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Improved Reliability Hurting Car Sales? [Archive] - Auto Industry Forum

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mchastek
04-05-2005, 06:22 PM
With consumers pushing for greater reliability and overall longevity of vehicles, it seems that the longer cars last, the less often a new car will be purchased - assuming the purchase is necessity-based. I can't believe this wouldn't negatively affect manufacturers trying to sell more cars.

Is this a catch-22? Answer consumers' need by producing better quality cars and end up decreasing new car sales in the process?

What do you think?

bobcooke
04-08-2005, 09:23 PM
The incresed reliability and durability has has had a major impact on the profitability of the parts and service departments. Less to repair and replace

jlazz
07-28-2005, 05:47 AM
This is a just another common trend that must force Dealers to go after new parts business, that most are not set up to service ... mechanical. Better cars, stronger competition, fewer accidents (collision parts) and dealer profitability issues are all major indicators that point to the need to grow every dealers parts sales beyond collision and the service drive.
Dealers have the first shot at every customer (wholesale and consumer), we just need to do a better job of knowing who they are and giving them reason to do business with dealers.

kristi
07-29-2005, 12:01 PM
As an advertising professional, I believe that car sales are partially motivated by necessity, but equally influenced by desire. Marketing cars as things people "want" rather than need is what will fuel sales these days.

My car has run with little trouble since 1991 and as my daily driver, it continues to make it through 90 miles of commuting per weekday, but I'm upgrading because I want something else. Not because it isn't reliable. And since my Honda has held up so well, I'm looking back to Honda for my next car. Reliability may not fuel "my-car-broke-down" purchases, but it goes a long way in building customer loyalty. That's gotta be worth something.

To conclude: perhaps sales have slowed, but I believe that the ease with which people can attain financing and the car's evolution to that of status symbol will continue to snag consumers. That, and loyalty is established with people impressed with the reliability of their car.

Perhaps we'll be in trouble if an unexpected era of post-materialism washes in.