One of my favorite measures in the car world is “buyer loyalty.” The data isn’t based on sentiment or an inference but on a consumer putting their money where their mouth is and purchasing a vehicle. It’s clean and presumably accurate. The results, though, are a bit surprising.
The news is so shocking and unexpected that, for the rest of today’s The Morning Dump, I’m going to take it easy and focus on news that probably won’t cause your bow-tie to comically spin around or your tophat to suddenly pop off your head.
Canada has matched America’s 100% tariff on Chinese-made EVs, and we’re now learning there was a big pushback from at least one American EV-maker. I’m guessing you know who it is. I’m also going to assume that you’ll be able to correctly decide whether or not GM’s new battery tie-up with Samsung is going to be accelerated or delayed.
And, finally, it won’t be a big shock to discover where CDK Global thinks it needs to make future investments.
The… Lincoln Nautilus Has America’s Most Loyal Non-Tesla Buyers?
I drove the Lincoln Nautilus earlier this year and found it to be a comfortable, capable vehicle with a captivating screen design. Other than where it’s built, it’s hard to make any argument against the mid-size crossover-y luxury-ish Lincoln Nautilus.
At the same time, I didn’t get a strong feeling that my life would be bereft if there was somehow never a Nautilus in it again. Apparently, that’s how many Nautilus owners feel because it is the most popular non-Tesla vehicle for buyer loyalty according to S&P Global Mobility.
And this is in a market that’s becoming more loyal:
More than half of all brands in the industry saw a year-over-year increase of 1 percentage point or better. This group included both mainstream and luxury brands, which saw increases of 1.9 and 1.4 percentage points, respectively. Growing inventory levels and a strong pipeline of return-to- market households were the primary factors in loyalty gains for the first half of 2024.
“Last year we saw a big jump in the number of households returning to market for a new vehicle, but the inventory was lacking,” said Vince Palomarez, associate director, loyalty product management at S&P Global Mobility. “This year, return-to-market volume remains consistent; however, inventory levels are up more than 40%, so households have more opportunity to remain loyal to their previous brand.”
People often move up or down from models within a brand, so model loyalty tends to be a relatively small number for everything that isn’t a pickup truck. Right now, brand loyalty overall is about 52.5%. The most loyal brand owners, by far, have been Tesla owners (67.8%). This makes sense as prices for its vehicles have dropped and little else has been particularly competitive with Tesla until very recently.
The fastest-growing brands in terms of loyalty this year have been Lincoln, Jaguar, and Land Rover. Land Rover makes a lot of sense to me, Jaguar a little less so, but Lincoln is kind of amazing. Overall, the Lincoln Nautilus has a model loyalty of 46.7%, which is an improvement over last year, when the Nautilus had a 42% return rate. The Corsair, too, has extremely loyal customers.
I think it would be easy to say that all Lincoln owners are old and thus are getting the same thing they’ve always gotten, and there’s probably some truth to that, but it’s not like Lincoln sales are slumping. Overall, brand sales were up 25% year-over-year. The one weakness in the lineup is the Lincoln Navigator, but that’s about to be replaced with a new and improved 2025 Lincoln Navigator.
Ultimately, I think this goes to prove that people will buy Chinese-built cars so long as it isn’t super obvious they are buying Chinese-built cars. My guess is a lot of owners had the Candian-built Nautilus before and are now replacing them with the Chinese-built model. Either they don’t know the Nautilus is built in China now or they don’t care.
Tesla Reportedly Wanted Canada To Backoff On Chinese EV Threat… Because Tesla Sells A Lot Of Chinese EVs In Canada
One of the quirks of Tesla is that two theoretically identical models from the same model year might have an enormous number of differences. Specifically, ongoing iterative changes, different battery cells and chemistries, and global production means that you could have a 2022 Tesla Model Y with one type of battery built in Texas and your buddy could have a 2022 Tesla Model Y with a different battery built in China.
That’s less likely in the United States, where Inflation Reduction Act-related rules disincentivize certain batteries and certain production. But Canada is a little different. The IRA had the unintended side effect of sending more Chinese-built cars to our northern neighbors. Specifically, a bunch of Chinese-built Teslas landed there.
The news that Canada was thinking about joining the USA with a 100% tariff on Chinese-built cars reportedly led Tesla to protest.
The source, who requested anonymity given the sensitivity of the situation, said Tesla approached Canada before the official announcement. The automaker asked for a rate similar to what it received in the European Union, the source said.
Tesla does not disclose its Chinese exports to Canada. However, vehicle-identification codes showed that the Model 3 compact sedan and Model Y crossover models were being exported from Shanghai to Canada.
It was worth a shot!
GM And Samsung Ink Battery Deal, Immediately Delay It
Last year the industry was still deep into the EV hype train, and GM and South Korean battery maker Samsung SDI announced a plan to build a battery-making plant via a joint venture in New Carlisle, Indiana.
The deal has been finalized and the plan is coming, with the expectation that it’ll create about 1,600 jobs. Oh, and it’s immediately delayed a year according to The Detroit News. That means the plant will now open in 2027 instead of 2026.
Here’s what Kurt Kelty, GM’s VP in charge of all things battery, had to say in a LinkedIn post:
This new $3.5 billion plant will have an initial capacity of 27 GWh, with capability to expand up to 36 GWh, building prismatic cells, which will be added to our battery technology portfolio, helping us to continue to increase performance and lower costs in the future.
The Samsung SDI joint venture paves the way for our next-generation EVs to provide customers with the latest battery technology, improving EV performance, and the ownership experience. Our new venture with SDI supplements our successful Ultium Cells JV with LG Energy Solution.
Unlike Chinese-built Teslas, these batteries are likely to qualify for IRA tax incentives. In the grand scheme of things, a delay of a year probably isn’t a huge deal.
CDK CEO: Uhh… Let’s Make Our Tech Better
CDK Global is the main provider of Dealership Management Software (DMS) in the United States. It’s worked hard over the years to make sure all of its products were deeply integrated into the running of its partner dealerships.
This backfired to some degree when CDK Global found itself the victim of a major ransomware attack that caused operations to slow down or stop at about 15,000 dealers.
CDK Global is boosting its spending on innovation and IT infrastructure in the wake of two cyberattacks in June, CEO Brian MacDonald said.
“To demonstrate CDK’s commitment and CDK’s abilities, we’re actually increasing investment,” MacDonald told Automotive News on the Aug. 28 episode of the “Daily Drive” podcast.
CDK has invested $500 million in those efforts since July 2022, when Brookfield Business Partners took the company private in an $8.7 billion deal that same year.
Ah yes, Private Equity: the solution to and cause of most of life’s problems.
It’s here that I should probably note that The Autopian is updating its tech stack tonight so there might be some weirdness in the migration. I’m aware that a few things haven’t been working perfectly around here lately. We’ve been slow to fix them as we’ve been testing out a new backend (the front end will look roughly the same) to try and make the site faster. I’m hoping that if it’s successful we’ll be able to iterate and make some overdue improvements and maybe a few design tweaks.
If it doesn’t work, I guess it’s a four-day weekend.
What I’m Listening To While Writing TMD
In honor of the Lincoln Nautilus, here’s Joe Jackson’s “Is She Really Going Out With Him?” This is also a light Mark Tucker tribute since I know Mark is a fan. This song was also used as the intro sequence music for an extremely early-aughts ABC primetime comedy. Does anyone remember the show?
The Big Question
Are you brand and/or model loyal?
“Are you brand and/or model loyal?”
None. I base my vehicle buying decisions on the merits of the given vehicle, not out of any sense of loyalty. Loyalty is reserved for my friends, family and my country.
I’m model loyal to my Honda RIdgeline. On my second one. The trunk, dual swing tailgate and roomy comfort are what draw me to it. Until somebody makes something that has those features, I don’t see an alternative. A PHEV version would be amazing.
Also, I bet most buyers of the Nautilus have no idea that they are made in China. Rational or not, I just can’t/won’t buy a Chinese made car. It is inevitable and unstoppable methinks but I just can’t…
if parsh messes with the 911’s headlamps again, screw you guys, I’m buying a Cayenne
I really like Honda due to reliability…have had problems w/ cars in the past and enjoy having a car I know will work for a daily driver. The 3 Hondas I’ve had have all been used…I don’t like their new tacked on screens. I still like a lot of different brands though, most all of them older classic models
Growing up, my parents leased a succession of three blue Taurus wagons across a decade. I never understood why they didn’t buy out one of those leases.
My wife is a Prius aficionado and would still be driving hers if it didn’t get t-boned. With the sleek new model (and reviews saying it’s actually somewhat fun to drive), we might become a Prius family.
I bought two Subarus in a row, but it just sort of worked out that way, I’m not particularly loyal to them as a brand. I’m shopping Mazdas to replace one of them. Maybe I’ll be a Mazda loyalist?
I’m model loyal. I’ve owned more Mustangs than any other car. My Buick Envision is made in China. I’m good.
I’d like to be brand loyal – except the brands I prefer keep eliminating the models that I’d like to be seen in.
This is a test comment – can I get a reply? otherwise I’ll have to create test account. Thanks!
OK. Please don’t try to sell me gutter guards.
Thanks! The notification bug ate it before I could use it, unfortunately, but I do appreciate it!
How about a Kirby vacuum cleaner instead?
Would you like a banana?
What could a banana cost? $10?
Plus $50 delivery fee…
Like others here, I’m probably more strongly brand-averse to many brands than necessarily brand-loyal.
Having said that, the good experiences myself and family have had with Toyotas lately may strongly influence my future buying choices.
“Toyota reliability” has to have some grounding in reality even if we’ve learned it’s not universal.
“Like others here, I’m probably more strongly brand-averse to many brands than necessarily brand-loyal.”
Yup… For me, I avoid VAG products along with all the other European luxury brands.
And I wouldn’t say I’d never buy one… I actually did own a Saab once in the past.
You just have to go in knowing what to expect.
If something serves me well and suits my needs, I will be a return customer. The problem is most manufacturers don’t want repeat customers, they want ‘new conquests’. An important rule in business is to remember that the least expensive customer to acquire is the one you already have. It baffles me how a company can take a successful product and completely botch it up for the next generation, turning off their existing customers. Or worse, just discontinue the whole class of vehicle people were coming to you for.
I’m looking at you VW, but it also applies to many others. Especially when you supersize a vehicle that was desirable for it’s sensible footprint.
VW has me forever nervous that something will happen to my 6MT Alltrack. I will never be able to replace it!
very likely to get another toyota or subaru again. although i am lately ford-curious. The explorer seems to be what the dr ordered something big and comfortable since i dont drive much anymore and also I would like something that can tow a utility trailer for furniture/home depot/ costco runs.
Probably a reasonable ride, but for all our sakes, please make sure you get the chrome package and preferably not white or black paint, so we can comfortably know you’re not a cop
No loyalties much anymore. GM used to kind of have a lock on reliable V8 power, then they tried to revive the 80’s cadillac 4-6-8 nightmare and well it is still a nightmare. Dodge makes more powerful hemi’s than the LS/LT….well did. and although ford seems to have gotten a bit farther past the Triton days. they still favor blown 6’s that have unacceptable sketchy longevity concerns.
still I have way more GM SBC/BBC/LS(no AFM/DFM) cars in the stable than anything else I suppose, so I guess GM is still getting some loyalty.
I was with the Mazda B-Series trucks when you could get them in the US. But on the other side I do like other automotive experiences which doesn’t really lend itself to being loyal to a specific car or brand.
Do reach out if you have concerns over that infrastructure upgrade; you know where to find me.
I liked the article but the headline was so click baity and cringe. Why bother mentioning Tesla if you were going to skip past it so fast. Regardless, at least the info was good and presented fairly well.
This was less me trying to clickbait than trying to be accurate. Tesla exists in its own weird category in this way, but if I just said “You’d never guess what the most loyal model” is a bunch of people would correct me.
All the brands I was once loyal to are dead. RIP Saab/Suzuki.
I would say I’m brand averse, but I bought a Chrysler product, and if I’m willing to take than chance on them, I’m probably willing to take a chance on anyone.
I too am a rudderless ship post Saab
Well there’s still maybe one day the NEVS Emily GT?
Just get a fighter jet and stop whining already. /s
Currently, moderately loyal to Toyota and Subaru.
My wife was very loyal to Honda and Honda was in my circle of trust with a couple other brands until we bought a 2017 Pilot. While the dealer was very good to us, the dealer service experience will only keep a customer up to a point.
The experience with the Pilot was not great though we really liked it when it worked right. Completely new A/C system (goodwill warranty), some keyless entry/security/etc module that took 6 months to replace (plus a $$$ battery from it dying in the service center’s back lot) and different keyless entry issue. The transmission cooked the fluid toasty brown in 25K miles and was likely not going to last to a ripe old age. We could see the trend in repairs and decided it was likely only going to get much more expensive. Traded it in with only 46K miles on a new Subaru.
Bought an used 8 year old Toyota Camry and looking to add another newer Toyota within a year.
My brand loyalty is to Saturn. *pours one out*
I tend to be loyal to Honda as I have had very good luck with their cars. Not really loving my wife’s 21 Pilot, but I am more of a car person.
Tried Toyota, but they lack character/soul.
I would buy another Crown Vic in a second if I could find one that was not hooptied.
Brand averse to Hyundai/Kia (engines go boom!!), Nissan (CVT go boom!!), BMW and GM (laughing as I recently bought a C6 only because there is nothing else on the market like it).
What? Twenty One Pilots are great! I dig their new albu…
(holds finger to ear)
Oh.
“I think this goes to prove that people will buy Chinese-built cars so long as it isn’t super obvious they are buying Chinese-built cars.”
Exactly this. Surprised Ford and Stellantis haven’t made an ad referencing this yet. Also will be much harder to do. Both parties seem content to keep the trade war with China going. Wouldn’t be surprised to see more drivetrains get hit with the tariff stick.
Zero brand loyalty – but as other have suggested, brand aversion (Stellantis anything). For me I pick a car based on what I need it for and what will do the best job. Except Stellantis.
The only new car I ever bought once, and then went and bought a second new one is our Model Y. Got the first one when they launched in 2020 and replaced it with a new one when they offered .99% interest this year. It was weird to just start driving the *same* car in a different color, but the overall car improved over the last four years. Build quality is up (our 2020 wasn’t even bad, honestly), and there have been evolutionary improvements that we like. First one was a Fremont car and the new one is Austin which is a new plant so the paint appears to be better as a result of newer systems.
Now, I own multiple copies of older model cars, but those were never bought new by me so while it’s brand loyalty, it’s not quite the same thing.
Not particularly brand or model/loyal, but certainly brand/model averse.
Love the Simpsons reference