Majority of new-car shoppers unaffected by GM recall, Kelley reports

(May 1, 2014) IRVINE, Calif. — Despite General Motors' recent recalls, Kelley Blue Book survey data found consideration among the majority of shoppers remains unaffected.  The survey data also revealed only 5 percent of new-vehicle shoppers say the recent GM recall caused them not to consider purchasing a Chevrolet, Cadillac, GMC or Buick model.  

"Shoppers are willing to forgive, but not forget," said Arthur Henry, analyst for Kelley Blue Book.  "Most likely, GM is maintaining its shopping traffic on KBB.com from buyers who are looking to capitalize
on any deals that may be offered or because none of the current recalled vehicles are a part of manufacturer's current product portfolio."

Among new-vehic
le shoppers, there is strong awareness of Toyota and General Motors recalls.  KBB.com survey data revealed 48 percent of respondents remembered a Toyota recall and 40 percent heard about a GM recall this year.

While car shoppers are aware of major recalls on Toyota and GM models due to their publicity in the media, consumers are still shopping those brands on KBB.com.  Chevrolet's traffic on KBB.com grew 25 percent year-over-year and the brand saw a short-term dip of 14 percent from December 2013 to April 2014, which can be attributed to news of the recall.2  This confirms Chevrolet is benefitting from recent high-profile vehicle launches, including the all-new 2014 Corvette, Impala and Silverado.

These models are helping the automaker remain top-of-mind among shoppers despite recalls on older, discontinued models.

"Whatever negative connotations GM has suffered from the recent recalls is minor when compared to the growing consumer interest the company has generated with its current line of compelling product," said Karl Brauer, senior analyst for Kelley Blue Book.

Even though Chevrolet is maintaining its overall stride in KBB.com share of traffic, the perception of Chevrolet's reputation has declined from the first quarter of 2013 to the first quarter of this year, sitting below the average among non-luxury brands like Honda and Ford, according to survey data.  This further suggests consumers are being won over by Chevrolet's existing model offerings, regardless of the latest hit to its reputation.