Detroit Auto Makers Boost Initial Quality Scores
22 Juni 2009 - 7:36PM
Dow Jones News
The Detroit auto makers managed to increase their new-vehicle
quality scores by an average of 10% this year despite being rocked
by bankruptcies and a worldwide economic recession.
Ford Motor Co. (F), General Motors Corp. (GMGMQ) and Chrysler
LLC reduced the number of troubles reported by consumers during
their first 90 days of ownership, according to the annual J.D.
Power & Associates Initial Quality study. Toyota Motor Corp.
(TM) led all the auto makers with its Lexus brand finishing in the
top spot while BMW AG's (BMW.XE) Mini was last.
The results, released Monday, come at a time when quality and
brand image are under intense pressure as auto makers are forced to
make deep worker cuts and idle factories that can lead to a variety
of production problems.
The quality gap between the foreign imports and the Detroit auto
makers is now the smallest it has ever been, David Sargent, JD
Power's vice president of automotive research, said during a speech
at the Automotive Press Association in Detroit. The domestics
lagged the foreign auto makers by just six points.
"Domestic and import initial quality is equal for cars and the
domestics have a slight edge for trucks," Sargent said during a
speech in Detroit Monday. "Imports have a significant edge for
crossovers." The biggest surprise was Chrysler. The auto maker's
iconic Jeep brand, which finished last in quality in 2008, climbed
four spots in the rankings. The Jeep brand had 137 problems per 100
vehicles - 29 fewer than last year. The industry average was 108
problems per 100 vehicles.
Chrysler, which filed for bankruptcy April 30 and merged its
assets with Fiat SpA (FIATY), undertook a massive overhaul of its
brands in 2008. Many of the vehicles were outfitted with new
technologies and re-designed to focus on consumer comfort. The
company made about 500 changes on its products last year.
Problems can range from wind noise to transmission failure.
Brands that do well - typically luxury cars top the list - can
use the results to bolster advertising campaigns. The vehicles were
evaluated between November through February. "High quality enhances
an auto maker's reputation for reliability which is a critical
purchase consideration for many consumers," Sargent said.
Toyota's Lexus brand beat out Porsche with 84 problems while
Porsche had 90. Porsche had the top spot for the past two years.
GM's Cadillac finished in third with 91 problems followed by
Hyundai Motor Co. Ltd. (HYMLY) at 95 and Honda Motor Co. Ltd. (HMC)
at 99.
Ford's Mercury and Ford nameplates scored above average but the
Lincoln brand finished in 27th place with 129 problems. Lincoln
finished 15th last year. Volvo, which Ford is trying to sell, was
24th.
Ford, which has sidestepped the need for federal aid, is relying
on its new product introductions to drive consumer purchases. The
auto maker is still losing billions of dollars. GM and Chrysler
both took federal aid late last year to continue operating during
the economic downturn.
GM's vehicles were all over the board. Chevrolet finished in
ninth place with 103 problems but its GMC and Buick were in 18th
and 19th, respectively. Buick, with its 117 problems, tied with the
industry average last year.
Saturn, Saab and Hummer all finished well below the industry
average. Saab was the lowest ranking nameplate with 138 problems.
GM is in the process of selling off Saturn, Hummer and Saab as part
of its bankruptcy reorganization. It also plans to close its
Pontiac brand, which finished in 22nd place with 118 problems.
BMW's Mini finished last with 165 problems.
-By Jeff Bennett, Dow Jones Newswires; 248-204-5542;
jeff.bennett@dowjones.com