jd power_new feature and demand

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J.D. Power and Associates Reports:

Conflicting Demands of Consumers and Lawmakers

Create Huge Opportunities for Automotive Technology Providers

Application of New Technology in Vehicles Has Become a Critical Success Factor for Automakers

WESTLAKE VILLAGE, Calif.: 27 May 2011 As state and local governments are enacting distracted-driverlaws, consumers are increasingly looking for technology solutions to legally and safely make calls, get directionsor check email while driving, according to the J.D. Power and Associates 2011 U.S. Automotive EmergingTechnologies StudySM released today.

The study measures consumer interest and purchase intent for emerging automotive technologies, both before andafter market price is revealed.

With government-imposed restrictions on the use of handheld phones while driving, the onus is on the automakersand their technology partners to find simple and effective solutions that will keep consumers happy while stayingwithin the law. Technology providers that can best enable consumers to stay informed, connected and securewhile driving stand to gain the most. Automakers may benefit from this new environment, but also take the riskthat a suboptimal solution will create consumer dissatisfaction, damage their brand reputation and reduceconsumer loyalty.

The key for automakers and suppliers regarding hands-free technology, as with most technologies, is to integrateit into the vehicle in a way that is easy to understand and operate, yet sophisticated enough to handle all of the

tasks that drivers expect, said Mike VanNieuwkuyk executive director of global vehicle research at J.D. Powerand Associates. The engineering is extremely complex, but the driver interface has to be simple.

The vast majority (86%) of smartphone owners indicate that they use their device while in their vehicle. The twomost common activities are making or receiving calls and getting directions. When given the opportunity to selectwhich of 21 technologies included in the study they would like to have on their next vehicle at their respectivemarket prices. Wireless connectivity systems receive the third-highest level of interest (50%) among thetechnologies included in the study. Additionally, interest in this feature remains fairly strong across all agegroups, with a high of 57 percent of 18-25 year olds and a low of 43 percent of 57-65 year olds expressing aninterest after theyve seen the price tag.

Consumers want to make use of their smartphones while driving, and most are willing to pay for the technology

that enables this, said VanNieuwkuyk.


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Interest after market price is revealed

Remote vehicle diagnostics 55%

Non-branded premium sound system 52%

Wireless connectivity system 50%

Rear-vision camera system 46%

Blind spot detection 45%

Consumers also show great interest in technologies they perceive will keep them safe. Features such as remotevehicle diagnostics, which provide owners with vital information on the performance and health of their vehicle,as well as rear-vision camera systems and blind spot detection receive among the highest levels of interest afterthe market price for each feature is revealed.

Technologies that can help prevent accidents by informing consumers of potential hazards that cannot easily beseen from the drivers seat are well received, said VanNieuwkuyk. These features allow consumers to stayfocused on the road and drive with confidence.

The study also finds the following trends:

Given a market price of $200, nearly 60 percent of consumers who own a portable digital music playerwould like to integrate the player through their vehicles controls and display.

Among vehicle owners currently in a free trial period for satellite radio, 54 percent indicate they aredefinitely or probably interested in having the technology in their next vehicle at the market price of$12.95 per month.

Forty-five percent of smartphone owners are interested in technology that would enable them to use theirphone as a remote control to start their vehicle, unlock the doors or open the trunk via a smartphone appat the market price of $300.

Among portable navigation system owners, 44 percent express interest in a $200 portable navigationdevice interface, which enables the system to integrate with the vehicles display.

The 2011 U.S. Automotive Emerging Technologies Study is based on responses from nearly 18,000 vehicleowners. The study was fielded in May 2011. The study includes 21 primary technologies, each with relatedsecondary technologies; analyses on device connectivity, navigation, safety and premium sound systems; a keyemerging technologies packaging exercise; an emerging technologies adoption calculator; and expandedpsychographic and lifestyle-driven content.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information servicescompany providing forecasting, performance improvement, social media and customer satisfaction insights andsolutions. The companys quality and satisfaction measurements are based on responses from millions ofconsumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phoneratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill

Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education companythat helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard &Poors, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates. TheCorporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were$6.2 billion. Additional information is available at http://www.mcgraw-hill.com.


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Media Relations Contacts:

Angela Bianchi; J.D. Power and Associates; Troy, Mich.; (248) 312-4729; [email protected]

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

No advertising or other promotional use can be made of the information in this release without the express priorwritten consent of J.D. Power and Associates. www.jdpower.com/corporate

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