Using Connectivity to
Find Happiness
Wards Interior Conference
May 22, 2013
Mike VanNieuwkuyk
Executive Director, Global Automotive
J.D. Power & Associates
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Importance of New Vehicle Technology
2
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Advanced Technology Playing Larger Role in Vehicle Selection
Most Important Factor in Choosing Your Make/Model
Automotive Emerging Technology
Purchase Factor
Reliability/Durability
Interior comfort
Exterior styling
Quality of workmanship
Gas mileage
Dealer was convenient/Liked dealer in my area
Performance
Like the image this vehicle portrays
Adva nce d te chnology of the ve hicle
Safety
Low price or payment/Ability to obtain financing
Low maintenance costs
AW D/4W D capability
Passenger capacity
Cargo capacity
High resale value
The "deal"
Better warranty
Environmental impact
Other
2008
62%
51%
48%
49%
38%
42%
39%
36%
32%
35%
25%
27%
25%
27%
21%
24%
18%
15%
10%
4%
2009
65%
49%
46%
51%
46%
44%
39%
34%
31%
35%
29%
29%
22%
25%
20%
23%
22%
13%
12%
4%
2010
63%
50%
47%
50%
40%
42%
38%
35%
32%
34%
26%
28%
26%
26%
21%
23%
19%
12%
10%
4%
2011
60%
52%
48%
48%
40%
44%
37%
35%
34%
33%
29%
27%
30%
27%
22%
21%
21%
16%
8%
4%
2012
59%
52%
49%
47%
47%
43%
38%
36%
36%
33%
29%
28%
27%
26%
22%
21%
20%
17%
10%
4%
Purchase factors with a 3 percentage point or more increase from 2008 to 2012
Source: J.D. Power & Associates Initial Quality Study (IQS) (2008-2012)
3
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Market Trends
4
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
U.S. Light Vehicle Sales: Steady and Healthy
Total Sales
16.7
16.9
17.0
16.5
In Millions
16.1
14.4
13.2
Retail Sales
14.0
13.8
In Millions
11.6
13.2
13.0
11.7
10.6
8.6
2003
2004
2005
2006
2007
2008
2009
9.2
2010
15.8
12.5
12.8
2013
2014
16.3
12.7
10.4
12.8
15.4
13.4
10.3
2011
2012
2015
Sources: J.D. Power & Associates and LMC Automotive, February 2013
5
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
U.S. Model Activity: More Choices, Improved Choices
40
Models
New Entry
Drops
32
Increase in New and Refreshed Products
30
28
20
23
22
21
20
19
18
20
17
13
12
9
10
6
0
2009
2010
2011
2012
2013
2014
2015
New minus Drops
(3)
(20)
(1)
(11)
9
14
14
Redesign
Facelift
19
41
24
33
21
26
22
43
36
43
46
40
47
38
Sources: J.D. Power & Associates and LMC Automotive, February 2013
6
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Quality Equality
Quality gap between best and worst brands
Problems Per 100 Vehicles (PP100)
Quality as a Differentiator
Quality as a Given
334
220
1987
1997
80
78
2008
2012
Source: J.D. Power & Associates 1987 through 2012 U.S. Initial Quality Study (IQS)
7
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Redefinition of Quality
Traditional Quality
Consumer Quality
Warranty
Cases
Warranty
Cases
Malfunctions
Malfunctions
not brought to
warranty
not brought to
warranty
Soft “Inadequacies”
Soft “Inadequacies”
needs addressed but not
as preferred
Design Quality
Missed Opportunities
Consumer Behavior
vehicle misalignment with market
expectations
8
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
needs addressed but not
as preferred
Missed Opportunities
vehicle misalignment with market
expectations
Quality Improvement: 2007 vs. 2012
Problem Per 100 Vehicles (PP100)
2007
2012
Delta
• Total Problems
124.8
101.7
19%
• Interior
16.7
11.4
32%
• Features/Controls/Displays
20.9
14.4
31%
• The Driving Experience
15.2
10.7
29%
• Exterior
21.9
15.7
28%
• Tires (from OE Tire study)
77.8
60.1
23%
• HVAC
11.7
9.6
18%
• Engine/Transmission
17.6
15.3
13%
• Seat
9.1
8.0
12%
• Multimedia
11.5
16.4
(43%)
170.1
379.1
(123%)
• Navigation (Navigation Study)
Increased Complexity
(Soft “Inadequacies”)
…Usability has taken on greater importance
Source: J.D. Power & Associates 2007 through 2012 U.S. Initial Quality Study (IQS) unless noted otherwise
9
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Time in Vehicle
Average Daily Time In Vehicle
Weekday
Weekend
16:23 per
Week
2 hours 27 minutes*
2 hours 4 minutes*
Expanding needs
- Increased flexibility (personalization, customization)
- Increased functionality (value, usability)
*Source: 2011 Arbitron Inc./Edison Research/Scarborough Research
10
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Future Generation of Drivers
11
-
Individualistic and self-directed
-
Adept at social networking but are not personally social
-
Function well in a virtual environment
-
Have a global perspective
-
Environmentally aware
-
Well educated
Ability to do
what they want,
when they want,
where they want…
-
Technically savvy
SAFELY
-
Lifelong use of communication and media devices
-
Self identified experts at multi-tasking
-
Expect instant action and satisfaction
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Items Brought into Vehicle
Everyday/Few Times a Week – Minimum 50%
Items Brought Into Vehicle
12
Total Sample
(Top %)
Mobile Phone
1
Pens/Pencils
2
Sunglasses
3
Napkins/Tissues
4
Wallet
5
Change
6
CDs/DVDs
7
Receipts/Small Papers
8
Purse
9
Emergency Kit
10
Garage Door Opener
11
Sm Cups/Bottles
12
Umbrella
13
Flashlight
14
Grocery Bags
15
Shopping Bags
16
Trash Items
17
Jumper Cables
18
Ice Scraper
19
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
95% of consumers regularly bring a
mobile phone into the vehicle
Source: J.D. Power & Associates 2009 Vehicle Interior Needs Study (VINS)
Connectivity Interests
13
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Emerging Technology Interests
^ Device/Application link interest is asked only of smartphone owners
14
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Source: J.D. Power & Associates 2013 Emerging Technologies Study
Emerging Technology Interests: Connectivity
^ Device/Application link interest is asked only of smartphone owners
15
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Source: J.D. Power & Associates 2013 Emerging Technologies Study
Emerging Technology Interests: Device/Application Link^
Types of Connectivity Owners Would Like to Integrate
Traditional In-Vehicle Information and Services
Social/Personal Connections
News and Entertainment Resources
Professional and Personal Organization
Personal Information Resources
^ Device/Application link interest is asked only of smartphone owners
16
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Source: J.D. Power & Associates 2013 Emerging Technologies Study
Emerging Technology Interests: Usability
^ Device/Application link interest is asked only of smartphone owners
17
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Source: J.D. Power & Associates 2013 Emerging Technologies Study
18
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Add in the Complexity of
Connected Services
19
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Emerging Technology Interests: Ultimate Enabler – Autonomous Driving
^ Device/Application link interest is asked only of smartphone owners
20
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Source: J.D. Power & Associates 2013 Emerging Technologies Study
Emerging Technology Interests: Ultimate Enabler – Autonomous Driving
2012
Last year, consumer sentiment
on was filled with excitement
regarding the possibilities a selfdriving vehicle could offer
2013
As autonomous driving becomes
more of a reality, sentiment is
transitioning toward consumers
still wanting to drive their own
vehicle until the technology gains
consumer confidence and trust
Semi-autonomous driving
features are paving the way for
this confidence and trust
Source: J.D. Power & Associates 2013 Emerging Technologies Study
21
© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Thank You
Mike VanNieuwkuyk
Executive Director, Global Automotive
J.D. Power & Associates
mike.vannieuwkuyk@jdpa.com
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© 2013 J.D. Power & Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY