“Consumer spending less on vehicle repairs: J.D. Power - The London Free Press” plus 4 more |
- Consumer spending less on vehicle repairs: J.D. Power - The London Free Press
- Mitchell International Partners with Thatcham to Provide Independently ... - dBusinessNews.com
- Weak economy pushes consumers to spend less on vehicle repairs: J.D ... - Canada East
- News By You - Fairfax Times
- Sheriff wrecks new county cruiser - Chadron Record
| Consumer spending less on vehicle repairs: J.D. Power - The London Free Press Posted: 18 Aug 2009 11:02 AM PDT In yet another example of consumer belt-tightening, Canadian car and truck owners are spending less on maintenance and repairs than they did in 2008. The study, released Tuesday by consumer survey firm J.D. Power and Associates, found average annual expenditures on vehicle maintenance and repairs shrunk to $856 in 2009 from $920 in 2008 a decline of 7%. The survey also found the proportion of customers who say they go to the cheapest place I can find for service has increased to 23% from 17% in 2008. In a difficult economy, vehicle owners seem to be delaying what they perceive to be non-essential maintenance or seeking out the lowest-cost option, stated Darren Slind, senior director and Canadian automotive practice leader at J.D. Power. In the long run, this may prove more costly in terms of vehicle reliability, but in the short term, consumers are dealing with other spending priorities.
The J.D. Power survey also found that price-conscious consumers are increasingly turning to aftermarket service providers or autobody shops that arent affiliated with a specific automaker rather than new-car dealers for their maintenance work. Aftermarket providers now account for 59% of the $11.2-billion annual service market for vehicles between three and 12 years old, up from 57% in 2008, J.D. Power found. While a two-percentage-point shift may not seem substantial, this equates to more than $220 million in lost revenue annually for dealers, Slind said. Given declining new-vehicle sales which are down more than 16% in Canada so far this year dealers must rely more than ever on their service and parts operations. We expect that dealers will fight back aggressively in the coming year to recapture this lost market share. J.D. Powers 2009 Canadian Customer Commitment Index Study is based on responses from 14,388 owners across Canada whose vehicles are between three and 12 years old.
Economic recovery will usher in higher taxes: IMF Consumer spending less on vehicle repairs: J.D. Power Earl Jones' bank statements missing: trustee Prosecutors: 'soupnazi' stole 130M credit card numbers Big 3 get better customer satisfaction ratings Better day expected on world markets Recessionary 'double dip' fears return RIM fastest-growing firm Consumer loan program extended Commercial market ails Crude prices fall despite threats Londoners push benefits of salt therapy Amcor purchase boost for Rio Tinto Sharp decline in stocks
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| Mitchell International Partners with Thatcham to Provide Independently ... - dBusinessNews.com Posted: 18 Aug 2009 11:37 AM PDT Los Angeles - Mitchell Information Center empowers repairers and estimators with industry's most comprehensive set of repair standards for increased accuracy, efficiency and safety
Today's modern vehicles are increasingly unique and very much individual in their design. Each model year vehicle manufacturers add sophisticated technology to improve structural strength. While these advancements result in improved vehicle safety, cars have consequently become much more difficult to return to pre-accident condition, posing unique repair challenges. Thatcham's online solution, ThatchamNet, works in concert and complements Mitchell Information Center's OEM repair data, to provide technicians with the critical collision repair information they need to keep up with the industry's increasing demands. Thatcham's collision experts' methodology includes tearing down the latest vehicles in their UK-based technical research center to completely understand vehicle construction and devise pragmatic repair techniques that replicate the strength and integrity of the original construction. Thatcham's research team works very closely with both vehicle manufacturers to "design in" reparability and the collision repair industry to enable shops to repair high-tech vehicles with complete confidence. "Mitchell's partnership with Thatcham brings our customers unprecedented coverage of collision repair content, especially for complex, difficult to repair European and Asian market models. At the touch of a finger, our customers will be able to go online to the Mitchell Information Center and instantly identify the critical information they need to be able to safely and efficiently restore vehicles to pre-accident condition," said Marc Brungger, Executive Vice President of Auto Physical Damage for Mitchell International. "With this new partnership, we will be the first to introduce the North American market to repair procedures that are both independently researched and OEM backed, and we are very pleased to have Thatcham's world-class research experts on our team," added Brungger. Peter Roberts, Thatcham Chief Executive, says, "Repairers have frequently asked us to bring our collision methodologies to North America. However, it was important for us to partner with an established marketplace leader that is well respected throughout the industry, with a solid track record for bringing innovative solutions to the marketplace. Having worked closely with the Mitchell International for over a year, the Thatcham Team is confident that we have found the best solution provider to bring ThatchamNet to the North American market."
Collision repairers are encouraged to visit www.mitchellinformationcenter.com or contact Mitchell International at (800) 238-9111 for more information and a free trial of this new data module complete with European and Asian repair data.
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| Weak economy pushes consumers to spend less on vehicle repairs: J.D ... - Canada East Posted: 18 Aug 2009 10:12 AM PDT TORONTO - A new study suggests Canadian car and truck owners are spending less on maintenance and repairs than they did last year in yet another example of consumer belt-tightening. The study, released Tuesday by consumer survey firm J.D. Power and Associates, found average annual expenditures on vehicle maintenance and repairs shrunk to $856 in 2009 from $920 in 2008 - down seven per cent. The results came as a surprise to the head of J.D. Power's Canadian automotive practice, who assumed the recession would push consumers to keep their vehicles for longer and therefore spend more on repairs. "Definitely the conventional wisdom holds that in these kinds of difficult economic conditions, that with new vehicle sales down this year, the average age of vehicles is starting to creep up, therefore people must be spending more to keep those vehicles on the road," said Darren Slind, senior director and Canadian automotive practice leader at J.D. Power. Instead, Slind said vehicle owners seem to be deferring non-essential maintenance to save money. "So whereas they may have replaced their tires, for example, when they were starting to get a little bit worn, now they're maybe waiting until they are worn, or they're lengthening the cycle in between oil changes," Slind said. However, Slind said he doesn't think this trend is sustainable and expects it to reverse by early 2010, as minor maintenance issues can eventually turn into safety issues that can't be ignored. The J.D. Power survey also found that price-conscious consumers are increasingly turning to aftermarket service providers - or mechanics that aren't affiliated with a specific automaker - rather than new-car dealers for their maintenance work. Aftermarket providers now account for 59 per cent of the $11.2-billion annual service market for vehicles between three and 12 years old, up from 57 per cent in 2008 - a shift worth more than $220 million. This is not a new trend and is primarily due to positive customer experiences at aftermarket shops versus dealerships, J.D. Power found. And a move by major automakers like General Motors and Chrysler to reduce the number of dealerships will further strengthen the aftermarket, said Marc Brazeau, president of the Automotive Industries Association of Canada, which represents auto-repair shops. "The demand may fluctuate from year to year, but demand will continue to grow because there will be more and more vehicles on the road," Brazeau said. "There will be less car dealerships in existence and therefore consumers will be looking to the aftermarket to fulfil their future needs and requirements when it comes to vehicle service and repair." In addition, dealerships' primary source of service revenue is from customers with vehicles under warranty. As consumers choose to keep their cars and trucks for longer in response to the weak economy, this will hurt dealers' share of the service market, said Michael Hatch, chief economist at the Canadian Automobile Dealers Association. "As the average life of a vehicle goes from nine or 10 years to 12 or 13 years, obviously a greater percentage of the life of the average vehicle will be out of warranty," Hatch said. "So as that continues to be the trend, I would expect that the aftermarket will continue to increase its share, as long as warranties don't keep pace with the average life of vehicles." Slind confirmed that most consumers shift from having their car serviced at their dealership to an aftermarket shop at the three-year point, when many warranties expire. "That's a very interesting reality and challenge for the dealers, because at three years, it's a pretty critical point," Slind said. "That retention challenge once the warranty does expire becomes even more of an uphill battle. In other words, once you lose them, it's very difficult to get them back." J.D. Power's 2009 Canadian Customer Commitment Index Study is based on responses from 14,388 car and truck owners across Canada whose vehicles are between three and 12 years old.  This posting includes an audio/video/photo media file: Download Now | |||||||||||
| Posted: 18 Aug 2009 09:00 AM PDT
So far, nearly 350,000 used cars nationwide have been traded in for cash incentives under the federal government's new Car Allowance Rebate System, better known as "Cash for Clunkers." Under the program, which began in July, consumers trading in their older vehicles qualify for up to $4,500 in subsidies if they purchase a new, more fuel-efficient vehicle. The original $1 billion allotted for the program lasted about a week. Now, the program's budget has been tripled and is expected to help instigate up to 750,000 new car sales. The older "clunkers" have sodium silicate poured into their engines, seizing them up and rendering them inoperable. The cars are then hauled away to be crushed. As part of the program they must be taken off the nation's roads, never to return. That is bad news for Bill Wiygul, whose family owns several automotive repair shops in northern Virginia, including Reston Automotive/Goodyear. Starting with one repair shop on South Pickett Street in Alexandria in 1976, the family now runs four automotive centers, two in Alexandria and one each in Reston and Herndon. Shortly before the CARS program was initiated, Wiygul's family purchased some property next to its Herndon Automotive/Goodyear location and planned to expand that location. Business was booming, in part because of an economy that forced many consumers to hold on to their older vehicles and keep them up in lieu of spending much-needed money on newer models. "We have put $1 million into that location," Wiygul said of his Herndon site. "And now the federal government is subsidizing my competition. It is the most infuriating thing I have seen in 30 years of business." Wiygul said that among his four locations, he has lost at least 20 customers, including eight in Reston. "They are telling me they are going with the federal program," he said of his disappearing clientele. Wiygul said he does not blame consumers for joining the federal gravy train, he just wishes his tax dollars were not being used to help them do it. "The government is using my own money to hurt my business," he said. "And the thing that really gets me is that they are clearly favoring one segment of the auto industry over another. And of course it is the segment that they have a vested financial interest in." As part of the federal bailout plan, the U.S. government has invested about $65 billion and currently owns approximately 61 percent of General Motors and about 10 percent of Chrysler. "It is a very slippery slope," Wiygul said. Others in the auto repair business are also feeling the pain. Roy Page, who owns Advanced Auto Tech in Newington, said his business has dropped off 25 percent since the inception of the "cash for clunkers" program. "The older cars that we used to see are just no longer there," he said. "Customers are telling us they are going with the program." Wiygul says that because of the program, potentially viable cars are also being taken off the market, limiting the affordable options that those in the market for a used vehicle can choose from. "This thing will have consequences that no one has thought of yet," he said. "For example, newer cars have hidden costs to consider, such as higher insurance, more expensive tires, and car payments that will still need to be paid long after the program is a memory."
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| Sheriff wrecks new county cruiser - Chadron Record Posted: 18 Aug 2009 11:09 AM PDT Tuesday, August 18, 2009A brand new sheriff's cruiser will spend time in the repair shop before hitting the roads on patrol. Sheriff Karl Dailey was involved in an auto accident in the new pickup Monday as he was returning to Scottsbluff, where he had equipment installed in the cruiser. Dailey was eight miles west of Hemingford when he drifted into the oncoming traffic lane, overcorrected and entered the ditch. The pickup hit a berm and rolled. Dailey was wearing his seat belt and was not hurt in the accident. Dailey told other local media outlets that he was "tweeking" the radio when the accident happened.  This posting includes an audio/video/photo media file: Download Now |
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