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Honda, Hyundai top car residual value / depreciation awards list

J.D. Power announced its 2022 U.S. ALG Residual Value awards Thursday, with Honda and Hyundai topping the charts at three models apiece in the industry-standard study. The term "residual" is an industry projection of how well a car will hold its resale value three years from the original purchase date – a key metric in calculating lease costs and projecting new-car depreciation.  Award winners included several enthusiast-friendly options, including the BMW 2 Series, Dodge Charger, Subaru WRX, Mercedes-AMG GT and Toyota Tacoma. Even the Ford Bronco was recognized, beating out the Jeep Wrangler in the Off-Road Utility segment. That may seem odd given the car's issue-plagued launch, but scarcity apparently trumps quality control issues over the longer term. Here's a scrolling complete list of winners broken down by segment: “Accurately forecasting residual values in the auto industry is a key factor in assessing an estimated $225 billion lease portfolio of vehicles in the United States,” said ALG VP Eric Lyman in the company's announcement. "The brands and vehicle models that rise to the top demonstrate that they score well across the award programÂ’s criteria, including manufacturersÂ’ superior design and quality." ALG looks at several factors to determine future value, which is especially tricky with new models. For 2022, 16 different brands were recognized across 29 segments. Behind Honda and Hyundai, Audi, Kia, Mercedes-Benz, Land Rover and Subaru all managed to chart with two different models. Here's the rundown of those who won in more than one category: Honda Civic Honda Passport Honda Odyssey Hyundai Accent Hyundai Kona Hyundai Kona EV Audi A6 Allroad Audi Q3 Kia K5 Kia Telluride Land Rover Range Rover Velar Land Rover Discovery Mercedes-AMG GT 4-Door Mercedes-Benz Metris:  Subaru  WRX and  Subaru Forester Toyota Tacoma  Toyota Tundra "The award process consists of evaluating 284 models through analysis of used-vehicle performance, brand outlook and product competitiveness," the announcement said. "Eligibility for a brand award requires a manufacturer to have model entries in at least four different segments. To account for differences across trim levels, model averages are weighted based on percentage share relative to the entire model line."   Audi Honda Hyundai Kia Land Rover Mercedes-Benz Subaru Toyota

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 recalling 32K Imprezas for potential airbag fault

Following a preliminary evaluation by the National Highway Traffic Safety Administration in April 2015, Subaru is recalling 32,400 examples of the 2012 Impreza sedan and hatchback to repair the Occupant Detection System. The affected vehicles have production dates between April 21, 2011, and February 16, 2012. However, the WRX and STI are excluded from this campaign because they use a different part. The Impreza's problem concerns the front passenger seat's Occupant Detection System. In these models, the part uses capacitance to determine if someone is present and activates the airbag. According to the documents submitted to NHTSA (as a PDF), if the person sitting there uses a device plugged into the accessory outlet or touches an electrically grounded part like the metal seat adjuster, the ODS recognizes an increase in capacitance. It can then deactivate the airbag. Obviously, this could be a hazard in a crash, but there would be a warning light showing the safety device as off. To solve the problem, dealers will install a modified Occupant Control Unit. The initial investigation was prompted after 26 complaints to NHTSA about the ODS not working properly. In 2012, Subaru also issued a technical service bulletin that attempted to repair the issue. Related Video: RECALL Subject : Front Passenger Air Bag may not Deploy Report Receipt Date: JUL 01, 2015 NHTSA Campaign Number: 15V419000 Component(s): AIR BAGS Potential Number of Units Affected: 32,400 All Products Associated with this Recall Vehicle Make Model Model Year(s) SUBARU IMPREZA 2012 Details Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain 2012 model year Subaru Impreza 4-Door and Station Wagon vehicles (except WRX/STI models) manufactured April 21, 2011, to February 16, 2012. In the affected vehicles, the Occupant Detection System (ODS) may deactivate if a front seat passenger operates a device that is plugged into the power outlet such as a music player or cell phone, or touches a metal part of the vehicle such as the forward/rearward seat adjuster lever. CONSEQUENCE: If the ODS deactivates, the front passenger air bag will be turned off and the front passenger air bag will not deploy in the event of a crash, increasing the risk of injury to the seat occupant. REMEDY: Subaru will notify owners, and dealers will replace the Occupant Control Unit with a modified one, free of charge. The manufacturer has not yet provided a notification schedule.