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NATIONAL AUTOMOBILE DEALERS’ ASSOCIATION Dealer Satisfaction Survey 2010 Report NAD4134 October 2010

NATIONAL AUTOMOBILE DEALERS’ ASSOCIATION … DSI 2010 Industry Report.pdf · National Automobile Dealers’ Association – NADA Dealer Satisfaction Survey 2010 1 Background The

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NATIONAL AUTOMOBILE DEALERS’ ASSOCIATION

Dealer Satisfaction Survey

2010 Report NAD4134 – October 2010

Table of Contents

1 Background ............................................................................................................................................... 1

2 Survey Results.......................................................................................................................................... 2

2.1 Report Structure ......................................................................................................................... 2

2.2 Dealer Satisfaction & Loyalty ..................................................................................................... 2

2.3 Communication & Relationships ................................................................................................ 3

2.4 Used Cars .................................................................................................................................. 3

2.5 CSI Program .............................................................................................................................. 3

2.6 Vehicle Range ............................................................................................................................ 4

2.7 Media Support ............................................................................................................................ 5

2.8 Labour Rates ............................................................................................................................. 5

3 Dealer, Customer and Investor Friendly? .......................................................................................... 10

3.1 Dealer Friendly – Questions & Weightings .............................................................................. 10

3.2 Customer Friendly – Questions & Weightings ......................................................................... 12

3.3 Investor Friendly – Questions & Weightings ............................................................................ 13

4 Overall Performance .............................................................................................................................. 14

4.1 Overall ...................................................................................................................................... 14

National Automobile Dealers’ Association – NADA

Dealer Satisfaction Survey 2010

1 Background

The National Automobile Dealers‟ Association (NADA) in South Africa has for a number of years, measured dealers‟ satisfaction with the various Manufacturers and Importers. The process began in 1996 and has grown year by year ultimately including a total of 40 brands in 2010.

The 2010 survey received results from more than 1000 Southern African dealer principals. The participating Passenger / Light Commercial Vehicle (LCV) brands were:

Audi Mahindra

BMW Mercedes Benz

Chrysler/Jeep/Dodge Mini

Citroen Mitsubishi

Daihatsu Nissan

FGASA Peugeot

Ford/Mazda Renault

GMSA SsangYong

Honda Subaru

Hyundai Suzuki

Jaguar Tata

Kia Toyota

Land Rover Volkswagen

Lexus Volvo

Now in its 15th year the results are eagerly

anticipated each year by the entire industry and are brought into sharp focus by a gala award ceremony that takes place in August.

In 2010 the survey process mainly followed the structure used in 2009. The following points are worth mentioning:

Prior to the fieldwork stage two separate consultation sessions were conducted with dealer council chairmen and manufacturers/importers respectively.

Inputs received from both parties were considered and relevant changes were made.

All dealer principals had the opportunity to take part and provide input.

The data collection method included email, fax and telephonic surveys.

Dealers were encouraged to consult with their dealer management teams on the questions and as a result answers are well considered responses.

The 2010 survey attempted to include questions relevant to the current economic climate experienced in the South African automotive industry.

This report serves to communicate the results of the passenger/LCV survey conducted. KA SMART Management Consultants (Pty) Ltd (KA SMART) have been involved with the survey since inception and have guided the evolution of the project.

2 Survey Results

2.1 Report Structure

The survey results are divided into a number of key focus areas – areas of interest to the NADA membership at large. These focus areas are:

Dealer Satisfaction & Loyalty;

Communication & Relationships;

Used Cars;

CSI Program;

Vehicle Range;

Franchise Agreements;

Vehicle Distribution;

Parts;

Warranty & Goodwill;

Franchise Compliance Audits;

Media Support;

Dealer Support – Training; and

Dealer Support – Development.

In consultation with the NADA executive all questions within each of the focus areas were categorised into Dealer Friendliness; Customer Friendliness; and Investor Friendliness.

2.2 Dealer Satisfaction & Loyalty

Two questions are rated in this section. The first question measures the Dealer Principal‟s satisfaction with the Brand. The following question was asked: “How satisfied are you with your Manufacturer/Importer?” This question is asked using a ten point rating scale with one being extremely dissatisfied and 10 being extremely satisfied.

The results are calculated using the average score per brand and is provided in Figure 1.

Following this probe dealer principals where asked whether they would provide positive referrals for their franchise to a friend wanting to buy a dealership.

Frederick Reichheld‟s Net-promoter analysis

1 is based on a similar question and

it provides an excellent basis for calculating loyalty.

The question‟s output enables the calculation of a “net-promoter score”, which is the ratio of promoters to detractors. Based on their responses on the 1 to 10 rating scale, dealer principals were grouped into “promoters” (9–10 rating – extremely likely to recommend), “passively satisfied” (7–8 rating), and “detractors” (1–6 rating – extremely unlikely to recommend).

By subtracting the percentage of detractors from the percentage of promoters a net-promoter score is arrived at. Figure 2 provides feedback on the above mentioned referral question.

84.3

%

84.0

%

83.2

%

83.2

%

83.1

%

82.1

%

81.6

%

80.5

%

80.0

%

79.6

%

78.9

%

78.4

%

77.8

%

77.0

%

76.8

%

76.8

%

76.5

%

74.8

%

74.7

%

74.7

%

72.0

%

70.0

%

70.0

%

67.1

%

63.1

%

61.7

%

57.0

%

45.6

%

National Average 2010, 74.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Hyu

nd

ai

Su

ba

ru

Da

iha

tsu

Ch

rysl

er

Jee

p D

od

ge

FG

ASA

Ssa

ng

Yo

ng

Su

zuki

Lan

d R

ove

r

Ja

gu

ar

Ho

nd

a

Vo

lksw

ag

en

GM

SA

KIA

Au

di

Re

na

ult

Me

rce

de

s B

en

z

TATA

BM

W

Vo

lvo

Toyo

ta

Lexu

s

Ma

hin

dra

MIN

I

Mitsu

bis

hi

Fo

rd M

azd

a

Citro

en

Nis

san

Pe

ug

eo

t

Figure 1“How satisfied are you with your Manufacturer/Importer?”

2009

92.7

%

89.5

%

88.2

%

86.3

%

86.1

%

85.5

%

85.4

%

85.0

%

84.3

%

83.7

%

83.7

%

83.3

%

82.3

%

82.0

%

81.9

%

81.4

%

78.9

%

76.7

%

76.7

%

74.8

%

74.7

%

73.3

%

72.4

%

70.0

%

61.5

%

60.0

%

58.0

%

47.8

%

National Average 2010, 79.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Hyu

nd

ai

Su

zuki

Lan

d R

ove

r

Ho

nd

a

Me

rce

de

s-B

en

z

Da

iha

tsu

KIA

SSA

NG

YO

NG

Toyo

ta

GM

SA

Ch

rysl

er

AU

DI

FG

ASA

SU

BA

RU

Vo

lksw

ag

en

Re

na

ult

JA

GU

AR

BM

W

LEX

US

TATA

VO

LVO

Ma

hin

dra

Fo

rd M

azd

a

Mitsu

bis

hi

Nis

san

Citro

ën

MIN

I

Pe

ug

eo

t

Figure 2“Provide positive referrals for your franchise to a friend wanting to buy a dealership?”

2009

2.3 Communication & Relationships

A key focus of the survey each year is to foster and improve communication and dialogue between the Manufacturers/ Importers and the dealers.

8 questions covered a number of aspects around communication and relationships. 4 of these questions focused on the tone of the relationship between the dealership and the Manufacturer/Importer; note the emphasised wording:

1. Communicates openly and honestly;

2. Committed to win/win solutions;

3. Leaders to behave with fairness and integrity; and

4. Values people and relationships ahead of short-term profits.

The average of these four questions, in combination provides a useful indicator of the state of the relationship between Manufacturer/Importer and dealer network. Figure 3 provides you with an accumulated view.

2.4 Used Cars

Dealers were asked whether a non-branded used car floor or a branded approved used car programme is more effective in increasing gross profits. The results are reflected in Figure 6:

2.5 CSI Program

Valuable input from the dealer council chairmen ensured that the CSI section was expanded. A greater degree of clarity and focus was introduced by dividing the CSI section into rating CSI as a measurement

86.0

84.3

84.2

83.5

83.1

82.9

81.4

80.7

78.7

78.5

78.2

78.0

76.9

76.4

75.5

74.8

74.4

73.4

73.3

73.3

72.4

70.0

70.0

67.5

66.0

63.8

53.8

52.4

Avera

ge

2010, 7

3.4

0 10 20 30 40 50 60 70 80 90 100

FGASA

Subaru

Chrysler Jeep Dodge

Hyundai

Daihatsu

SsangYong

Jaguar

Honda

TATA

GMSA

Land Rover

Suzuki

Volvo

KIA

Renault

Mercedes Benz

Audi

Toyota

Volkswagen

MINI

Mitsubishi

BMW

Lexus

Mahindra

Ford Mazda

Citroen

Nissan

Peugeot

Figure 3Communication & Relationships

2009

2010

Non Branded used car floor

41%

0%

14%

15%

20%

27%

29%

29%

31%

31%

33%

33%

34%

36%

37%

38%

39%

45.0%

46%

47%

49%

50%

50%

57%

58%

61%

65%

67%

80%

Approved Used vehicle programme

59%

100%

86%

85%

80%

73%

71%

71%

69%

69%

67%

67%

66%

64%

63%

62%

61%

55%

54%

53%

51%

50%

50%

43%

42%

39%

35%

33%

20%

Grand Total

LEXUS

SUBARU

Toyota

MINI

Mitsubishi

JAGUAR

VOLVO

SSANGYONG

Chrysler

Hyundai

Land Rover

Mercedes-Benz

FGASA

Nissan

BMW

AUDI

TATA

GMSA

Volkswagen

KIA

Renault

Suzuki

Daihatsu

Mahindra

Ford Mazda

Honda

Peugeot

Citroën

Figure 6“Which is more effective in increasing gross profit?”

versus rating CSI as a management process. Figure 5 provides some feedback regarding the cost associated with the respective CSI programmes.

Figure 7 reports on whether dealers believe that their Customer Satisfaction Program is effective as a management. Please note that Chrysler, Honda, Mahindra, SsangYong, Subaru and Suzuki were excluded from this question due to the respective Manufacturer not having a Customer Satisfaction Program at the time of the fieldwork stage.

Vehicle supply, vehicle quality and parts supply are all factors influencing CSI factors. Dealers were asked to rate the extent of the influence in Figure 8.

2.6 Vehicle Range

Dealers were asked “Does the range of vehicles available allow you to compete adequately in the market?” And if not “What do you believe is missing from the range?” Figure 6 showcases benchmarking across the dealer network on issues relating to an adequate vehicle range.

81.0

%

77.3

%

76.7

%

74.2

%

73.3

%

72.3

%

72.3

%

69.7

%

69.4

%

67.0

%

66.1

%

65.0

%

65.0

%

64.6

%

63.8

%

63.2

%

61.5

%

60.5

%

60.0

%

58.5

%

57.5

%

54.2

%

41.5

%

National Average 2010, 65.7%

0%

20%

40%

60%

80%

100%

120%

MIN

I

Hyu

nd

ai

JA

GU

AR

BM

W

SSA

NG

YO

NG

Vo

lksw

ag

en

Ho

nd

a

AU

DI

Toyo

ta

Me

rce

de

s-B

en

z

Mitsu

bis

hi

LEX

US

VO

LVO

Da

iha

tsu

La

nd

Ro

ve

r

KIA

GM

SA

Nis

san

SU

BA

RU

Re

na

ult

FG

ASA

Fo

rd M

azd

a

Pe

ug

eo

t

Ch

rysl

er

Citro

ën

Ma

hin

dra

Su

zuki

TATA

Figure 5“Are the CSI costs associated with your Manufacturer/Importer's branded approved

used vehicle programme reasonable?”

2009

Yes

86%

100%

100%

100%

100%

100%

100%

100%

100%

97%

96%

95%

95%

95%

93%

90%

85%

84.2%

81%

75%

40%

37%

31%

No

14%

0%

0%

0%

0%

0%

0%

0%

0%

3%

4%

5%

5%

5%

7%

10%

15%

16%

19%

25%

60%

63%

69%

Grand Total

FGASA

LEXUS

Mercedes-Benz

MINI

Mitsubishi

Peugeot

Renault

Toyota

KIA

AUDI

GMSA

BMW

Hyundai

Volkswagen

Land Rover

Daihatsu

TATA

Nissan

JAGUAR

Citroën

Ford Mazda

VOLVO

Chrysler

Honda

Mahindra

SSANGYONG

SUBARU

Suzuki

Figure 7“Do you believe that the current Customer Satisfaction

program is effective as a management tool?"

12.6%

12.2%

16.7%

28.7%

29.9%

0

20

40

60

80

100

120

140

160

180

1 2 3 4 5 6 7 8 9 10

Figure 8Factors Influencing CSI Levels

4.4 - vehicle supply

4.5 - vehicle quality

4.7 - parts supply

93.9

93.7

92.3

88.1

86.4

83.7

81.1

80.6

80.0

78.9

75.0

73.9

71.4

71.4

69.6

66.7

65.9

60.6

60.0

54.2

52.9

50.0

44.4

43.9

39.3

29.4

27.3

11.1

Avera

ge 2

010, 6

5.2

Audi

Volkswagen

FGASA

Hyundai

Land Rover

BMW

KIA

Mercedes Benz

MINI

Chrysler Jeep Dodge

Citroen

TATA

Mahindra

SsangYong

GMSA

Renault

Ford Mazda

Daihatsu

Subaru

Mitsubishi

Volvo

Lexus

Suzuki

Nissan

Honda

Peugeot

Toyota

Jaguar

Figure 5Adequate Vehicle Range

2009

2010

The results of the latter question are informative:

Citroen: SUV and larger sedan

Nissan: Competitive entry level vehicle

Daihatsu & Hyundai: Larger LCV range including leisure type bakkies and D/C

FGASA: SUV

Ford / Mazda: Taxi, Panel Van, Competitive SUV, small automatic

GMSA: SUV 4x4 passenger, like the Frontier

Honda: Cheap „A‟ segment entry level

Jaguar: Small, affordable entry vehicle to compete with 3-series / c-class

Mahindra: Small passenger sedan

Mini: Cheap Mini One

Mitsubishi: Single Cab bakkie

Peugeot: SUV & Family vehicles

Renault: More automatic options, Leisure bakkie range

Subaru & Suzuki: Diesel derivatives

Toyota: Small entry level, ½ Ton bakkie

VW: ½ Ton

Volvo: S60 replacement

2.7 Media Support

This section is dedicated to the marketing, advertising and public relations support provided by the Manufacturer/Importer for the respective product ranges. A ten point rating scale was used where 1 = not at all and 10 = to a large degree. The results are reflected in Figure 9.

2.8 Labour Rates In 2010 the NADA National Executive Council (NEC) took a decision to exclude the labour rates from the NADA DSi survey. Instead dealers were asked to rate the profitability of different labour rates as well as rating the flat time allowed to complete the services. Figure 10 provides feedback on what dealers believe to be a reasonable labour gross in the workshop.

Dealers were also asked to rate whether adequate compensation is provided for the time spent on the vehicle. Also included in Figure 11 is whether adequate compensation is provided for diagnostic time needed.

3.5%

8.5%

19.9%

37.9%

30.2%

0

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10

Figure 9Media Support

5.2 - Marketing Support

5.3 - Advertising Support

5.4 - Public Relations Support

3.8%6.9%

18.3%

28.5%

8.7%

0

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10

Figure 10Rate allows reasonable Labour Gross in the workshop

13.1 - Warranty Labour rate (63.0%)

13.2 - Maintenance Contract rate (65.9%)

6.6%

11.4%

18.6%

23.2%

6.0%

0

20

40

60

80

100

120

140

160

180

200

1 2 3 4 5 6 7 8 9 10

Figure 11Flat Rate Time allowed adequately compensates you...

13.3 - Actual time spent (62.7%)

13.4 - Diagnostic time needed (53.6%)

3 Dealer, Customer and Investor Friendly?

NADA determined that issues around the relationship between dealers and their respective Manufacturers/Importers can be categorised into three types:

1. Dealer Friendly

2. Customer Friendly

3. Investor Friendly

Some questions fall into more than one category and in such cases they are allocated to both groups. The net result is that there are 34 questions that measure Dealer Friendliness, 25 questions that measure Customer Friendliness and 33 questions that relate to Investor Friendliness.

NADA allocated an importance factor for each question using a 4 star system. I.e. a question of lesser importance was allocated 1 star vs. a major importance factor of 4 stars.

On this basis, for Dealer Friendliness there are 22 lone stars, 9 two stars, 1 three star and 2 four stars. By using a simple weighting amongst the Dealer Friendly questions the 1 star questions are weighted 2.0%, the 2 star questions are weighted 3.9%, the 3 star questions are weighted 5.9% and the 4 star questions are weighted 7.8% to derive a score out of 100.

For Customer Friendliness there are 16 lone stars, 6 two stars, 2 three stars and one 4 star. The 1 star questions are weighted 2.6%, the 2 star questions are weighted 5.3%, the 3 star questions are weighted 7.9% and the 4 star questions are weighted 10.5% to derive a score out of 100.

For Investor Friendliness there are 16 lone stars, 10 two stars, 3 three stars and 4 four stars giving a total score of 54. Therefore a lone star in this section is weighted 1.6% a two star is weighted 3.3% a three star is weighted 4.9% and a 4 star is weighted 6.6%.

3.1 Dealer Friendly – Questions & Weightings

83

.7

78

.8

78

.4

77

.3

76

.5

76

.4

76

.2

75

.8

75

.5

75

.3

75

.3

75

.0

74

.3

73

.7

73

.7

73

.5

72

.9

72

.1

71

.9

70

.9

70

.3

70

.1

68

.6

65

.4

62

.4

60

.7

60

.6

59

.1

Average 2010, 73.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

HY

UN

DA

I

JA

GU

AR

DA

IHA

TSU

REN

AU

LT

FG

ASA

GM

SA

LAN

D R

OV

ER

KIA

MER

CED

ES B

EN

Z

TOY

OTA

AU

DI

VO

LKSW

AG

EN

BM

W

VO

LVO

HO

ND

A

TATA

SSA

NG

YO

NG

MIN

I

LEX

US

MIT

SU

BIS

HI

CH

RY

SLE

R J

EEP

DO

DG

E

SU

BA

RU

SU

ZU

KI

FO

RD

MA

ZD

A

NIS

SA

N

CIT

RO

EN

MA

HIN

DR

A

PEU

GEO

T

“Dealer Friendly” Score

2009

2010

1.1 How satisfied are you with your Manufacturer/Importer 7.8

1.3 Provide positive referrals for your franchise to a friend wanting to buy a dealership 7.8

2.1 Communicates openly and honestly 2.0

2.2 Committed to win/win solutions 3.9

2.3 Trust their leaders to behave with fairness and integrity 2.0

2.4 Values people and relationships ahead of short-term profits 2.0

3.4 Are the CSI costs associated with your branded approved used vehicle programme reasonable? 3.9

4.2 Do you believe that the current CSI program improves your business? 2.0

4.3 Does your current CSI programme assist in improving your business? 2.0

4.8 Does your Manufacturer/Importer use CSI results to award rewards? 2.0

5.2 Does your Manufacturer/Importer provide adequate support i.e. marketing your product range? 2.0

5.3 Does your Manufacturer/Importer provide adequate support i.e. advertising your product range? 2.0

5.4 Does your Manufacturer/Importer provide adequate support i.e. public relations for your product range?

2.0

5.5 Rate the level of support you receive from your manufacturer/importer for dealer advertising programs

2.0

6.2 Your franchise agreement provide reasonable flexibility to make own decisions in running your business

3.9

7.1 Is the vehicle ordering process used, fair to all dealers 2.0

8.7 Rate the Support provided to get parts needed that are not readily available 3.9

9.3 Are warranty claims procedures clear and easy to understand? 2.0

9.4 Do you believe that warranty audits are handled fairly? 3.9

10.3 Do you believe that Franchise audits are relevant? 2.0

10.4 The Franchise audits conducted are professionally conducted 5.9

11.7 Provide effective technical training for dealer service staff 2.0

11.8 Provide effective technical training for Parts staff 2.0

11.9 Provide effective non-technical training for dealer service staff 2.0

11.10 Provide effective sales training for dealer staff 2.0

11.11 Does your Manufacturer/Importer subsidise cost for training? 2.0

11.12 Considering dealer time pressures and workload is dealer training schedule convenient 2.0

11.13 Your Manufacturer/Importer has effective strategies for vehicle financing 2.0

11.14 Support you receive from regional/area SALES manager/s add value to your dealership 2.0

11.15 Support from regional/area AFTER SALES manager/s adds value to your dealership 2.0

13.1 Does your Warranty Labour rate allow a reasonable labour Gross in the workshop? 3.9

13.2 Does your Maintenance Contract rate allow a reasonable labour Gross in the workshop? 3.9

13.3 Does your Flat rate time allowed adequately compensate you for actual time spent on the job? 3.9

13.4 Does the Flat rate time allowed - adequately compensate you for diagnostic time spent on the job? 3.9

3.2 Customer Friendly – Questions & Weightings

2.5 Makes it easy for your customers to do business with you 5.3

2.6 Sets the standard for excellence in its industry 10.5

2.7 Has a winning dealership strategy in terms of satisfying customers 7.9

4.1 Do you believe that the current CSI program is effective as a management tool? 5.3

4.4 To what degree is your customer satisfaction levels influenced by Vehicle Supply Problems 5.3

4.5 To what degree is your customer satisfaction levels influenced by Vehicle Quality Problems 5.3

4.6 To what degree Is your customer satisfaction levels influenced by poor or inadequate warranty and goodwill support

5.3

4.7 To what degree is your customer satisfaction levels influenced by Parts Supply Problems 2.6

7.2 Do you get accurate information on the progress of vehicle orders that you have placed? 2.6

7.3 Are vehicles delivered to your dealership regularly on time 2.6

7.5 When a new vehicle is launched is the vehicle allocation system used, fair to all dealers 2.6

7.6 Are you able to get enough stock to meet market demand 2.6

7.7 Are you usually able to get the right mix of vehicle models to meet market demand 2.6

8.2 Is parts availability from your Manufacturer/Importer at acceptable levels 2.6

8.3 Are parts delivered to your dealership regularly on time 2.6

8.4 Rate the Parts delivery system used by your Manufacturer/Importer 2.6

8.5 Are accessories delivered to your dealership regularly on time? 2.6

8.7 Rate the Support provided to get parts needed that are not readily available 5.3

9.1 Are they supportive when you need assistance on a customer Goodwill claim 7.9

9.2 Provide assistance for "Policy Claims" for customers eg. known defects outside warranty 2.6

11.7 Provide effective technical training for dealer service staff 2.6

11.8 Provide effective technical training for Parts staff 2.6

11.9 Provide effective non-technical training for dealer service staff 2.6

11.10 Provide effective sales training for dealer staff 2.6

11.13 Your Manufacturer/Importer has effective strategies for vehicle financing 2.6

79

.2

76

.0

75

.8

75

.5

75

.3

74

.3

71

.7

71

.1

70

.5

70

.4

69

.8

69

.0

68

.9

68

.5

68

.0

67

.1

65

.8

65

.8

65

.6

65

.1

65

.1

64

.2

61

.6

58

.2

56

.6

54

.5

52

.9

49

.6

Average 2010, 66.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

FG

ASA

HY

UN

DA

I

BM

W

MIN

I

JA

GU

AR

DA

IHA

TSU

MER

CED

ES B

EN

Z

REN

AU

LT

HO

ND

A

LEX

US

TATA

SSA

NG

YO

NG

LAN

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GM

SA

KIA

MIT

SU

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AU

DI

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AG

EN

VO

LVO

TOY

OTA

CH

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SU

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SU

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DR

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RD

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A

CIT

RO

EN

PEU

GEO

T

NIS

SA

N

“Customer Friendly” Score

2009

2010

3.3 Investor Friendly – Questions & Weightings

1.1 How satisfied are you with your Manufacturer/Importer 6.6

1.3 Provide positive referrals for your franchise to a friend wanting to buy a dealership 6.6

2.8 Attracts and retains outstanding people (employees, partners, etc.) 1.6

3.3 To what extent does a Manufacturer/Importer' branded approved used car programme add to used car gross profits?

3.3

3.7 Does the used car program assist in maintaining good used car values for the brand 1.6

3.9 Is the vehicle supply system for used vehicles from your manufacturer fairly handled? 1.6

4.2 Do you believe that the current CSI program improves your business? 1.6

4.3 Does your current CSI programme assist in improving your business? 1.6

4.8 Does your Manufacturer/Importer use CSI results to award rewards? 1.6

5.1 Does the range of vehicles available allow you to compete adequately in the market 6.6

5.5 Rate the level of support you receive from your manufacturer/importer for dealer advertising programs

1.6

6.1 Investment that you make in premises to comply with CI requirements are reasonable 3.3

6.2 Your franchise agreement provide reasonable flexibility to make own decisions in running your business

3.3

6.3 Is the cancellation clause provided for in your franchise agreement reasonable 4.9

6.4 In the event of cancellation is the notice period provided for fair and reasonable 1.6

6.5 Does your franchise agreement provide for arbitration/alternative dispute resolution 3.3

6.6 If a dealership is cancelled through no fault of its own, is there adequate compensation 4.9

7.5 When a new vehicle is launched is the vehicle allocation system used, fair to all dealers 1.6

7.6 Are you able to get enough stock to meet market demand 1.6

7.7 Are you usually able to get the right mix of vehicle models to meet market demand 1.6

8.6 Rate the Parts RETURN POLICY for aged/redundant stock used by your Manufacturer/Importer 1.6

9.4 Do you believe that warranty audits are handled fairly? 3.3

9.5 Are correctly submitted warranty reimbursement payments made on time as agreed 1.6

11.2 Do you believe that the method used to calculate interest free days are acceptable? 3.3

11.3 Provide financial assistance to purchase New Vehicle stock 4.9

11.4 Provide financial assistance to purchase required loan cars and demonstrators 1.6

11.5 Dealer margin on new vehicle sales, incl. incentives and rebates are reasonable 6.6

11.6 Gross Profit you make on parts are reasonable 1.6

11.11 Does your Manufacturer/Importer subsidise cost for training? 1.6

13.1 Does your Warranty Labour rate allow a reasonable labour Gross in the workshop? 3.3

13.2 Does your Maintenance Contract rate allow a reasonable labour Gross in the workshop? 3.3

13.3 Does your Flat rate time allowed adequately compensate you for actual time spent on the job? 3.3

13.4 Does the Flat rate time allowed - adequately compensate you for diagnostic time spent on the job? 3.3

76

.2

75

.0

70

.6

70

.5

69

.2

68

.5

68

.4

68

.4

68

.3

67

.7

67

.7

66

.9

66

.1

65

.9

65

.3

64

.1

64

.0

63

.4

63

.4

63

.3

61

.8

61

.0

59

.0

57

.9

57

.7

56

.3

55

.3

51

.7

Average 2010, 65.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

HY

UN

DA

I

FG

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JA

GU

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EN

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“Investor Friendly” Score

2009

2010

4 Overall Performance

4.1 Overall

The complete results are presented in the appendix to this report in tabular format. The overall results are reflected in the following figure:

Consistently good ratings across most questions result in Hyundai and FGASA leading the scores by a significant margin. Both the Hyundai and FGASA brands achieved an average above 75% and therefore were the only Gold award winners for the 2010 survey. The most improved brand for the 2010 survey was Honda South Africa improving with more than 15% compared to the score obtained in 2009.

KA Smart has already started working on amendments, improvements and recommendations for the 2011 survey and will be looking forward to the consultation session to be hosted in February 2011. Please note that all participating brands are welcome to join this event and feel free to contact us for more detail closer to the time.

77

.6

77

.0

73

.6

73

.6

72

.8

72

.6

71

.3

71

.1

69

.8

69

.7

69

.3

69

.0

68

.9

68

.5

68

.4

67

.7

67

.5

66

.4

66

.3

65

.5

65

.3

64

.8

61

.4

59

.3

57

.5

56

.5

55

.5

53

.6

Average 2010, 67.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

HY

UN

DA

I

FG

ASA

DA

IHA

TSU

JA

GU

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MIN

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BM

W

REN

AU

LT

MER

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EN

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GM

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KIA

LEX

US

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LAN

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ND

A

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DI

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AG

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NG

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NG

VO

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MIT

SU

BIS

HI

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SU

BA

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PEU

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Overall ScoreDealer Friendly (20%); Customer Friendly (40%); Investor Friendly (40%)

2009

2010

APPENDIX

Do you represent any other brands? Please specify which:

SECTION1

1 How satisfied are you with your Manufacturer/Importer?

SECTION 2

Strongly Agree >>

<< Strongly Disagree Strongly Agree >>

<< Strongly Disagree

… has a winning dealership strategy in terms of satisfying

customers

<<Extremely Dissatisfied

5

… makes it easy for your customers to do business with you

Strongly Agree >>

Strongly Agree >>… values people and relationships ahead of it's own short-term

profits

<< Strongly Disagree

Very Likely >>

<< Strongly Disagree

Please rate your level of agreement. Your Manufacturer/Importer ('s) …

How long have you been the Dealer Principal with this Brand?

<< Not at all Likely

Is your Dealership part of a

Dealer Group?

Strongly Agree >>

8

If you were approached by a friend who was interested in

buying/purchasing a dealership, how likely are you to provide

positive referrals for your current franchise?

Very Likely >>

Email:

If Yes; which one?

… attracts and retains outstanding people (employees, suppliers,

etc.)

%

6

<< Strongly Disagree

2

<< Strongly Disagree

… is committed to win/win solutions

Dealership Name:

Dealer Principal:

Telephone:

3 … leaders behave with fairness and integrity

<< Strongly Disagree Strongly Agree >>

Strongly Agree >>

Strongly Agree >>

… sets the standard for excellence in its industry

7

<< Not at all Likely3

Given free choice how likely are you to be working with this

franchise/brand two years from now?

1

Does your franchisor have any, direct or indirect,

shareholding in your dealership?

… communicates openly and honestly

Extremely Satisfied>>

If yes, what percentage equity

do they hold?

2

Remember throughout the questionnaire this is the

Franchisor you are reporting on.Manufacturer/Importer:

How long has this dealership been open?

4

<< Strongly Disagree

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

Yes

No

Yes

No

1 2 3 4 5 6 7 8 9 10

SECTION 5

1a If No, What do you believe is missing from the range?

3

4

SECTION 6

Does the range of vehicles available from your Manufacturer/Importer allow you to compete

adequately in the market?

<< Not at All

To a Large Degree>>

To a Large Degree>><< Not at All

To a Large Degree>>

1

4

<< No Support Great Deal of Support>>

* In answering the following questions please note that:

Please rate the level of support you receive from your

Manufacturer/Importer for dealer advertising programs?

Marketing = Brand positioning and brand promotion

Public Relations = Press and media releases for your product range

Does your franchise agreement provide for arbitration and / or alternative dispute

resolution?

5

Does your franchise agreement provide you with reasonable flexibil ity so you can make

your own decisions in running your business?

When a dealership is cancelled, through no fault of the dealership, is reasonable

compensation provided for?

3

2

Is the cancellation clause provided for in your franchise agreement reasonable?

In the event of cancellation is the notice period provided for fair and reasonable?

6

Does your Manufacturer/Importer provide adequate support i.e.

public relations for your product range?

Advertising = Advertisements produced for media and marketing material for your vehicle range

Does your Manufacturer/Importer provide adequate support i.e.

marketing your product range?

5

Does your Manufacturer/Importer provide adequate support i.e.

advertising your product range?

<< Not at All

2

Do you believe that the investment that you have to make in premises to comply with the

Manufacturer/Importers corporate identity requirements is reasonable?

1

Yes

No

Yes

No

I don't know

Yes

No

I don't know

Yes

No

I don't know

Yes

No

I don't know

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

Yes

No

I don't know

Yes

No

I don't know

SECTION 7

SECTION 8

1

SECTION 9

3a

4a

SECTION 10

On 10 point scale where 1 = Unreasonable and 10 = Reasonable,

do you believe that the Franchise audits are professionally

conducted?

Does your Manufacturer/Importer conduct Franchise compliance audits?

Does your Manufacturer/Importer provide assistance for a customer - for example; claims for

known defects that occur outside of the warranty period?

Do you order parts for your dealership from: The manufacturer/ Importer

(Please tick the appropriate box)

2

Very Supportive>>

5

A parts wholesaler or distribution hub as in the case

of some dealer groups.

Very Good >>

Is your Manufacturer/Importer usually supportive when you

need assistance on a Goodwill claim for a customer?

Using a 10 point scale, where 1 = Very Bad and 10 = Very Good,

how would you rate the parts delivery system used by your

Manufacturer/ Importer?

Using a 10 point scale, where 1 = Very Bad and 10 = Very Good,

how would you rate the support provided to get parts needed

that are not readily available?

Using a 10 point scale, where 1 = Poor Condition and 10=

Excellent Condition, how would you rate the condition of new

vehicles that arrive at your dealership?

<< Poor Condition

3 Are vehicles delivered to your dealership regularly on time?

7

2

4Excellent Condition >>

7

3

Using a 10 point scale, where 1 = Very Bad and 10 = Very Good,

how would you rate the parts RETURN POLICY/SUPPORT for

aged/redundant stock used by your Manufacturer/Importer?

<< Not at All To a Large Degree>>

Are you able to get enough stock/order opportunity to meet market demand?

<<Not Very Supportive

Are you usually able to get the right mix/order of vehicle models to meet market demand?

Very Good >>

Are accessories delivered/ordered to your dealership regularly on time?

6

Very Good >>

4

<< Very Bad

1

When a new vehicle is launched, is the vehicle allocation/order

system used by your Manufacturer/Importer fair to all dealers?

<< Very Bad

4

2

1

3 Are warranty claim procedures clear and easy to understand?

5

1

6

Do you get accurate information on the progress of vehicle orders / allocations that have been

placed?

5

<< Very Bad

Are warranty reimbursement payments, which are correctly submitted, made on time as agreed?

Do you believe that warranty audits are handled fairly?

<<Unreasonable Reasonable >>

3

Are the requirements for Franchise audits clearly stipulated

On 10 point scale where 1 = Not Relevant and 10 = Very Relevant,

do you believe that Franchise audits are relevant?

<<Not Relevant Very Relevant>>

If NO, Please indicate what procedures are not clear and easy to understand:

if NO, Please indicate what aspects of the warranty audits are NOT handled fairly?

Are parts delivered to your dealership regularly on time?

2 Is parts availability from your Manufacturer/Importer at acceptable levels?

Is the vehicle ordering / allocation process used by your Manufacturer/Importer fair to all dealers?

4

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

Yes

No

N/A

1 2 3 4 5 6 7 8 9 10

Yes

No

Yes

No

N/A

SECTION 10

SECTION 11

1a

8

10

11

12a

13a

If from date of factory/ depot gate release, does the

manufacturer provide sufficient days for "transit times/

On 10 point scale where 1 = Not Acceptable and 10 = Acceptable,

do you believe that the method used to calculate interest free

days are acceptable?

<< Never

On 10 point scale where 1 = Unreasonable and 10 = Reasonable,

do you believe that the Franchise audits are professionally

conducted?

Does your Manufacturer/Importer conduct Franchise compliance audits?

Always>>

2

Always>>

5

Does your Manufacturer/Importer provide effective technical

training for dealer Service staff?

6

3

9

4

7

Does your Manufacturer/Importer provide financial assistance

to purchase New Vehicle stock?

    Date of delivery to your dealership

    Date of factory/depot gate release

2

Always>>

<< Not Acceptable Acceptable>>

1 At what point does the Manufacturer/Importer start counting

interest free days?

(Please tick the appropriate box)

<< Never

<< Never

<< Never

<< Never

Does the support that you receive from the regional/area AFTER

SALES manager/ field staff add value to your dealership?

Always>>

Do you believe that your Manufacturer/Importer has effective strategies for vehicle financing?

Always>><< Never12

13

Does your Manufacturer/Importer provide effective technical

training for Parts staff?

<< Never

15

<< Never

What products or processes can be included to make the current strategies for vehicle financing more effective?

Always>>

<<Never

Always>>

Always>>

Always>>

Does the support that you receive from the regional/area SALES

manager/ field staff add value to your dealership?

Does your Manufacturer/Importer provide financial assistance

to purchase required loan cars and demonstrators?

<< Never

What products or processes can be included to make the current strategies for dealer training more effective?

Always>>

1

Considering dealer time pressures and workload, is the dealer

training schedule convenient?

<< Never

<<Unreasonable Reasonable >>

3

Does your Manufacturer/Importer subsidise cost for training?

14

Does your Manufacturer/Importer provide effective sales

training for dealer staff?

Does your Manufacturer/Importer provide effective non-

technical training for Service dealer service staff?

Do you believe that the Gross Profit you make on parts is

reasonable?

Are you satisfied that your average dealer margin on new vehicle

sales, including incentives and rebates is reasonable?

Are the requirements for Franchise audits clearly stipulated

Always>>

<< Never Always>>

Always>><< Never

On 10 point scale where 1 = Not Relevant and 10 = Very Relevant,

do you believe that Franchise audits are relevant?

<<Not Relevant Very Relevant>>

4

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

Yes

No

Yes

No

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

N/A

Yes

No

N/A

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

N/A

1 2 3 4 5 6 7 8 9 10

N/A

SECTION 12

1

2 If  you could choose another MOTOR franchise which one would you most l ike to have?

2a Why would you choose that Franchise?

SECTION 13

SECTION 14

2

On 10 point scale where 1 = Not enough and 10 = Adaquate time,

does your Flat rate time allowed adequately compensate you for

actual time spent on the job?

<< Not enough

Very Profitable>>2

Adaquate >>

1

On 10 point scale where 1 = Not Profitable and 10 = Very

Profitable, does your Maintenance Contract rate allow you a

reasonable labour Gross in the workshop?

4 On 10 point scale where 1 = Not Enough and 10 = Adaquate time

does the Flat rate time allowed adequately compensate you for

DIAGNOSTIC time needed for the job?

<< Not enough

3

NADA is the national body that represents the interests of all the dealers. What do you think the main priority of

NADA’s activities over the next 12 months should be?

Adaquate >>

If you were approached by another dealer who is not a NADA

member how likely are you to recommend that he/she become a

NADA member?

Finally we would like to use this opportunity to update the NADA database. Please provide the following

information:

Email:

<< Not Profitable

Parts Manager:

3

Email:

F&I or Business Manager 2: Email:

Email:

Email:F&I or Business Manager 1:

<< Very Poor

Email:Sales Manager:

<< Not at all Likely

Used Car Manager:

Excellent>>Using a ten point rating scale, where 10 = Excellent and 1 = Very

Poor; How do you rate NADA on Communication and Keeping

Dealers Informed?

Service Manager:

Very Likely >>

On 10 point scale where 1 = Not Profitable and 10 = Very

Profitable, does your Warranty Labour rate allow you a

reasonable labour Gross in the workshop?

1 << Not Profitable

4

What is the one thing your Franchisor can do to increase your loyalty to them?

Very Profitable>>

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 101 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 101 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 101 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

N/A

N/A

SECTION 15

If your answer to question 1 was yes, can you please specify at what level you are BBBEE accredited?

1 Has your company/dealership been BBBEE certified yet?

If YES, Which rating agency was used?1a

Date:Signed:

2

Yes

No

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Sample 906 33 43 19 12 34 13 86 81 28 42 9 37 22 6 15 31 10 24 68 18 38 14 10 20 23 90 63 17

2009 65.7 67.1 61.8 71.5 63.7 70.4 61.7 61.9 73.5 61.1 65.4 52.6 77.8 65.0 73.8 66.0 64.0 59.5 67.2 65.7 62.3 56.9 59.0 72.8 67.1 62.1 57.6 63.6 66.5 64.7

Overall 67.4 71.2 65.2 68.4 72.6 64.8 56.5 73.6 77.0 59.3 69.8 68.5 77.6 73.6 69.7 68.9 69.3 57.5 71.1 72.8 66.3 55.5 53.6 71.3 67.5 65.3 61.4 69.0 65.5 67.7 66.4

Dealer Friendly (20%) 73.5 75.9 70.2 75.3 74.3 70.3 60.7 78.4 76.5 65.4 76.4 73.7 83.7 78.8 75.8 76.2 71.9 60.6 75.5 72.1 70.9 62.4 59.1 77.3 72.9 70.1 68.6 73.5 75.3 75.0 73.7

Customer Friendly (40%) 66.4 71.3 64.9 65.8 75.8 65.1 54.5 74.3 79.2 56.6 68.5 70.5 76.0 75.3 68.0 68.9 70.4 58.2 71.7 75.5 67.1 49.6 52.9 71.1 69.0 64.2 61.6 69.8 65.1 65.8 65.6

Investor Friendly (40%) 65.5 68.4 61.6 67.7 68.5 61.8 56.3 70.5 75.0 59.0 67.7 64.0 76.2 69.2 68.3 65.3 66.9 55.3 68.4 70.6 63.3 57.9 51.7 68.4 63.4 64.1 57.7 65.9 61.0 66.1 63.4

1.1 How satisfied are you with your Manufacturer/Importer 74.0 81.0 71.0 77.0 74.8 83.2 61.7 83.2 83.1 63.1 78.4 79.6 84.3 80.0 77.8 80.5 72.0 70.0 76.8 70.0 67.1 57.0 45.6 76.8 82.1 84.0 81.6 76.5 74.7 78.9 74.7

1.3 Provide positive referrals for your franchise to a friend wanting to buy a dealership 79.0 85.2 74.1 83.3 76.7 83.7 60.0 85.5 82.3 72.4 83.7 86.3 92.7 78.9 85.4 88.2 76.7 73.3 86.1 58.0 70.0 61.5 47.8 81.4 85.0 82.0 89.5 74.8 84.3 81.9 74.7

2.1 Communicates openly and honestly 74.0 80.9 72.7 77.6 71.6 84.2 67.5 82.1 84.2 66.7 78.9 80.7 83.7 81.1 75.4 78.2 66.7 66.0 75.8 77.0 73.8 54.2 52.8 75.5 83.6 86.0 76.3 78.6 75.0 75.2 78.8

2.2 Committed to win/win solutions 72.8 81.0 70.1 73.3 70.2 83.2 63.3 81.5 86.9 63.6 78.8 80.0 85.0 82.2 76.2 80.5 65.0 65.3 73.2 73.0 70.0 53.4 50.6 75.0 82.1 83.0 78.9 77.8 72.4 73.5 76.5

2.3 Trust their leaders to behave with fairness and integrity 75.8 83.8 75.0 76.3 71.4 86.3 66.7 85.9 89.2 70.5 79.6 83.2 84.8 84.4 79.2 79.1 76.7 72.0 78.4 75.0 76.3 55.9 55.0 77.1 85.0 86.0 82.6 81.7 76.1 75.1 77.1

2.4 Values people and relationships ahead of short-term profits 70.8 78.4 68.8 70.6 66.7 82.9 57.5 82.9 83.8 63.2 76.7 78.9 80.5 77.8 74.9 75.0 71.7 66.7 71.9 68.0 69.6 51.8 51.1 74.5 80.7 82.0 74.2 76.5 70.2 69.5 75.3

2.5 Makes it easy for your customers to do business with you 71.7 80.4 70.4 71.8 74.4 81.6 54.5 82.9 82.3 59.1 76.2 80.0 84.8 76.7 74.9 72.3 65.0 64.0 70.3 77.8 70.8 53.7 55.9 77.5 80.7 82.0 81.1 77.8 70.6 72.4 77.1

2.6 Sets the standard for excellence in its industry 75.3 82.7 74.8 79.1 83.5 83.2 51.7 83.6 81.5 62.0 77.1 84.6 90.5 78.9 77.8 74.1 81.7 60.0 84.2 76.0 74.2 54.6 46.7 79.2 85.0 82.0 78.9 75.5 79.7 82.2 72.4

2.7 Has a winning dealership strategy in terms of satisfying customers 73.9 81.2 73.0 75.2 81.4 81.1 50.8 82.9 83.8 62.3 77.5 82.1 87.4 77.8 78.4 72.7 73.3 65.3 78.4 79.0 71.7 51.3 47.2 80.8 83.6 77.0 81.6 74.8 77.0 76.3 77.1

2.8 Attracts and retains outstanding people (employees, partners, etc.) 70.6 77.3 65.9 75.2 74.7 80.0 50.8 77.6 68.5 63.1 74.7 78.2 86.2 75.6 73.0 70.9 63.3 60.0 70.6 71.0 62.5 52.1 39.4 73.7 79.3 78.0 80.0 71.7 71.0 77.0 74.1

3.3 What extent a Man./Importer' branded approved used car programme add to used car gross profits? 62.8 72.4 57.0 73.6 73.3 67.7 57.0 42.5 56.8 63.6 73.9 50.0 62.3 60.0 80.0 70.7 68.0 65.7 57.0 40.8 47.4 64.6 57.5 73.3 73.0 60.0

3.4 Are the CSI costs associated with your branded approved used vehicle programme reasonable? 65.7 72.3 60.7 69.7 74.2 64.6 57.5 54.2 61.5 72.3 77.3 76.7 63.2 63.8 65.0 67.0 81.0 66.1 60.5 41.5 58.5 73.3 60.0 69.4 72.3 65.0

3.7 Does the used car program assist in maintaining good used car values for the brand 74.0 90.8 61.0 93.8 92.9 74.1 50.0 47.3 64.1 82.6 80.6 50.0 71.4 40.0 100.0 82.1 100.0 68.2 69.8 46.7 60.0 69.2 100.0 91.5 88.7 76.5

3.9 Is the vehicle supply system for used vehicles from your manufacturer fairly handled? 62.5 84.1 57.1 69.2 82.5 82.4 66.7 69.0 60.0 30.4 42.9 89.5 73.0 87.5 60.7 57.1 100.0 10.0 96.4 87.5 95.7 62.2 85.7 52.0 61.5 57.1 42.9 66.7 34.8 73.0 78.6

4.1 Do you believe that the current CSI program is effective as a management tool? 85.6 100.0 85.2 96.0 94.9 40.0 85.2 100.0 36.8 95.2 94.9 75.0 96.7 90.0 100.0 100.0 100.0 100.0 81.4 100.0 100.0 84.2 100.0 93.2 31.3

4.2 Do you believe that the current CSI program improves your business? 86.2 100.0 86.7 96.2 91.9 50.0 86.7 100.0 40.7 95.7 94.9 62.5 93.8 90.0 100.0 100.0 100.0 100.0 79.5 87.5 100.0 85.7 100.0 97.8 31.3

4.3 Does your current CSI programme assist in improving your business? 66.4 74.3 56.7 70.6 74.7 40.0 75.0 56.2 50.6 63.4 83.1 80.0 74.3 72.3 56.7 67.4 68.0 62.1 56.2 45.6 67.9 74.8 67.4 70.3 72.9

4.4 To what degree is your customer satisfaction levels influenced by Vehicle Supply Problems 33.2 42.7 30.0 22.8 48.1 31.1 40.0 44.7 55.4 27.5 34.8 47.1 30.5 58.9 32.8 40.5 36.7 38.5 36.5 44.0 29.6 27.8 34.4 34.7 47.7 38.8 20.5 41.4 22.4 22.7 42.5

4.5 To what degree is your customer satisfaction levels influenced by Vehicle Quality Problems 38.5 47.1 33.6 40.3 40.9 36.7 28.3 44.8 47.7 32.3 37.5 60.0 40.7 56.7 46.5 43.2 58.3 45.4 42.3 27.0 29.6 25.7 23.9 29.7 57.7 58.8 60.5 35.7 37.3 34.8 38.8

4.6 To what degree Is your customer satisfaction levels influenced by poor or inadequate warranty and goodwill support40.8 49.1 36.4 37.6 52.1 35.3 23.3 45.6 43.1 39.2 43.7 53.2 41.0 63.3 41.6 43.6 45.0 46.2 35.2 54.0 28.8 29.4 17.8 45.3 56.9 61.1 52.6 35.0 40.2 37.9 40.7

4.7 To what degree is your customer satisfaction levels influenced by Parts Supply Problems 32.0 41.5 29.8 28.4 45.1 26.8 30.0 39.1 41.5 32.9 30.6 41.4 33.3 46.7 34.7 35.0 53.3 43.1 30.6 41.0 26.3 19.3 20.0 33.2 52.5 47.8 30.0 31.0 24.0 29.7 35.6

4.8 Does your Manufacturer/Importer use CSI results to award rewards? 94.5 100.0 100.0 100.0 100.0 0.0 100.0 100.0 100.0 100.0 100.0 0.0 100.0 100.0 100.0 100.0 100.0 0.0 100.0 100.0 100.0 100.0 100.0 100.0 0.0 0.0 0.0 100.0 100.0 100.0 100.0

5.1 Does the range of vehicles available allow you to compete adequately in the market 65.2 80.9 52.1 93.9 83.7 78.9 75.0 60.6 92.3 65.9 69.6 39.3 88.1 11.1 81.1 86.4 50.0 71.4 80.6 80.0 54.2 43.9 29.4 66.7 71.4 60.0 44.4 73.9 27.3 93.7 52.9

5.2 Does your manufacturer/Importer provide adequate support i.e. marketing your product range? 72.9 79.7 66.2 75.3 73.1 82.6 71.7 79.1 46.9 66.5 66.8 60.4 90.7 64.4 80.0 77.3 71.7 53.1 81.3 67.0 65.8 66.6 55.6 80.8 80.0 50.0 80.0 78.3 78.1 79.4 66.3

5.3 Does your manufacturer/Importer provide adequate support i.e. advertising your product range? 71.2 76.6 63.8 74.5 70.5 81.1 69.2 77.4 50.8 64.6 67.8 58.9 87.9 58.9 77.5 74.5 66.0 50.7 80.3 63.0 66.3 65.6 57.8 77.4 75.7 51.0 72.1 74.8 76.7 76.4 68.2

5.4 Does your manufacturer/Importer provide adequate support i.e. public relations for your product range? 71.9 77.7 65.8 73.0 71.2 80.0 68.3 77.6 56.9 60.8 69.4 71.8 86.8 83.3 77.8 75.9 63.3 53.6 79.7 76.0 67.9 63.7 63.3 77.9 73.6 57.0 78.9 74.3 74.7 76.3 73.5

5.5 Rate the level of support you receive from your manufacturer/importer for dealer advertising programs 65.2 72.4 58.0 72.7 61.4 80.0 65.0 73.0 65.4 53.0 74.1 73.0 76.8 60.0 69.4 71.4 65.0 42.9 74.8 56.0 66.3 55.3 47.2 65.9 64.3 51.0 55.8 71.4 60.1 72.1 67.1

6.1 Investment that you make in premises to comply with CI requirements are reasonable 87.8 90.8 83.3 86.4 87.1 100.0 85.7 90.3 80.0 89.2 89.4 91.3 78.4 85.7 90.9 70.6 80.0 90.9 90.9 83.3 84.6 81.8 92.3 90.6 83.3 77.8 100.0 83.3 90.7 88.1 100.0

6.2 Your franchise agreement provide reasonable flexibility to make own decisions in running your business 88.8 94.6 87.9 89.7 96.6 93.8 88.9 87.9 91.7 87.8 94.7 80.8 80.0 100.0 89.2 72.7 100.0 100.0 72.2 100.0 92.9 85.2 93.8 94.4 91.7 88.9 94.4 94.7 85.9 90.2 82.4

6.3 Is the cancellation clause provided for in your franchise agreement reasonable 53.6 63.1 46.9 53.8 60.0 46.7 50.0 53.1 75.0 49.2 66.2 50.0 58.5 87.5 54.1 31.6 80.0 72.7 27.3 71.4 47.1 69.5 35.7 57.6 50.0 60.0 44.4 52.6 45.8 42.9 41.2

6.4 In the event of cancellation is the notice period provided for fair and reasonable 50.1 61.7 41.1 56.5 43.3 28.6 63.6 56.3 75.0 44.4 61.2 44.0 53.7 87.5 56.8 35.0 80.0 63.6 26.1 83.3 33.3 62.3 33.3 57.1 50.0 55.6 38.9 52.9 37.5 43.8 43.8

6.5 Does your franchise agreement provide for arbitration/alternative dispute resolution 49.3 59.8 40.5 40.7 29.4 50.0 83.3 45.2 76.9 41.9 58.7 44.0 61.0 85.7 54.3 33.3 80.0 50.0 39.3 57.1 42.9 66.7 56.3 62.2 33.3 40.0 33.3 50.0 40.3 43.4 25.0

6.6 If a dealership is cancelled through no fault of its own, is there adequate compensation 14.9 21.2 6.2 11.1 16.2 0.0 11.1 19.4 40.0 12.2 25.7 21.7 26.8 0.0 18.2 10.5 0.0 12.5 0.0 50.0 0.0 16.4 7.7 20.6 8.3 33.3 17.6 31.6 4.7 2.1 11.8

7.1 Is the vehicle ordering process used, fair to all dealers 67.4 85.4 66.5 78.8 69.8 89.5 75.0 76.5 92.3 39.5 66.3 96.4 75.6 87.5 70.3 72.7 50.0 92.9 90.3 80.0 83.3 38.8 64.7 68.4 78.6 90.0 57.9 69.6 62.9 66.7 64.7

7.2 Do you get accurate information on the progress of vehicle orders that you have placed? 73.7 90.7 68.2 75.0 97.7 89.5 58.3 82.4 84.6 50.0 76.5 96.4 90.5 100.0 67.6 90.9 83.3 64.3 93.3 100.0 91.3 38.8 55.6 71.1 78.6 70.0 57.9 81.8 75.3 68.9 93.8

7.3 Are vehicles delivered to your dealership regularly on time 65.3 84.2 58.4 65.6 87.8 68.4 66.7 88.2 100.0 39.3 71.8 51.9 85.7 77.8 64.9 77.3 33.3 42.9 86.7 100.0 82.6 34.8 58.8 68.4 92.9 70.0 57.9 78.3 53.9 61.0 93.8

7.5 When a new vehicle is launched is the vehicle allocation system used, fair to all dealers 70.7 79.1 70.7 75.3 73.5 79.5 72.5 80.9 79.2 57.6 70.4 80.7 81.2 78.9 71.7 70.9 68.3 72.1 79.0 85.0 75.0 51.0 68.9 73.7 73.6 79.0 81.6 77.4 66.0 70.5 72.9

7.6 Are you able to get enough stock to meet market demand 50.2 81.8 41.5 34.4 74.4 47.4 81.8 88.2 100.0 14.5 44.9 70.4 52.4 88.9 50.0 18.2 40.0 92.3 80.6 100.0 62.5 31.3 58.8 59.5 57.1 90.0 15.8 81.8 43.0 33.3 50.0

7.7 Are you usually able to get the right mix of vehicle models to meet market demand 50.8 78.9 48.1 30.3 60.5 63.2 75.0 85.3 84.6 16.9 46.2 88.9 87.8 77.8 66.7 40.9 80.0 76.9 74.2 90.0 62.5 21.2 50.0 58.3 57.1 90.0 68.4 72.7 28.9 29.5 37.5

8.2 Is parts availability from your Manufacturer/Importer at acceptable levels 70.3 81.9 66.9 75.8 85.7 73.7 54.5 77.4 92.3 76.8 61.5 82.1 87.5 66.7 69.4 68.2 100.0 69.2 63.3 70.0 73.9 36.4 72.2 81.6 84.6 50.0 64.7 82.6 67.0 68.3 70.6

8.3 Are parts delivered to your dealership regularly on time 79.4 87.5 73.9 69.7 88.1 84.2 63.6 87.5 100.0 80.5 88.2 100.0 87.5 77.8 71.4 90.9 100.0 76.9 87.1 80.0 87.5 54.7 64.7 83.8 76.9 70.0 76.5 78.3 70.5 76.7 88.2

8.4 Rate the Parts delivery system used by your Manufacturer/Importer 75.6 79.4 73.0 72.4 81.4 78.9 67.5 77.1 86.9 76.7 79.7 77.5 80.5 78.9 72.2 79.5 81.7 77.1 78.7 81.0 78.3 60.4 65.6 79.2 73.1 73.0 69.5 76.8 73.0 77.3 79.4

8.5 Are accessories delivered to your dealership regularly on time? 72.7 87.3 69.4 82.8 87.2 82.4 60.0 82.1 100.0 64.0 69.6 83.3 86.1 87.5 82.8 95.0 100.0 75.0 100.0 88.9 94.7 44.4 50.0 78.8 69.2 50.0 86.7 72.7 41.5 75.0 100.0

8.6 Rate the Parts RETURN POLICY for aged/redundant stock used by your Manufacturer/Importer 57.7 63.5 53.3 58.1 53.6 78.3 34.2 67.4 63.3 60.2 65.1 58.5 71.4 57.5 53.9 63.6 56.7 61.4 79.0 53.0 73.9 33.3 36.5 56.3 59.2 53.0 42.1 61.4 52.6 58.5 58.2

8.7 Rate the Support provided to get parts needed that are not readily available 64.4 71.5 63.7 67.0 74.7 73.2 50.0 68.1 76.9 61.4 67.1 69.3 73.3 72.2 59.2 70.5 70.0 65.7 72.8 72.0 70.4 41.0 51.1 71.1 65.4 67.0 52.1 68.3 61.9 65.5 67.1

9.1 Are they supportive when you need assistance on a customer Goodwill claim 68.4 74.5 63.9 69.7 75.8 66.3 45.8 70.7 77.7 71.3 74.6 70.4 77.8 74.4 64.2 78.2 61.7 67.7 63.7 70.0 60.8 50.3 39.4 77.6 68.5 75.0 62.6 65.9 71.3 71.0 64.7

9.2 Provide assistance for "Policy Claims" for customers eg.known defects outside warranty 77.1 84.2 65.0 56.3 83.7 73.7 54.5 80.6 100.0 78.8 86.1 82.1 81.0 88.9 83.3 90.9 66.7 57.1 61.3 90.0 66.7 63.2 38.9 94.7 84.6 75.0 63.2 82.6 82.0 75.8 82.4

9.3 Are warranty claims procedures clear and easy to understand? 91.9 96.5 89.4 87.9 69.8 94.7 83.3 93.5 92.3 95.3 96.1 96.3 97.6 100.0 97.2 90.9 100.0 92.9 96.8 50.0 95.8 92.6 76.5 97.3 92.3 100.0 84.2 91.3 95.4 87.1 94.1

9.4 Do you believe that warranty audits are handled fairly? 84.7 95.7 74.1 87.9 65.1 84.2 54.5 90.3 92.3 73.5 98.7 100.0 88.1 87.5 86.1 81.8 100.0 100.0 67.7 60.0 70.8 74.6 43.8 94.7 84.6 100.0 100.0 91.3 96.6 83.9 94.1

9.5 Are correctly submitted warranty reimbursement payments made on time as agreed 91.9 96.4 87.5 100.0 90.7 88.9 54.5 96.8 92.3 96.4 96.3 96.4 88.1 66.7 94.4 95.5 100.0 100.0 93.5 100.0 91.7 82.4 58.8 86.8 92.3 90.0 84.2 87.0 97.7 95.2 100.0

10.3 Do you believe that Franchise audits are relevant? 73.7 79.1 70.0 74.1 69.8 78.9 52.0 78.4 72.3 64.2 80.9 77.1 83.5 75.0 79.4 79.0 76.0 70.0 76.3 68.0 70.0 62.8 54.7 79.1 87.3 84.3 76.9 82.6 77.6 70.8 72.4

10.4 The Franchise audits conducted are professionally conducted 76.2 81.8 73.9 81.8 75.0 74.2 57.8 81.3 73.1 65.8 81.7 83.2 85.8 90.0 80.0 81.5 80.0 77.8 73.7 80.0 68.7 64.5 66.5 80.9 84.5 86.7 78.9 83.2 75.6 78.4 81.2

11.2 Do you believe that the method used to calculate interest free days are acceptable? 69.9 74.4 66.5 67.3 79.8 72.6 56.4 68.8 73.8 68.8 68.9 51.2 83.9 78.9 65.7 65.5 93.3 53.8 73.5 72.0 67.9 64.7 55.9 69.2 75.0 71.1 79.4 69.1 75.6 68.7 66.5

11.3 Provide financial assistance to purchase New Vehicle stock 56.7 70.6 44.2 41.2 62.3 71.7 40.8 71.3 59.2 71.8 42.9 59.6 68.0 73.3 57.1 51.4 62.0 30.7 81.3 67.0 76.3 56.3 41.1 55.9 70.0 41.1 40.5 72.9 45.5 46.6 48.8

11.4 Provide financial assistance to purchase required loan cars and demonstrators 65.0 76.1 57.9 69.1 82.8 74.2 55.8 72.7 85.4 74.0 57.4 60.7 79.3 75.6 67.3 80.0 25.0 35.7 81.3 89.0 76.7 58.5 63.3 74.2 69.3 56.7 44.1 72.3 29.0 67.1 77.6

11.5 Dealer margin on new vehicle sales, incl. incentives and rebates are reasonable 68.7 73.9 61.3 74.8 62.1 73.7 63.3 72.4 82.3 72.3 69.9 73.3 82.4 84.4 69.7 84.5 56.7 55.0 68.1 55.0 58.8 60.4 63.3 70.0 72.9 55.0 85.3 74.1 60.3 64.4 68.8

11.6 Gross Profit you make on parts are reasonable 72.8 76.7 68.9 76.6 76.7 66.3 67.5 72.4 84.6 73.8 70.4 76.5 78.1 83.3 75.0 78.2 73.3 66.9 63.2 75.0 54.2 64.2 64.4 75.4 73.1 80.0 77.8 72.9 76.4 75.0 76.5

11.7 Provide effective technical training for dealer service staff 81.8 84.5 78.7 78.2 86.5 80.6 80.8 82.7 83.1 81.8 82.7 82.9 90.0 86.7 83.2 86.4 71.7 71.5 78.3 86.0 70.4 80.9 78.3 84.5 84.6 84.0 78.9 85.0 82.8 78.5 71.8

11.8 Provide effective technical training for Parts staff 74.8 77.7 70.0 76.4 82.6 70.0 74.2 77.9 82.3 71.0 75.4 77.5 83.1 75.6 70.8 76.8 70.0 58.5 73.2 83.0 69.1 71.3 74.1 68.6 70.0 63.0 65.3 79.5 82.2 74.6 69.4

11.9 Provide effective non-technical training for dealer service staff 77.6 81.3 75.1 76.4 85.1 79.5 80.8 80.3 80.8 73.9 76.5 81.1 88.1 90.0 78.9 82.3 70.0 50.8 77.1 84.0 73.3 70.7 78.3 79.7 77.7 67.8 62.6 81.4 82.0 76.3 72.4

11.10 Provide effective sales training for dealer staff 80.6 84.9 78.9 80.0 85.1 84.7 83.3 83.9 87.7 78.7 77.3 82.8 90.7 90.0 79.2 80.5 76.7 54.6 84.3 89.0 81.3 71.8 76.7 86.3 83.6 61.0 80.0 85.0 83.8 79.5 75.3

11.11 Does your Manufacturer/Importer subsidise cost for training? 64.1 77.5 56.1 62.1 71.4 43.2 70.8 73.5 84.6 68.5 53.8 70.4 76.7 98.8 68.9 84.1 75.0 34.3 44.3 80.0 41.7 54.7 78.3 75.8 72.1 81.3 84.7 70.5 51.5 57.5 81.2

11.12 Considering dealer time pressures and workload is dealer training schedule convenient 64.2 71.8 59.1 59.4 73.7 58.9 48.3 68.2 65.4 60.8 65.9 73.5 77.3 77.8 70.6 64.1 63.3 58.5 52.0 73.0 52.9 56.1 56.1 61.1 68.5 68.0 78.4 75.2 60.1 63.3 75.3

11.13 Your Manufacturer/Importer has effective strategies for vehicle financing 93.4 100.0 88.0 100.0 100.0 100.0 100.0 90.3 85.7 95.7 92.9 83.3 93.9 71.4 96.3 64.3 100.0 71.4 100.0 100.0 100.0 94.8 84.6 91.9 91.7 0.0 100.0 94.7 90.8 100.0 92.3

11.14 Support you receive from regional/area SALES manager/s add value to your dealership 71.7 78.1 66.5 75.5 67.4 75.3 64.5 77.9 70.0 65.6 76.7 78.2 82.9 82.2 74.1 76.4 81.7 55.0 68.7 64.4 61.3 58.5 70.0 77.1 80.0 64.0 87.9 80.9 69.2 71.5 75.3

11.15 Support from regional/area AFTER SALES manager/s adds value to your dealership 73.3 78.1 66.3 77.9 78.4 67.4 50.0 75.0 81.5 76.6 81.5 69.6 84.9 75.6 72.7 65.2 78.3 62.9 60.0 77.0 58.8 60.4 46.5 80.8 75.0 74.0 69.5 80.5 75.5 77.9 74.1

13.1 Does your Warranty Labour rate allow a reasonable labour Gross in the workshop? 63.0 68.6 57.1 57.8 65.1 69.5 54.2 62.0 66.2 52.9 67.8 72.1 79.0 71.1 56.3 67.7 36.0 59.1 74.2 63.0 66.7 53.1 60.0 70.5 60.0 70.0 56.3 49.4 65.6 60.6 69.4

13.2 Does your Maintenance Contract rate allow a reasonable labour Gross in the workshop? 65.9 69.8 61.4 63.4 70.5 72.8 60.0 67.9 69.2 54.1 68.2 68.8 77.9 68.8 63.4 68.6 54.0 54.5 75.3 67.0 67.8 56.9 56.3 71.6 66.4 72.0 59.5 62.8 71.4 65.1 71.8

13.3 Does your Flat rate time allowed adequately compensate you for actual time spent on the job? 62.7 65.2 60.2 61.3 60.5 62.8 48.3 65.9 60.8 53.8 63.4 73.9 73.7 62.2 63.1 63.6 54.0 60.0 70.7 52.0 67.5 56.7 55.3 69.7 64.5 77.8 63.7 60.6 64.1 62.2 65.3

13.4 Does the Flat rate time allowed - adequately compensate you for diagnostic time spent on the job? 53.6 57.3 50.3 49.0 57.4 57.4 39.2 62.2 53.1 43.7 52.6 68.2 71.1 55.6 56.6 55.5 48.0 48.0 59.3 52.0 55.0 44.6 40.0 55.1 57.3 55.6 60.0 55.9 55.3 51.6 54.1

NADA - DSi 2010Passenger & LCV

Tel: +27 (0)41 364 0211 SMART Access: 086-11-SMART (086-11-76278) Fax: +27 (0)41 365 0959 Email: [email protected] Web: www.kasmart.co.za