Study: Mid-cycle facelifts largely a waste of time

Consumers are far more interested in recently redesigned models than "refreshed" or "facelifted" models, according to a study released today by J.D. Power. The findings were part of the Automotive Performance, Execution and Layout ("APPEAL") study. The study found that all-new models or models that have undergone a major redesign generally receive APEAL scores that are higher than average. This is critical, since models with higher APEAL scores tend to have more satisfied owners, sell more quickly and generate more profit. "The importance of product development efforts by the OEMs can't be overstated," said Chance Parker of J.D. Power and Associates. "New designs are clearly better able to stand out in an increasingly crowded market. They tend to sell faster and generate more profit. On the other hand, minor improvements seem to go almost unnoticed. All in all, OEMs may be better served to stop spending money on many mid-cycle freshening efforts and redirect those dollars for more dramatic redesigns."





A number of all-new and redesigned models lead the model rankings for 2006. The Toyota RAV4, Hyundai Azera, Lexus IS 250/IS 350, Porsche Cayman, Ford Fusion, and Infiniti M-Series each rank highest in their segments.

Nissan has three segment-leading models, more than any other brand: Murano, Titan and Armada. Infiniti also receives two awards for the QX56 and the M-Series. Other brands with multiple awardees include Honda, Ford and Porsche.

APEAL is designed to complement the J.D. Power and Associates Initial Quality Study(SM) (IQS), which focuses on problems experienced by owners during the first 90 days of ownership. APEAL measures how gratifying a new vehicle is to own and drive. While the redesigned Initial Quality Study included a new measurement for design quality, the APEAL Study finds almost no relationship between a model's overall APEAL score and its IQS design score.

"There are basically two schools of thought among consumers in determining which new-vehicle model to buy," said Parker. "Many consumers are looking for a painless, trouble-free ownership experience, which, as we find in IQS, is certainly important. However, there is a large group of buyers who are most interested in things like comfort, style and performance. This group is often willing to put up with a few quality snags to get a vehicle they truly feel passionate about. For this group of consumers, there is more to an appealing vehicle than a lack of problems -- even a lack of design problems."

Among the models ranking highest in their respective segments in APEAL, three also received top rankings in the 2006 Initial Quality Study. They are: Porsche Cayman, Lexus IS 250/IS 350 and Suzuki Aerio. This is the first time that a Suzuki model has ranked highest in its segment in both IQS and APEAL.

Porsche, which ranked highest in the 2006 IQS, is also the highest-ranking nameplate in APEAL. Volkswagen is the most improved nameplate in APEAL.

The 2006 APEAL Study is based on responses from more than 63,000 purchasers and lessees of new 2006 model-year cars and trucks who were surveyed after the first 90 days of ownership.