CNBC: U.S. autos tarnished by reliability study?

CNBC: U.S. autos tarnished by reliability study?

Consumer Reports is out with it’s annual Auto Reliability Survey. Lou Ann Hammond, CEO of Drivingthenation.com, discusses auto brand reliability with

transcript:
Lou Ann Hammond:
What you’re really concerned about right now when this consumer report comes out is what it means to your stockholders, your CEOs and car companies and that is market share, because market share means brand loyalty.
It’s really great when you have a car owner that’s very satisfied because they not only are satisfied with their car and will buy one in the future, but they will tell all of their friends about it as well. When that doesn’t happen, you get what’s called a conquest. They will go to another dealership, trade in that car and buy another brand and that brand will get the future sales and there goes your profit.
Amanda “Mandy” Drury:
How much does an individual consumer actually look at something like this reliability report and make a consumer purchase on the back of it?
Lou Ann Hammond:
You know, they look at it a lot, mandy, because i’m on a chat line with warren brown on the washington post every friday. it’s one of the things they’re concerned about the most. it’s not — it’s the cost of a car and the fuel economy, but after you’ve made those choices and after the warranty is gone, you still have to pay for all the reliability that’s not there. and that’s the biggest problem with reliability, is how much it’s going to cost you in an unforeseen, unfixed cost that you didn’t think about in the beginning.
Brian Sullivan:
Lou Ann Hammond of drivingthenation.com, Lou Ann it’s a pleasure. Thank you for coming on the program.
Lou Ann Hammond:
Thank you.

By | 2016-09-25T14:41:10+00:00 October 30th, 2013|Categories: Auto industry news, Automobiles and Energy, Television, Video|0 Comments

About the Author:

Lou Ann Hammond is the CEO of Carlist and Driving the Nation. She is the co-host of Real Wheels Washington Post carchat every Friday morning and is the Automotive, energy correspondent for The John Batchelor Show and a Contributor to Automotive Electronics magazine headquartered in Korea. Hammond is a member of the North American Car and Truck of the Year (NACTOY), Women's World Car of the Year (WWCOTY), and the Concept Car of the Year.