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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.

Lexus GS production and sales halted in Europe

We last wrote about the Lexus GS one year ago to editorialize about the rumored death of the luxury brand's sports sedan. Now, Dutch outlet AutoRAI claims to have gotten confirmation from Lexus Europe that the automaker stopped taking orders for the GS in March, and will cease production of the Euro-spec model in April. In keeping with last year's speculation, AutoRAI reports the next-generation, front-wheel-drive ES will fill the role of the rear-wheel-drive GS there. What this means for the GS in the States? We sill don't know. But we do know that the ES moved 51,398 units here last year, compared to GS sales of 7,773. Those numbers represent double-digit declines compared to 2016, when the sold ES sold 51,398 units and the GS sold 14,878. In August 2017, spy photographers caught the 2019 ES testing with the Audi A6 and Mercedes-Benz E-Class, hinting the coming ES has grander aspirations than being a florid Toyota Avalon. That still wouldn't make the ES a pure replacement for a sporty rear-drive sedan, but are there enough GS buyers for Lexus to care? Last October, Car and Driver reported that Toyota's Gazoo Racing brand was working on a new GS F, but C/D couldn't tell if Gazoo meant a new model or the current one. Last June, Lexus Australia head Peter McGregor refuted the death of the GS. When asked if dealers were interested in both the ES and GS, McGregor responded, "I think what dealers like is a full line-up... that meets the market requirement in every key segment." Making clear that he couldn't speak on future product, McGregor also commented, "I think [a new GS] would still be a four-door sedan in terms of its application, but the exterior styling may appear to be more liftback." The third-gen GS struck a fastback profile, and you could see the new LS as a modern evolution of that old GS design. A member at the Lexus Enthusiast fan forum has found that the the next GS, internally codenamed 300B, still shows up in industry databases alongside the date "SOP [Start of Production] Q2 2019." Throwing money at an updated GS F wouldn't make sense for a doomed sedan. Could the GS reappear as a four-door coupe? Certainly, if for no other reason than that Lexus needs something to fill the slot between the $38,950 ES and the $75,000 LS.

Google shares more details on self-driving car accidents

Google has pledged to release monthly reports on the status of its self-driving car program, and says these updates will include information on accidents involving the vehicles. But the company won't release the actual accident reports, a sore point for activists who recently have clamored for the company to be more transparent in the way it tests this promising technology on public roads. "Google is dribbling out bits of information in the hope to silence legitimate calls for full transparency," said John Simpson, privacy director for Consumer Watchdog, a nonprofit that has asked Google to release reports from the 12 accidents the company says it has been involved in over the past six years. "They are testing on public roads, and the public has a right to know exactly what happened when something goes wrong." Under California law, the accident reports are not considered public records. Google has attributed all accidents to human error, and says drivers of the other cars involved caused 11 of the 12 accidents. In eight of those, the Google cars were rear-ended, and the autonomous vehicles were sideswiped in two other crashes. One of the accidents occurred at an intersection when a human driver failed to yield at a stop sign, and in one incident, a Google driver accidentally rear-ended another car while manually driving. Google had previously provided those details. The first monthly report installment sheds new light on which types of self-driving vehicles were involved, directions of travel, locations, and whether the cars were operating in autonomous or manual mode. Update: Google says this information comes directly from the OL 316 forms used to report accidents involving autonomous cars in California, though it has "edited the summaries lightly to protect other drivers' information." But Google still will not release the original OL 316 forms, nor the "traffic collision report" forms used in California to report accidents. Another company that has been involved in a single self-driving car accident, Delphi Automotive, has released this information, which verified its car was not at fault. Regarding Google, Simpson said, "We now know a few more details of what happened. The problem is that it's Google's version and they want us to take their word for it." The Google self-report adds information that goes beyond accidents, with further details on the company's overall program.