10/26/10
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November 1, 2010
www.usedcarnews.com
Consumers Rank Ford, GM Higher By Ted Craig
Surveys show Consumer Reports is one of the main drivers in car-buying decisions, behind only brand loyalty and the recommendations of friends and family. This year, the magazine suggests consumers consider Fords and Hyundais along with Toyotas and Hondas. They may also want to add the quickly improving lineup from General Motors to their list. The company’s recommendations are based on a combination of factors. These include its own driving tests, crash test data and a survey of its subscribers. David Champion, senior director of the Consumer Reports auto test center, said the survey included 5 million drivers and included 1.3 million models covering 10 years of production. Honda continues to reign as the most reliable mass market brand.
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Toyota remains in second place despite all the negative attention given the brand last spring. But Ford is catching up fast. “It’s getting close to Toyota, which is a wonderful place to be,” Champion said. The Fusion ranks as the most reliable family sedan, ahead of the Accord and the Camry. The Chevrolet Malibu ranks fourth, a sign of GM’s quickly improving quality. Consumer Reports now lists 69 percent of GM vehicles with average reliability or better, up from 43 percent. Much of the improvement is due to new brands, a good sign for the company’s future, Champion said. It also helps that GM shed poorly performing brands, such as Pontiac. Hyundai and Kia are quickly approaching the high quality standards of the biggest brands. The European manufacturers, meanwhile, seem to be slipping. Only Volvo and Porsche had a majority of the vehicles ranked as average or better. Porsche’s Boxster was named the most reliable vehicle on the market. The Jaguar XF was named the least reliable. More than half of Chrysler’s vehicles were ranked below average for reliability. The lone standout for that manufacturer is the Ram 1500.
Photo by Ted Craig REPORTS: David Champion of Consumer Reports names the most reliable vehicles according to the magazine’s latest survey. Honda and Toyota remained on top, but others are gaining fast.
AutoTrader.com Buys Kelley Blue Book
AutoTrader.com has signed a definitive agreement to acquire Kelley Blue Book. As part of the deal, AutoTrader.com will also acquire Kelley Blue Book's sister companies CDMdata and CDM Dealer Services. Details of the transaction are not being disclosed. Kelley Blue Book will operate as a subsidiary of AutoTrader.com and continue to be headquartered in Irvine, Calif. The deal is expected to close by the end of the year. J.P. Morgan acted as Kelley Blue Book's exclusive financial advisor through this process. Goldman, Sachs & Co. acted as financial advisor to AutoTrader.com. Industry insiders said AutoTrader.com has been pursuing Kelley for years, dating back to the dot-com boom in the late 1990s. AutoTrader.com also completed its acquisition of vAuto, a provider of advanced software tools for used vehicle management, pricing and inventory optimization. AutoTrader.com is majority owned by Cox Enterprises Inc. , which also owns Manheim, with additional ownership stakes held by the venture capital firm Kleiner Perkins Caufield & Byers and the private equity firm Providence Equity Partners.
IN THIS ISSUE • Mysterious promotion draws attention online. – Page 3
• Better facilities, operations needed to thrive today. – Page 8
• Independent auction owners invest in new locales. – Page 5
• Higher used-car values mean higher taxes in some states. – Page 12