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J.D. Power and Associates Reports: Market Penetration of Satellite Radio and Navigation Systems in New Vehicles
Increases Dramatically
Alpine Electronics of America, Panasonic Automotive Systems Company of America,
Delphi Corp. and Clarion Corp. of America Rank Highest in Vehicle Multimedia Quality
WESTLAKE VILLAGE, Calif.: 6 August 2008 — Growth in consumer demand for high-tech features supplied in new vehicles has led to a significant increase in market penetration for satellite radio and navigation systems according to the J.D. Power and Associates 2008 Multimedia Quality and Satisfaction StudySM released today.
The study finds that 55 percent of new-vehicle owners report having satellite radio capability in their audio system, up considerably from 39 percent in 2007. Additionally, market penetration for navigation systems has also increased—up to 25 percent in 2008 from 20 percent in 2007.
“New-vehicle buyers are looking for the latest technologies in audio systems, and the presence of features such as satellite radio and navigation systems will only increase as manufacturers try to meet consumer demand,” said Allison LaDuc, senior research manager of automotive product quality at J.D. Power and Associates. “For instance, nearly 60 percent of consumers say they want a navigation system on their next vehicle, and 66 percent of consumers want the ability to play MP3 files. To meet or exceed consumer expectations, manufacturers will need to focus on incorporating high-tech features in multimedia systems while avoiding increases in problem levels.”
The study evaluates owner experiences with the quality, design satisfaction and features of automotive multimedia systems in their new vehicles. Problems are measured per 100 vehicles (PP100). A lower PP100 score indicates higher quality. Twenty-eight different multimedia permutations are evaluated, which include different combinations of the following systems: AM/FM radio; cassette player; single CD player; multiple CD changer; navigation system; and satellite radio. Multimedia system suppliers are ranked based on the number of problems experienced per 100 vehicles (PP100) in four segments: AM/FM/single CD player, AM/FM/multi-CD changer, AM/FM/single CD player/satellite radio and AM/FM/multi-CD changer/satellite radio.
Alpine Electronics of America ranks highest in the AM/FM/single CD player segment with an overall PP100 score of 2.6, marking an improvement of 1.3 PP100 from 2007. Panasonic Automotive Systems Company of America (4.4 PP100) follows Alpine in the rankings, while Clarion Corp. of America and Continental Corp. tie to rank third with 4.5 PP100.
In the AM/FM/multi-CD changer segment, Panasonic Automotive Systems Company of America ranks highest with an overall PP100 score of 4.3, followed by Pioneer (4.6 PP100). SANYO Automotive U.S.A. ranks third with 5.0 PP100.
Delphi Corp. ranks highest in the AM/FM/single CD player/satellite radio segment with an overall PP100 score of 2.7. Visteon Corp. (3.6 PP100) and Panasonic Automotive Systems Company of America (4.1 PP100) follow in the rankings.
Ranking highest in the AM/FM/multi-CD changer/satellite radio segment is Clarion Corp. with an overall PP100 score of 5.4, followed by Delphi Corp. (5.6 PP100) and Visteon Corp. (6.0 PP100).
The study also finds that, for a third consecutive year, the three most commonly reported multimedia problems are front audio/entertainment system controls difficult to understand/difficult to use/poor location; navigation system map/wrong directions/poor location; and AM/FM radio poor/no reception. These issues account for nearly 60 percent of the total reported multimedia problems.
The 2008 Multimedia Quality and Satisfaction Study is based on responses from 81,530 new-vehicle owners who purchased a 2008 model-year vehicle. The study was fielded between February and April 2008.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on boat ratings, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com/.
No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate
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What does J.D. Power and Associates do?J.D. Power and Associates' research, consulting, and performance improvement services are used by a variety of industries to improve product quality and customer satisfaction. The firm's research is based solely on responses from millions of consumers and business customers worldwide. Product and service rankings that result from this research reflect the opinions of consumers and business customers-not the opinion of J.D. Power and Associates. Rankings are derived from nationally syndicated studies that serve as industry benchmarks for measuring and tracking quality and customer satisfaction. J.D. Power and Associates conducts the research, publicly announces the results, and then offers analysis based on consumer feedback to product and service providers to help them improve their businesses.
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