Furor Grows Over Dealership CSI Scores

Michael Karesh, owner of TrueDelta, an automotive research firm, conducted a survey of his reliability survey participants last spring to gauge whether dealers were pressuring their customers to rate their salesperson and dealership with top scores in all areas on the customer satisfaction surveys that come from the manufacturer. I hadn't seen the survey results until reading the August 27, 2007 issue of industry publication Automotive News last night (I'm a little behind!) and saw an article about Mr. Karesh's research.

I think Mr. Karesh was onto something by conducting a survey about this. Not only did a major auto industry publication pick up on his work, but also today's Autoextremist article was about what a failed system CSI scores have become.

In the past four years, I've bought two new vehicles, and while my buying experience was a positive one in both cases (I bought a Honda and a Nissan), it helps that I didn't have to negotiate price, as a family member had a close business relationship with both dealerships and was able to get a great price for me. But toward the end of the delivery process, both salesmen mentioned the CSI surveys and that they need perfect scores, and that they'd be happy to address any concerns I might have before completing the survey. Needless to say, I gave them top scores.

Apparently, I'm not the only one who has been pressured to do this. Dealerships' allocations of popular models, their employees' compensation, and even factory to dealer incentives are tied to CSI rankings. Even worse, manufacturers have set such ridiculously high standards (anything short of "excellent" is a black mark, when in fact, outside of Lake Wobegon, not everyone is above average, and certainly not excellent.) "Exceeds expectations" might be a difficult rating to achieve if the customer's expectations are too high. And even if that customer's expectations are exceeded once, would they not expect the same treatment when they buy their next car from that dealer, so the same level of service that exceeded expectations earlier might only meet the higher expectations the second time.

If every car buying experience was excellent or very good, then why are there so many horror stories out there? Hmmm...

TrueDelta's research (with admittedly small sample sizes) found that at least 75% of all dealerships at least mentioned the survey would be coming, and many others took further steps such as allowing to preliminarily address problems before the survey (36%), asking for perfect scores without begging (28%), saying they wouldn't get a bonus without perfect scores (9%), begging for perfect scores (9%), offering to watch the customer complete it (2%) or allow the dealer to complete it (2%), or offering a gift in exchange for a positive survey (2%). Note that these do not add to 100% because multiple responses were allowed. It also found that among respondents, Nissan, Hyundai, and BMW dealers pressured customers the most to complete their surveys with only the highest scores.

Further adding to the furor is that GM announced in the past week or two that some dealers had submitted "fraudulent" CSI surveys and those results would be ignored, and the dealer would likely be penalized in some way.

So let's see: customers don't like being pressured, dealers and salespeople don't like having their livelihood tied to the whim of someone completing a survey who marks "very good" instead of "excellent" (or "meets expectations" rather than "exceeds expectations), and the manufacturers are suspicious of the process.

Part of my "real job" is working with employee compensation, and designing incentive plans to motivate employees to perform a desired behavior. I'd say that the current CSI system should be thrown out, because clearly begging, lying, and fudging should not be the behaviors that are encouraged.

Are there any other stories of dealer or salesperson pressure to give perfect scores out there?

Link to TrueDelta's research on this subject: http://www.truedelta.com/pieces/survey_survey.php

How Do You Say Overrated In German? (aka MF Drives The 2007 BMW Z4 Roadster)

Uberschätzt. In case you were wondering. At least that's what the computer spit out.

I had the opportunity to take a Z4 3.0 convertible out for an extended spin a couple of weeks ago, and came away unimpressed. To say the least.

Walking into a BMW dealership always hints at the surreal- at least it always has in my experience. The combination of smugness, holier than thou attitude, and Teutonic coolness has always made it seem like you're not buying a car as much as you're buying a high end piece of electronic equipment. Or furniture. Or checking into an expensive hotel. Which is ironic really, since BMW owners are generally the first people to spout such invective at owners of 'inferior' brands (read: Lexus, MB, etc.) that fall on the luxury side of the sport-luxury equation. Luckily on this particular trip into my local BMW, I encountered a salesperson who seemed to be a tad more civilized than most- genial even. Unfortunately, no M Roadster were available for a drive, so a 3.0 would suffice. A set of keys and a dealer plate later, and I was away in a black 3.0- on my own without the dealer.

The first thing you'll notice about the Z4 is that it looks like the retarded chromosonal combination of a catfish and a tadpole. Yes, Chris Bangle is an oft-imitated designer, and yes, his influence and ideas have made a mark on the world of automotive design, but to these eyes, the Z4 is unpalatable from nearly every angle. The long hood and short rear deck are pleasing to the eye, but the lidded headlights and excessive surfacing, especially on the sides, is not. Inside, things get simpler, but not much prettier. Although the interior doesn't scream 'cheap', it also doesn't seem like BMW spent much more than they had to in order to get the interior up to par. Meaning, it looks sparse, and it feels sparse, even in the fairly loaded configuration I was driving. Fortunately, the driving controls are everything that the rest of the interior is not- that is, substantial and placed in such a way that you now someone spent a lot of time figuring them out. The shifter is readily at hand, the thick steering wheel is grippy, and pedal placement is perfect.

Starting the engine unleashes a subdued growl that actually sounds a tad raspy- something I did not expect from the 3.0. With the top down, I found the stereo (heck, EVERYTHING) was overpowered by engine note- if that's your thing, you might be in heaven, however I found it distracting after 10 minutes of it. Luckily, the noise is backed up by copious amount of power- let it run up to redline through the gear box and you'll quickly reach highly illegal speeds in a highly illegal manner. Unlike the Boxster, which feels planted and balanced no matter what you're doing, punch the throttle in the Z4 and you can feel it hunker down on its haunches and spring forward. There is lots of grip in back end, but if you're not careful with your throttle modulation, this bad boy will oversteer like a true drifter. The gearbox is a pleasure to use- short throws, well defined , and smooth as silk- all amplified by the wonderful placement of the shifter. The clutch is surprisingly light at first, but quickly becomes second nature after 5 minutes.

Handling? As mentioned above, I found the Z4 was quite fond of oversteering. The steering itself was very heavy- especially on center- if you want to turn in the Z4, you're going to have to turn- not just nudge. However, it responded quickly to inputs, and despite the heaviness, felt very good in the twisties. The suspension handled most of the road imperfections with ease around town, but I found it a big wriggly at speed and in sweeping turns- again, it felt as though the back end wanted to swap places with the front end. Overall, the experience was fun, but not as reassuring as a Boxster, or even a Z Roadster- both vehicles that I also tested on the same route.

All in all, the Z4 3.0 Roadster is a fine little car. Since looks are subjective, I can't dock too many points for looking the way it does. At 45k Canadian, it would be quite the ride for somebody looking for a sporty convertible that has the flexibility to actually haul some stuff (the trunk space actually isn't that bad). However, it's nowhere near 45k. In fact, it's near 70k Canadian for a Z4 3.0 Roadster. That my friends, is grand larceny. What does that 70k buy you? Well, for one, it will buy you a Porsche Boxster. No, it won't be an S, but the base Boxster walks all over the BMW- it's more balanced, has similar power and speed, and just feels better. It will also buy you a Mercedes SLK with a 3.5 liter engine, much better looks, and a more solid feel. Move downmarket, and you can get a 350Z, which will lack the cachet of the Germans, but costs 55k Canadian, and although not as agile as the BMW, is a worthy contender while being 15k cheaper.

And that's why the Z4 is overrated. It is not worth 70k in any way, shape or form. It's a competent roadster with a nice engine. There are LOTS of those out there nowadays. But very few of them cost as much as this. And it will continue to sell because of badge. But such is life.

Cars That Should Be Buried for 50 Years

Now that the hype of Tulsa, Oklahoma's Plymouth Belvedere, which sat in an underground (and sometimes underwater) vault for half a century, has died down, I thought I'd take a look at which 2007 model year vehicles might be good to bury for 50 years.

Now, does "good to bury" mean that they are representative of the automotive landscape in 2007, or that they're vehicles we hate so much that our planet is better served by having at least one example underground away from human sight for 50 years? I decided on the former - the best representatives of what's popular with consumers in 2007. You may have a different list, and I'd love to hear any other suggestions or critiques of the list I came up with. Obviously, there's no "right" or "wrong" answer - it's just a fun exercise. I also have no delusions like the Tulsans did in 1957 that ANY of the vehicles in my list will be in style in "2,057," but I just want people 50 years from now to agree with some of my choices. So, let's get into the list!

2007 Honda Odyssey
The Honda Odyssey is arguably the best minivan on the market. Although Chrysler has two new vans ready for battle in this competitive-but-shrinking segment, Honda has set the benchmark with quality, comfort, family-friendly features, and decent handling and fuel economy for a vehicle of its size. They're also strong sellers and a strong profit driver for Honda.

2007 Chevrolet Silverado 1500
The full-size pickup truck market may be under attack from several angles - high gas prices, environmentalists, etc. - but the fact is, the two top-selling vehicles in the US are the Ford F-Series and Chevy Silverado. I was going to choose the Ford to bury, but since it's at the end of its life cycle and the Chevy was all-new for the 2007 model year, I'll give the nod to the Chevy. I chose a half ton because those are the most popular with personal use buyers who rarely need a pickup's carrying capacity.

2007 Toyota Camry
The Camry is the best selling car in the US, and has been for more or less the past decade. If any car defines what the public is driving in the US in 2007, it's the Camry. You see the darn things everywhere.

2007 Honda CR-V
The CR-V is all-new this year, and Honda came up with the right vehicle at the right time. While its competitors were shoehorning V6s into their "cute utes" (Toyota, Mitsubishi, Suzuki), Honda stuck with the four cylinder in a move that with the benefit of hindsight looks to be a master stroke. It gives much of the utility and elevated view of the road of larger SUVs with the fuel economy of a car. People love them - they're the #1 selling SUV in the country (even though they're not SUVs in the traditional sense).

2007 Toyota Prius
One of the founders of the "green" movement in cars, and far and away the most popular hybrid model, the Prius makes the list. I personally am tired of the way the car looks and would never drive something willingly with such an anemic powertrain, but people who have them seem to love them.

2007 GMC Acadia
The crossover segment is one of the few segments growing quickly right now - consumers really seem to take to vehicles that have much of the ground clearance, looks, and capabilities of truck-based SUVs, but with better fuel economy thanks to their unibody car-based platforms. The Acadia (along with its cousins the Saturn Outlook and Buick Enclave) are the leaders in the large crossover segment, which also can count the Honda Pilot, 2008 Toyota Highlander, and Mazda CX-9 as members. These vehicles have been well-regarded so far by the press and by customers, so the Acadia makes the list.

2007 Chevrolet Corvette
If you hopped into a time machine in 1968 and showed the owner of a new Corvette a photo of a 2007 Corvette, I bet they'd be able to figure out what it was you're showing them. The C6 Corvette has modern, yet classic lines with nearly all of the important, classic styling cues that define a Corvette (long hood, arched fenders, gills on the front fenders, four round taillights). I may be biased (since the C6 is my favorite new car), but I believe that someone in 2057 would be as thrilled to open a vault with a pristine 2007 Corvette as they would to open a vault with a pristine 1957 Corvette today. The Corvette is an icon, and I expect it to remain one.

2007 Jeep Wrangler Unlimited Rubicon
Another icon from a different era that survives, and even thrives, in 2007 is the Jeep Wrangler. Sales are up this year by huge percentages, thanks entirely to the introduction of the first four door Wrangler, called the Unlimited. The Wrangler Unlimited combines more than 90% of the two door's capabilities with much more passenger and luggage space (and more convenient access to the rear seat).

2006 Scion xB
The Scion xB is the vehicle most identified as a Scion by the general public, and Toyota's Scion division has gone from zero sales to a household name in just a few years, thanks to appropriately priced products, a new selling model (low prices, lots of standard equipment, and the only factory option is color and automatic or manual transmission), and Toyota's marketing dollars/acumen. Scions are generally customized by their owners (or by a dealer at the owner's behest), in a trend that many other manufacturers are trying to latch onto because of the healthy profit margins that accessories generate. I chose the 2006 model because there was no 2007 xB, and the 2008 is too wrong to make the list.

2007 BMW 335i Sedan
The 3-series BMW is the consummate sport sedan, and the new twin turbocharged 300 horsepower 3.0 liter I6 makes the current model the best non-M3 yet. The 3-series has also been its class benchmark for decades, and as hard as they try, the competition can't out-BMW the 3. The steering, handling, braking, shifting, and acceleration are simply out of this world, especially for less than $40,000.

So, which of the above ten cars should be buried? Or should it be something else? Comment below!

BMW And Nissan Fight Like School Children At Recess

So a few years ago when the new M35/35X/45 was about to hit dealerships, Infiniti came up with some advertising that said 'The New M Is Coming'.

Well, the folks over at the whirling propeller were none too pleased and filed suit.

Today, the hammer fell-

BMW has lost a court battle in Canada to prevent Nissan from using the letter ‘M’ for what BMW describes as its rival’s “inferior and more modestly priced” models. The latest announcement comes several months after BMW originally won an injunction to stop Nissan from using the letter. The original injunction was later overturned on appeal.

This is hilarious on a number of levels.

First is the description that BMW used for Infiniti. They're 'inferior and more modestly priced' according to ze Germans. I suppose they have a point- the M trim lines of BMW vehicles are pretty crazy performance vehicles, but doesn't the 'modestly priced' statement sort of damn BMW by faint praise? It's essentially an admission of their ripping off the consumer.

The second is that Infiniti and Nissan just went through this same sort of brouhaha with Audi concerning their Q7 SUV. Infiniti said it was an infringement on their currently defunct Q45 model designation, and inferred that the consumer was stupid enough to equate a 7 passenger SUV with a bloated and lethargic never-was flagship vehicle that is still trying to sell 2005 models in 2007.

What makes the suit from BMW even more curiouser is that they never had an issue with Infiniti and their M model for many years. The first Infiniti on North American shores was the M30 back in 1989. It died a quiet death after an extended period of the public ignoring it, only to resurface in the late 90's as a Japanese version of an overpowered American luxury sedan (the M45) that could go really fast in a straight line, yet still manage to put you to sleep with its looks. The ultimate sleeper indeed. So it would seem that BMW had no problem with Infiniti devaluing their M brand when the Infiniti M brand was actually a sore spot in the Infiniti lineup and could potentially really devalue their brand. Nope, they only had a problem with Infiniti devaluing their brand when the newest generation M from Infiniti came out and immediately started whupping the regular 5 Series in comparison tests.

And at the end of the day, that's the real lesson- the elephant doesn't care about the mosquito buzzing away at its head... until the single mosquito turns into a swarm of horseflies.

Or something like that.

The $104,000 Question- Is Lexus There Yet?

Lexus has unveiled the LS600h L — a performance hybrid version of its new flagship sedan — at the 2006 New York International Auto Show. Scheduled to arrive in Spring 2007, it will be the world's first vehicle of any class or category to feature a full hybrid V8 powertrain. The LS 600h will combine an all-new five-litre V8 gas engine with combined massive, high-output electric motors and a newly designed large-capacity battery pack. It will deliver a peak, combined output of more than 430 horsepower. As a SULEV-rated (Super Low Emissions) vehicle, LS600h is estimated to produce just 20 per cent of the smog-forming emissions of a conventional five-litre V8. Power is delivered to the wheels via a 2-stange ECVT transmission. It also has the first LED front headlights of any production vehicle.

http://www.leftlanenews.com/lexus-debuts-20072007-lexus-ls-600h-l.html

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And just like that, poof, the last bunker of the Euro marques is penetrated.

What's been amusing is all of the chatter following the announcement of the pricing of the LS600.

• The domestic fans, clutching their hearts in unison because Cadillac/Lincoln don't have a vehicle to compete with the GS, nevermind the LS, have been throwing out the 'I'd take a Corvette Z06 and an Aura for that kind of money OMG LOL!!!'
• The European fans (MB, BMW and Audi fans I'm looking straight at you) have begrudgingly given kudos to the vehicle while still being snarky and saying 'well it doesn't have the cachet of a Euro brand, and plus it's just a Toyota OMG LOL!!!'

Do either of these generic comebacks make any sense? Seriously?

Lexus is officially in the big boy club now. Alongside Mercedes, BMW and Audi- they've finally made the leap.

A breakdown if you will-

Exotic Luxury
Bentley
Rolls-Royce
Maybach

Pretty much well the 'we have so much money that we can spend it on $10,000 paint upgrades to match our favorite polo shirt' club.

A-List Luxury
Mercedes-Benz
BMW
Audi
Lexus

I'm still not entirely convinced that Audi belongs in this group, but the interior design and craftsmanship puts them in here in the end. This group is basically the 'you've arrived' segment of the luxury market. The Alpha Dogs of the industry if you will. They've got sales, full lineups, and a brand cachet rivaled only by the exotics. They also have a very forgiving audience- BMW, and moreso MB, have been coasting on their quality reputations in recent years, but the strength of their brand perception has been strong enough to let them overcome any possible bad stigma overall.

B-List Luxury
Infiniti
Cadillac
Jaguar (and sliding)

Infiniti made the jump very recently by coming out with some world class sedans- prior years saw them down there with Acura...and even more prior years, in the D-League. Cadillac is on a downward slide (they'll need more than the CTS), and Jaguar is one failed product cycle away from oblivion and fond reminiscence at the next Barrett-Jackson auction show. They're all very competent luxury cars, but they're missing the cachet- pretend to own one of these for a day, just tell people you drive an Infiniti, Caddy or Jag... and most won't even bat an eye.

C-List Luxury
Acura

Acura gets their very own luxury segment to themselves. Not quite at the level of the B's, but not an also-ran. At the end of the day, the perception of Acura vehicles as very very well engineered Honda vehicles has been a hard perception for Acura to shake. The vehicles in the segments which they compete in are all competitive, and sometimes class leading- it's the brand that needs work now. The worst move they ever made was dropping model names- the Acura Legend, Vigor, Integra et al were great brand builders, and they were all dismissed without any long term planning.

D-List Luxury
Volvo
Saab
Lincoln

The end. Lincoln is almost done at this point. Saab and Volvo have never really been 'prestige' luxury makers- just solid performing vehicles with a good safety record. Not a true luxury car in my opinion, but more of a 'premium' set of brands.

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