Subaru, Lexus defend top spots in J.D. Power brand loyalty study

Subaru ranked highest among mass-market brands and Lexus topped the luxury brands in the 2020 J.D. Power U.S. Automotive Brand Loyalty Study released Wednesday. Subaru also ranked highest overall.

Toyota and Subaru ran neck and neck this year, with Subaru retaining 60.5 percent of its owners and Toyota following close behind at 60.3 percent. Rounding out the top five were Honda at 58.7 percent, Ram at 57.3 percent and Ford at 54.3 percent.

Brand loyalty is increasing among new-vehicle owners, the study found. Tyson Jominy, vice president of data and analytics at J.D. Power, said automakers have ramped up efforts to maintain customer loyalty during the coronavirus pandemic.

"Automakers are really focused on customer retention, as evidenced by payment plans and incentives they've offered since the COVID-19 pandemic broke out," he said. "Many have gone above and beyond to offer customers financial assistance during a period of economic uncertainty, which does a lot to bolster consumer confidence in their chosen brand and repurchase it in the future."Subaru again earned strong loyalty scores despite low quality scores in other surveys. Last year, Subaru ranked in the bottom tier of J.D. Power's Initial Quality Study with 113 problems per 100 vehicles. This year, it remained near the bottom of the list with 187 problems per 100 vehicles.

Aside from Ram, Ford and Chevrolet, which held its No. 7 spot, other domestic automakers on the list included Buick at 27.5 percent and Dodge at 17.8 percent.

On the luxury side, rankings largely remained the same as last year's, with Lexus topping the list at 48 percent and Mercedes-Benz and BMW following at 47.8 percent and 45.1 percent.

Results are based on transaction data from June 2019 through May 2020. The study includes all model years that were traded in. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when trading in or purchasing a new vehicle.