Headline News: Home & Auto

Regions Mortgage Ranks Highest in Customer Satisfaction with Primary Mortgage Servicers

PR Newswire — August 25, 2009

 

 

WESTLAKE VILLAGE, Calif., Aug. 25 /PRNewswire/ — A growing number of customers indicate they are either already behind on their mortgage payments or worried about being late, which provides mortgage servicers with an opportunity to mitigate customer distress through proactive communication, according to the J.D. Power and Associates 2009 Primary Mortgage Servicer Satisfaction Study(SM) released today.

 

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The study finds that 21 percent of customers indicate they are either already behind on their mortgage payments or are worried about being late in the future.
While satisfaction with mortgage servicers tends to decrease when customers are delinquent or at risk of being delinquent, proactive contact from the servicer can help to mitigate this decline in satisfaction.

 

In addition, satisfaction is higher among those customers whose mortgage servicer contacts them first. For those customers who contacted their mortgage servicer, satisfaction averages 613 on a 1,000-point scale, compared with 651 points among those customers whose mortgage servicer initiated contact.

 

“Taking care of customers in their hour of need is critically important, particularly among homeowners with otherwise blemish-free credit histories,”
said David Lo, director of financial services at J.D. Power and Associates.
“Helping these customers can form lasting positive impressions of servicers and create lifelong customers. For example, among customers who say their servicer was helpful in dealing with their current situation, 21 percent say they definitely will use their servicer again. Only 1 percent of customers who say their servicer was not helpful plan to use their servicer again.”

 

The study also finds that mortgage servicers who perform well on the key fundamentals of loan servicing have higher levels of loyalty and retention.
These practices include:

    –  Keeping problems and complaints to a minimum
    –  Improving speed and effectiveness of problem resolution
    –  Offering customers choices in billing and payment options
    –  Providing adequate information on statements
    –  Clearly communicating information in statements.

 

“The current challenging economic circumstances give mortgage servicers an opportunity to grow their business, particularly with low interest rates and the large number of customers who wish to refinance their mortgages,” said Lo.
“Providing current customers with the best service practices increases the chances that the customer will return with more business and also recommend the mortgage servicer to others. In contrast, just one dissatisfied customer translates to an average of more than five negative recommendations.”

 

More than 20 percent of customers whose mortgage servicers consistently perform all five top service practices say they “definitely will” recommend their mortgage servicer to others. Among those mortgage servicers that fail to perform three or more of the top service practices, nearly one-third of customers say they would not choose the servicer again.

 

The study also finds that 18 percent of customers who contacted their servicer had difficulty understanding the representative. Among those customers, contact satisfaction declines dramatically to an average of 353, compared with an average of 707 among customers who didn’t have any difficulty understanding their representative. The most commonly cited reasons for difficulty in understanding the representative include: the representative spoke with an accent and the representative did not speak well or articulate clearly.

 

The study measures customer satisfaction with four areas of loan service: annual account review/administration; payment processing; billing statements/payment coupon book; and contact.

 

Regions Mortgage ranks highest in customer satisfaction among primary mortgage servicers with a score of 780 and performs particularly well in the annual account review/administration and payment processing areas. BB&T (Branch Banking and Trust) follows Regions Mortgage with a score of 777, and U.S. Bank ranks third with 771. Among the companies included in the study, those that rank highly tend to perform exceptionally well in limiting the number of customer-reported problems, which results in high brand image ratings.

 

The 2009 Primary Mortgage Servicer Satisfaction Study is based on responses from more than 5,000 homeowners regarding their experiences with their primary mortgage servicer and was fielded in May 2009.

 

 

    Customer Satisfaction Index Ranking
    (Based on a 1,000-point scale)

 

    Mortgage Servicer          Index Score   JDPower.com Power Circle Ratings
                                                                For Consumers
    —————–          ———–   ——————————–
    Regions Mortgage                780                                 5
    BB&T (Branch Banking and
     Trust)                         777                                 5
    U.S. Bank                       771                                 5

    GMAC Mortgage                   752                                 3
    Chase                           749                                 3
    Wells Fargo                     749                                 3
    Flagstar Bank                   743                                 3
    SunTrust Mortgage               740                                 3
    National City Mortgage          735                                 3
    WaMu/Washington Mutual          732                                 3
    CitiMortgage                    730                                 3
    Industry Average                730                                 3
    Wachovia                        724                                 3
    PHH Mortgage                    721                                 3
    Taylor, Bean & Whitaker
     Mortgage                       721                                 3
    Bank of America                 712                                 3
    Fifth Third Bank                712                                 3
    Countrywide Home Loans          704                                 3

    Aurora Loan Services            659                                 2
    Midland Mortgage                658                                 2
    IndyMac Bank                    646                                 2
    American Home Mortgage
     Servicing                      578                                 2
    Ocwen Financial                 552                                 2

 

 

Included in the study but not ranked due to small sample size are Dovenmuehle Mortgage, EMC Mortgage Corp., EverHome Mortgage, HSBC Mortgage Corp. (USA) and Saxon Mortgage Services.

 

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 reviewsand 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
2008 were $6.4 billion. Additional information is available at http://www.mcgraw-hill.com.

 

Media Relations Contacts:

Jeff Perlman; Brandware Public Relations; Agoura Hills, Calif.; (310) 589-7749; jperlman@brandwaregroup.com

Syvetril Perryman; J.D. Power and Associates; Westlake Village, Calif.; (805) 418-8103; syvetril.perryman@jdpa.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

 

 

 

SOURCE J.D. Power and Associates

PR Newswire — August 25, 2009

 

 

 

CHICAGO, Aug. 25 /PRNewswire/ — Is the nation’s insurance system prepared for the “Big One”? Can consumers and businesses afford (or be willing) to pay for premiums to cover these kinds of losses? Should new storm-related legislation focus on state funds, reinsurers, or primary insurers?

 

 

 

Industry professionals from Florida State University’s Catastrophic Storm Risk Management Center will address these questions and more at the 2009 Annual Conference of the Society of Insurance Research (SIR), happening September 20-23 at the Rosen Plaza Hotel in Orlando, Florida.

 

 

 

This all-new seminar is the result of the demand for a program that addresses the topics being faced by Florida’s property insurance market, such as the role that distance-to-coast plays in insurance rates and the importance of insurance and other risk financing markets. Our experts will be sharing their insights on:

 

 

 

    –  Expanding the level of pricing granularity in property markets

    –  The policy implications of subsidies in coastal areas

    –  Risk capital and risk securitization

 

 

The panels will be comprised of nationally recognized experts in these areas, and they have put together a series of presentations that will provide those in attendance with a view into the state of the art of catastrophe insurance analysis.

 

 

 

The registration rate for just the Florida State University one-day seminar is

$99 (or $125 with an evening reception). Or sign up before September 8 and save $150 on registration for the entire conference, which also features a track on product development and some of the best networking in the industry!

 

 

 

For registration or more information, visit the SIR Web site at http://www.sirnet.org and click on the sign showing the number of days remaining before the event.

 

 

 

The SIR is a leading forum for insurance practitioners from all aspects and disciplines of the industry to focus on emerging research approaches and industry issues for the benefit of its individual members and their employers.

SIR members have accountabilities in research, product development, competitive intelligence, actuarial science, strategic planning, and many other aspects of the business.

 

 

 

 

    For more information, contact:

 

    Andre Burke

    SIR VP Promotions

    (847) 605-6889

 

 

 

 

This release was issued through eReleases(TM). For more information, visit http://www.ereleases.com.

 

 

 

SOURCE Society of Insurance Research

PR Newswire — August 24, 2009

 

 

 

 

 

DES PLAINES, Ill., Aug. 24 /PRNewswire-USNewswire/ — Hot Wheels 2009, the National Insurance Crime Bureau’s (NICB) companion study to its popular Hot Spots auto theft report, examines data reported to the National Crime Information Center (NCIC) and determines the vehicle make, model, and model year most reported stolen in 2008. See the full report at www.nicb.org.

 

 

 

For 2008, the most stolen vehicles* in the nation were:

 

1. 1994 Honda Accord

 

2. 1995 Honda Civic

 

3. 1989 Toyota Camry

 

4. 1997 Ford F-150 Pickup

 

5. 2004 Dodge Ram Pickup

 

6. 2000 Dodge Caravan

 

7. 1996 Jeep Cherokee/Grand Cherokee

 

8. 1994 Acura Integra

 

9. 1999 Ford Taurus

 

10. 2002 Ford Explorer

 

 

 

Certain models of older cars and trucks are popular with thieves because of the value of their parts. Frequently, the parts can be stripped from a car at a chop shop and sold for at least twice as much as the value of the vehicle on the used car market. Newer models are also more difficult, but not impossible to steal thanks to anti-theft technology incorporated by the manufacturers.

 

 

 

Although the final numbers have not yet been released, the preliminary 2008 FBI Uniform Crime Report (UCR) shows that vehicle theft is on pace to record a decrease of 13.1 percent from 2007 numbers. That would make 2008 the fifth consecutive year of declining vehicle thefts. Moreover, if the preliminary figures hold total thefts for 2008 would be below 1 million vehicles–the lowest annual total in over 20 years.

 

 

 

“This is great news for vehicle owners, law enforcement and the insurance industry,” said Joe Wehrle, NICB’s president and chief executive officer. “It takes years of sustained effort to deliver the kinds of reductions that we are enjoying today. NICB joins with our member companies in acknowledging the great work performed by law enforcement and our investigators in the fight against vehicle theft.

 

 

 

“Comprehensive legislation, aggressive enforcement and rigorous prosecution are the three essential components to a winning crime control program. NICB is proud to contribute to each of those areas through our national legislative affairs program and our network of experienced investigators,” Wehrle said.

 

 

 

NICB provides law enforcement with local resources for identifying and recovering stolen vehicles as well as training and information analysis in the detection and prevention of vehicle theft and insurance crime.

 

 

 

As good as this news is, however, vehicle theft is still a costly drain on our economy and a tremendous hassle for victims. To protect their investment, vehicle owners are urged to follow NICB’s “layered approach” to auto theft prevention by employing simple, low-cost suggestions to make their vehicles less attractive to thieves.

 

 

 

NICB’s four layers of protection are:

 

 

 

Common Sense:Lock your car and take your keys. It’s simple enough but many thefts occur because owners make it easy for thieves to steal their cars.

 

 

 

Warning Device:Having and using a visible or audible warning device is another item that can ensure that your car remains where you left it.

 

 

 

Immobilizing Device:Generally speaking, if your car won’t start, it won’t get stolen. “Kill” switches, fuel cut-offs and smart keys are among the devices which are extremely effective.

 

 

 

Tracking Device:A tracking device emits a signal to the police or to a monitoring station when the vehicle is stolen. Tracking devices are very effective in helping authorities recover stolen vehicles. Some systems employ “telematics,” which combine GPS and wireless technologies to allow remote monitoring of a vehicle. If the vehicle is moved the system will alert the owner and the vehicle can be tracked via computer.

 

 

 

Considering a used vehicle purchase? Don’t buy a headache, check in with VINCheck(SM), NICB’s free vehicle history service at www.nicb.org.

 

 

 

You can help stop this criminal activity by reporting suspected insurance fraud and vehicle theft to NICB at 1-800-TEL-NICB (1-800-835-6422) or by texting to

TIP411 keyword “Fraud.” You may also report fraud and theft by visiting our Web site www.nicb.org. All tips can be anonymous.

 

 

 

About the National Insurance Crime Bureau: headquartered in Des Plaines, Ill., the NICB is the nation’s leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through information analysis, investigations, training, legislative advocacy and public awareness. The NICB is supported by more than 1,000 property and casualty insurance companies and self-insured organizations. NICB member companies wrote nearly $343 billion in insurance premiums in 2008, or more than

82 percent of the nation’s property/casualty insurance. To learn more visit www.nicb.org.

 

 

 

* This report reflects only stolen vehicle data reported to NCIC in 2008. No further filtering of information is conducted, i.e., determining the total number of a particular make and model currently registered in the U.S. for comparison purposes.

 

 

 

 

SOURCE National Insurance Crime Bureau

PR Newswire — August 20, 2009

 

 

 

 

 

 

HARRISBURG,Pa., Aug. 20 /PRNewswire-USNewswire/ –As college classes are set to begin, Pennsylvania Insurance Commissioner Joel Ario today reminded parents to consider their family’s changing insurance needs.

 

 

 

“Hundreds of thousands of young Pennsylvanians will be heading to college in the next few weeks,” Commissioner Ario reported. “It can be a hectic and emotional time, but in the rush to begin the semester, parents should take time to review insurance coverage needs.”

 

 

 

The Insurance Department offers these tips to help consumers review and update policies - from health, to property and auto insurance:

 

 

 

Health:Many health insurance policies cover dependents who are full-time students until the age of 23. Pennsylvania law recently changed to expand health coverage for children of insured parents. It allows adults up to age 30, under certain conditions, to remain covered by their parents’ employer group health insurance. The coverage expansion occurs at the discretion of the employer.

Individual policies differ, so check with the insurance provider or benefits administrator about age or full-time student status questions.

 

 

 

Many schools offer student health insurance plans which are sold by companies that have contracted with a college to offer coverage to its students.

Generally, these plans have limited benefits and may exclude certain injuries and types of coverage. Consumers should read all the fine print and be sure that they are dealing with a licensed insurance entity.

 

 

 

Also, students should have a copy of all relevant insurance cards and know how to obtain referrals and approvals, if necessary, before seeking treatment. If care is covered by a provider network, check to see if the student will be outside the network service area while away at school. If the insurer contracts with a preferred provider organization (PPO), the insurer may pay benefits at out-of-network levels. Check plan provisions to find out what level of benefits is provided and what the out-of-pocket costs might be.

 

 

 

Property:Students take thousands of dollars worth of personal items with them to school. Whether a student is living in a dorm or off campus, consumers should review their homeowner’s policy to see whether a student’s computer, electronics and other personal items will be covered. Consumers may want to consider renter’s insurance to protect a student’s personal property in the event that it is damaged, destroyed or stolen.

 

 

 

Auto:If a student is taking a car to school, check the existing insurance policy. Ask about the rates for the college’s city and state before deciding whether to keep the student’s car on the family’s auto policy. In addition, the insurance company should be notified each semester if the student maintains good grades. Maintaining a certain G.P.A. might make your child eligible for a good-student discount.

 

 

 

“Parents recognize that college is a life-changing experience for students and their families,” concluded Ario. “That’s why it is important to make sure that insurance protections remain in place.”

 

 

 

More information and consumer tips can be found at www.insurance.state.pa.us.

 

 

 

 

 

 

SOURCE Pennsylvania Department of Insurance

PR Newswire — August 20, 2009

 
WESTLAKE VILLAGE, Calif., Aug. 20 /PRNewswire/ — New-vehicle retail sales in August are forecasted to cross the 1-million-unit mark for the first time in the past 12 months, boosted by the government-funded Car Allowance Rebate System
(CARS) program, according to J.D. Power and Associates, which gathers real-time transaction data from more than 10,000 dealerships across the United States.

 

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Based on the first 13 selling days of the month, new-vehicle retail sales for the month of August are expected to come in at slightly more than 1 million units, up nearly 2 percent from one year ago. This marks the first increase in retail sales volume since June 2007.

 

“Improved consumer confidence and credit availability during the past six months have combined with the CARS program to lift industry sales out of their slumping year-to-date levels, which have been down approximately 35 percent year-over-year,” said Gary Dilts, senior vice president of global automotive operations at J.D. Power and Associates. “These factors set the foundation for a gradual recovery in the months ahead. Reduced inventories will likely hold back some of this momentum, but the automakers are moving quickly to ramp up production and rebuild stock.”

 

As inventory is channeled to retail sales, August fleet sales are expected to decline by more than 50 percent compared with one year ago. As a result, August total light-vehicle sales are projected to come in at 1.1 million units, down just 8 percent from August 2008. The August seasonally adjusted annualized rate
(SAAR) for total vehicle sales increases to 12.2 million units, up 1.2 million units from July.

 

J.D. Power and AssociatesU.S.Sales andSAARComparisons - August 2009

 

Given the positive impact of the CARS program, J.D. Power and Associates is increasing its forecast for 2009 to 10.3 million units for total sales. Retail sales are projected to come in at 8.6 million units–300,000 units more than previously expected–while the projection for fleet sales has been reduced to account for a shortage in inventory.

 

“Amid relative economic stability and a more disciplined management of fleet sales, the industry is showing signs of a more rational balance of sales and production levels,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. “However, there is risk that the expected pullback in sales as the CARS program ends could be magnified if manufacturers reduce incentive levels. This could stall the recovery and negate the boost that the program has generated in the third quarter.”

 

In light of the expected pull-ahead sales as a result of the CARS program and a flatter-than-anticipated recovery, J.D. Power and Associates has lowered its forecast slightly for 2010 to 11.5 million units for total sales and 9.5 million for retail sales.

 

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 reviewsand ratings, car insurance, health insurance, cell phoneratings , 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
2008 were $6.4 billion. Additional information is available at http://www.mcgraw-hill.com.

 

J.D. Power and Associates Media Relations Contacts:

John Tews; Troy, Mich.; (248) 312-4119; media.relations@jdpa.com

 

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; media.relations@jdpa.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

 

 
SOURCE J.D. Power and Associates

PR Newswire — August 12, 2009

 

 

 

 

 

WESTLAKE VILLAGE, Calif., Aug. 12 /PRNewswire/ — These days, for many folks, the Business Section is becoming the first part of the newspaper that they read as the nation struggles to right its economy. And few, if any, other single businesses have made more headlines–or have had as dramatic an impact on the economy–as the automotive industry. We’ve seen two of Detroit’s Big Three struggle through the bankruptcy process. Even the world’s largest automaker, Toyota, has become buried under billions of dollars in unanticipated losses, driven by the wholesale collapse of the U.S. automotive market.

 

 

 

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How do you make sense of the industry’s turmoil?

 

 

 

Gary Dilts, senior vice president of global automotive operations for J.D. Power and Associates, provides an interesting perspective on the industry, as he spent more than 30 years in the car business. Prior to joining J.D. Power in 2007, Gary was the chief sales executive at Chrysler.

 

 

 

With bankruptcies, reorganizations, job cuts, plant closings and cash-for-clunker deals all vying for our attention, we asked Dilts to help us put some perspective on what is happening in the auto industry, and how it can recover from its worst crisis since the Great Depression.

 

 

 

Q: There’s plenty of news with twoDetroitmakers emerging from bankruptcy. What are your thoughts about the situation?

 

 

 

A: These are two very different situations. General Motors has shed some brands and has come out of this with a completely different cost structure that can survive in a 10-million unit year. It has a relatively rich product pipeline, so I do see GM with a significant upside. Chrysler is a different story. It has virtually an empty product pipe. It has some quality problems. And it’s got a management void. So Chrysler is a bigger issue to fix. Hopefully, Fiat injects some product for Chrysler, especially the B and C segments (compact and mid-size cars).

 

 

 

Q: The government’s involvement in the auto industry has generated a lot of controversy–some folks are even threatening to boycott GM. The President has said he won’t have his administration involved in day-to-day operations. What do you foresee?

 

 

 

A: I think the two best days for General Motors are the day the government underwrote their debt and the day the government leaves. I was there on the steps of the National Press Club when then Chrysler Chairman Lee Iacocca wrote a check to pay off the government loan guarantees. Getting the government out of our business put the speed back in the company and things moved forward fast from there. The big concern is what the consumer will do. Right now, General Motors is getting 20 percent of the market. It used to be 40 percent. There’s a vocal minority in the market who’ll tell you they’re going to boycott, but more intelligent members of the car-buying public recognize the situation and will be back in market. GM also has a huge car park and the opportunity to stay connected in the service lane. If they treat these customers right, they will get them back.

 

 

 

Q: We certainly have some bad examples of government involvement in the auto industry, in Britain, for example. But then again, we probably wouldn’t have the strong Japanese and Chinese auto industries without government assistance.

 

 

 

A: A lot of Toyota’s strength has come from its strong ties with the government.

Bob Lutz made a point that the government involvement will be a good thing, because it will understand the auto industry, not just from Washington, but from the inside out. That’s good, not just for General Motors, but for the industry itself. You have some government officials who are starting to understand what CAFE requires in terms of redesigning powertrains, and all this will be hugely beneficial for the automakers and the supply chain. The balancing act is for the government to stay in and provide some funding for the short-term and some conceptual oversight, but stay out of the way in terms of product and day-to-day operations.

 

 

 

Q: How did the industry get into this much trouble? And how much was the result of outside forces, rather than bad decisions inDetroit?

 

 

 

A: To my way of thinking, what got the automotive industry into this was the launch of one vehicle at a time that was oversubscribed in terms of price and volume–the manufacturers were totally out of touch with the reality of the market. That’s how you wind up with a 17-million unit market with a million too many rental cars and a million too many leases dumped onto the market. I watched it inside at Chrysler, but it’s everyone, even Toyota, at this point. You launch your product based on some conservative targets for cost and volume, then you get cost overruns, you get some pressure in the market, and the next thing you know, you’re projecting more volume, and 100,000 units become 200,000 and you get over-capacity of 50 percent, and nowhere to hide.

 

 

 

I think that’s the big change we’re going to see, some reality–I mean stark reality–in the assessments on vehicle decisions.

 

 

 

When you sit at the table, the politics are tremendous to “go with the flow.”

And it’s that way, I don’t care if it’s Europe, Asia or the U.S. The whole process is wired to fail. You over-produce and over-price to try to out run the fixed costs.

 

 

 

Q: Speaking of launches, Fritz Henderson recently admitted that a majority of the launches they’ve had, in recent years, have been “just okay.” At the best, they might have six out of 15 really good new products.

 

 

 

A: That means they’ll lose $7 to $10 billion. But that’s the way the industry has been operating. This sounds so simple you can’t believe this is the way the industry is operating, but it is.

 

 

 

Q: So, how difficult will it be for the industry, GM in particular, to start setting and then hitting more accurate projections?

 

 

 

A: The politics inside are perfectly designed to fail. If they don’t start getting some independent, outside input nothing will change. It’s too political.

You have senior managers telling you what they see for their baby. Who’s going to risk standing up and arguing with that? I do think General Motors may set a new standard using someone outside to check in on these plans before they lock down these big investments. The culture does seem to be changing.

 

 

 

Q: How do you change the process to get better decisions? How do you set things up so people stand up to a top executive?

 

 

 

A: If the boss says the new model is going to sell 500,000 units, who is going to stand in his way? An executive like him drives the decision. Who sits at the table and notes there are going to be 10 new competitors and maybe the volume targets are out of reach or worse yet … changing? I think the government will look at the billion-dollar investments with a different eye. They are going to want to see projections and measured results.

 

 

 

Q: We’ve heard from variousDetroitmakers that some of their latest products do quite well in consumer clinics–at least when they’re shown without brand badges. As soon as the same models are seen with aDetroitnameplate, they don’t do nearly as well. Why is that happening, and how do the Big Three rebuild their public image?

 

 

 

A: If you take a Camry and put a domestic badge on it, it wouldn’t be valued as much in those clinics. Put the Camry badge back on it and it’s worth $5,000 more to consumers. That’s just going to take time to work through. The clinics are always interesting but a bit suspect, when you pay people $50 to sit around for four hours and tell you what they think. The makers are getting smarter. They’re doing more digital research work with communities and getting better feedback.

But there’s no doubt this brand issue is hugely important and will challenge GM and Chrysler as they work their way back in the industry.

 

 

 

Q: The data I’ve seen suggest there’s a huge part of the population–especially in the most affluent and influential markets, likeCalifornia–that simply doesn’t put domestic makers on their shopping list. How do they change this?

 

 

 

A: One vehicle at a time. They have to build a vehicle that is bulletproof and delivers world-class mpg in the process. If you want to look at an automaker that’s doing it right, long-term, it’s Honda. Its launches have been almost perfect, protecting value, protecting image, so, as a consumer, all that is why people keep buying Honda. It’s not just cars. It’s the whole process that goes way beyond just making a good vehicle.

 

 

 

Q: Hyundai seems to be a good example of turning things around. It used to be the brand people didn’t take seriously, yet they recently won the North American Car of the Year honors with the new Genesis sedan. The Genesis is also the most appealing midsize premium car, and the Elantra is the highest ranking compact car in initial quality, according to J.D. Power. What are they doing right and how might that apply toDetroit?

 

 

 

A: Hyundai’s a great example. Its quality has improved rapidly. It’s a predator on the move and a good example of what a company can do when it gets aligned. It has a mandate from the chairman’s office that runs to the shop floor to fix the quality and bring vehicles in at competitive prices. Hyundai is a real contender in the U.S. market.

 

 

 

Q: So, if you had to tell theDetroitmakers, these are the keys to your turnaround, what would those be?

 

 

 

A: The answer is to build to the market. Take a look at how Mercedes-Benz typically did things: if it had U.S. demand for 100,000 vehicles, it would ship 80,000 and keep demand up. But more recently, it has over-built and its incentives are soaring. Now, I think we’ll see Detroit makers hold volumes down and keep incentives low. All the instability that over-production created–driving down residuals and driving up incentives–will have to change.

You ask why people bought Toyotas and Hondas; it was because they were very stable and had a very well-managed lifecycle, not just in terms of quality but also in terms of value. As a consumer, you didn’t see them suddenly offering $10,000 incentives on a car you just paid full price for. In Detroit, it was a doom loop (all the domestics) had to follow because one automaker was intent on getting its market share. But now, if they have their breakeven down to a 10-million-unit market, they can afford to shed some production.

 

 

 

Q: We’re starting to see some serious problems among the imports.Toyotajust ran up huge losses and much of that was fromNorth America. Are they starting to make some of the same mistakes that have hobbledDetroit?

 

 

 

A: There’s no question. Toyota put its pickup plant in San Antonio and made a huge investment made on some big volume assumptions for the Tundra. It’s not going to do it. So, Toyota’s made some big mistakes. Once you fill the white space in your product portfolio, the only thing you can do to get growth is start pounding out more volume. I think Toyota now is showing a lot of the same symptoms as the domestics and is moving fast to correct its course. It is so disciplined. If anything, it may over-correct on volume. But other makers, like Honda and the Europeans, are facing enormous pressure to keep pushing volume. If GM starts easing back on production, it will take the pressure off some of the US market. We already see Ford’s inventories going down sharply, so it’s beginning to make some very positive changes to its go-to-market strategy.

 

 

 

The days of building two million too many vehicles and shoving them into the market with nuclear incentives appear to be coming to an end. I think it’s going to be a very different market a year from now.

 

 

 

Q: Are you seeing some signs of turnaround?

 

 

 

A: Nothing in terms of sales. Credit is easing, but nowhere near where it needs to be. Showroom traffic is up, but credit needs to ease, and I’m hoping we’ll see that this quarter and into the fourth quarter. And we’ll be reporting sales that will be compared to some really lousy months in 2008, so maybe the headlines will look a little better. If they say the industry is up, it may make consumers feel better. We also may see the big giveaway deals end. And if so, consumers may stop putting off a purchase waiting for the next big deal. I mean, the industry has been giving away cars like the Chrysler Pacifica for the price of a cellphone–$99 a month.

 

 

 

Q: Let’s talk about CAFE (Corporate Average Fuel Economy) standards.

 

 

 

A: It’s going to be interesting. If gas goes to $4 a gallon or more, it’s going to make sense. I have no doubt the industry can meet the requirement by 2016.

I’m just not sure the customers will find their way. It’s a huge task, and here’s where having the government more involved with the industry is a good thing because it’ll give Washington more of a sense of what they’re really asking for. It’s easy to sit there and mandate those numbers, but when they start understanding what the powertrain requirements are, what the costs are and what the impacts will be on the fleet, it’ll be good for the government and the industry.

 

 

 

Q: Many observers were surprised thatDetroitgave its approval to the CAFE standards increase. Were you?

 

 

 

A: Well, at least they are no longer chasing separate numbers (the EPA federal target and a separate, higher mandate for California). What makes sense to me is to start surcharging the price of gas to help support the federal programs, supporting research on advanced powertrains. We should start gradually taxing gas to run it up to $4 a gallon, which would push more people into the B and C segments (compact and mid-size cars). In Europe, those segments are 70 percent of the market, compared to 40 percent in the U.S. That shift would solve most of the CAFE problem. I think the government is going realize that to make an energy policy work, it has to do things to make customers want to buy vehicles of that size.

 

 

 

Q: It’s curious that despite all the doom-and-gloom, all the bankruptcies, some folks contend the auto industry is entering a Golden Era, perhaps its most profitable ever. Your thoughts?

 

 

 

A: I don’t disagree. If you can take all the weight off General Motors, make it profitable in a 10-million-unit year, what happens when sales return to 14 or 15 million? And all the companies around the world are tightening their belts, reducing fixed costs and learning how to live in a much weaker economy. If the rest of the global auto market continues to grow, we’re talking about big money.

Consider that in the U.S. alone, the drop from 17 million units to 10 million has caused a drop of $200 billion in net revenue annually. If the market runs up 10 or 20 percent, and you have your costs in line, you can make money fast in the auto industry. Wouldn’t that be fun for a change?

 

 

 

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.

 

 

 

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

2008 were $6.4 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

 

 

 

 

 

SOURCE J.D. Power and Associates

Insurance.com finds car insurance costs 18 to 22-year-olds $1,808 annually

PR Newswire — August 12, 2009

CLEVELAND, Aug. 12 /PRNewswire/ — As families start planning for college move-in day, many are considering whether to take a car to school. Some students enjoy having the freedom a car brings, allowing them to commute quickly and safely to class, activities and jobs.

If you plan to have your car on campus, it’s wise to compare auto insurance rates before you move, especially since rates have decreased significantly since last fall. Whether you are buying a new policy for the first time, or looking to save your parents money, comparison shopping online is easy and can save hundreds of dollars.

“Teen and young adult drivers are the highest risk group for violations and accidents, so their rates will be expensive,” said Sam Belden, VP at Insurance.com. “Insurance.com found that drivers ages 18-22 were paying an average rate of $150 a month for their own insurance. On average, young men pay about 10 percent more for auto insurance.”

Taking your car to school? Consider these tips:

Purchase a parking permit

Check your school’s policy on parking and buy a permit if necessary. The cost of the permit is well worth avoiding the hassle and expense of picking up your car at the impound lot. If you get a ticket, be sure to pay it on time - before it gets mailed home to Mom and Dad!

Choose a car that’s less expensive to insure

If you are on your own for the first time, and in sticker shock from the cost of insurance, consider a used car that may not need comprehensive and collision coverage. Or pick a less expensive car to insure. A fuel-efficient Hyundai Sonata costs $1,770 to insure, while quotes for a new Scion averaged $2,850.

Drive safely

Concentrate on driving when you are on the road. Even one accident or ticket can increase your rates on auto insurance coverage by hundreds of dollars. And, don’t lend your car to your roommate, because it’s your insurance that pays!

Earn a Good Student discount

Students with a B grade average or higher usually qualify for an auto insurance discount of up to 15 percent. Look for low mileage discounts, too, if you drive less than 10,000 miles per year.

Manage credit cards carefully

Late payments will hurt your credit history and lead to higher auto insurance rates in states that permit insurers to consider it when setting rates.

About Insurance.com

Located in Cleveland, Ohio, Insurance.com is the top online auto insurance agency in the U.S., and offers comparison automobile insurance quotes consumers can buy online or by phone. By linking directly to the rating systems of fifteen top insurance companies with its proprietary technology, Insurance.com provides instant, accurate comparison rates that help consumers make smarter decisions about auto insurance. Visit http://www.insurance.com.

SOURCE Insurance.com

Pella Ranks Highest among Consumers for a Third Consecutive Year

PR Newswire — August 11, 2009

 

 
WESTLAKE VILLAGE, Calif., Aug. 11 /PRNewswire/ — As economic difficulties lead homeowners to curtail remodeling projects, overall satisfaction among consumers with windows and patio doors has declined in 2009, according to the J.D. Power and Associates 2009 Windows and Patio Doors Satisfaction Study(SM) released today.

 

(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)

 

The study, now in its third year, measures satisfaction among consumers who purchased new windows or patio doors based on performance in seven factors (listed in order of importance): operational performance (17%); product quality/durability (17%); appearance and design features (15%); price (14%); ordering and delivery (14%); warranty (13%); and repair and replacement (10%).

 

For a third consecutive year, Pella ranks highest among consumers in overall satisfaction with windows and patio doors. Achieving a score of 787, Pella performs particularly well in three of seven factors: operational performance; product quality/durability; and appearance and design. Closely following Pella in the rankings are Andersen (785) and Milgard (784). Andersen performs particularly well in the ordering and delivery and warranty factors, while Milgard performs well in the price and repair and replacement factors.

 

Overall satisfaction with windows and patio doors has declined to 769 on a 1,000-point scale in 2009, down from 781 in 2008. Satisfaction has decreased in all seven factors examined in the study, with the most notable declines occurring in the warranty, product quality/durability and price factors.

 

The study finds that consumers report spending less overall on window projects, purchasing fewer window and patio door units and installing windows and doors
themselves(1) more frequently than in previous years.

 
“Consumers have scaled back on remodeling and discretionary projects due to tight credit, declining home values and general economic uncertainty,” said Jim Howland, senior director in the real estate industries practice at J.D. Power and Associates. “Consumers who find it necessary to replace windows or remodel in light of these conditions are much more likely to scrutinize every aspect of their purchase and carry particularly high expectations for products.”

 

Further reflecting increased consumer scrutiny of window and door products, the importance of the warranty; product quality/durability; appearance and design features; and operational performance factors have increased from 2008.
Importance of the price and ordering and delivery factors has declined substantially.

 

The 2009 Windows and Patio Doors Satisfaction Study is based on responses from
2,856 consumers who purchased new windows or patio doors during the previous 12 months. The study was fielded in March and April 2009.

 

For more information, readan article or view windows and patio doors ratings at JDPower.com.

 

(1) Respondents may have installed the windows or patio doors themselves or with help from family and friends; hired an independent contractor, handyman or remodeler; used an installation service provided by a home improvement retailer; or used an installation service provided by the product manufacturer.

 
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 home building, home improvement and real estate, car reviews andratings, 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
2008 were $6.4 billion. Additional information is available at http://www.mcgraw-hill.com.

 

J.D. Power and Associates Media Relations Contacts:

John Tews; Troy, Mich.; (248) 312-4119; media.relations@jdpa.com

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; media.relations@jdpa.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

 
SOURCE J.D. Power and Associates

Advanced Technologies Could Stop Future Drunk Drivers

PR Newswire — August 5, 2009

 

 
ALBANY, N.Y. and DALLAS, Aug. 5 /PRNewswire/ — “Mothers Against Drunk Driving expresses our deepest sympathy and condolences to the families whose loved ones died or were injured in the horrific New York Taconic Parkway drunk driving crash,” says National President Laura Dean-Mooney. “The death of eight people, including four children, in this impaired driving crash is particularly appalling. MADD NY is offering the service of victim advocates and grief support resources to the families involved.” Sadly, the leading cause of death to kids from drunk driving is as the passenger. Every child deserves a sober driver.

 

(Logo: http://www.newscom.com/cgi-bin/prnh/20030421/MADDLOGO)

 

Child endangerment is a form of child abuse. Caregivers who drive drunk endanger the lives of the children riding in their vehicles. Impaired drivers with child passengers account for the majority of drunk driving fatalities among children.
Child endangerment laws protect innocent children from child abusers, including those who victimize children by driving impaired. While an impaired driver chooses to drink and drive, minor children can seldom choose not to ride with an impaired driver.

 

“One day advanced technologies could prevent a vehicle from being driven by someone who is drunk,” says Dean-Mooney. “This is a key component of MADD’s Campaign to Eliminate Drunk Driving. “We know the advanced technology may be available in eight to 10 years. A cooperative research agreement with the Department of Transportation and auto industry will ensure that these technologies are thoroughly tested, unable to interfere with sober drivers, inexpensive and, introduced voluntarily. “Perhaps, you may even receive an auto insurance discount if you select the anti-drunk driving package.”

 

MADD is determined to protect future generations from drunk driving, and protect children riding in vehicles with drunk drivers, who are frequently parents. On average, MADD receives 17,000 child endangerment calls annually from individuals concerned about children riding with alcohol impaired drivers. MADD intends to eliminate the violent crime of drunk driving, which has killed more than 4,000 people in New York since 1998.(i) Since its founding in 1980, MADD’s focus continues to be victim services, serving more than 55,000 victims of drunk driving across the nation last year - at no charge.

 

“One of the first things New Yorkers could do is support Senate Bill 27B and Assembly Bill 7196A, introduced in Albany this year,” says MADD Long Island Affiliate Executive Director Tom McCoy. “More than half New York’s State Legislature supports this legislation, which requires ignition interlocks for all convicted drunk drivers, including first-time offenders.” People typically drive drunk many times before ever being arrested, so the term “first-time”
offender is misleading.

 

More than 2 million drunk drivers with three or more drunk driving convictions likely still drive U.S. roads, including more than 400,000 with five or more drunk driving convictions.(ii) MADD’s Campaignasks for community support from volunteers and interested citizens to contact their legislators to support interlocks for all convicted drunk drivers. Visit madd.org for ways to get involved. Visit dadss.org to learn about advanced technologies.

 
MADD’smission is to stop drunk driving, support the victims of this violent crime and prevent underage drinking. MADD is a 501 (c) (3) charity with 2 million members and supporters nationwide. Founded in 1980, MADD has helped save more than 383,000 lives. For more information, visitwww.madd.org.

 

(i) NHTSA-FARS Query, 2009

 

(ii) Repeat Offense Data Reported by States. Mothers Against Drunk Driving, 2008.
http://www.madd.org/getfile/7879c476-eb4f-427e-a43b-01ecc1cc716e/Repeat-Offense-Data-Reported-by-States-FINAL.aspx

 

 

SOURCE Mothers Against Drunk Driving

Telematics Pioneer Says Industry Has Opportunity to Re-Shape the Way It Communicates With Customers

PR Newswire — August 5, 2009

 

 
TRAVERSE CITY, Mich., Aug. 5 /PRNewswire/ — In the midst of what could be the worst year in automobile sales in decades, telematics pioneer Steve Millstein sees a positive sign in that the automotive industry appears on the verge of dramatically re-shaping the way it listens and communicates with its customers.

 

Millstein, president of ATX Group, one of the world’s leading providers of customized connected vehicle (telematics) services to global automobile manufacturers, told attendees of the Center of Automotive Research’s annual Management Briefing Seminars today that vehicle manufacturers representing nearly 85 percent of the U.S. market were currently investing in connected vehicles via wireless communications as a way to generate new revenue streams and pull diagnostic data in real-time. But he emphasized vehicle manufacturers need to take the next step to maximize the value in their investment, by extending the connection to include communicating and listening in real-time to their customers’ experiences with their products and in-vehicle features.

 

“In a world increasingly dominated by real-time dialogue - through blogs, Twitters and networked devices - customers often have control of your message, but you have the ability to compete with them in this new media environment through connectivity,” he said, noting that automakers are among only a very few manufacturers in the world with the ability to communicate with customers in real time as their products are being used.

 

Millstein said customer product reviews, complaints and bad service experiences can now be addressed in real time, and consumer perceptions shaped via the collection of real-time driver experiences through networked cars and social media. Noting the lack of differentiation in vehicle styling and performance, Millstein also saw personalization of content via connectivity as a key differentiator among automotive brands in the near future.

 

For vehicle manufacturers to capitalize on this positive trend in the midst of a turbulent new vehicle market and forecasts for slow growth in the coming years, Millstein said connected vehicle program deployments would have to be elevated to more strategic planning levels within vehicle manufacturers, incorporating objectives of departments across the organization and their affiliated dealerships.

 

“Most important, the marketing department must be brought in at the earliest planning stage,” he said. “In short, connected vehicle strategies can no longer be simply “siloed” in a single department - not if you really want to listen to your customer and want to compete in an age where the traditional sales funnel has changed, consumers expect immediate information and mass media advertising and cash incentives no longer play a dominant role.”

 

Millstein also cited the need for automobile manufacturers to connect their back office information technology infrastructures to their networked service providers and vehicles, to tap into data not only generated in real-time by the vehicle, but by drivers and vehicle owners. He also stressed the importance of investing in off-board communications technology rather than in-vehicle technology, thereby enabling vehicles to receive applications that don’t become obsolete early in the vehicle ownership life cycle. These applications will play a greater role in differentiating vehicles and in retaining current customers’
business.

 

ABOUT ATX:

ATX Group (www.atxg.com) is one of the world’s leading providers of customized, connected vehicle services to global automobile manufacturers. ATX pioneered connected vehicle services in 1996, and today provides innovative safety, security, communication, navigation and information services to vehicle owners through many of world’s most distinguished automotive brands, including Toyota, Lexus, BMW, Peugeot, Mercedes-Benz, Maybach, and Rolls-Royce Motor Cars.

 

ATX also customizes services to help automobile manufacturers and their affiliated dealerships use telematics data and multiple customer contact channels to reduce costs, enhance vehicle servicing, and more closely manage customer relationships and contacts with the vehicle through its lifetime. ATX operates from Dallas-Fort Worth, Texas, and Dusseldorf, Germany.

 

ATX is a division of Cross Country Automotive Services (www.crosscountry-auto.com), a leading provider of mobile assistance services to motorists and enhanced claims management services to automobile insurance carriers.

 

 

 
SOURCE ATX Group