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2023 J.D. Power APEAL Study shows new-car customer satisfaction scores slip

J.D. Power survey results have been slightly up but mostly down for automakers this year, literally. In February, the 2023 Vehicle Dependability Study showed an overall decline compared the 2022 a month before the Customer Service Index Study did the same. The trend reversed in June with a better overall score on the 2023 U.S. Electric Vehicle Consideration Study than in 2022, then declined again the same month on with a lower overall score on the 2023 Initial Quality Study. The declines continue with the 2023 J.D. Power U.S. Automotive Performance, Execution and Layout (APEAL) Study, overall satisfaction among the 84,555 respondents down two points overall compared to 2022, to 845 out of 1,000 points. Because last year's score dropped compared to 2021, this year marks the first consecutive decline in the study's 28-year history. The study tries to "[measure] owners' emotional attachment and level of excitement with new vehicle" after 90 days of ownership by asking new owners to rate 37 attributes in 10 areas around the vehicle, such as the feeling they get when they hit the accelerator. Satisfaction with nine of the attributes is down this year versus last, fuel economy the only segment to show better results with 15 points more satisfaction. Styling and infotainment are big drags on satisfaction. Responses to new car exterior looks tallied 888 points, down from 894 last year, the largest drop in this year's study. On the digital side, less than half of those surveyed this year said they prefer using a manufacturer's built-in infotainment. From 70% of respondents in 2020 preferring to use a manufacturer's in-house software to play audio instead of Android Auto or Apple CarPlay, that's 56% in 2023. Going all-in on Google appears to have the best effect. J.D. Power said that vehicles with both Google's Android Automotive Operating System (AAOS) and Google Automotive Services (GAS) "score higher in the infotainment category than those with no AAOS whatsoever. AAOS without GAS receives the lowest scores for infotainment of the three categories."  Frank Hanley, senior director of auto benchmarking at J.D. Power, said, "Despite the technology and design innovations that manufacturers put into new vehicles, owners are lukewarm about them. While innovations like charging pads, vehicle apps and advanced audio features should enhance an owner’s experience, this is not the case when problems are experienced.

Kia Soul EV starts production in Korea

As sister company Hyundai delivers its first Tucson fuel cell vehicles in California, Kia has kicked off volume production of the Soul EV in Korea. We've driven the prototype and are excited about the arrival of this electric vehicle. Kia is already calling the production start a landmark event, but let's remember that other automakers have been building production EVs for years now. The EVs won't be exported outside of Korea until later in 2014, but the automaker is hoping to make 5,000 a year at its Gwangju facility. The first batch is headed to "select European countries" with more coming to Europe at a later date. The vehicle might be coming to the US in the third quarter. The Soul EV is Kia's second production EV, following the Ray EV. Kia only made 2,500 of them for governmental agency use in Korea. We've got a little video on the Soul EV here. As a reminder, the Soul has a 27-kWh lithium-ion polymer battery which is good for a now-official range (on the European test cycle) of 212 kilometers. That's 132 miles, but expect a good chunk to get knocked off when it gets rated on the US text cycle. For example, the Nissan Leaf is rated at 199 kilometers (123 miles) in Europe but only 84 miles from the EPA. Read Kia's press release below. Start of production for all-electric Kia Soul EV Volume production of Soul EV for export is a landmark in Kia's history Ideal for commuters, Soul EV goes on sale outside Korea later in 2014 Class-leading drive range of 212 km certified for Europe 81.4 kW motor produces 285 Nm of torque for 'fun-to-drive' motoring The first vehicles off the production line are destined for select European countries and are scheduled to go on sale across the continent during the second half of the year. The Soul EV is manufactured at Kia's Gwangju facility in Korea, where annual output of the electric car is planned to reach 5,000 units. "Now that production of export models has begun, the new Soul EV is truly at the forefront of Kia's 'Clean Mobility' program, providing environmentally-friendly transport to our customers around the world," comments Thomas Oh, Executive Vice President and COO, Kia Motors Corporation.

Hyundai and Kia to hit record 8M sales for 2014

Hyundai and Kia are on a sales charge in 2014, and parent company Hyundai Motor Group is increasing projections to a record eight million combined units for the automakers by the end of the year – a bump over the original target of 7.86 million vehicles. According to Bloomberg, the key to the growth is beating expectations in Brazil, China and India, and strong crossover sales are also helping the bottom line. In the US, both automakers are doing well this year. In October, Hyundai saw a six percent dip in monthly sales, but through the first 10 months it sold 607,539 vehicles, compared to 601,773 at this point last year. Kia has done even better with 489,711 units sold from January to October, versus 456,137 for the period in 2013. The good news is a welcome antidote to negative headlines like investors' anger over Hyundai's $10 billion land purchase in Seoul, South Korea. The two automakers also had to pay a $300 million penalty to the Environmental Protection Agency for misstating fuel economy on some models. While sales may reach a new record, profits might not grow as much with them. The strong Korean won means that Hyundai and Kia have a tougher time keeping up profit margins compared to Japanese competitors with a weaker yen.