Just as many consumers report being frustrated with the process of buying a new vehicle, many of the nation’s automobile dealers have become increasingly frustrated with their relationship with vehicle manufacturers, according to the J.D. Power and Associates 2000 Dealer Attitude Study(SM) released today.

The growing dissatisfaction among dealers is a cause for concern, as it comes on the heels of yet another record year of new-vehicle sales. The overall Dealer Satisfaction Index declined two points during the year, dropping to 88 — its lowest level since 1989 when the industry was mired in a recession.

"Dealers see their profits being squeezed on both ends," said Chris Denove, a partner at J.D. Power and Associates. "On one hand, they’re dealing with a more informed customer who is less likely to allow the dealer to make a high profit on any single vehicle. On the other hand, more than half of the dealer principals surveyed agree that manufacturers would like to eliminate dealerships and sell direct to the consumer."

Dealers also expressed their frustration over a variety of manufacturer programs that dealers see as taking away from their autonomy. These programs include tying incentives to certification programs and factory affiliated direct selling Internet sites.

Some manufacturers do a better job than others at satisfying dealers. With a Dealer Satisfaction Index score of 164, Lexus dealers are the most satisfied. By continuing to provide high-demand vehicles that generate strong profits and by addressing the specific dealer issues that are important, Lexus generates the perception that it cares about dealers.

Import manufacturers do a much better job of satisfying their dealers. While 16 out of 17 import nameplates score above industry average in the ranking, only four of the 12 domestic nameplates can make this claim. The four domestic makes scoring above the industry average are Saturn, Chrysler/Plymouth, Dodge and Jeep. With an index score of 130, Saturn is the highest-scoring domestic nameplate. GMC and Chevrolet are the most improved makes, moving up 12 points and 10 points respectively, compared to 1999 results.

Contrary to popular belief, large dealerships do not necessarily offer the lowest prices, according to Denove. "Across nearly every make of vehicle, large high-volume dealerships make higher profits per vehicle compared to small dealers," said Denove. "People forget that every dealer, regardless of size, buys vehicles from the manufacturer at the same price. I guess you could say that size matters, but in this case bigger isn’t always better for the consumer."

The J.D. Power and Associates 2000 Dealer Attitude Study is based on responses from more than 3,300 dealer principals and presents the dynamics of the dealer-manufacturer relationship. The study is independently conducted and funded by J.D. Power and Associates.

About J.D. Power and Associates

Headquartered in Agoura Hills, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on actual responses from millions of consumers annually. J.D. Power and Associates can be accessed through the Internet at www.jdpa.com.