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Car Shoppers Confident in 'New' General Motors, Reports Kelley Blue Book Market Intelligence

Half of Surveyed KBB.com Consumers Think GM is a Different Company Today Compared to Five Years Ago

IRVINE, Calif., July 31, 2014 /PRNewswire/ -- KBB.com survey data found 50 percent of new-car shoppers think GM is a different company today compared to five years ago, while only 24 percent of new-car shoppers believe the 'old' GM still exists1, reports Kelley Blue Book www.kbb.com, the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. 

Percent of New-Car Shoppers that Think GM is a Different Company Today than It Was Five Years Ago1

Yes

50%

No

24%

Unsure/Don't Know

26%

"Despite challenges with the recall announcements, General Motors CEO Mary Barra has successfully positioned the brand in a positive light, as evidenced by Kelley Blue Book's survey results showing half of new-car shoppers think GM has changed in recent years," said Tony Lim, director of research for Kelley Blue Book's KBB.com. "By reinforcing the message of the 'new' GM and distancing itself from the 'old,' Barra can continue to effectively distinguish the company from its past."

The survey data also revealed more than a quarter of new-car shoppers think GM is being proactive and transparent regarding the recalls.1

"GM initiated the ignition switch recall versus having it ordered by the government, and the company's proactive stance taken in the areas of vehicle safety oversight and victim compensation has enhanced the automaker's image despite the high number of recalled models," said Karl Brauer, senior analyst for Kelley Blue Book's KBB.com. "GM is suggesting to consumers it is more transparent about quality and the safety of its owners."

However, U.S. car buyers continue to question GM's product quality, as the survey indicates mixed feelings regarding the manufacturer's ability to make more reliable vehicles today than it did five years ago. Only 39 percent of surveyed new-car shoppers think that GM's current products are more reliable when compared to five years ago.

Percent of New-Car Shoppers that Think GM is Making More Reliable Vehicles than Five Years Ago1

Yes

39%

No

32%

Unsure/Don't Know

29%

"High-profile recalls will put pressure on views of quality and reliability for any brand, and while many consumers think GM is a different company today, inevitably perceptions of product unreliability still exist," said Lim. "GM can overcome these challenges and change perceptions by focusing efforts on new-vehicle launches and commitment to innovative in-vehicle technology."

For more information and news from Kelley Blue Book's KBB.com, visit www.kbb.com/media/, follow us on Twitter at www.twitter.com/kelleybluebook (or @kelleybluebook), like our page on Facebook at www.facebook.com/kbb, and get updates on Google+ at https://plus.google.com/+kbb.

1 KBB.com Recall Survey, May 24, 2014July 1, 2014.

About Kelley Blue Book (www.kbb.com)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides the most market-reflective values in the industry on its top-rated website KBB.com, including its famous Blue Book® Trade-In and Suggested Retail Values, and Fair Purchase Price, which reports what others are paying for new cars this week. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book's KBB.com ranked highest in its category for brand equity by the 2014 Harris Poll EquiTrend® study and has been named Online Auto Shopping Brand of the Year for three consecutive years.  Kelley Blue Book Co., Inc. is a Cox Automotive company.

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SOURCE Kelley Blue Book

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