Overcommunicating won the day for some brands

Despite one retailer crisis after another, some auto brands have managed to shine in the eyes of their customers, according to J.D. Power's annual Automotive Franchise Assessment review.

Other brands sagged in consumers' eyes as dealers struggled with long waits for new inventory, higher prices, rising interest rates and missing parts for desired features.

"You're not going to make a good impression on customers if you don't have anything to sell them," said Tyson Jominy, J.D. Power's vice president for data and analytics, who was part of the proprietary, deep background presentation.

The market research firm does not permit the details and specific numbers of its franchise assessment to be shared publicly. But J.D. Power officials did confirm that 2022 witnessed a pleasant surprise for some as retailers helped a number of their brands sidestep the bad vibes of the year.

What helped? Closer than normal communications between dealership staffs and customers, for one. Not going crazy on raising sticker prices went a long way with shoppers. And just having electric vehicles in the showroom was also magic, according to the J.D. Power assessment.

"If you had EVs for sale, that went a long way toward building the perception that the brand was doing things right," said Stewart Stropp, vice president of J.D. Power's EV practice. "Not having EVs didn't do you any favors."

The research found a direct correlation between raised sticker prices and poor brand image.

Kristin Kolodge, J.D. Power's vice president of auto benchmarking and mobility development, said that dealer communications won the day for brands who made an effort.

"There were opportunities in the middle of all the difficulties for brands, and it came down to overcommunicating," she said of the assessment results. "There were a lot of problems with orders and parts. But when the dealership called you and explained what the issues were and why things were taking longer than expected — that went a long way to keeping customers happy."