Car buyers are more satisfied with American made cars than their traditionally technically superior Asian rivals. Many thought America’s rusted auto manufacturing sector was unlikely to ever catch Toyota and the other Japanese car-makers in customer satisfaction, but apparently it has happened according to a survey released Tuesday by the University of Michigan.
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It is unclear if the advances were made due to quality and reliability improvements at General Motors (GM) and Ford (F) or if it is related to Toyota’s (TM) recent spate of recalls and quality problems.
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Claes Fornell, the study’s head made the comment, “What goes up must come down, but it remains to be seen whether this is just a stumble for Toyota or a sign of something more serious, but Detroit automakers would be making a huge mistake if they think the Asians will keep falling back to them. They have to do it on their own.”
The survey asked people who bought cars within the past three years to rate their satisfaction level against their expectations. The survey questioned over 11,000 people by telephone in the spring of this year.
In the past, American manufacturers had done well due to price promotions. These aggressive tactics to maintain their top sales spot were abandoned by GM recently in an attempt to focus on quality. This method may be paying off for the company.
Despite all the good news for American manufacturers, Lexus (a Toyota luxury brand) and BMW (DE) still topped the list. However, in a study released last week, J.D. Power found Buick tied Lexus in dependability. Lexus had held the number one spot for the previous 12 years.
The survey noted this constitutes the largest single year drop in customer satisfaction for Japanese and Korean automakers since 1996.
Looking at this News from an Options Trading Perspective:
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|Covered Call Search|
|Daimlerchrysler AG||DAI||$84.49||DAIJR||07 OCT 90.0 (67)||$3.30||3.9||4.1||10.9|
|General Motors Corp.||GM||$33.32||GMIG||07 SEP 35.0 (39)||$1.20||3.6||3.7||9|
|Tata Motors Ltd.||TTM||$16.95||TTMJW||07 OCT 17.5 (67)||$0.90||5.3||5.6||9|
|Daimlerchrysler AG||DAI||$84.49||DAIJQ||07 OCT 85.0 (67)||$5.40||6.4||6.8||7.5|
|Honda Motor Co. Ltd. ADR||HMC||$33.68||HMCJG||07 OCT 35.0 (67)||$1.05||3.1||3.2||7.3|
|Ford Motor Co.||F||$8.07||FIK||07 SEP 8.0 (39)||$0.55||6.8||6.4||6.4|
|Daimlerchrysler AG||DAI||$84.49||DAIIQ||07 SEP 85.0 (39)||$4.20||5||5.2||5.9|
|Toyota Motor Corp.||TM||$117.99||TMJD||07 OCT 120.0 (67)||$3.80||3.2||3.3||5.1|
|General Motors Corp.||GM||$33.32||GMIZ||07 SEP 32.5 (39)||$2.35||7.1||4.9||4.9|
|Daimlerchrysler AG||DAI||$84.49||DAIJP||07 OCT 80.0 (67)||$8.20||9.7||4.9||4.9|
|Daimlerchrysler AG||DAI||$84.49||DAIIP||07 SEP 80.0 (39)||$7.00||8.3||3.2||3.2|
|Toyota Motor Corp.||TM||$117.99||TMJC||07 OCT 115.0 (67)||6.5||5.5||3.1||3.1|
DAI – The Daimler Chrysler trades involve the October and September $80 to $90 call options and offer 3.9% to 9.7% downside protection and 3.2% to 10.9% potential profit if the stock is above the associated strike price at the end of the option period. The stock is currently trading at $84.49. Please consult the chart for specifics on the individual trade.GM – The General Motors trades involve the September $32.50 and $35.00 call options and offer 3.6% to 7.1% downside protection and 4.9% to 9% potential profit if the stock is above the associated strike price at the end of the option period. The stock is currently trading at $33.32. Please consult the chart for specifics on the individual trade.
Competitors for GM include: Ford Motor Co. (F), Toyota Motor Corp. (TM), DaimlerChrysler AG (DCX), Genuine Parts Co. (GPC), Honda Motor Co. Ltd. ADR (HMC), Tata Motors Ltd. (TTM), and Westinghouse Air Brake Techs. Corp. (WAB).
TTM – The Tata Motors trade involve the October $17.50 call option and offers 5.3% downside protection and 9% potential profit if the stock is above the $17.50 strike price at the end of the option period. The stock is currently trading at $16.95.
Competitors for TTM include: Ford Motor Co. (F), General Motors Corporation (GM), and Maruti Udyog Ltd. (private).
HMC – The Honda Motors trade involve the October $35 call option and offers 3.1% downside protection and 7.3% potential profit if the stock is above the $35 strike price at the end of the option period. The stock is currently trading at $33.68.
Competitors for HMC include: Ford Motor Co. (F), General Motors Corporation (GM), Toyota Motor Corp. (TM), Briggs & Stratton Corp (BGG), and Polaris Industries Inc. (PII).
F – The Ford Motors trade involve the September $8 call option and offers 6.8% downside protection and 6.4% potential profit if the stock is above the $8 strike price at the end of the option period. The stock is currently trading at $8.07.
Competitors for F include: General Motors Corporation (GM), Toyota Motor Corp. (TM), DaimlerChrysler AG (DCX), Honda Motor Co. Ltd. ADR (HMC), and Tata Motors Ltd. (TTM).
TM – The Toyota Motors trade involve the October $120 call option and offers 3.2% downside protection and 5.1% potential profit if the stock is above the $120 strike price at the end of the option period. The stock is currently trading at $117.99.
Competitors for TM include: Ford Motor Co. (F), General Motors Corporation (GM), and Honda Motor Co. Ltd. (HMC).
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