Ford gains ground in car brand perception survey

(January 6, 2011) YONKERS, N.Y. — Consumers believe the Ford brand has gained considerable ground as perennial leader Toyota has declined over the past two years, according to Consumer Reports’ 2011 Car Brand Perception Survey.

While the two car companies are in a statistical dead heat, Ford excels in the factors that consumers say matter most: safety, quality and value.

Over a two-year period, Ford has climbed by 35 percentage points as Toyota has plummeted by 46 points. A year ago, Toyota finished only slightly ahead of Ford; Ford built on the momentum seen in last year’s study, likely the result of a model lineup with improving performance, reliability and styling.

The scores in the survey reflect how consumers perceive each brand in seven categories: safety, quality, value, performance, design/style, technology/innovation, and environmentally friendly/green. Measuring across those categories provides the total brand perception and does not directly represent the actual qualities of any brand’s vehicles.

One area where Toyota maintained a significant lead is in a category that continues to become less important to consumers: environmentally friendly/green (only 28 percent of consumers finding it an important factor). Toyota leads the category by a large margin, with a score of 46, compared to second-place Ford at 18. Without that big Toyota victory in the green category, Ford would have clearly claimed the top overall score.

The 10 most recognizable brands based on the perception of car owners are: Toyota (147), Ford (144), Honda (121), Chevrolet (102), BMW (93), Mercedes-Benz (90), Volvo (84), Lexus (69), Cadillac (66), and Subaru (50).

Honda and Chevrolet retained their third and fourth place finishes, while BMW leapt over Volvo and Mercedes-Benz to capture fifth place.

The four brands with a double-digit drop in brand perception are Toyota (-49 points), Subaru (-31 points), Chevrolet (-22 points) and Lexus (-11 points). After a 23-point jump last year, Subaru went in reverse to dip below its 2008 number.

Safety (65%), quality (57%), and value (51%) continued to be the most important factors for consumers who are considering the purchase of a new car.

These categories maintain more weight than performance (47%), environmentally friendly or green (28%), design or style (25%) and technology or innovation (17%). The only significant change was the continued decline of environmentally friendly/green, down a dozen percentage points from 2008.

Volvo (70%) is the undeniable leader in the minds of consumers in the safety category, with a dramatic 50-point advantage over second-place Ford (20%). This margin (alone) elevates the Chinese-owned brand to top 10 status overall.

Recalls over the past 18 months have put a major dent in Toyota’s hard-won public reputation as a leader in quality. Honda (25%) and Ford (23%) accelerated past Toyota (19%), as the previous year’s leader dropped 11 percentage points. Chevrolet (16%) and Mercedes-Benz (15%) rounded out the top five.

While the term "value" can be open to personal interpretation, it is clear that car buyers are looking to get the most for their money, including a good car at a good price. In terms of value, Ford (25%) edged out Honda (24%) and Toyota (23%), as the brand moved up from third place last year. Consistent with elsewhere in the survey, consumers’ perception of Toyota has dropped, while their perception of Ford has risen as Honda pulls a respectable second-place finish.

The five brands that lead the list also include Hyundai (17%) and Chevrolet (15%), which traded positions from the previous study. The year-to-year movement for most brands in the survey suggests that the rollout of new models and their associated marketing campaigns can affect consumer perception.

BMW (27%) and Porsche (21%) again claimed the top spots in the performance category. Experiencing a major improvement, climbing 8 percentage points over last year, this year the fifth spot is claimed by Audi (17%). A growing portfolio with high-performance S model variants and an R8 supercar flagship is clearly communicating that there is another performance-focused German automaker.

Ford (19%) claims third place in performance, with Toyota falling from the top five. Ford’s score has remained unchanged as Toyota has tumbled to 15 percentage points. Toyota’s high scores in past years suggest that survey respondents were reacting to more than track-based performance characteristics in their strong support for the brand. It has been a long time since the Toyota brand had a true performance car. Chevrolet (19%) again claimed the fourth position, just half a percentage point behind Ford.

Given the attention the Chevrolet Volt, Nissan Leaf, and other electrified cars are getting, one might think that environmentally friendly cars would be a market force; however the Consumer Reports’ green car survey showed that while Americans want better fuel efficiency, they are not willing to pay extra for it.

Consumers are aware that all automakers are striving to improve the fuel economy in their models, and expectations are high for the next new car purchase. This year the survey shows that leader Toyota (46%) and No. 3 Honda (17%) no longer own the “green” space. While both companies provide several hybrid models and offer other fuel-efficient vehicles, the competition is making significant strides.

Taking the second spot from Honda is Ford (18%). With the Fusion hybrid sedan and by spreading its turbocharged “EcoBoost” engines across several model ranges, Ford is delivering more power and efficiency than before. Chevrolet (12%) remained mostly unchanged year-over-year as it makes its fuel-economy push with the Cruze, Equinox, Volt, and upcoming Sonic. The fifth spot was claimed by Scion (9%), keeping Subaru out of the top five by a slight margin.

Surprisingly, Hyundai remained in the seventh spot, barely climbing 1 percentage point over last year. Based on official EPA fuel economy ratings, Hyundai would be a green factor leader. As Hyundai rolls out the Sonata hybrid, redesigned Elantra, and eventually the small Veloster, it may capture more green awareness.

Luxury brands dominated the top spots in the design/style category. Up from fifth place last year, BMW (22%) claimed the top spot, followed by Porsche (20%), Cadillac (20%) and Mercedes-Benz (18%). Interestingly, Lexus (17%) came in at the fifth spot, having dropped 6 percentage points in two years. Cadillac also took a hit, dropping 4 points from last year. Last year, Toyota had 17%, and this year it came in with just 10%. The drop in perceived styling leadership contributes to that brand’s reduced overall score. Just off our leader chart, Ford claimed 17% this year, followed by Chevrolet with 16%.

Toyota had a commanding advantage in technology, likely fueled by its hybrid powertrains and related marketing. It would seem that consumers now take the Prius for granted and potentially are not impressed with the Honda CR-Z and Insight. Ford has inched up this year, with numerous recent innovations to its credit beyond hybrid that include EcoBoost powertrains, the SYNC driver interface system and the MyFord Touch touch-screen display.

Lexus and BMW make the list, with each offering powerful, modern powertrains and advanced safety features. Just off this list is Chevrolet at 11%. With the upcoming Volt and new models in the pipeline, this is a brand to watch for next year. Despite their focus on engineering and marketing efforts heavily on high-tech features, two prestige brands that weren’t close were Infiniti (8%) and Acura (5%).