Here’s How GM Remained On Top In Manufacturer Loyalty In 2022
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For the eighth year in a row, GM has secured the annual S&P Global Automotive Overall Loyalty to Manufacturer award, overcoming numerous setbacks in the process, including a sharp decline in annual sales. The question is – how did GM manage such a high loyalty rating in the face of challenging headwinds?
According to a report from S&P Global Automotive, it really comes down to two big factors – rising inventory levels and a diverse vehicle lineup.
According to the report, GM’s average manufacturer loyalty rating during the 2022 calendar year was 65.4 percent, besting Hyundai’s 62.3 percent and Ford’s 60.3 percent. However, the average rating was a relatively low 61 percent in January of 2022, climbing substantially to 67.9 percent by January of 2023. This impressive loyalty rating increase is attributed to a sharp increase in vehicle inventory, with S&P Global Mobility indicating that available GM dealer inventory increased from 150,000 vehicles to nearly 400,000 vehicles over the course of the 2022 calendar year. An analysis indicates that GM inventory and GM loyalty held a strong 0.94 coefficient of correlation.
“As inventory levels start to return back to normal, we’re starting to see those traditional loyalty patterns,” said the associate director for Market Reporting for S&P Global Mobility, Vince Palomarez.
The report also indicates that GM’s wide array of vehicles contributed massively to its strong manufacturer loyalty rating. With 45 different models spread across four U.S. brands (Buick, Cadillac, Chevy, GMC), as well as electrically powered fleet vehicles available through the new BrightDrop brand, GM’s vehicle portfolio is expansive, to say the least, providing customers with ample opportunities to return to a GM brand no matter what sort of vehicle they may need.
“A family can start at a compact Chevrolet, move into a bigger SUV by Chevy or Buick as their kids grow, then downsize as empty-nesters into a more-luxurious Buick or Cadillac, and along the way grab a Chevy or GMC truck if they want to work on their house,” Palomarez said. “The myriad choices across brands give a GM loyalist a lot of flexibility.”
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I love GM vehicles and will always buy GM ICE vehicles but lately the top management decision have me wondering. I think there’s too much emphasis on crossovers, EV conversion, too many fun vehicles are being eliminated rather than improving them. I think the Camaro should be reborn and the Malibu should offer luxury and high performance models and even convertibles. I know the demand is not for millions but if they focused on those two models for people who can’t buy a Corvette, I believe they could make it work. Not everyone wants an SUV or a truck. I want both, a truck and a cool car! Is that too much to ask from the once-greatest auto manufacturer?
I will second all of that!
Good to see. This whole industry is in game changing turmoil. I predict a three way hookup of Ford-Volkswagen-Tesla from recent developments. A percentage venture like what mining companies are now doing. The Stellantis consolidation was the big start with Chrysler merging with European carmakers. It will be a consolidation for competitiveness and survival. The Ford+Tesla electric charger relationship I predict will grow into a merger or shared JV. Exciting things are imminent. Fasten your seat belts everybody.
When the Camaro goes, so does my loyalty. A Corvette is impractical for me, as I have more than one friend/family member. High performance cars are my interest. What will Chevrolet have for a performance car lover with a family after the Camaro goes??? No front wheel drive either!
No thanks, no foreigns for me, ever.
Statements above about brand royalty was the same when Pontiac and Oldsmobile were in the mix. It all went to hell when the Saturn was suppose to compete with low cost imports.
Diverse? are you kidding me? Ive bought GM vehicles most of my life, sedans and coupes; however with the current trend to stop producing anything but a big old box, in 3 colors, black, white or silver, with a wheezy 4 cylinder engine in it, I wont be a GM customer much longer. Not everyone wants to drive a box or a truck. Also the prices for trucks are insane…so they can keep them
GM wins by a “blowout.” LOL. Where’s the cars? Where’s the hybrids? I’m a loyal GM customer who went to Hyundai for a midsize sedan and Ford for a hybrid. Wake up Mary.
Sedans are dying very fast, have you looked at the sedan market share decline rate over the last decade? Sedan market share might bottom out below minivans eventually. Why waste resources on a dying segment where many buyers are low margin cheapskates and/or buying their last vehicle before they pass away?
I rent a lot of cars and I have noticed recently a flood of Sedans at the rental car companies because they can’t sell them to retail customers. Even Honda and Tesla are now selling lot s of sedans to Hertz, National, etc.
This is not a surprise, I always buy GM because of the 5% rewards GM Credit Card. Best customer loyalty decision GM ever made. The new card is 4% but so far they have been smart enough to grandfather in the 5% card.
Nothing lasts forever. Transmissions and lifters are starting to become a problem for loyalists. The lack of response from GM management has left a lasting impression for many.