Survey: Toyota down, Ford and Honda up in brand loyalty

Car owners are generally a brand-loyal group, though repeated surveys conducted over the past few months show that Toyota's highly visible problems with quality and safety have shaken and rearranged the competitive landscape. The once dominant automaker that led in brand loyalty in our December 2009 Brand Perceptions survey continues to lose ground, primarily to Ford and Honda, according to new findings by the Consumer Reports National Research Center.

Since December, there have been no changes in the rank order of the top four makes that respondents said they drive most often, nor for the make of the next prospective new car--often from another brand. However, when it comes to loyalty— will the car owner buy a new model from the same brand?— consumer preferences continue to shift.

To gauge how the volatile automotive market is changing brand preferences, the Consumer Reports National Research Center conducted a telephone survey using a nationally representative probability sample of households. In April, 1,704 interviews were completed among adults whose household owns at least one vehicle.

Which automakers lead in brand loyalty?
To assess brand loyalty, we focused only on the five most popular makes the survey respondents say they currently drive: Chevrolet, Dodge, Ford, Honda, and Toyota.

Honda is the brand with the highest loyalty, with 68 percent of current owners likely to purchase another Honda for their next new car.

Ford has the next most-loyal owner base at 61 percent. This marks a notable 10 percentage point increase from just two months ago for the Blue Oval. Because of this increased loyalty, Ford bumped Toyota from its position as the brand with the second-most loyal customers.

Since December, Toyota has seen its brand loyalty decrease 13 percentage points, although the company still stands in a strong third place with 57 percent of owners saying they'll buy another. Between December and February, Toyota's loyalty dropped 10 percentage points. But the trend appears to be slowing, as the company has seen just a 3 percentage point drop since our February survey. (Note that this survey was conducted just prior to the Lexus GX 460's being given a " Don't Buy: Safety Risk" designation based on Consumer Reports testing. A fix has since been developed by Lexus and a recall is underway.)

Meanwhile, Chevrolet's and Dodge's loyalty continue to slide, from 57 and 32 percent, respectively, in the December survey to 52 and 28 percent in February and 49 and 24 percent in our April survey.

The chart below shows how the top brands scored and details the percentage of current owners who feel they will most likely buy a new car from the same brand next time they are in the market. It compares findings from other, recent surveys conducted by the Consumer Reports National Research Center.

BRAND	APRIL 2010	FEBRUARY 2010	DECEMBER 2009
Honda	68%	62%	67%
Ford	61	51	58
Toyota	57	60	70
Chevrolet	49	52	57
Dodge	24	28	32

To understand how consumers apply their brand perceptions, we asked when considering a new car to purchase, whether brand or car reputation was more important. Slightly more than half (54 percent) of vehicle owners said that the overall reputation of the brand is the leading factor motivating the choice of a new car purchase; this preference was relatively consistent across all demographic segments. Fewer respondents at 39 percent said that the reputation of the specific car model under consideration was most important.

Car brand reputation clearly carries much sway with shoppers, though a large number of consumers can look past the company to focus on a specific model. We advise that car shoppers focus on buying the best car for their needs and budget based on research--not just reputation. Each year, we see through our car reliability survey and our testing that all automakers have some models that are better than others. But over time, performance can change. A few minutes of research can help identify the models that excel in the qualities that matter most to you.

See our new-car ratings and car-buying advice.

Also read:
Survey: Toyota crisis taking its toll on brand loyalty?
Consumer Reports 2010 Car Brand Perception Survey

— Jeff Bartlett with the Consumer Reports National Research Center