GM wins OEM loyalty award; Used-to-new conversion impacts loyalty

Last year, 53.7 percent of customers returned to market to purchase or lease another new vehicle from the same make they already owned.

Also, converting a customer from used to new can have an impact on loyalty rates.

More than 29 percent of used-vehicle owners who returned to market for a new vehicle during the 2018 model year purchased the same brand. In addition, customers returning to market with a certified pre-owned vehicle who purchased a new vehicle of the same brand did so at a rate of 38 percent.

All of that is according to an analysis by business information provider IHS Markit, which presented its IHS Markit Loyalty Awards on Tuesday during the Automotive News World Congress.

At the presentation, General Motors retained its position as the leader in automotive manufacturer loyalty, receiving the evening’s top award (Overall Loyalty to Manufacturer) with a loyalty rate of 68.3 percent.

Ford was the winner in the category of Overall Loyalty to Make, with a rate of 63 percent.  

IHS Markit honored winners in more than 30 categories. Automotive News World Congress is held alongside press and industry days for the North American International Auto Show in Detroit.

The  aforementioned 53.7-percent rate of customers purchasing or leasing a new vehicle from the same make they already owned sets a record in the IHS survey in loyalty rate, although the increase was just one tenth of a percentage point from last year. That demonstrates a flattening of loyalty rates in the industry after years of increases, according to IHS.

But IHS notes the competition is stronger than ever at the top. 

In 2014, only one brand scored a loyalty rate above 60 percent, and five percentage points separated the top three brands. During the 2018 model year, only three percentage points separated the top three brands, and now two brands score a loyalty rate above 60 percent, with the third only two tenths of a point away.

IHS Markit reviewed additional influencers impacting loyalty metrics. Make loyalty rates among those who financed through captive lenders were 57.8 percent during the 2018 model year, more than eight percentage points higher than loyalty rates of those who financed with non-captive lenders (49.4 percent loyalty). Service experience also played a role, resulting in a 4.5-percentage-point lift in loyalty among owners who service within the dealer network.

Ford achieved the highest loyalty rate of all makes during the 2018 model year, winning the Overall Loyalty to Make award for the ninth consecutive year. The award for Highest Conquest Percentage for the 2018 model year went to Jeep for the second year in a row.

IHS Markit again honored Toyota for highest Ethnic Loyalty to Make among all ethnic groups combined, as it led in loyalty among all three ethnic groups: African-American, Hispanic and Asian.   

Lincoln was a repeat winner in the Highest Loyalty to Dealer category, as more Lincoln owners returned to a Lincoln dealer for another Lincoln than any other brand during the 2018 model year.

Tesla was recognized for Most Improved Loyalty to Make for the model year and also was recognized for Most Improved Conquest Percentage during the 2018 model year.

A complete list of winners from the program is as follows: