B
Barry White
Guest
Japanese Top Auto Quality Study; GM Gains Ground
1 hour, 10 minutes ago - Reuters !
By Justin Hyde
DETROIT (Reuters) - While Japan's largest automakers dominated an annual vehicle quality
survey released on Tuesday, General Motors Corp., scored highly and DaimlerChrysler AG's
Mercedes brand stalled.
The benchmark J.D. Power and Associates survey of long-term vehicle quality polled 55,000
owners of 3-year-old vehicles and found that some automakers are not living up to their
promises -- or reputation -- for better quality.
"About half of new car buyers say longer-term dependability is a key factor in choosing
which vehicle they want," said Joe Ivers, J.D. Power's executive director of quality and
customer satisfaction research. "This is becoming the next major issue in the auto
industry, and a much more consistent focus from automaker to automaker than it has been in
the past."
As it has for the past several years, Toyota Motor Corp. (news - web sites)'s Lexus luxury
unit topped the brand rankings with 163 problems per 100 vehicles, followed by Nissan
Motor Co. Ltd.'s Infiniti brand, GM's Buick unit, Porsche AG and Honda Motor Co. (news -
web sites) Ltd.'s Acura brand.
Among manufacturers overall, Porsche led the list, followed closely by Toyota. Honda,
Nissan and BMW AG rounded out the top five.
GM was the only one of Detroit's Big Three automakers to rank above the industry average
of 273 problems per 100 vehicles, with its Buick, Cadillac, GMC and Chevrolet brands all
performing above average.
Ivers noted that GM had never performed above the industry average in prior surveys and
that the survey backed up claims from GM executives that they were matching the quality of
Japanese automakers.
"This year, we see them (GM) sort of turn a corner," he said. "They've begun to show
evidence of closing that gap" with foreign automakers.
PLYMOUTH VS. MERCEDES
Ford Motor Co.'s Lincoln brand scored just above Honda and its Mercury brand did better
than the industry average. But the Ford brand was below average, with 273 problems per 100
vehicles, dragging down the company as a whole.
While Ford's F-Series pickup topped its class, the survey was the first to include the
Ford Focus, which was plagued with quality problems when it was launched in 1999.
"Since the 1997 model year, Ford vehicles have been improving on a consistent basis. This
year is a bit of an exception," Ivers said. "The Focus is one of those vehicles that
hasn't aged gracefully."
Perhaps the study's most shocking results involve DaimlerChrysler. Since the 1998 merger,
Daimler executives have contended that Mercedes-Benz's knowledge of how to build quality
vehicles would be used to improve the Chrysler brands.
But Chrysler, Dodge and the now-defunct Plymouth brand all outranked Mercedes, which had
318 problems per 100 vehicles. Ivers said Mercedes' troubles were concentrated in its
M-Class sport utility vehicle and its E-Class sedans, which accounted for roughly half its
sales.
"The M-Class has had a lot of problems since its launch," Ivers said. "The rate of
deterioration on the E-Class is greater than on any other vehicle in the industry."
Long-term quality often translates into money won or lost for automakers. Ivers said
Honda's reputation for durability translates to a $1,500 premium in the new-car market,
with a even larger premium in used vehicles.
In addition, auto suppliers have said Japanese automakers' warranty costs average $300 to
$400 per vehicle, with Toyota averaging less than $100 per vehicle, compared with $600 to
$700 per vehicle for the Big Three.
This year's survey is not directly comparable to previous studies because J.D. Power
lowered the age of the vehicles it was monitoring to catch problems earlier.
1 hour, 10 minutes ago - Reuters !
By Justin Hyde
DETROIT (Reuters) - While Japan's largest automakers dominated an annual vehicle quality
survey released on Tuesday, General Motors Corp., scored highly and DaimlerChrysler AG's
Mercedes brand stalled.
The benchmark J.D. Power and Associates survey of long-term vehicle quality polled 55,000
owners of 3-year-old vehicles and found that some automakers are not living up to their
promises -- or reputation -- for better quality.
"About half of new car buyers say longer-term dependability is a key factor in choosing
which vehicle they want," said Joe Ivers, J.D. Power's executive director of quality and
customer satisfaction research. "This is becoming the next major issue in the auto
industry, and a much more consistent focus from automaker to automaker than it has been in
the past."
As it has for the past several years, Toyota Motor Corp. (news - web sites)'s Lexus luxury
unit topped the brand rankings with 163 problems per 100 vehicles, followed by Nissan
Motor Co. Ltd.'s Infiniti brand, GM's Buick unit, Porsche AG and Honda Motor Co. (news -
web sites) Ltd.'s Acura brand.
Among manufacturers overall, Porsche led the list, followed closely by Toyota. Honda,
Nissan and BMW AG rounded out the top five.
GM was the only one of Detroit's Big Three automakers to rank above the industry average
of 273 problems per 100 vehicles, with its Buick, Cadillac, GMC and Chevrolet brands all
performing above average.
Ivers noted that GM had never performed above the industry average in prior surveys and
that the survey backed up claims from GM executives that they were matching the quality of
Japanese automakers.
"This year, we see them (GM) sort of turn a corner," he said. "They've begun to show
evidence of closing that gap" with foreign automakers.
PLYMOUTH VS. MERCEDES
Ford Motor Co.'s Lincoln brand scored just above Honda and its Mercury brand did better
than the industry average. But the Ford brand was below average, with 273 problems per 100
vehicles, dragging down the company as a whole.
While Ford's F-Series pickup topped its class, the survey was the first to include the
Ford Focus, which was plagued with quality problems when it was launched in 1999.
"Since the 1997 model year, Ford vehicles have been improving on a consistent basis. This
year is a bit of an exception," Ivers said. "The Focus is one of those vehicles that
hasn't aged gracefully."
Perhaps the study's most shocking results involve DaimlerChrysler. Since the 1998 merger,
Daimler executives have contended that Mercedes-Benz's knowledge of how to build quality
vehicles would be used to improve the Chrysler brands.
But Chrysler, Dodge and the now-defunct Plymouth brand all outranked Mercedes, which had
318 problems per 100 vehicles. Ivers said Mercedes' troubles were concentrated in its
M-Class sport utility vehicle and its E-Class sedans, which accounted for roughly half its
sales.
"The M-Class has had a lot of problems since its launch," Ivers said. "The rate of
deterioration on the E-Class is greater than on any other vehicle in the industry."
Long-term quality often translates into money won or lost for automakers. Ivers said
Honda's reputation for durability translates to a $1,500 premium in the new-car market,
with a even larger premium in used vehicles.
In addition, auto suppliers have said Japanese automakers' warranty costs average $300 to
$400 per vehicle, with Toyota averaging less than $100 per vehicle, compared with $600 to
$700 per vehicle for the Big Three.
This year's survey is not directly comparable to previous studies because J.D. Power
lowered the age of the vehicles it was monitoring to catch problems earlier.
