4th Independent Car Dealers Satisfaction Survey

4th Independent Car Dealers Satisfaction Survey

Introduction There is nothing new in stating that a cooperation with the importer is one of the most important elements of the dealership business and the automotive industry is perfectly aware of that. After all, it is the headquarters that determines the availability of dealership products and its margin, manages nationwide advertising campaigns or sets standards and requires dealers to incur additional capital expenditure. A dealer network will therefore be successful only if it maintains full balance in the relationship with the importer. The cooperation of importers and dealers was, for the fourth time, evaluated in the 2010 nationwide car dealer satisfaction survey. This year’s survey was made DCG Dealer Consulting supported by Ernst & Young, in line with the EU and the US standards and under the auspices of Car Dealers Association (ZDS) and the Polish Chamber of Automotive Industry (PIM).

Leszek Lerch

Partner Automotive Group Director in Poland

Thanks to your opinions we know that an independent study is highly needed and valuable source of knowledge. Throughout the world the results of such studies are widely published and scrupulously analyzed by both car importers and manufacturers. According to dealer organizations in the United States and Europe, research results have a major impact on the improvement of relations between the importer and the dealers and they strengthen the position of dealers.

Krzysztof Romański

Partner DCG Dealer Consulting

We thank all the companies that participated in this survey and look forward to equally enthusiastic contribution to the next edition.


1

The Methodology The study was made between 5 September and 22 November 2010 and involved dealership owners and managers. The various aspects of ‘dealer satisfaction’ were rated on a scale of five, where 1 is the lowest rating and 5 the highest. The survey covered dealers offering passenger cars of up to 3.5t The minimum sample was 30% of all dealers of a given brand, with the exception of the brands having less than 20 dealers in Poland -- the minimum in this case was set at 40%. The survey ignored brands having less than 10 dealers in Poland and niche brands with a marginal sale across the country. A total of 359 surveys were collected for 25 different brands, which represents 32% of the study group.

2


The Survey ‘Dealer satisfaction’ measured under international standards was surveyed on three levels that the dealers used to evaluate their importers: The first was about evaluating the product sold. It covered all product-related aspects, such as quality, availability and reliability. The second level was the manufacturer’s / importer’s policy as a representative of an international corporation. It featured the assessment of how attractive the dealership agreement is, how competitive the market strategy is and the evaluation of business approach. The third level focused on assessing the importer as a company, which hires people in the Polish reality while having its own organizational culture.


3

The Survey – key highlights With 4.19 points Volvo scored the highest among 25 dealer networks. It is the brand’s second victory in the survey, the first one reached in 2007. Mercedes came second with 4.03 points. The two next positions are for volume brands: Mazda – for the first time in the survey (3.85) and Ford – last year’s winner (3.77).

Next part of the report brings 10 brands with the best score in 12 out of 20 categories which contributed to the overall score in the 2010 Car Dealers Satisfaction Survey. BMW came first in terms of increase of income in the previous year and the forecast for the coming year (Fig. 2), just like it did in 2007 and 2008.

In terms of importers’ business ethics (Fig. 3) Mercedes came first like one and two years ago. Volvo and Mazda were also among the top performers. Toyota’s score boosted y/o/y – from 11th to 6th position.

Last year’s winner in the category – Ford – came 9th. Fig. 2. Increase of income in the previous year and the forecast for the coming one

Fig 1. Top 15* 4,19 (+0,52)

1(3) Volvo

4(1) Ford 5(5) Toyota 6(bd) Mitsubishi

3,85 (bd) 3,77 (-0,37)

2(2) Volvo

3,83 (+0,61)

3(bd) Mazda

3,60 (bd)

4,53 (+0,15)

3,50

2 (3) Volvo

4,24 (+0,49)

3(bd) Mazda

3,94

3,57 (bd)

8(7) Chevrolet

3,55 (+0,25)

9(bd) BMW

3,53 (bd) 3,40 (+0,32)

11(bd) Nissan

3,37 (bd)

12(11)Honda

3,35 (+0,26)

13(14) Hyundai

3,35 (+0,38)

14(17) Opel

3,32 (+0,47)

15(bd) KIA

3,32 (bd)

4(bd) Mitsubishi

3,20

4(7) Chevrolet

5(bd) Dacia

3,19

5 (2) Ford

3,60 (-0,53)

6(11) Toyota

3,57 (+0,64)

6(6) Hyundai

3,11

3,64 (+0,47)

7(bd) Nissan

3,06

7(10) Suzuki

3,23 (+0,28)

8(11) Chevrolet

3,00 (+0,12)

8(12) Honda

3,19 (+0,43)

9(1) Ford

2,91 (-0,37)

9 (bd) KIA

3,14

10(bd) KIA

2,91

10(bd) BMW

3,10

* In parenthesis: last year’s position, the change.

4

1(1) Mercedes

3,61 (+0,10)

7(bd) Alfa Romeo

10(12)Suzuki

4,00

4,03 (+0,08)

2(2) Mercedes 3(bd) Mazda

1(bd) BMW

Fig. 3. Importers’ business ethics


Volvo dealers appreciated importer’s assistance the highest (Fig. 4). Scores from Honda dealers reveal a major improvement in this respect.

Japanese and Korean car dealers seem to appreciate the most reliability and warranty policy (Fig. 5), but German brands – BMW and Mercedes – also scored high.

Distribution system (Fig. 6), covering the availability of cars and delivery times, was ranked the highest by Alfa Romeo’s and Mercedes’ dealers. Toyota slightly lower y/o/y.

Fig. 4. Assistance from the importer

Fig. 5. Product reliability and warranty policy support

Fig. 6. Distribution system

1(3) Volvo

4,67 (+0,67)

2(2) Mercedes

4,23 (+0,18)

3(bd) Mazda

4,00

4(1) Ford 5(bd) Alfa Romeo 6(6) Chevrolet

3,94 (-0,26) 3,67 3,58 (+0,16)

1(6) Hyundai

4,69 (+0,39)

1(bd) Alfa Romeo

4,00 4,00 (-0,12)

2(4) Honda

4,57 (+0,21)

2(1) Mercedes

3(bd) Mitsubishi

4,53

3(bd) BMW

4(bd) BMW

4,48

4(2) Toyota

3,86 4,79 (-0,11)

5(bd) KIA

4,40

5(4) Fiat

3,69 (-0,12)

6(7) Mercedes

4,37 (+0,09)

6(9) Ford

3,66 (+0,22)

4,33 (+0,85)

7(7) Volvo

3,57 (+0,07) 3,57 (+0,19)

7(bd) Suzuki

3,50

7(15) Suzuki

8(17) Honda

3,42 (+0,72)

8(1) Ford

4,21 (-0,37)

8(10) Chevrolet

9(bd) Mitsubishi

3,34

9(bd) Mazda

4,17

9(3) Hyundai

3,53 (-0,36)

10(11) Toyota

3,33 (+0,20)

10(2) Toyota

4,17 (-0,36)

10(bd) KIA

3,50


5

Volvo dealers ranked marketing programs and advertising support from the importer the highest (Fig. 7) which is why the brand went up from 3rd place in 2009. Hyundai went up by 11 notches y/o/y.

Figure 8 shows how the importer was interested in dealers’ opinions about the product image, quality and the loyalty-marketing programs. Again Volvo won scoring 4.10. Mercedes, like last year, came second. Suzuki went up significantly.

Fig. 7. Marketing programs and advertising support from the importer

Figure 8. Manufacturer’s/ importer’s interest in dealer’s opinions

1(3) Volvo

4,32 (+0,57)

2(2) Mercedes

3,85 (+0,07)

3(bd) Mazda

4,10 (+3,42)

2(2) Mercedes

4,00 (+4,13)

Fig. 9. Evaluation of the managers hired by importers

1(3) Volvo

4,77 (+0,82)

2(1) Mercedes

3(bd) Mazda

3,78

3(2) Ford

3,77

4(bd) Mazda

4,16 (-0,12) 4,05 (-0,10) 3,87

4(15) Hyundai

3,64 (+1,04)

4(bd) Mitsubishi

5(8) Chevrolet

3,58 (+0,45)

5(8) Chevrolet

6(bd) Nissan

3,56

6(14) Suzuki

3,60 (+2,81)

6(bd) Alfa Romeo

3,43

7(bd) Mitsubishi

3,55

7(bd) Nissan

3,56

7(bd) BMW

3,43

3,67 (+3,42)

5(11) Chevrolet

3,71 (+0,63)

8(bd) Citroen

3,47

8(1) Ford

3,46 (+4,38)

8(bd) Mitsubishi

3,40

9(4) Toyota

3,41(-0,21)

9(bd) Alfa Romeo

3,44

9(7) Toyota

3,36 (+0,14)

10(bd) BMW

3,43

10(bd) Nissan

10(bd) Alfa Romeo

6

3,75

1(7) Volvo

The survey also checked how dealers evaluate the competences of managers hired by the importers (Fig. 9). Evaluation covered: task management skills, achieving goals, meeting the obligations towards dealers, quality of contact and assistance in selling car fleet.

3,25


3,22

Like in 2007 and 2008, Volvo managers received the highest marks. Last year’s winner in the category – Mercedes – this time came second. Another satisfaction measure involved training opportunities – their quality, convenience of dates and overall efficiency. Volvo sales trainings (Fig. 10) and service trainings (Fig. 11) turn out to be the best. Other top performers include Mazda (first time in the ranking) and Mercedes

Dealers ranked importers also in terms of availability of spare parts. They assessed waiting time and the availability of spare parts in regular and special circumstances. Toyota scored the highest with Mercedes – the winner in 2007 and 2008 – coming second.

1(4) Volvo

4,57 (+0,74)

2(bd) Mazda

4,28

1(7) Volvo

1(bd) Toyota

4,54 4,53

4,33

2(bd) Mercedes

4,33 (+4,18)

3(bd) Alfa Romeo

4,03 (-0,07)

3(2) Mercedes

4(1) Ford

4,00 (-0,17)

4(5) Toyota

3,79 (+0,19)

4,43 (+3,67)

2(bd) Alfa Romeo

3(2) Mercedes

5(7) Toyota

Fig. 12. Availability of spare parts

Fig. 11. Service trainings

Fig. 10. Sales trainings

4,26 (+3,73)

4,44

4(bd) Ford

4,41

5(bd) Mazda

4,00

5(bd) Peugeot

4,27 4,24

6(bd) Alfa Romeo

3,72

6(1) Ford

3,98 (+4,18)

6(bd) Honda

7(bd) Mitsubishi

3,70

7(3) Fiat

3,94 (+4,04)

7(bd) Fiat

4,16

8(8) Chevrolet

3,62 (+0,12)

8(bd) Mitsubishi

3,83

8(bd) Renault

4,11

9(11) Suzuki

3,60 (+0,30)

9(16) Peugeot

3,78 (+3,09)

9(bd) Citroen

4,04

10(bd) BMW

3,57

10(10) Suzuki


3,70 (+3,38)

10(bd) Suzuki

3,93

7

The last partial evaluation shows dealers’ opinions about the financing of car purchases by the customer. This assessment covered: competitive deals in the financing of new and used cars, speed of obtaining credit and an overall evaluation of credit programs and their consistency. This time the winners are Peugeot and Citroen – both using the services of PSA Finanse. Fig. 13. Car purchase – financing opportunities

Below we present two graphs: the first (Fig. 13) shows the 10 most popular dealers most frequently mentioned by the respondents. The second one (Fig. 14) shows the percentage of dealers who would chose the current brand once again.

Fig. 14. The percentage of dealers who would choose the following brands

1(9) Peugeot

3,93

Mercedes

2(bd) Citroen

3,92

Skoda

3,86 (+0,71)

3(5) Toyota

8,59% 8,59% 8,59%

Volkswagen

4(bd) BMW

3,75

Ford

5(7) Volvo

3,71 (+0,71)

Toyota

7,07% 6,57%

57%

Mazda

57%

Volvo

6,06%

Nissan

7(6) Mercedes

3,53 (+0,43)

Kia

6,06%

Ford

8(bd) Mazda

3,50

Mazda

9(bd) Nissan

3,47

Hyundai

10(bd) Mitsubishi

3,47

Nissan

3,54%

60%

Mercedes

BMW

4,04%

64%

Toyota

3,54

4,55%

71%

BMW

6(bd) Alfa Romeo

Our respondents were also asked about what brand dealer they would be if they had to choose again. This year’s answers showed a number of brands. Among the most sought were Mercedes, Skoda and Volkswagen. Interestingly enough, neither Skoda nor Volkswagen are among the Top 15 in the general classification. 8

Fig. 15. The percentage of dealers who would choose the current brand once again

Volkswagen Hyundai Mitsubishi

40% 38% 35%

33%

30%

Next Car Dealer Satisfaction Survey in Poland will be made in September and October 2011.


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© 2010 Ernst & Young All rights reserved. SCORE: 003.02.11

Survey made by:

Patron:

Krzysztof Romański Partner Tel.: + 48 602 434 686 [email protected]

Roman Kantorski PIM CEO Tel.: +48 22 845 01 40 [email protected]

DCG Dealer Consulting ul. Kraszewskiego 48 lok. 4 05-800 Pruszków Tel.: +48 22 244 07 76 Fax.: +48 22 244 07 78

Polska Izba Motoryzacji ul. Grażyny 15 02-548 Warszawa Tel.: +48 22 845 01 40 Fax: +48 22 845 27 17

Partner:

Marek Konieczny ACD CEO Tel.: +48 600 003 238 [email protected]

Leszek Lerch Partner Automotive Group Director Tel.: + 48 32 760 77 42 [email protected] Ernst & Young Rondo ONZ 1 00-124 Warszawa Tel.: +48 22 557 70 00 Fax: +48 22 557 70 01

Związek Dealerów Samochodów ul. Podchorążych 83 00-722 Warszawa Tel/fax: +48 22 840 82 44

4th Independent Car Dealers Satisfaction Survey

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