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Satisfaction with dealer service rises, Lexus and GMC are tops

During the economic downturn, many car dealerships counteracted their slowing income by focusing on things that would set them apart from competition - things like the quality of customer service they provide. When the economy picked up and more sales and service followed, many also first invested those funds back into the business, improving their dealership facilities and service centers.
It looks like those investments are paying off, as J.D. Power and Associates' latest Customer Service Index Study shows that overall consumer satisfaction with dealer service has increased to 797 (on a 1,000-point scale), up from 787 in 2012 and 29 points higher than the score in 2011. The study also finds that people are more satisfied with the service they get at dealerships compared to independent service providers, despite the much higher average out-of-pocket cost per visit ($118 vs. $44).
Note, however, that this study only looks at how people are treated by a dealer's service department during the first three years of ownership (the survey is based on responses from 91,000 owners and lessees of 2008 to 2012 model year vehicles), so we're talking about the experience had when bringing a car in for repair or maintenance work, most likely under warranty. In fact, maintenance work is increasing in share and accounted for 77 percent of service visits (up from 72 percent in 2012 and 63 percent in 2011). This helps explain why customer satisfaction has also risen, since a properly maintained car is one that's less likely to require a dealer visit for an unexpected repair.

GM will stop reporting monthly U.S. vehicle sales

DETROIT — General Motors said on Tuesday it will stop reporting monthly U.S. vehicle sales, saying the 30-day snapshot does not accurately reflect the market, and will instead issue quarterly sales. GM will also no longer report monthly sales in China, its largest market, and Brazil. GM will provide monthly data to the U.S. Federal Reserve, industry associations and government agencies across the globe, but that data is not made public. Analysts and investors rely on monthly U.S. vehicle sales not just to track the performance of individual automakers, but as a barometer of the health of the world's second-largest auto market and as an indicator of consumer confidence in the U.S. economy overall. GM and its Detroit rivals Ford and Fiat Chrysler have relied heavily on sales of high-margin pickup truck and SUV sales to boost profits. GM's total U.S. sales, its second-largest market, are down 3.2 percent for the first two months of 2018, reflecting a 6.8 percent drop in retail sales to individual customers, the company reported last month. GM executives have expressed frustration that comparisons of monthly U.S. sales results among rival automakers are distorted by short-term discount programs, and by differences in strategy for selling vehicles in bulk to rental car fleets. "Thirty days is not enough time to separate real sales trends from short-term fluctuations in a very dynamic, highly competitive market," Kurt McNeil, U.S. vice president for sales operations said in a statement. GM's actions could prompt other automakers to also switch to quarterly U.S. sales reports. Major automakers will report March U.S. new vehicle sales on Tuesday. Until the early 1990s, most U.S. automakers released sales results every 10 days. The former Chrysler Corp. stopped reporting sales on a 10-day basis in 1990, and rivals followed suit over the next three years. GM executives are betting that investors will quickly adapt to receiving U.S. sales data every three months, as investors in other retail sectors already have. Retailers such as Walmart report sales on a quarterly basis. Reporting by Joe WhiteRelated Video: Image Credit: Reuters Earnings/Financials Green Buick Cadillac Chevrolet GM GMC US

Hummer teases crab mode, reveal set for Oct. 20

DETROIT — GMC confirmed it will reveal the Hummer electric off-roader Oct. 20 and released a video teasing the vehicleÂ’s so-called crab mode. Crab mode allows the Hummer to move diagonally and is enabled by the vehicleÂ’s four-wheel steering. The video shows tires, and well, a crab. “When you're in the really difficult terrain, this just gives you unparalleled maneuverability,” said Duncan Aldred, global vice president of Buick GMC. The Hummer will be offered as truck and SUV models, and customers will be able to make reservations beginning on the reveal date. Deliveries are expected to begin in fall 2021. The Hummer was supposed to be revealed May 20, but was delayed due to the Covid-19 pandemic. The Hummer was teased in a Super Bowl ad this year with NBA superstar LeBron James, who is the vehicle's frontman. It will have several EV powertrains which General Motors calls Ultium, and the most capable variant will have an estimated 1,000 hp and hit 60 mph in three seconds. The Hummer will also offer removable roof panels. “This is very much going to be a luxury vehicle which competes against a broad spectrum,” Aldred said Monday on a conference call with reporters. The Hummer will take aim against a variety of vehicles, including the four-door Bronco, RivianÂ’s truck and SUV and the Jeep Wrangler 4xe. Aldred is optimistic the return of the Hummer name will help GMC carve its niche in this growing segment of trucks and SUVs with varying degrees of electric propulsion and off-road capability. GM sold vehicles under the Hummer brand from 1992-2010, before scrapping it in the wake of GMÂ’s historic 2009 bankruptcy and restructuring. Hummer is relaunching under the GMC umbrella. “ItÂ’s real desirability, itÂ’s almost cult-like status,” Aldred said. “I think a huge amount of people are going to have interest in this.” GM, which is re-emphasizing its defense division, could also repurpose the Hummer for military use, perhaps as transport vehicles. Hummers are descended from the Humvee, which is still used by U.S. forces.