Ford and Honda have vaulted past Mercedes-Benz to tie for the highest customer retention rate among automotive brands in the United States this year, according to a new study.
The two mass-market brands retained 62 percent of buyers this year, J.D. Power and Associates said in its annual Customer Retention Study released today.
Ford rose five spots from 56 percent in 2009 while Honda increased one spot from 64 percent last year. Mercedes fell five spots, from 66 percent in 2009 to 59 percent in 2010, J.D. Power said.
The firm said Ford's higher retention rate was driven mostly by the Edge, F-Series and Fusion models. Honda's retention was driven by the Accord, CR-V and Pilot, the firm said.
“Ford, specifically, (is) producing products that have vehicle appeal, that have good styling and are fun to drive,” said Raffi Festekjian, director of automotive product research at J.D. Power and Associates. “For Honda, it's still more about resale value.”
Kia Motors had the largest increase in brand loyalty from last year, jumping by 21 percentage points to a 58 percent retention rate.
Overall, the average customer retention rate for the industry remained at 48 percent, even though some brands shifted in the rankings. Of the 32 brands ranked by the study, 16 improved their retention rates from last year, 14 declined and four did not change.
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