GM’s Cadillac Drives More Buyers Back

General Motors Corp.’s Cadillac generates more owner loyalty in the U.S. than any other vehicle brand, and all three U.S. auto makers enjoy more buyer loyalty than does any major foreign car company, a new study reports.

Of all the people who bought new Cadillacs in 1995, 43% bought or leased a Cadillac when they next entered the market, the study by R.L. Polk & Co. says. That is the highest rate of return buyers of any brand, Polk said.

Polk analyzed data on 3.7 million U.S. households that bought new 1995 model year cars or trucks.

GM also garnered the most loyalty among manufacturers, with about 67% of GM-owning households buying or leasing another GM car or truck.

Ford Motor Co. was second among manufacturers with a score of 63%, while Chrysler was third with 49% returning to buy the company’s vehicles. All three U.S. auto makers scored higher than foreign auto companies, Polk said, though it didn’t disclose the foreign companies’ scores.

Ford captured the top spot in four of the nine categories studied, the most of any company. Ford’s winners included three truck models.

The study is likely to be well-read among automotive industry executives, many of whom regard generating customer loyalty as increasingly critical to success.

The keys are maintaining good relationships with customers as well as providing the right product, said Karen Piurkowski, Polk’s managing director of research products.

“The most important factor has to be building up a relationship with the customer,” Piurkowski said. “Any point of contact has to be positive.”

A negative experience with a vehicle or dealership is likely to drive customers to another manufacturer, she said.

“You have to treat them right through the entire period” they own the car or truck, she said.

Cadillac also benefits from its strong brand image, its luxury car market niche and its high percentage of leasing, which tends to build loyalty, she said.

Polk revamped the study this year to include truck sales and leasing. Honda Motor Co. had finished in several of the top categories in past years, Piurkowski said. It’s the first year Cadillac placed first overall, she said.

Cadillac is the most popular luxury car in the U.S., with 1995 sales of 180,504 units, down 14% from 1994’s 210,686. That’s part of a trend of slower sales among traditional luxury car makers.

The car maker is introducing a new model this fall, the 1997 Catera, in an attempt to enliven its image and attract younger customers who might be more inclined to buy a Japanese or European luxury car.

Cadillac is “extremely pleased” about the study’s results, said General Manager John Grettenberger.

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Loyal Owners

Highest loyalty rankings by category were as follows:

Large car: Mercury

Mid-size car: Subaru

Small car: Saturn

Luxury import car: Lexus

Minivan: Mercury

Pickup truck: Ford

Sport-utility vehicle: Ford