Big Group Back Up, Tesla’s Quality Fade, Consumer Experience Stumbles

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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We’re ripping into the last weekend in Q2 as we talk about more CDK stores coming back online. We also cover Tesla’s slipping quality ranking from JD Power, as well as the consistent overall drop in consumer experience.
Show Notes with links:

• CDK Global is gradually restoring dealerships and a public retailer after the recent cyberattacks, with Group 1 now back online.
  • CDK Global brought a second small set of dealer customers back online on June 27, including one large public dealership group.
  • The company is continuing a phased restoration approach, focusing first on the core Dealer Management System (DMS).
  • Group 1, confirmed by Automotive News, is the large public dealer now live on the core DMS.
  • CDK is working to bring other applications, such as CRM, One Eighty, and CDK Service, back online and expects customer care channels to be active by June 28.
  • Meanwhile, major publications like the WSJ are warning consumers to bring a pen and patience if they are going car shopping this weekend adding to the mounting losses for Dealerships

• Tesla's edge in EV quality is fading as repair issues persist, according to J.D. Power's latest study as the 2024 U.S. Initial Quality Study reports Tesla's now match legacy automakers in quality, with 266 problems per 100 vehicles.
  • Last year, Tesla outperformed traditional EVs with 257 problems per 100 vehicles compared to 265 for legacy automakers. However, customer dissatisfaction is growing due to Tesla removing traditional feature controls like turn signals and wiper stalks.
  • This year, Tesla is level with other automakers at 266 per 100 vehicles
  • The broader industry shows EVs, including BEVs and PHEVs, have more issues than gas-powered vehicles, averaging 266 vs. 180 problems per 100 vehicles.
  • J.D. Power's Frank Hanley notes EV owners visit dealerships three times more often than gas vehicle owners due to severe problems and said, "It is not surprising that the introduction of new technology has challenged manufacturers to maintain vehicle quality."
    
• Customer experience in the U.S. has declined for the third consecutive year, with an average rating hitting a new low due to inflation and ineffective customer-service chatbots, according to Forrester's latest report
  • Forrester's study shows an average customer experience score of 69.3 out of 100, the lowest since 2016.
  • Scores have fallen from a peak of 72.0 in 2021.
  • Consumers are frustrated by higher costs without perceived benefits and ineffective AI chatbots.
  • Chewy, Tesla, Navy Federal Credit Union, and USAA ranked highest, while the IRS and USAJOBS.gov scored lowest.

Hosts: Paul J Daly and Kyle Mountsier
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