Published September 2003

Auto Industry Briefs

Study: Satisfaction up slightly
for buyers of new vehicles
While customer satisfaction is up slightly over last year, more than a quarter of the people who walked out of a new-vehicle dealership without buying said they did so mainly because they didn’t like the way the salesperson handled their business.

That’s the latest from J.D. Power and Associates, which released its 2003 Sales Satisfaction Index Study in August.

“While satisfaction scores have improved overall, the study finds relatively little evidence that dealers as a whole have improved the actual processes with which they interact with customers,” said Chris Denove, partner at J.D. Power and Associates, a California-based marketing information services firm.

“Dealers and manufacturers are sometimes under the false impression that customers are truly committed to a certain model. However, approximately one-half of the shoppers who leave a dealership because they didn’t like the way the dealer handled their business don’t make the effort to purchase from another dealer selling the same brand. Instead, they simply walk across the street to purchase an entirely different brand,” Denove added.

The study, based on more than 40,000 responses from buyers and lessees of new 2002 and 2003 model cars and light trucks, rates auto brands on a 1,000-point scale. For 2003, the industry average was 844, up from 839 in 2002.

The slight increase was primarily due to the expanded use of lower interest loans for longer terms and a significant decline in complaints about dealers’ lack of vehicle availability, the study found.

Cadillac ranked highest in sales satisfaction, improving eight index points over 2002. Others in the top five were Porsche, Lincoln, Mercury and Saturn.

State changes rules for getting commercial driver’s license
The 2003 Washington State Legislature has changed the requirements for getting a commercial driver’s license.

Now, a driver can apply for a commercial driver’s license without having to show a Department of Transportation certificate of physical examination. The change applies to any driver applying for such a license — original, renewal, replacement or instruction permit, according to the state Department of Licensing.

The law was changed in order to let unemployed drivers keep their commercial driver’s license without having to pay for a physical examination if the driver did not intend to drive. The DOT certificate will still be required when the driver is operating a commercial vehicle. Anyone cited for driving without a valid DOT certificate in his or her possession will be subject to fine of $538, the licensing agency said.

In Washington, there are approximately 200,000 drivers with a commercial driver’s license endorsement.

Bothell company’s display system attracts Honda’s interest
American Honda Motor Co. recently said in a nonbinding letter of intent that it wants to buy 3,800 of Microvision’s Nomad devices starting next year.

Worn on the head, the Nomad display system presents images and information in front of the user’s eyes. Because it doesn’t obscure the viewer’s normal vision, Bothell-based Microvision has marketed the device to general aviation pilots, surgeons and mechanics who could benefit by having important technical information right in front of their eyes.

The devices ordered by Honda will be distributed to Honda and Acura dealers and independent Honda repair shops across North America.

“Honda’s mission is to provide prompt, high-quality service to our customers,” Allan Snow, manager of service information for American Honda, said in a prepared statement. “We expect the Nomad Expert Technician System to provide us with a unique and powerful information tool that we believe can help our service technicians eliminate mistakes, decrease turnaround time, and improve customer satisfaction throughout our network of dealer service centers.”

Honda will take delivery of the next generation of the Nomad device, which is scheduled to be released later this year. Based on Microvision’s suggested retail price of $3,500 to $4,000 for each of the units, the deal could be worth more than $15 million.

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