JD Power ranks VOLVO as best in customer satisfaction amongst the premium brands.

• J.D. Power Reports: Volvo Ranks Highest in Customer Satisfaction Among Premium Brands, Honda Ranks Highest Among Volume Brands in Inaugural UK Study
• Highly  Satisfied  Service  Experience Drives Customers  Back  to  the  Dealer  for  Service and Sales

Volvo ranks highest among premium brands and Honda ranks highest among volume brands in UK customer satisfaction with vehicle service, according to the J.D. Power 2015 UK Customer Service Index (CSI) Study^SM released today.

The inaugural study measures UK customer satisfaction with their service experience at a franchised dealer facility for maintenance and repair work. 

The study explores customer satisfaction with their service dealer by examining five measures (listed in order of importance): service quality (26%); service initiation (23%); service advisor (19%); vehicle pick-up (17%); and service facility (16%). Satisfaction is calculated on a 1,000-point scale.

The CSI Study is a comprehensive analysis of the vehicle service experience and is conducted by J.D. Power in 16 countries worldwide, providing detailed after-sales solutions for automakers and dealerships. 

Volvo ranks highest among premium brands in satisfaction with a score of 779. Volvo is followed by Land Rover (767) and Audi (762). 

Honda ranks highest among volume brands in satisfaction with a score of 768.

 Suzuki and Toyota rank second in a tie (759 each), and Kia and Skoda rank fourth in a tie (758 each).

“The common perception is that the luxury brands are able to deliver a more satisfying customer experience, but the study shows this is not the case,” said Dr. Axel Sprenger, senior director of European automotive operations at J.D. Power.

“Any brand and any dealership can provide a consistently positive customer experience if they make it a priority and have the people and processes in place.  When they do, they likely will see an increase in revenue and will be able to build customer loyalty.”

The 2015 UK CSI Study finds that satisfaction with dealer service leads to customer loyalty and advocacy. 

Among the 20 percent of customers who are highly satisfied with their dealer service (overall satisfaction scores of 900 and above), 78 percent say they “definitely will” purchase their next vehicle from that dealer and 85 percent “definitely will” recommend the dealer to friends and family. 

In contrast, among customers less satisfied (scores of 700-899), only 36 percent indicate an intention to purchase their next vehicle from that dealer, and only 42 percent say they “definitely will” recommend the dealer to others.

KEY FINDINGS

• Satisfaction among the 93 percent of customers who are able to get an appointment on the day they desire averages 768, compared with 576 when an appointment is not available on their desired day.
• While 25 percent of customers would prefer to schedule a service appointment over the Internet, only 15 percent actually do. The Internet as a method to schedule an appointment is expected to increase with the emergence of mobile apps, which make the process faster and easier.
• The No. 1 reason for choosing a dealer for service is prior experience with the service department (35%), followed by location (34%) and prior experience with the sales department (32%). Fewer than 3 percent of customers indicate selecting their service facility due to advertising or promotions/coupons.
• Though only 31 percent of dealers recommend additional service work to their customers, when they do, 62 percent of customers have the recommended work done. Satisfaction is substantially higher among the 78 percent of customers who are recommended service and have it done, compared with those who do not have the recommended work done (760 vs. 693, respectively).
• On average, customers who accept additional work on their vehicle spend £347 on their service visit, compared with £189 among those who do not receive additional work recommendations. 
• Amenities offered at the dealership are key drivers of satisfaction with the service facility, as 24 percent of customers stay at the dealership while service is performed on their vehicle.

The 2015 UK Customer Service Index Study is based on 9,091 respondents who purchased their new vehicle between April 2012 and March 2014. The study was fielded between March and May 2015.

USA - Volvo's revival plan starts with immediate effect after dropping to its lowest level since 1978.

After its U.S. market share fell to the lowest level since 1978, Volvo has put its global product strategy chief in charge of North America and significantly boosted its marketing budget in preparation for an upcoming blitz of new vehicles.

Lex Kerssemakers, a 55-year-old native of the Netherlands, replaces Tony Nicolosi as CEO of Volvo Cars of North America after a 15-month period in which sales continued to fall. Kerssemakers, whose 29 years at Volvo include no prior stints in the U.S., described his immediate task as "very simple and very clear": put the Chinese-owned brand on a path back toward annual U.S. sales of at least 100,000 units.

Last year, it sold just 56,366.

"The revival plan of the U.S. starts now, and it will be very much product and brand driven," Kerssemakers told Automotive News. "With a strong network, a strong brand, strong products and a good financial offer, I'm convinced Volvo will be back on track."

Given Volvo's performance in five years under Zhejiang Geely Holding Group, Kerssemakers' job hardly appears simple. It's one of just two U.S. brands with sales that have declined since 2009, vs. a 58 percent gain for the industry overall.

Volvo was the worst-performing luxury brand in 2014, posting an 8 percent decline from the year before. It finished 2014 with just 0.3 percent of the overall U.S. market, half the share it had a decade ago.

Kerssemakers said he believes the company can reverse its sales slide this year but would not give a specific projection. He also declined to say how much Volvo has raised its marketing budget.

"We think it should be sufficient to start the revival journey and increase the level of awareness," he said. "We're working on the marketing plan now."

Kerssemakers will oversee the rollout of several critical models in 2015, including the XC90 large crossover and V60 Cross Country wagon. Volvo also plans to begin importing the S60 Inscription, a long-wheelbase sedan it unveiled at the Detroit auto show this month, to the U.S. from China.

The XC90 is well-executed and a "hugely significant statement car" for Volvo, said Stephanie Brinley, a senior analyst with IHS Automotive. She said Volvo's methodical approach since Ford Motor Co. sold the brand in 2010 could pay off down the road but that its rebound won't be quick.

IHS projects Volvo's U.S. sales to be only 80,000 units by 2020.

"They chose to kind of sit back for a while, which in the short term means lost sales and, unfortunately, some American consumers have forgotten about them as a brand," Brinley said. "The issue is it will take a little time to regain share of mind."

Kerssemakers said he realizes dealers' hands have been tied by the aging vehicles on their lots. He plans to meet with them at the end of March to lay out where the brand is headed.

"The dealers have faced a situation where they did not get fresh products in the way they were used to from Volvo," Kerssemakers said. "So we need to show them and convince them that this is coming, so that they start to invest in the brand Volvo again. Those elements should lead us to the 100,000 and to a sustainable equation."

He said it's too soon to say when Volvo could reach 100,000 units but that he hopes to have a better idea in six to eight months.

In addition to being North American CEO, Kerssemakers is now senior vice president for the Americas, with responsibility for North and South America, giving him broader authority than Nicolosi had.

Nicolosi was named president of Volvo Cars Financial Services of the Americas. Before becoming CEO of Volvo Cars of North America, initially in an acting capacity at the age of 53 in October 2013, he was head of Volvo Car Financial Services U.S.

Volvo recently shifted profit-and-loss responsibility in the U.S. to its three regions, a move that Kerssemakers said increases accountability and reduces the "number of layers between there, where the action is, and executive management."

You can reach Nick Bunkley

USA - Volvo Cars announces a progressive renewal of its entire range, and improved marketing.

• Complete renewal of entire model range in five years
• Targets sales of over 100,000 in the medium term
• Volvo CEO: “We will not only stay in the US, we will prosper”

Volvo Cars today revealed full details of its plan to revive sales in the US, which will be led by a complete renewal of its entire product range in the next five years, a renewed focus on its dealer network, world first engine and safety technologies, a new management team and increased marketing spending.

The announcement of the plan comes at the LA Auto Show, where Volvo will introduce the all-new XC90 seven seater SUV to the US and also reveal the new V60 Cross Country wagon.

The Swedish company is confident that it can reverse a 10-year trend of falling sales in the US to sell around 100,000 cars a year in the medium term, compared to around 60,000 forecast sales this year. This will bring the company's performance in the US into line with the strong sales growth it has generated in Western Europe and China.

“Volvo is in the US to stay. Not only will we stay, we will prosper,” said Håkan Samuelsson, President and Chief Executive of Volvo Cars. “We have a plan and we are implementing it. We sold over 100,000 cars a year in the US in the past. Our initial aim is to get back to that level and in the longer term surpass it.”

Volvo's US Revival Plan has five elements. They are:

• The complete renewal of the product range in the next five years which begins with the all-new XC90 and V60 Cross Country
• A full scale strengthening of the brand with a marketing budget set to double in the next year
• A focus on developing the dealer network to ensure the infrastructure is in place to support brand development and new products
• A focus on managing residual values to ensure that the company’s premium position is reflected in the long term value of its products
• A drive to improve service operations and deliver real profit opportunities to the dealer network as well as an uncompromising approach to service quality

This revival plan will be implemented by a new management team, which is already in place. It will also be underpinned by several new technologies. These include Drive-E, the most powerful and environmentally friendly engines on the market, world beating safety technologies and the latest connectivity capabilities.

The all new XC90 in LA

The US public is being offered its first look at the all new XC90 at the LA Auto Show.

The XC90 is a visually striking, premium quality seven seat SUV with world leading safety features, new powertrain technologies, an unrivalled combination of power and fuel efficiency and a superlative interior finish.

The new XC90 marks the beginning of a new chapter in Volvo’s history, capturing its future design direction, incorporating its own range of new technologies and utilising its new Scalable Product Architecture (SPA) technology.

The First Edition of the all-new Volvo XC90, 1,927 individually numbered cars only available for sale via digital commerce, sold out in 47 hours after it was released in early September 2014.

World premiere in Los Angeles: the Volvo V60 Cross Country 

In Los Angeles, Volvo Cars also showcases the long-awaited Cross Country version of its successful V60 sports wagon.

Compared to the regular V60, the V60 Cross Country has an increased ground clearance of 65 mm. Furthermore, offering new Cross Country 18” and 19” wheels, the V60 Cross Country comes with high profile tyres, adding comfort and off-road aesthetics, reducing road noise and providing added wheel protection whether climbing kerbs or negotiating rocky roads.

The US and Canada will get the first V60 Cross Country cars, and they will launch with Volvo’s iconic five cylinder 250 hp petrol engine with All-Wheel Drive coupled to an automatic transmission delivering a highly competitive 23 mpg.

Volvo’s new class-leading Drive-E four-cylinder petrol engines, which will be available in the V60 Cross Country globally in early 2015, will be the base for the Front-Wheel Drive variant, while the proven five-cylinder D4 powertrain will provide the power for the All-Wheel Drive variant.

The Cross Country brand has a long and distinguished heritage. Volvo Cars was the first premium brand to offer increased all-road capability and styling on its wagons as far back as 1997 when it introduced the V70 Cross Country, creating a whole new type of car experience that has since captured the imagination of the motoring public.

All-New XC-90 debuts enhances multi filter that improves air quality.

By introducing a larger, more efficient multi-filter in the cabin, Volvo Cars continues to refine its standard-setting CleanZone initiative. CleanZone is their unique approach to controlling interior air quality and providing a better driving environment through innovative solutions for enhanced wellbeing and health. Drivers can breathe easier because most microscopic, hazardous “fine dust” particles will now be prevented from entering the car.

The multi-filter was designed especially for the SPA platform and will first appear in the all-new XC90. It features a larger design that intercepts more particulates and pollen, as well as a layer of active charcoal that effectively removes a host of contaminants that can impact the health of drivers.

The results are impressive. In a car equipped with the new improved multi-filter, the amount of “fine dust” particles smaller than 0,4 μm can be as much as 70% less than in a car without the filter, according to a standardized component test. This is a significant improvement as studies have shown that dust particles smaller than 10 µm can cause a number of health problems, including difficulty breathing and lung infections.

“Up to 45 per cent of the industrialised world’s population is now suffering from some form of allergy or hypersensitivity. Over ten per cent has asthma. At Volvo, our commitment to safety goes well beyond safety belts and air bags. It’s about making sure that every minute you and your family spend in a Volvo is as safe as it can possibly be. That includes breathing,” says Peter Mertens, Senior Vice President Research and Development. “With this filter we are now at the forefront of the industry in terms of particle separation.”

The filter is one element of Volvo’s state-of-the-art Interior Air Quality System (IAQS). Another element is a sensor that monitors the incoming air for noxious substances. If the level of harmful substances becomes too high (such as when driving through a tunnel), the car’s air intakes will automatically close. Together, the multi-filter and sensor keep out a number of harmful and irritating pollutants, including:

• Nitrogen oxides
• Hydrocarbons
• Ground-level ozone
• Gases and unpleasant odours

The CleanZone approach

Filtering outside air accounts for only half of CleanZone’s holistic approach to improving the driver’s environment. The other half, minimizing harmful emissions within the car, is just as important. And Volvo Cars has a number of programmes in place to achieve this.

Drivers, for example, appreciate that when they unlock their cars by remote control, the remote cabin ventilation system automatically vents out the interior air within one minute, getting rid of odours and emissions before drivers enter.

But in fact, the work to minimize interior emissions begins long before the cars are even built, with strict controls on the substances that may be used inside the cars. And Volvo Cars is leading the industry in switching to new, less toxic materials with fewer harmful additives. 

Volvo Cars has also implemented a rigorous test programme to monitor and control emissions. This programme includes evaluations by the Volvo Cars Nose Team, whose members smell different objects to determine if their odour is acceptable or too strong. What is known as the ‘new car smell’ is actually low levels of emissions from materials. The levels do not present a danger but on hot days, concentrations that irritate hypersensitive people may occur.

Another aspect of the programme is the sun simulator test, in which the car is heated until the interior reaches a temperature of 65º Celsius - simulating parking in the sun on a hot summer's day. 

The emissions of Total Volatile Organic Compounds (TVOCs) and aldehydes are then measured. Volvo has a very strict limit for TVOCs, since high levels in interior air can cause headaches, nausea and dizziness – and trigger asthma. Aldehydes are also limited because they, especially formaldehyde, can cause both respiratory and contact allergies. Nickel, another source of contact allergies when released from metallic surfaces, is also minimised.

With its focus on health and well-being, CleanZone represents the spirit of Volvo Cars’ human-centric approach to its work. It’s an approach that is perfectly in sync with modern sensibilities: all around the world consumers are becoming increasingly aware of how air quality can impact health, and are now demanding cleaner air inside their vehicles. Volvo Cars will continue to lead the way.

Volvo Cars global sales up 13.4 per cent – new record in China

Volvo Car Group announces May retail sales:

Volvo Cars global sales up 13.4 per cent – new record in China

• Global sales of 40,449 cars, up 13.4 per cent versus May last year
• China sales up 60,9 per cent – new all-time-high
• Volvo Cars’ eleventh consecutive month of growth
• Year-to-date sales of 185,881 cars, an increase of 10.5 per cent versus 2013

The positive momentum continued for Volvo Cars in May with retail sales of 40,449 cars, up 13.4 per cent compared to the same month last year, driven by a strong performance in several key markets.

China set a new sales record for a single month with 7,104 cars sold in May, retaining its position as Volvo Cars’ largest market. For the first five months of the year, Volvo Cars’ sales have grown 35.2 per cent in China, in line with the company’s target of selling at least 80,000 cars in the market this year. The Volvo XC60 crossover was the best-selling model followed by the Volvo S60L sedan.

Another highlight was Sweden where Volvo Cars recorded a 21.5 per cent market share and retail sales of 6,228 cars, up 33.5 per cent from last year. Demand for Volvo cars in Sweden has been boosted by a strong product offer and two successful marketing campaigns. The first one featured football star Zlatan Ibrahimovic, followed by a campaign starring music artist Robyn focusing on Volvo’s wide range of fuel efficient Drive-E engines.

Europe as a whole also demonstrated outstanding results in May with markets such as the UK, France and Germany growing significantly. All in all, sales in Western Europe were up by 15.1 per cent in May, while sales increased by 9.6 per cent in the first five months of the year. The Volvo V40 hatchback was the best seller in Europe, followed by the XC60 crossover. The United States became Volvo Cars’ third largest market in May with 5,014 retail sold cars, down 20.6 per cent from last year. For the full year, the company expects a turnaround in the US, built on new product launches and marketing investments initiated by a new leadership team.

“I am very pleased to see that customers appreciate the new products Volvo Cars’ has put to market and we have still not rolled out all variants of the new Drive-E engine range,”, says Alain Visser, Senior Vice President Marketing, Sales and Customer Service at Volvo Cars. “I also believe that the launch activities around the all-new Volvo XC90 will further boost the interest in our brand and products”.

Retail sales status (deliveries to end customers) for Volvo Car Group is as follows:

	May				January – May
	2013	2014	Change		2013	2014	Change
China	4 415	7 104	60,9%		22 905	30 972	35,2%
USA	6 318	5 014	-20,6%		25 900	23 347	-9,9%
Sweden	4 664	6 228	33,5%		20 778	24 887	19,8%
Western Europe*	12 751	14 671	15,1%		65 552	71 868	9,6%
Other markets	7 512	7 432	-1,1%		33 044	34 807	5,3%
TOTAL	35 660	40 449	13,4%		168 179	185 881	10,5%

*excluding Sweden

The Volvo XC60 was the best-selling model in May with 11,823 sold cars (2013: 9,706), followed by the Volvo V40 and V40 Cross Country for which deliveries reached a total of 9,025 cars (7,944). The third best-selling model was the Volvo V60 with 5,480 cars (3,811).