J.D. Power Says Drivers Still Loyal to Subaru, Lexus

J.D. Power’s Automotive Brand Loyalty Study dropped this week, with Subaru and Lexus predictably topping the charts. Subaru actually edged out Toyota by a hair in the mainstream segment by retaining 60.5 percent of its owners, and is assumed to be aided by younger generations just getting into vehicle ownership. This is something we can back up anecdotally, as many drivers look back fondly at the nameplate and are eager for a second helping.

If your author had a nickel for every person that happily reminisced about the hand-me-down Subaru Legacy or Forester wagons they drove during their formative years, he would have a jar full of coins wasting space on a shelf somewhere because nickels aren’t particularly valuable.

Speaking of not having enough money to buy things, Lexus trumped Mercedes-Benz in the premium/luxury segment with a loyalty percentage of 48. It was a close race, though. Mercedes retained 47.8 percent of its customers and was followed by BMW (45.1 percent), Porsche (44.9) Audi (43.4), Land Rover (39.6), Acura (38.3), Volvo (38.3), and Lincoln (37).

The bottom of the field included Cadillac, Maserati, Infiniti, and Jaguar — with only the British brand failing to achieve a retention rate above 21 percent.

Back in the mainstream, Toyota came in a very tight second with a customer loyalty settling in at 60.3 percent. Rounding out the top five (before the differences between brands really starts to become apparent) were Honda (58.7 percent), Ram (57.3) and Ford (54.3).

Mid-pack contenders averaged a retention rate between 51 and 39 percent, leaving a handful of brands looking like they must have done something terribly wrong to have lost so much repeat business. They included Buick with 27.4 percent, Mitsubishi (27.1), Mini (26.4), Dodge (17.8), Chrysler (14.1), and Fiat (10.4).

While most of the names are hardly surprising to see, Dodge has recently been praised for its improving quality. In fact, it tied with Kia for first place in J.D. Power’s most recent Initial Quality Study. Dodge also aced Consumer Reports’ reliability survey — making it the first domestic brand in the publication’s history to take top honors. At the same time, Subaru’s reliability seemed to slip immensely.

What gives?

We think this has everything to do with product lineup and the average consumer not being hip to the daily goings-on of the automotive industry. Dodge has some of the best marketing in the business and the kind of products Americans traditionally appreciate. But it’s becoming even more of a specialized performance brand, with the Journey and Grand Caravan being discontinued for 2021. Meanwhile, Chrysler has one luxury sedan and three(ish) versions of the same minivan on offer. They’re wonderful products, but there’s not a lot of variety, likely encouraging some shoppers to look elsewhere.

By contrast, Subaru has a more versatile lineup that caters to more mainstream tastes and boasts similarly good marketing. Framing itself as the pet-friendly automaker (as if animals cared one whit about what you’re driving) was a true stroke of brilliance. It understands it’s a brand that excels at making customers walk away with a good feeling and has leaned into that by focusing on its safety credentials and attaching itself to nature by way of (nearly) ubiquitous all-wheel drive.

“There are many factors that contribute to brand loyalty, ranging from the experience a customer has when purchasing the vehicle to how driving it makes them feel,” Tyson Jominy, vice president of data & analytics at J.D. Power, said in a statement.

“Automakers are really focused on customer retention, as evidenced by the payment plans and incentives they’ve offered since the COVID-19 pandemic broke out. Many have gone above and beyond to offer customers financial assistance during a period of economic uncertainty, which does a lot to bolster consumer confidence in their chosen brand and repurchase it in the future.”

[Image: Subaru]