• by Karl Greenberg , November 6, 2008

If there is any good news for General Motors, it is buried in market consultancy Strategic Vision's latest survey of what consumers are saying about their new vehicles. In the firm's latest study of new-vehicle owners' impressions of their vehicles--the Total Value Index (TVI)--the scores of virtually all automotive brands fell. Only Porsche and GM's Pontiac brand saw improved scores versus last year. And Pontiac's score rose a dramatic 25 points.

The firm says the gains were due to Pontiac's combining competitive pricing with perceived interior quality. "The Pontiac G6 is a good example of how Pontiac has exceeded customer expectations with price, value and interior quality cues," says Alexander Edwards, Strategic Vision's head of automotive research. He says Pontiac's numbers take it from below average to above average among competitive brands. "Now Pontiac is competing with Scion, somewhat close to Honda and ahead of brands like Mazda and Hyundai, which were ahead of them last year.

"When people get into vehicles like G6, they see the thoughtfulness that went into the interior, the luxury cues and the feel that there wasn't skimping on the less expensive vehicles," he says. "Consumers are saying they are absolutely delighted with the overall experience, and that has allowed Pontiac to move up."

He says the economy has changed how consumers are shopping for vehicles because now they are less concerned with brands than with product-by-product comparison. "People are looking at products rather than merely brands now; it's a terrific opportunity, and our message to Detroit is--if you can avoid removing what customers love, when consumers come back to the market, they will look at all vehicles," he says, meaning not just the brands they were used to buying.

Edwards says the numbers have dropped for the rest because the economy has made owners of new vehicles much more sensitive about the second-biggest purchase most of them are likely to make. "About two years ago, when there was more disposable income and lower gas prices, auto consumers would go out, look at a vehicle and say, 'This is the right brand,' and they were not as discriminating when it came to what the vehicle offered in terms of quality," says Edwards.

"They were not looking at vehicles with same level of scrutiny they are today when consumers can feel every dollar they spend."

Toyota still leads the TVI in customer value, despite falling scores. Toyota Motor has had 30 leading vehicles in Strategic Vision's TVI over the past four years. It added 10 more in this year's study: eight for the Toyota division and two in Lexus.

The firm says Toyota's consistent messaging about quality and reliability, delivered over many years, has generated consumer trust. But Edwards says this is also, paradoxically, slowing Toyota sales, since consumers are sticking with their wheels. "Toyota buyers have purchased partly because of their belief in the brand's reliability and durability," says Edwards. "They have sold to people who expect the cars will last."

General Motors led in four segments; Honda led in four for Accord, Coupe, Odyssey and Ridgeline; and Volkswagen and Audi led their segments with the A3, Q7 and Passat Wagon. Mazda also had a winner with Mazda3 Sedan and Mazda CX-9 crossover.

The company bases TVI on a weighted analysis of survey statements that owners make about things like expected reliability, expected fuel economy, price paid, and expected resale value.