Owner Loyalty Bumps Tesla Ahead Of Ford

Ford Motor Company has enjoyed the highest levels of owner loyalty in the automotive industry for 12 consecutive years, but not anymore. In the battle for owner loyalty, Tesla TSLA, -2.11% has taken the crown away from its competitors.

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Owner loyalty was reduced by inventory shortages

These numbers come from the annual Automotive Loyalty Awards study conducted by S&P Global Mobility. There was more change than usual in the survey's 27th year, according to the authors of the study.

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“It appears there is an industry-wide shortage of inventory, resulting in many consumers shopping for another brand if the original brand they had chosen did not have enough stock to satisfy their needs. It is estimated that overall loyalty has decreased from 54.6% in pre-pandemic 2019 to 50.2% in 2022 as a result of the epidemic," the study authors pointed out.

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In the study, there were 11.7 million participants who bought a new vehicle of the same make, model, or manufacturer that they purchased their previous vehicle from. The data used in the study was from the calendar year 2022.

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"Owner Loyalty to Make" was awarded to Tesla.

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Tesla CEO Elon Musk made headlines in 2022 when he bought Twitter for a price of $19 billion, and analysts were beginning to wonder if the company could retain its devoted fan base. The survey conducted by S&P is based on the entire year of 2022, so any impact from the furor may not be fully reflected in the survey.

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Following a recent round of high-profile price cuts, the company has seen a surge in its stock value and sales figures as well as a revival in its stock price.

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Over the past 40 years, Ford's F, -0.50% dominance in the U.S. has been the result of its F-Series pickup, which has been the best-selling vehicle in the country for over 40 years. However, the big truck was not enough to hold off the rise of Tesla, which controls more than 60% of the expanding market for electric vehicles, which has continued to grow.

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Subaru and GM claim victories as well

For the eighth consecutive year, General Motors GM, -1.18% has won the title of "Owner Loyalty to Manufacturer". Buick, Cadillac, Chevrolet, and GMC are some of the most popular brands under the GM umbrella in the United States. In terms of owner loyalty to GM brands, no single brand could compete with Tesla when it comes to owner loyalty, but plenty of people bought a product from one brand of GM to another.

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“Gm's sport utility and pickup vehicles are consistently in demand, as well as higher levels of inventory, and this resulted in strong loyalty gains for the manufacturer throughout the year 2022,” the study's authors wrote.

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Subaru FUJHY, -0.55% won the award for "Owner Loyalty to Dealership", which means that many of the buyers went back to the same Subaru dealership where they had purchased their last car from.