UPDATE: Detroit Auto Makers Boost Initial Quality Scores
22 Juni 2009 - 8:40PM
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, J.D.
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 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."
Sargent said there was no evidence in the data to show that
consumers were affected by the GM and Chrysler bankruptcies.
"It appears there has been a positive disconnect between the
turbulence and those who come in and build or design vehicles,"
Sargent said. "If anything, they are intensifying their focus on
quality."
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.
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.
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 redesigned to focus on consumer comfort. The
company made about 500 changes on its products last year.
"Jeep had improvements across the board," Sargent said. "All of
their models improved from engine and transmission to outside
design."
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 problems.
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.
A company spokeswoman attributed Lincoln's decline to some of
the interior technology, such as navigation systems, that may have
taken consumers longer to learn.
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