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.”