J.D. Power debuts Vehicle Launch Index to assess new model launches
J.D. Power & Associates has long been known as the firm that can sway the fortunes of automakers with its many surveys on quality, dependability and customer satisfaction. All of the firm's work to date has focused on a buyer's experience after he or she purchases a new vehicle... until now. Perhaps feeling the need to diversify its services in this difficult economic climate, J.D. Power is throwing opens its doors to automakers as a kind of third-party launch consultant. The firm is introducing what it calls a Vehicle Launch Index that gauges the success of a new model launch for automakers. According to J.D. Power, factors that go into judging the success of a launch include "turn rate, credit quality, residual factor, dealer gross profit, vehicle price and incentive spend." We don't know what half of those things mean, but can tell you that we base our judgment of a vehicle's launch success solely on the quality of hor d'ourves served at its auto show debut.
We have no doubt that automakers will line up for the new Vehicle Launch Index (they love this type of data, which makes good memo material), though we hope J.D. Power returns with a ranking for the 50-some new product launches that are slated for 2009.
[Source: J.D. Power & Associates]
PRESS RELEASE
J.D. Power and Associates Unveils Assessment Tool for Monitoring Success of New Model Launches
WESTLAKE VILLAGE, Calif.: 23 January 2009 - In an effort to assist auto manufacturers in assessing the success of vehicle launches, J.D. Power and Associates announced the introduction of its Vehicle Launch Index today at the 2009 Automotive Roundtable in New Orleans, La.
The Vehicle Launch Index provides automakers with information that quantifies how well new vehicle models perform during their launch years. Performance is measured against industry and segment benchmarks on a monthly basis. The index includes all vehicle launches in the U.S. since 2007 and is actively tracking all current and future vehicle launches.
"With the introduction of the Vehicle Launch Index, manufacturers are now able to gauge the marketplace success of their newly launched vehicles through an external, independent source," said Gary Dilts, senior vice president of global automotive at J.D. Power and Associates. "The Vehicle Launch Index provides a real-time, comprehensive view into marketplace activity, allowing manufacturers to quickly respond to ever-changing industry conditions."
Extensive research and modeling, combined with an industry-wide perspective and proprietary Power Information Network® (PIN) data, has resulted in the unique ability to assess multiple factors that are critical to launch success. The Vehicle Launch Index examines factors that include turn rate, credit quality, residual factor, dealer gross profit, vehicle price and incentive spend.
"In 2009, manufacturers are making multibillion-dollar investments in more than 50 major product launches in the U.S. alone," said Dilts. "Current market conditions demand a need for a third-party, syndicated assessment to ensure manufacturers maximize the return on their investment."
Reader Comments (Page 1 of 1)
David 4:12PM (1/23/2009)
Slightly off topic: Neat pic of a late 70s Pontiac Grand Prix at a car show. I wonder if Autoblog has any more of these old car show photos in the 70s-90s time frame and if so if they'd make a gallery.
Back to topic: I have to wonder-with "turn rate, credit quality, residual factor, dealer gross profit, vehicle price and incentive spend."-apparently being the only criteria for consideration of this award...where are "Quality, appeal, value and market relevance"? Shouldn't these factors be considered in deciding if a product launch will be successful?
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Chris 4:20PM (1/23/2009)
I was thinking the same thing! More vintage auto show pics, please!
LloydChiro 9:06PM (1/23/2009)
I thought is was a Buick Regal, but now that I see the T-tops, it's probably a Pontiac. Regardless, I've never seen one of those cars look so shiny outside of Lowrider Magazine.
lennybruce 3:08AM (1/24/2009)
It's definitely a Pontiac Grand Prix. You think it might be a Buick Regal because they are both based on the same A special body, but I can tell by the sheet metal that it is a Pontiac. The A special body included the Buick Regal, Chevrolet Monte Carlo and the Pontiac Grand Prix. This is most definitely the latter.
renshcp 8:41PM (1/24/2009)
Personally, I think these are a great set of metrics to judge a successful vehicle launch. Quality, appeal and those other measures aren't indicators of a successful launch, only things manufactures can do to help contribute to a successful launch. The measures considered by JD Power are metrics relevant to the automakers to measure ACTUAL results. You can build a perfect quality car but that doesn't ensure it will be successful. I'm sure all automakers have similar metrics used in-house to measure launches, but now they can benchmark themselves against other automakers.
David 10:51PM (1/24/2009)
Yeah, but if you market the hell out of a turd (Yugo's US launch comes to mind-which had some clever-if slightly overoptimistic-advertising) people still aren't going to buy it. Would that not be considered a poor launch? It seems product should have to play some role, however small (apparently) that may be.
Swede 4:15PM (1/23/2009)
JD Powers live on enlarging trivial issues and making bold reports that lack in substance.
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Marc Villanova 4:43PM (1/23/2009)
Love the pic.
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ben 4:38PM (1/23/2009)
you can get a lot of older pics from the Chicago Auto Show here:
http://www.chicagoautoshow.com/history/index.asp
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P.V. 4:55PM (1/23/2009)
This reminds me a lot of the following:
http://www.theonion.com/content/news/apple_unveils_new_product
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Will 5:02PM (1/23/2009)
Is that a cougar? :)
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LloydChiro 9:04PM (1/23/2009)
Definitely.
Although, I'd hate to see what she looks like now, 30 years later...
David 9:11PM (1/23/2009)
It's a custom 1979 Pontiac Grand Prix with a targa roof and retractable rear top
Will 9:22PM (1/23/2009)
Thanks David, you are obviously focused on cars!
Lou Zucaro 9:01PM (1/23/2009)
Oh come on, JD Power?! Do even a tiny bit of research on the company and you'll know that they basically invent stats so that "everybody's a winner". It's a marketing firm, not a research firm. They started out when the Japanese companies were first trying to break into the U.S. market, and they "awarded" them "Best" this and that awards so that people would feel confident buying. Basically, they're a joke.
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Swede 5:37AM (1/24/2009)
Seems you and I are the only ones talking about JD Powers in this thread.
David 10:01AM (1/24/2009)
Then, apparently, like some of the other people here you haven't read the entire thread.
Chris MacMillan 12:52PM (1/24/2009)
It's a Grand Prix all right http://www.chicagoautoshow.com/history/index.asp?y=1979&vid=200
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