J.D. Power and Associates Reports:
As Medium-Duty Truck Brands Exit the Market, Customers Are Largely Undecided About Which Brand to Switch To
Peterbilt Ranks Highest in Customer Satisfaction among Conventional Medium-Duty Trucks
WESTLAKE VILLAGE, Calif.: 22 October 2009 - With manufacturers such as Chevrolet, GMC Trucks and Sterling indicating that they will be exiting the medium-duty truck market, customers indicate they are largely undecided as to which brand they will switch to, according to the J.D. Power and Associates 2009 Medium-Duty Truck Customer Satisfaction Study.SM
In addition to Chevrolet, GMC Trucks and Sterling leaving the medium-duty truck market, Caterpillar has announced that it will stop producing engines for the U.S. commercial vehicle market starting in 2010, when new emission regulations take effect.
The study finds that nearly one-half (47%) of customers who have purchased or leased trucks from one of the General Motors brands indicate they are undecided about what brand they will purchase for their next truck. Additionally, more than one-third (36%) of Sterling customers say they are undecided about which brand they will switch to, while nearly one-half (46%) of owners of trucks with Caterpillar engines are undecided about which engine they will purchase next.
"While the down economy and low sales levels in the commercial-vehicle market present considerable challenges to OEMs and their suppliers, this is also a time of opportunity," said Brian Etchells, senior research manager in the commercial vehicle group at J.D. Power and Associates. "Companies that position themselves well by building high-quality trucks and keeping their dealer body healthy stand to increase their market share as brands choose to or are forced to exit the marketplace."
Among owners who have decided which brand they will purchase to replace their discontinued brand, the study finds that 28 percent of Sterling customers indicate they would purchase or lease a Freightliner truck, while 34 percent of Caterpillar customers say they would choose a Cummins engine. Among owners of GMC Trucks and Chevrolet medium-duty trucks, more than one-fifth say they would purchase or lease a Ford medium-duty truck.
"We expect that many of Sterling's customers may switch to Freightliner trucks, since many Sterling dealers also sell Freightliners," said Etchells. "However, with truck OEMs introducing their own proprietary engines or expanding their model lineup, there remains some uncertainty about which engines Caterpillar customers will migrate to."
The 2009 Medium-Duty Truck Customer Satisfaction Study is based on responses from 1,613 primary maintainers of two-year-old Class 5, 6 and 7 conventional cab medium-duty trucks. The study, now in its 17th year, measures customer perceptions of 2007 model-year Class 5, 6 and 7 commercial trucks, and was developed to provide manufacturers with a comprehensive and objective measure of customer satisfaction with the product, dealer service and parts, as well as providing information regarding loyalty and brand image.
Within the conventional truck segment, four factors are used to determine overall satisfaction (in order of importance): vehicle performance; quality; warranty; and cost of ownership. Peterbilt ranks highest in customer satisfaction and improves notably in each of the four factors in 2009, compared with 2008. In particular, Peterbilt performs particularly well in the performance and cost of ownership factors. Hino closely follows Peterbilt in the rankings, while Freightliner, Chevrolet, Sterling and Kenworth, respectively, also rank above the segment average.
"Peterbilt's strengths continue to be not only in ride and cab design, but also reliability and return on investment," said Etchells.
The study also measures satisfaction with services received from authorized truck dealer service departments in six factors: dealer facility; service delivery; service quality; service initiation; service advisor; and price.
Chevrolet ranks highest in customer satisfaction with dealer service for a fourth consecutive year, performing particularly well in the service quality, service initiation and service advisor factors. Following Chevrolet in the rankings are Sterling, International and Freightliner, respectively, which each improve notably from 2008.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on 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.
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