Car brand loyalty may hinge on offering more affordable choices

Automakers face a new customer loyalty challenge.

In addition to rolling out attractive new models with cutting-edge technology as they've always done, they must now figure out how to bring vehicle pricing back in line with what consumers find palatable, according to J.D. Power's annual Automotive Franchise Assessment review.

The supply disruptions of the pandemic and the current struggle with sticker price inflation have roiled consumer perceptions of some brands, said Tyson Jominy, J.D. Power's vice president for data and analytics, who was part of the proprietary deep-background annual presentation at Resorts World Las Vegas on Thursday.

"Automakers have been focused on producing higher-trim vehicles since the pandemic," Jominy said. "But customers are now threatened by inflation. A significant factor in brand loyalty is going to be whether the automaker offers a portfolio that features not just higher-end products, but also entry-level trims."

The market research firm does not permit the details and specific numbers of its franchise assessment to be shared publicly. But the annual presentation charts the rise and fall of brands because of a wide range of issues, such as product flaws, stale product and poor service shop satisfaction ratings.

Missteps in technology also continue to sour consumers on some brands, Kristin Kolodge, J.D. Power's vice president of auto benchmarking and mobility development, said after the presentation.

One such glitch was Cadillac's replacement of a traditional latch to open the glove compartment on its electric Lyriq with a digital process that requires owners to open it from the vehicle touchscreen.

"You sometimes hear automakers defending new technology saying, 'The customer will get used to it,' " Kolodge said. "And what we often see is that, three years later, customers still have not gotten used to it, and it's now hurting brand loyalty."