Not Tesla Or Ford: This Foreign Giant Is Most Trusted Auto Brand Of 2023 As US Automakers Trail Behind Asian, European Rivals
Portfolio Pulse from Shanthi Rexaline
Consumer Reports' annual survey on auto brand reliability did not feature any U.S. automakers in the top ten, with Toyota (TM) and its Lexus brand leading the list. BMW's Mini, Honda's Acura and Honda, Subaru, Mazda (MZDAY), Porsche (POAHY), BMW, and Hyundai's Kia were also in the top ten. U.S. brands like General Motors' Buick (GM), Tesla (TSLA), and Ford (F) trailed behind, with Tesla ranking 14th. The survey also noted that hybrids had fewer problems than ICE vehicles, while PHEVs and EVs, including electric pickup trucks, had more issues. The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) closed down 0.55%.
December 18, 2023 | 6:44 am
News sentiment analysis
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NEGATIVE IMPACT
Ford's 22nd position in reliability may negatively affect consumer confidence and stock performance in the short term.
Ford's low reliability ranking could diminish consumer confidence and negatively impact its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
KARS, tracking electric vehicles and future mobility, may face short-term volatility due to mixed reliability scores for EVs and PHEVs.
The ETF may experience short-term volatility as the survey indicates mixed reliability results for EVs and PHEVs, which are significant components of the ETF's focus.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Tesla's 14th place in reliability may slightly concern investors, but its strong brand and market position could mitigate negative impact.
Tesla's lower-than-expected reliability ranking could concern investors, potentially leading to a slight negative short-term impact on its stock. However, Tesla's strong market position and brand loyalty may buffer any significant negative effects.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
GM's Buick brand, ranking 12th, may see a neutral impact as it trails behind top Asian and European brands in reliability.
While Buick leads U.S. automakers in reliability, it still falls behind the top brands, likely resulting in a neutral short-term impact on GM's stock.
CONFIDENCE 70
IMPORTANCE 55
RELEVANCE 50
POSITIVE IMPACT
BMW's Mini brand ranks high in reliability, which could enhance its competitive position and appeal to consumers.
A high reliability ranking can improve brand perception and competitiveness, possibly leading to a positive short-term impact on BMW's stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Honda's Acura and its namesake brand are among the top five in reliability, which may support its market share and stock performance.
Honda's strong showing in the reliability survey can contribute to a positive brand image and possibly a favorable short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Mazda's position in the top ten for reliability may positively influence consumer perception and sales.
Mazda's inclusion in the top ten for reliability can enhance its brand image and potentially lead to a positive short-term impact on its stock.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 60
POSITIVE IMPACT
Porsche's high reliability score could reinforce its luxury brand status and drive sales, positively affecting its stock.
Porsche's strong reliability score may reinforce its position as a luxury brand, which could have a positive short-term impact on its stock.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 60
POSITIVE IMPACT
Toyota leads the reliability survey, which could bolster its brand reputation and potentially increase consumer trust and sales.
Being ranked as the most trusted auto brand can lead to increased consumer confidence and sales, which may positively impact Toyota's stock in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90