J.D. Power And Associates 2010 Automotive Performance, Execution And Layout (APEAL) Study

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For the first time since 1997, domestic auto brands, collectively, have surpassed import brands as a whole in vehicle appeal, according to the J.D. Power and Associates 2010 Automotive Performance, Execution, and Layout (APEAL) Study.

In 2010, the APEAL score for U.S. domestic brands averages 787 on a 1,000-point scale – 13 points higher than the score for import brands (automakers headquartered in Europe or Asia Pacific). By comparison, in 2009, import brands outpaced domestic brands by five points. Among premium models, import nameplates continue to retain a notable edge, but mass-market models from domestic brands outperform those from import brands.

Domestic brands have been improving steadily in vehicle appeal during the past four years, with the greatest improvement occurring between 2008 and 2010. Primarily high-performing models drive improvement in 2010 from Ford Motor Company and General Motors Corporation, including several models that are all new or have undergone major redesigns.

"Domestic automakers have performed three important actions during the past two years that have led to their gains," said David Sargent, Vice President of Global Vehicle Research at J.D. Power and Associates. "Firstly, they have retired many models that demonstrated low appeal. They have also introduced new, highly appealing models to their lineups, and finally, they have improved their existing models through freshening and redesigns."

New models introduced by import brands between 2008 and 2010 have similar APEAL scores as models retired by these import automakers during the same period (averaging 784 vs.781, respectively). In contrast, newly introduced domestic models have strongly outperformed the models retired by domestic brands (803 vs. 758, on average).

Historically, vehicle models achieving high APEAL scores have shown to generate faster sales, higher profit margins, and less need for cash incentives. High levels of vehicle appeal also have a strong influence on customer recommendation rates. Among the most highly satisfied owners (APEAL scores averaging 950 or higher), 97% say they "definitely will" recommend their vehicle. However, among the least-satisfied owners (scores averaging below 400), only 8 percent say the same.

Ford captures five segment-level awards – more than any other vehicle brand in 2010 for the Expedition, Explorer Sport Trac, Flex, Fusion, and Taurus. Only two models rank highest in their respective segments in both the 2010 APEAL Study and the 2010 Initial Quality Study (IQS) released in June – the Chevrolet Avalanche and Ford Taurus. Porsche is the highest-ranking nameplate in APEAL for a sixth consecutive year. Suzuki improves more than any other nameplate in 2010, compared with 2009.