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Brand Loyalty is Declining for Most Luxury Automakers

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Automakers Brand Loyalty

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Brand Loyalty is Declining for Most Luxury Automakers

New research conducted by S&P Global Mobility has found that brand loyalty—measured as the percentage of buyers that go back to the same brand for their next vehicle—is falling across the luxury segment.

In this infographic, we’ve visualized the results of this research, which spans from January 2020 to April 2022.

Brand Loyalty Losers

The following brands have all experienced a drop in brand loyalty over the time period.

For additional context, we’ve also included each brand’s score in the J.D. Power 2022 Initial Quality Study. This is measured based on the number of problems experienced per 100 vehicles (PP100) in the first 90 days of ownership.

BrandPercentage Point Change
in Brand Loyalty
PP100
🇬🇧 Land Rover-9.2193
🇩🇪 Porsche-8.5200
🇺🇸 Lincoln-7.9167
🇩🇪 Audi-7.3239
🇩🇪 Mercedes-Benz-7.0189
🇮🇹 Alfa Romeo-6.6211
🇺🇸 Cadillac-6.4163
🇸🇪 Volvo-5.3256
🇯🇵 Infiniti-5.2204
🇬🇧 Jaguar-5.1210
🇯🇵 Lexus-4.8157
Luxury average-4.5199
🇯🇵 Acura-2.7192
🇩🇪 BMW-2.3165

Land Rover experienced the biggest drop in loyalty, despite a better than average PP100 rating. One potential reason is timing⁠—the brand’s premier model, the Range Rover, has been in its fourth generation since 2012. The SUV has become relatively dated, though a new fifth generation was recently revealed for the 2022 model year.

Two Volkswagen Group brands, Audi and Porsche, also fared poorly in terms of loyalty. This is somewhat surprising, as both brands offer a portfolio of both gasoline and electric models. Many competitors, such as Acura, Lexus, and Maserati, have yet to release an EV.

Brand Loyalty Winners

Three brands have managed to buck the trend, as shown below.

BrandPercentage Point Change
in Brand Loyalty
PP100
Luxury average-4.5199
🇺🇸 Tesla+4.0226
🇮🇹 Maserati+4.3255
🇰🇷 Genesis+8.5156

We can draw parallels between Tesla and Apple, in that both have incredibly loyal followers.

For instance, between March 2021 to April 2022, 62% of buyers/households who returned to market and previously owned a Model 3 purchased a new Tesla. That’s an impressive statistic, especially when we consider Tesla’s history of build quality issues.

Maserati appears to be in the same boat. The Italian automaker has strengthened its brand loyalty by 4.3 percentage points, despite having the luxury segment’s worst PP100. Perhaps build quality matters less than we think.

Another Factor to Consider

Ongoing supply chain issues could also be contributing to wide-spread declines in loyalty. Rather than waiting several months (or in the case of EVs, years), buyers may switch to a different brand that has cars in stock.

We are still monitoring it week to week, but up to now basically worldwide, we had no issues running production.
– Joerg Burzer, Mercedes-Benz

Many automakers have reported that their supply issues are diminishing, though new economic challenges have risen. For example, surging inflation has pushed the price of a new car to record highs. Combined with rising interest rates (cost of borrowing), this could negatively impact the demand for new cars.

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History

Visualized: The 4 Billion Year Path of Human Evolution

From single cells to bipedalism, humans have come a long way. Explore the fascinating journey of human evolution in this infographic.

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The 4 Billion Year Path of Human Evolution

The story of human evolution is a fascinating one, stretching back in an unbroken chain over millions of years.

From the tiniest protocells to modern humans, our species has undergone a remarkable journey of adaptation, innovation, and survival.

In this article, we take a look at the key developmental stages in the evolution of life on Earth that led to the emergence of Homo sapiens—us!

From Protocells to People

Evolution is the result of millions of minute mutations over millions of years, but the evolutionary process that created us can bucketed into a few key categories.

Key Evolutionary Stages of Human Evolution

1. Protocells and Early Microorganisms

The first life forms on Earth were simple, single-celled microorganisms known as protocells. These precursor cells lacked a nucleus or other membrane-bound organelles, and they had simple genetic proteins called RNA.

Over time, RNA complexified into the more stable DNA. Protocells slowly developed specialized organelles, becoming more complex microbes that would eventually form eukaryotes – the complex, unicellular organisms that would birth a diverse array of life forms, from simple sponges to complex animals.

2. The First Animals

Dickinsonia is the earliest example of an animal we know of. Though it was a simple, flat creature that lacked a mouth or digestive system, it symbolizes the first multicellular organism of substantial complexity.

Over time, the first sophisticated organ systems began to arise. Bilateral symmetry emerged, as well as early versions of the nervous and circulatory systems. Simple eyes, called eyespots, also appeared around the time that spinal cords and vertebrate creatures began to emerge.

3. Fish and Tetrapods

One of the most significant developments in the evolution of life was the transition from marine to terrestrial environments.

Up until 500 million years ago, all life was sequestered in the sea. Fish were the first vertebrates and introduced additional organs like stomachs, spleens, and body components like scales, teeth, blood, and more. Bony fish arose, and over time their development brought about sophisticated changes to the skeletal system, eventually producing “proto-limbs” that would enable organisms to walk on land.

Researchers are still unsure which specific organism might have first crawled on land, but candidates share these pre-limb characteristics. Tiktaalik is one popular candidate because it had specialized bones that suggest it could support its own weight while moving out of shallow waters.

These creatures eventually became the tetrapods (“four-footed”), and they had features like four-legs, a backbone, and lungs which could absorb oxygen from air. All the amphibians, reptiles, birds, and mammals that followed are descendants of the original tetrapods.

4. The First Mammals

Around 200 million years ago, the first mammals emerged. These early mammals were small, shrew-like creatures that lived alongside the dinosaurs. Over time, however, mammals evolved hair, specialized teeth, sweat glands to regulate body temperature, and a more efficient circulatory system.

Mammals also brought about features like nocturnality, mammary glands, external genitalia, and a variety of other features that distinguished them from other living species at the time, like birds or reptiles.

5. The Great Apes and First Homo Species

Around 7 million years ago, the first great apes emerged in Africa. These apes, such as orangutans, gorillas, and chimpanzees, were highly intelligent and social creatures that lived in complex communities. Over time, one lineage of apes would give rise to the first members of the genus Homo, which includes our own species.

The main developmental changes during this time were the full-time bipedalism of apes, increasing brain size, and advanced bone development that enabled dexterity for tool construction and hunting. Inventions like fire and clothing arose early in the Homo genus, and eventually complex language, hair loss, and dramatic facial changes would evolve.

Researchers struggle with resolving the exact progression of the Homo species. Many Homo species existed at the same time, and since many fossil records overlap, resolving which ones came first is an area of intense focus.

The Future of Human Evolution

As humans continue to evolve, we can expect to see significant changes in our physical and cognitive abilities over the next 10,000 years.

With the rise of technology and the increasing interconnectedness of the world, we may see a shift towards a more globalized and homogeneous human population, with less genetic diversity.

This has been described as “The Great Averaging”, where genetic diversity minimizes and we start to become more alike.

Other theories suggest that we might develop features like a taller, lighter build, with smaller brains and a less aggressive personality.

However, as with all evolution, these changes will be shaped by a complex interplay of genetic, environmental, and cultural factors. It is impossible to predict exactly how humans will evolve over the next 10,000 years, but one thing is certain: the future of human evolution will be shaped by the choices we make today.

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