American Customer Satisfaction Index Automobile Report 2019-2020 PDF

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ACSI ®

American Customer
Satisfaction Index

The American Customer


Satisfaction Ind ex (ACSI ®) is a
n a t i o n a l economic indicator
of customer evaluations of the
quality of products and services
available to household consumers
in the United States.

The A C S I u s e s d a t a f r o m
interviews with roughly 500,000
customers annually as inputs
to an econometric m o d e l for
analyzing customer satisfaction
with more than 400 companies in
46 industries and 10 economic
sectors, including various services
of federal and local government
agencies. August 25, 2020
ACSI r e s u l t s a r e r e l e a s e d
throughout the year, with all AMERICAN CUSTOMER SATISFACTION INDEX
measures reported on a scale of
0 to 100. ACSI data have proven
AUTOMOBILE REPORT 2019-2020
to be strongly related to several
essential indicators of micro and
macroeconomic performance. For
example, firms with higher levels of Industry Results for:
customer satisfaction tend to have
Automobiles & Light Vehicles
higher earnings and stock returns
r e l a t i v e to competitors. Stock
portfolios based on companies
that show strong performance in
ACSI deliver excess returns in up
markets as well as down markets.
At t h e m a c ro level, customer
satisfaction has been shown to
be predictive of both consumer
spending and GDP growth.
ACSI ®
ACSI Automobile Report 2019-2020

Record-Low Customer Satisfaction for Auto Industry Poses Another


Hurdle for Recovery, With Luxury Segment Hit Hardest

As with the economy at large, the U.S. automobile industry found itself in the crosshairs of the
COVID-19 global pandemic, which withered car sales across the country as stay-at-home orders
and factory closures kept both prospective customers and workers at home. The fallout in sales
during the second quarter of 2020 was nothing short of devastating. All three Detroit automakers
saw U.S. sales drop by a third or more, mirroring the declining trend for the industry overall. The
eight-week North American production shutdown also spanned the second quarter, costing car
companies billions.

While the uncertainties of the pandemic may mean a slow recovery for the auto industry, new data
from the American Customer Satisfaction Index (ACSI®) indicates another hurdle to overcome: an
ongoing trend of declining customer satisfaction. One year ago, the ACSI reported widespread
deterioration in satisfaction across the industry as 21 of 27 nameplates registered ACSI declines.
This year, the trend has softened slightly but 17 brands still post downturns year over year. All told,
the industry retreats 1.3% to an ACSI score of 78 (100-point scale), adding to the drop of roughly
4% from last year. This brings automobiles and light vehicles to a nearly unprecedented industry
low, reached previously only in 1999 and far below the peak score of 84.

The ACSI decline permeates the entire luxury car segment, where all nine nameplates post driver
satisfaction losses. Overall, luxury cars retreat 4% compared to a 1% decline for the mass-market
segment. The ACSI results in this report are based on interviews collected from July 2019 to June
2020 with customers who purchased or leased a new car a minimum of six months to three years
prior. According to these customers, both quality and value, as well as several key aspects of the
driver experience, continue to deteriorate for the auto industry overall.

While the pandemic’s recent impacts on car sales have been broad and deep, 2019 showed
smaller signs of strain. Overall, automakers sold more than 17 million vehicles in the domestic
market for a fifth consecutive year, but some major manufacturers ceded ground in 2019. Ford’s
full-year U.S. sales skidded 3.0% compared to 2018, while General Motors (GM) dropped 2.3%
and Fiat Chrysler slid 1.4%. Likewise, Toyota reported a 1.8% drop and Mazda was off by 7.2% year
over year. Sales tumbled 9.9% for Nissan, the largest decline in the U.S. market.

For the second consecutive year, customer satisfaction decreases across all automakers—both
foreign and domestic. European manufacturers keep their lead over Asian and U.S. cars despite
a 2-point downturn to an ACSI score of 79. Likewise, U.S. automakers fall 2 points to 76—trailing
European cars by the same gap seen in 2019.

Asian manufacturers are down by a lesser amount, slipping 1 point to 78 and once more widening
the gap to U.S. manufacturers. For both domestic and international carmakers, customer
satisfaction is now at its lowest level in five years.

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ACSI ®
ACSI Automobile Report 2019-2020

DOMESTIC & INTERNATIONAL AUTOMAKERS


5-Year ACSI Trends

90

Europe Japan/Korea U.S.

85
(0-100 Scale)
ACSI

80
79
78

76
75

70
2016 2017 2018 2019 2020

© 2020 American Customer Satisfaction Index. All Rights Reserved.

Looking at domestic automakers, customer satisfaction results are mixed as both Ford and GM
show steep declines while Fiat Chrysler nets a gain. Ford falls the furthest this year, tumbling 5%
to 76, the lowest score among the Detroit Three. A sharp decline for luxury plate Lincoln combined
with a smaller drop for the Ford brand pushes the company to a five-year low.

DOMESTIC AUTOMAKERS
5-Year ACSI Trends

90

Fiat Chrysler Ford GM

85
(0-100 Scale)
ACSI

80

77
77
76
75

70
2016 2017 2018 2019 2020

© 2020 American Customer Satisfaction Index. All Rights Reserved.

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ACSI ®
ACSI Automobile Report 2019-2020

GM plunges nearly as far, down 4% to 77, beating Ford by a point. While GMC trucks hold steady
for customer satisfaction, the company’s Buick and Chevrolet nameplates both retreat to record-
low satisfaction levels.

A year ago, Fiat Chrysler was the biggest loser in satisfaction but for 2020, the carmaker rebounds
3% to tie with GM at 77. The improvement brings Fiat Chrysler nearly in line with both GM and Ford
for the first time in five years. While the company benefits from high and stable satisfaction for its
Ram nameplate, both Dodge and the self-named Chrysler brand post driver satisfaction upswings
this year.

The top of the auto industry belongs mostly to foreign brands. Among nine nameplates that score
above the industry average of 78, only two are domestic—Cadillac (GM) and Ram (Fiat Chrysler).
For the industry overall, fewer nameplates decline in 2020 compared to a year ago, but there
continues to be a lack of substantial customer satisfaction improvement. Among 27 nameplates,
seven manage to post gains, but the vast majority of these changes are slight (+1%). Likewise,
three brands, along with the group of smaller nameplates, hold customer satisfaction stable. The
Chrysler nameplate is the only brand to move up more than a point.

Consistent with the last few years, roughly one-third of survey respondents report experiencing
a vehicle recall. While this recall proportion has not changed, the negative impact of recalls on
customer satisfaction is increasing. Two years ago, customer satisfaction among drivers who had
a recalled vehicle was nearly the same as those who had not experienced a recall. In 2019, drivers
weathering recalls were less satisfied by a gap of 2 points. Now, this gap widens to 3 points as
those with recalls are noticeably less content (76) than those without recalls (79).

Individual nameplate performance on recalls, however, varies widely. Compared with other
nameplates, both BMW and Ram customers report higher-than-average percentages of recalls
over the three-year period from 2018 to 2020. The brands that experience the strongest negative
impact of recalls on satisfaction this year are two Fiat Chrysler plates, Ram and Jeep, along with
luxury plates Cadillac and Mercedes-Benz. For these brands, customer satisfaction would be
significantly higher if their handling of the recall process improved.

Five nameplates, all foreign, manage the recall process exceptionally well. Toyota, Nissan’s
Infiniti, and Mazda all show no adverse impact of recalls on satisfaction. Volvo and Mitsubishi
do even better, registering higher satisfaction for customers who experienced a recall. For
Mitsubishi, the proportion of survey respondents with recalls has declined significantly for two
straight years as well.

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ACSI ®
ACSI Automobile Report 2019-2020

AMERICAN CUSTOMER SATISFACTION INDEX:


AUTOMOBILES & LIGHT VEHICLES
COMPANY 2019 2020 % CHANGE

Automobiles & Light Vehicles 79 78 -1.3%


Lexus (Toyota) 84 82 -2%
Audi (Volkswagen) 82 80 -2%
Cadillac (GM) 81 80 -1%
Mercedes-Benz 83 80 -4%
Ram (Fiat Chrysler) 80 80 0%
Toyota 81 80 -1%
Honda 82 79 -4%
Infiniti (Nissan) 82 79 -4%
Subaru 82 79 -4%
BMW 82 78 -5%
GMC (GM) 78 78 0%
Mazda 77 78 1%
Volkswagen 77 78 1%
Volvo 82 78 -5%
Acura (Honda) 78 77 -1%
Kia 76 77 1%
Lincoln (Ford) 82 77 -6%
Mitsubishi 76 77 1%
All Others (Luxury & Mass Market) 76 76 0%
Buick (GM) 79 76 -4%
Chevrolet (GM) 80 76 -5%
Fiat (Fiat Chrysler) 77 76 -1%
Ford 77 76 -1%
Hyundai 79 76 -4%
Jeep (Fiat Chrysler) 76 76 0%
Nissan 75 76 1%
Dodge (Fiat Chrysler) 74 75 1%
Chrysler (Fiat Chrysler) 71 73 3%

0-100 Scale

© 2020 American Customer Satisfaction Index. All Rights Reserved.

Luxury Vehicles
Luxury nameplates lose their luster across the board as customer satisfaction with every measured
brand deteriorates. The segment as a whole backtracks 4% year over year to an ACSI score of 79
for driver satisfaction.

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ACSI ®
ACSI Automobile Report 2019-2020

Longer-term ACSI trends show that the satisfaction gap between the luxury and mass-market
segments has narrowed. From 2008 to 2012, luxury cars outshone mass-market vehicles by an
average of 4 points for satisfaction. Since that time, the gap has lessened to 2 points in favor of
luxury cars. Likewise, the performance bar for luxury plates has been moving lower over time. This
year, the top-scoring luxury brand, Toyota’s Lexus, posts an ACSI score of 82 whereas a decade
ago, former luxury leader Lincoln (Ford) clocked in much higher at 89.

For several years now, American consumers have shown a strong preference for crossovers, sport
utility vehicles (SUVs), and pickups—moving away from passenger cars, the traditional strength
of premium brands. Over the past decade, U.S. sales of light trucks overall have climbed steadily,
reaching a record of over 12 million units sold in 2019.

Despite a 2% decline to 82, Lexus is the top-ranked car for customer satisfaction for a fourth straight
year. Leading both the industry as a whole and the luxury segment, Lexus comes in number one for
product quality according to its customers. Nevertheless, Lexus now sits at an all-time low score,
significantly below its historic ACSI average of 86.

AMERICAN CUSTOMER SATISFACTION INDEX:


LUXURY VEHICLES
COMPANY 2019 2020 % CHANGE

Lexus (Toyota) 84 82 -2%


Audi (Volkswagen) 82 80 -2%
Cadillac (GM) 81 80 -1%
Mercedes-Benz 83 80 -4%
Infiniti (Nissan) 82 79 -4%
BMW 82 78 -5%
Volvo 82 78 -5%
Acura (Honda) 78 77 -1%
Lincoln (Ford) 82 77 -6%

0-100 Scale

© 2020 American Customer Satisfaction Index. All Rights Reserved.

Three luxury cars tie for second place with scores of 80: Audi (Volkswagen), Cadillac (GM), and
Mercedes-Benz. Cadillac comes closest to holding satisfaction stable (-1%), which helps it move
up the rankings this year. Audi slides 2% and Mercedes-Benz sinks 4% to tie its record low. Despite
the satisfaction downturn, Mercedes-Benz still displays considerable strength across the customer
experience, including a best-in-class rating for driving performance among both luxury and mass-
market vehicles.

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ACSI ®
ACSI Automobile Report 2019-2020

A year ago, Honda’s Acura was the only luxury entrant to fail to reach the 80s for driver satisfaction.
Now four other plates tumble down into the upper 70s. Nissan’s Infiniti loses most of its gain from a
year ago, dropping 4% to 79. Just a point lower, BMW and Volvo each plummet 5% to 78—a record
low for both brands.

At the low end of the luxury segment, Acura dips 1% to 77, joined by Lincoln. The premium Ford plate
suffers the biggest customer satisfaction decline in the auto industry this year. Plunging 6%, Lincoln
hits an all-time low at 77—a staggering 7 points below its historic ACSI average. Among the luxury
contenders, customer perceptions of value for Lincoln have deteriorated the most this year.

LUXURY VEHICLES
Customer Experience Benchmarks
Year-Over-Year Industry Trends

2020 2019

84
Comfort (seating, ride, quietness)
85

Interior (look, space, cargo capacity, 84


features, material quality) 85

Driving performance (handling, braking, 83


steering, overall drivability) 86

Exterior (look, paint, trim, overall style) 83


84

Vehicle safety (seat belts, air bags, headrests, 83


anti-lock brakes, warning systems) 85

82
Dependability (engine, parts, breakdowns)
84

Quality of mobile app 82


84

Technology (controls, displays, audio, 82


navigation, video systems) 83

Website satisfaction 82
84

Reliability of mobile app (minimal 81


down time, crashes, lags) 83

Warranties (powertrain, comprehensive) 80


81

Gas mileage 77
77

50 55 60 65 70 75 80 85 90

ACSI (0-100 Scale)

© 2020 American Customer Satisfaction Index. All Rights Reserved.

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ACSI ®
ACSI Automobile Report 2019-2020

Across nearly the entire driver experience, the luxury segment is losing ground, with some elements
slipping for a second year. Perhaps not surprisingly, drivers give luxury cars their best marks for
comfort and interiors, although these elements slip a point to 84. A sharper 3% descent to 83 for
driving performance brings luxury vehicles nearly in line with mass-market cars (82). Likewise,
assessments of vehicle safety offered by luxury cars have weakened by 2% to 83, just a point ahead
of the mass-market segment (82).

Luxury cars are not viewed as dependable as they once were, down 2% to a benchmark of 82 that
is even with the mass-market segment. When it comes to vehicle technology, however, mass-market
cars (78) remain no match for luxury vehicles (82).

Digital customer interfaces worsen for the luxury segment as well this year. Websites are less
satisfying (-2% to 82) and mobile apps have deteriorated in terms of both quality (-2% to 82) and
reliability (-2% to 81). Gas mileage, flat at 77, remains a sticking point for customers.

Mass-Market Vehicles
Customer satisfaction with the mass-market segment recedes again—down 1% to an ACSI score
of 77 following a larger decline last year. Results among individual nameplates are mixed, with
just under half of the measured brands showing declines year over year. In its first appearance
at the top of the mass-market list, Fiat Chrysler’s Ram holds steady at 80 for a third year, tying
with Toyota (-1%). Across the auto industry overall, only Lexus shows a higher satisfaction score
(82). According to mass-market customers, Toyota is best in class for dependability whereas Ram
drivers respond to their vehicles’ design, giving Ram the top rating for exteriors. In 2019, Ram was
the only Fiat Chrysler brand to end the full year with a sales gain—up roughly 18%.

Honda and Subaru tie for second place among mass-market cars, but like several luxury brands,
neither hits the higher bar of their past ACSI performance. Both Honda and Subaru retreat 4% to
79. For Honda, this score represents a record low, while Subaru matches its prior low last seen in
the late 1990s. Subaru continues to be number one for safety, rating best in class among mass-
market vehicles for five straight years.

GMC (GM) hugs the overall auto industry average with a steady score of 78. The truck manufacturer
lags, however, when it comes to gas mileage, rating worst in class across all vehicles. Mazda and
Volkswagen inch up 1% each to meet GMC at 78. Likewise, Kia and Mitsubishi tick up 1% to 77. All
four brands are rebounding slightly from substantial satisfaction declines in 2019.

A large group of mass-market plates are deadlocked with scores of 76. Among this group, three
brands suffer large driver satisfaction declines: GM’s Buick (-4%), Hyundai (-4%), and GM’s Chevrolet
(-5%). The common ground for the two GM plates is dependability. ACSI data indicate that both
Buick and Chevrolet drivers deem their vehicles far less dependable compared to a year ago.

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ACSI ®
ACSI Automobile Report 2019-2020

The remaining brands at 76 show little or no change year over year. Following a steep drop last
year, Fiat Chrysler’s Jeep brand holds steady in 2020. Likewise, Nissan moves up 1% to 76 after
a 6% downturn in 2019. Fiat Chrysler’s namesake Fiat brand slips 1%, as does Ford’s namesake
plate. Since 2018, driver satisfaction for the Ford brand has been nearly unchanged but the decade
prior (2007 to 2017) saw much higher levels with an average ACSI score of 81.

Mirroring the rankings from last year, two Fiat Chrysler plates round out the industry’s bottom.
Dodge moves up 1% to 75 while Chrysler bumps up 3% to 73 to gain back most of its ACSI loss
from a year ago. Nevertheless, the Chrysler brand remains in last place with a satisfaction score
that is its second-worst over time.

AMERICAN CUSTOMER SATISFACTION INDEX:


MASS-MARKET VEHICLES
COMPANY 2019 2020 % CHANGE

Ram (Fiat Chrysler) 80 80 0%


Toyota 81 80 -1%
Honda 82 79 -4%
Subaru 82 79 -4%
GMC (GM) 78 78 0%
Mazda 77 78 1%
Volkswagen 77 78 1%
Kia 76 77 1%
Mitsubishi 76 77 1%
Buick (GM) 79 76 -4%
Chevrolet (GM) 80 76 -5%
Fiat (Fiat Chrysler) 77 76 -1%
Ford 77 76 -1%
Hyundai 79 76 -4%
Jeep (Fiat Chrysler) 76 76 0%
Nissan 75 76 1%
Dodge (Fiat Chrysler) 74 75 1%
Chrysler (Fiat Chrysler) 71 73 3%

0-100 Scale

© 2020 American Customer Satisfaction Index. All Rights Reserved.

The driver experience for mass-market cars is not getting better, according to customers.
Dependability remains a top-rated element for the segment, but drivers are less impressed
compared to a year ago (-2% to 82). Likewise, driving performance weakens by 2% to 82 and safety
slips to the same score. Nevertheless, mass-market cars compete well with the luxury segment on
these measures, including matching premium brands for dependability. In addition, websites (81)
and mobile apps (81 for quality and 80 for reliability) are just a point below the luxury group.

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ACSI ®
ACSI Automobile Report 2019-2020

Driver evaluations of comfort have waned this year (-2% to 81), while the look and feel of mass-
market interiors and exteriors drops for a second year (81), continuing to trail behind luxury cars.
Mass-market vehicles also fail to keep up when it comes to technology features (78 versus 82 for
luxury cars).

Drivers continue to be frustrated with gas mileage (76) and warranties are not acceptable (-3% to
76) in comparison to the warranties offered by luxury brands (80).

MASS-MARKET VEHICLES
Customer Experience Benchmarks
Year-Over-Year Industry Trends

2020 2019

82
Dependability (engine, parts, breakdowns)
84

Driving performance (handling, braking, 82


steering, overall drivability) 84

Vehicle safety (seat belts, air bags, headrests, 82


anti-lock brakes, warning systems) 83

Comfort (seating, ride, quietness) 81


83

81
Exterior (look, paint, trim, overall style)
82

Interior (look, space, cargo capacity, 81


features, material quality) 82

Quality of mobile app 81


81

Website satisfaction 81
81

Reliability of mobile app (minimal 80


down time, crashes, lags) 80

Technology (controls, displays, audio, 78


navigation, video systems) 78

Gas mileage 76
77

Warranties (powertrain, comprehensive) 76


78

50 55 60 65 70 75 80 85 90

ACSI (0-100 Scale)

© 2020 American Customer Satisfaction Index. All Rights Reserved.

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ACSI ®
ACSI Automobile Report 2019-2020

About This Report


The ACSI Automobile Report 2019-2020 covering both domestic and foreign automobile nameplates
is based on interviews with 10,414 customers, chosen at random and contacted via email between
July 1, 2019, and June 14, 2020. Customers are asked to evaluate their recent purchase and driving
experiences with automobiles manufactured by the largest companies in terms of market share, plus
an aggregate category consisting of “all other”—and thus smaller—auto nameplates.

The survey data are used as inputs to ACSI’s cause-and-effect econometric model, which estimates
customer satisfaction as the result of the survey-measured inputs of customer expectations, perceptions
of quality, and perceptions of value. The ACSI model, in turn, links customer satisfaction with the
survey-measured outcomes of customer complaints and customer loyalty. ACSI clients receive
confidential industry-competitive and best-in-class data on all modeled variables and customer
experience benchmarks.

ACSI and its logo are Registered Marks of the University of Michigan, licensed worldwide
exclusively to American Customer Satisfaction Index LLC with the right to sublicense.

No advertising or other promotional use can be made of the data and information in
this report without the express prior written consent of ACSI LLC.

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ACSI ®
ACSI Automobile Report 2019-2020

CUSTOMER SATISFACTION BENCHMARKS BY INDUSTRY


Breweries 84
Personal Care & Cleaning Products 83
Food Manufacturing 82
Soft Drinks 82
Televisions & Video Players 82
Household Appliances 81
Internet Investment Services 81
Internet Retail 81
Banks 80
Cellular Telephones 80
Life Insurance 80
Athletic Shoes 79
Credit Unions 79
Financial Advisors 79
Full-Service Restaurants 79
Internet Travel Services 79
Property & Casualty Insurance 79
Automobiles & Light Vehicles 78
Computer Software 78
Limited-Service Restaurants 78
Personal Computers 78
Specialty Retail Stores 78
Supermarkets 78
Ambulatory Care 77
Apparel 77
Consumer Shipping 77
Department & Discount Stores 76
Health & Personal Care Stores 76
Internet Search Engines & Information 76
Video Streaming Service 76
Hotels 75
Airlines 74
Health Insurance 74
Internet News & Opinion 74
Wireless Telephone Service 74
Cooperative Energy Utilities 73
Gasoline Stations 73
U.S. Postal Service 73
Investor-Owned Energy Utilities 72
Hospitals 72
Municipal Energy Utilities 72
Fixed-Line Telephone Service 70
Internet Social Media 70
Video-on-Demand Service 68
Internet Service Providers 65
Subscription Television Service 64

© 2020 American Customer Satisfaction Index. All Rights Reserved. 0-100 Scale

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