Toyota Ranks Highest in Japan Dealer Satisfaction for a 13th Consecutive Year

J.D. Power Asia Pacific Reports: Dealer Expectations of Profitability in the Japanese Auto Industry are Increasingly Pessimistic

TOKYO: 30 November 2007 — Toyota ranks highest in satisfying dealers for a 13th consecutive year, according to the J.D. Power Asia Pacific 2007 Japan Dealer Attitude StudySM released today.

The study measures dealer satisfaction with vehicle manufacturers or importers and identifies dealer attitudes toward the automotive sales business. Overall satisfaction is determined by examining eight factors. In order of importance, they are: product attractiveness (31%); responsiveness to dealers (21%); sales support (13%); service relations (12%); warranty (6%); sales representatives (6%); vehicle ordering system (6%); and parts (5%).

The study finds that overall dealer satisfaction with vehicle manufacturers and importers has declined across the industry to 97 index points in 2007—down 2 points from 2006. The decrease is primarily driven by declines in two of the most influential factors impacting dealer satisfaction: product attractiveness and responsiveness to dealers. In particular, dealers are less satisfied with the supply of high-demand vehicles and the location of similarly franchised dealers.

In comparing manufacturers by origin, overall satisfaction among Japanese domestic car dealerships has declined by 2 points, while dealer satisfaction among imported car dealerships has remained stable since 2006. Specifically, a drop-off in sales in the Japanese domestic market and the closing and consolidation of distribution channels focusing on domestic vehicles has primarily driven the decline in Japanese domestic dealer satisfaction.

For a 13th consecutive year, Toyota (113) ranks highest in satisfying dealers. Mazda follows Toyota with an overall index score of 107, while Nissan (96 points), Honda (92 points) and Mitsubishi (84 points) follow Mazda in the ranking.

The study also examines dealer satisfaction with their profitability within the Japanese auto industry by measuring the percentage of dealers who report they are “satisfied” or “somewhat satisfied” with the overall well being of their business operations. In 2007, only 28 percent of dealers report they are “satisfied” or “somewhat satisfied” with profitability for the year, compared with 30 percent in 2006. Additionally, satisfaction with five-year profitability has reached an all-time low in 2007 and is down by 3 percentage points from 2006 to 33 percent in 2007.

“While Toyota dealers in particular are satisfied with the manufacturer as a whole, satisfaction with their individual franchise profitability is very low, and satisfaction with the five-year outlook is even more pessimistic,” said Atsushi Kawahashi, manager of the automotive industry group at J.D. Power Asia Pacific, Tokyo. “Some franchises are more optimistic about the present and future profitability of their individual business, but the overall decline in sales in the Japanese domestic market is clearly having an impact on dealer attitudes.”

The 2007 Japan Dealer Attitude Study is based on responses from 414 dealerships for 528 automotive franchises. The survey was conducted by mail between July and October 2007.

About J.D. Power Asia Pacific
J.D. Power Asia Pacific, established in 1990, conducts customer satisfaction research and provides consulting services in the automotive, information technology and finance industries. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at http://www.jdpower.co.jp/

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies:
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional information is available at http://www.mcgraw-hill.com/.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

Source: J.D. Power and Associates

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