J.D. Power de México Reports:
Satisfaction with Vehicle Service Costs and the Dealer Service Experience Are Increasingly
Important to Overall Vehicle Ownership Satisfaction

Honda and Suzuki Each Receive Three Model Awards for Vehicle Ownership Satisfaction in Mexico

MEXICO CITY: 28 September 2011 — As vehicle service and repair costs rise, the cost of vehicle ownership is becoming a more important driver of satisfaction, according to the J.D. Power de México 2011 Mexico Vehicle Ownership Satisfaction Study^SM (VOSS) released today.

Now in its eighth year, the study measures vehicle ownership satisfaction in Mexico with 2009 and 2010 model-year vehicles. Overall satisfaction is determined by measuring owner experiences in four factors: vehicle quality/reliability; vehicle appeal (satisfaction with the design, style, performance and comfort of the vehicle); dealer service (satisfaction with the dealer service department); and cost of ownership (service, fuel consumption and insurance costs).

The study finds that satisfaction with dealer service accounts for 14 percent of the overall ownership experience, up from 7 percent in 2010. Within the cost of ownership factor, which accounts for 22 percent of overall satisfaction, the cost of having a vehicle serviced or repaired is the primary driver of satisfaction.

"Dealer service is a critical element in the ownership experience, and lays the foundation of the relationship between the brand and vehicle owners," said Gerardo Gómez, director and country manager at J.D. Power de México. “A satisfactory dealer service experience creates lasting positive owner perceptions of the brand, and increases the likelihood of return service visits and of vehicle repurchase in the future. However, once an owner is lost to the service after-market, the dealer is at a greater risk of losing the relationship with owners—including losing them to another brand altogether."

More than 80 percent of new-vehicle owners have had their vehicle serviced at either a dealer or non-dealer facility in the past year. Among these owners, 63% had their vehicle serviced at a franchised dealer, while 28 percent took their vehicle to a non-dealer service facility and 9 percent had their vehicle serviced at both.

Among new-vehicle owners who visited a non-dealer facility, nearly one-half cite good customer service as an important reason for their choice, while about 40 percent of those who visited the dealer for service say the same. One-half of new-vehicle owners who visited the dealer service facility cite warranty coverage as an important factor. The total amount spent per visit on dealer service averages $2,541 Mexican pesos—up from MXN $2,254 in the 2010 study—while non-dealer service spending averages MXN $1,704. The study finds that at this point in the ownership period, service customers are more likely to have more complicated and costly non-warranty repair work done at the dealer, resulting in a higher per-visit spending average, compared with non-dealer service spending.

Overall satisfaction with vehicle ownership has increased to 896 (on a 1,000-point scale), up 7 points from 2010, and is driven in part by a considerable increase in satisfaction with dealer service. Satisfaction with appeal and quality and reliability also increase, while satisfaction with the cost of ownership has declined slightly from 2010.

According to J.D. Power, the vehicle market in Mexico is poised for continued growth in both new-vehicle manufacturing and sales. Sales are projected to reach 874,000 units in 2011, compared with 816,000 units in 2010. Through August 2011, sales have increased more than 10 percent from the same period in 2010. Light-vehicle sales in Mexico are expected to return to a level above 1 million units by 2013 and are forecasted to pass the 2007 peak of 1.10 million units by 2014.

The study examines new-vehicle models according to vehicle segment. The highest-ranking models by segment are:

Entry Sub-Compact Car: Suzuki Swift
Upper Sub-Compact Car: Honda City
Compact Car: Suzuki SX4
Midsize Car: MAZDA6
Entry Premium Car: Mercedes-Benz C-Class (for a fifth consecutive year)
Entry SUV: Honda CR-V and Suzuki Grand Vitara (tie)
Midsize SUV: Honda Pilot and Mazda CX-9 (tie)
Entry Pickup Truck: Toyota Hilux
Full-Size Pickup Truck: Ford F-Series and Ford Lobo (tie)
Premium SUV: Audi Q5

The 2011 Mexico Vehicle Ownership Satisfaction Study is based on responses from more than 6,000 owners of 2009 and 2010 model-year vehicles who purchased their vehicles between October 2008 and September 2010. Respondents were interviewed in seven of Mexico’s largest auto markets—Mexico City, Guadalajara, Monterrey, Querétaro, Puebla, Veracruz and Merida—and were asked to evaluate their experiences during the first eight to 34 months of ownership. The study was fielded between May and August 2011.

About J.D. Power de México
J.D. Power de México conducts customer satisfaction research and provides market intelligence and performance analytics services in the automotive and housing industries. Information regarding J.D. Power and Associates de México and its products can be accessed through the Internet at www.jdpowerdemexico.com

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. 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 is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.