Carlos Tavares heralded the move as part of a strategy that would transform the car company into a “sustainable mobility tech company,” with business growth coming from features and services tied to the internet. That includes using voice commands to activate navigation, make payments and order products online. The company is expanding existing partnerships with BMW on partially automated driving, iPhone manufacturer Foxconn on customized cockpits and Waymo to push their autonomous driving work into light commercial vehicle delivery fleets. StellantisÂ’ embrace of artificial intelligence and expansion of software-enabled vehicles is part of a broad transformation in the auto industry, with a race toward more fully electric and hybrid propulsion systems, more autonomous driving features and increased connectivity in automobiles. Ford and General Motors also are banking on dramatically increased revenue from similar online subscription services. But the automakers face immense competition for monthly consumer spending from movie and music streaming services, news outlets, Amazon Prime and others. Stellantis, which was formed from the combination of PSA Peugeot and FCA Fiat Chrysler, said the software would seamlessly integrate into customers' lives, with the capability of live updates providing upgraded services over time. New products will include the possibility to subscribe to automated driving features, purchase usage-based car insurance or even increase the power of the vehicle with a tune-up to add horsepower. As a baseline, Stellantis generates 400 million euros in revenue on software-generated services installed in 12 million vehicles. To meet the targets, Stellantis will expand its software engineering team of 1,000 to 4,500 in North America, Asia and Europe. More than 1,000 of the expanded team will be retrained in house. Stellantis also announced a new partnership with Foxconn to develop semiconductors to cover 80% of the companyÂ’s needs and simplify the supply chain. The first microchips from the partnership are targeted to be installed in vehicles in 2024.