Industry News
Audi Posts Best Improvement in J.D. Power Intial Quality Survey
By source: J.D. Power and Associates
Jun 4, 2008, 13:14

WESTLAKE VILLAGE, CA -- Initial quality in the automotive industry has improved significantly in 2008, with substantial gains demonstrated by nearly three-fourths of the 36 ranked nameplates, according to the J.D. Power and Associates 2008 Initial Quality Study(SM) (IQS) released today. Overall quality improves to 118 problems per 100 vehicles (PP100) in 2008, down from 125 PP100 in 2007.

"Due to some strong new-vehicle launches, in addition to a continued reduction in the level of defects and malfunctions, overall quality improves by 6 percent in 2008, compared with 2007," said David Sargent, vice president of automotive research at J.D. Power and Associates. "This gain is driven not only by strong advances from many of the high-volume brands such as Chevrolet, Ford and Toyota, but also by very significant improvements by many other automakers. This industry-wide improvement is a testament to the effort that automakers are putting into listening to the voice of the customer, and the hard work they have undertaken to integrate that feedback to design, engineer and manufacture better-quality vehicles. From working closely with the industry, we see the importance that is placed on initial quality. Vehicle manufacturers and consumers alike are reaping the rewards of this effort."

The Initial Quality Study serves as the industry benchmark for new-vehicle quality measured at 90 days of ownership. The study is used extensively by vehicle manufacturers worldwide to help them design and build better vehicles and by consumers to help them in their vehicle purchase decisions. Initial quality has been shown over the years to be an excellent predictor of long-term durability, which can significantly impact consumer purchase decisions. The study captures problems experienced by owners in two distinct categories -- quality of design and defects and malfunctions.

The study finds that 86 percent of the overall improvement is due to advances in eliminating defects and malfunctions. Minimizing design problems remains a major challenge for the industry, particularly since new technology, such as navigation and entertainment devices, is becoming increasingly common in today's new vehicles.

"As consumer demand for new and more advanced wireless communication, navigation and audio technology continues to grow, manufacturers face challenges related to how well these systems are integrated into their vehicles," said Sargent. "In particular, issues with difficult-to-use audio and entertainment controls and voice command recognition failure are among the top ten problems most frequently reported by customers. Since hands-free communication for drivers will become a mandate in more and more areas throughout the U.S., this will need to be an area of continued focus for automakers."

The study also finds that new-vehicle sales patterns in 2008 have shifted away from the largest models and toward smaller models.

"This shift in sales preferences among new-vehicle buyers is in part a response to rapidly increasing fuel prices," said Sargent. "The good news for consumers in this difficult environment is that they can downsize with confidence, as there are many models with high initial quality in the smaller-vehicle segments. J.D. Power and Associates forecasts that 28 new compact-vehicle models will launch by 2010, and it will be particularly important for manufacturers to ensure high initial quality in these launches."

2008 IQS Ranking Highlights
Honda models capture three segment awards -- more than any other nameplate in the 2008 study -- for the Civic, CR-V and Fit. Garnering two segment awards each are: Chevrolet (Malibu and Silverado LD); Dodge (Dakota and Durango); Infiniti (EX-Series and M-Series); Lexus (LS and RX); and Mercedes-Benz (CLK-Class and E-Class). The Porsche 911 has the fewest quality problems in the industry, with just 67 problems per 100 vehicles. Also receiving segment awards are the Ford E-Series, Lincoln Navigator, Mazda MX-5 Miata, Pontiac Grand Prix Sedan and Toyota Sequoia.

"In past years, automakers have frequently struggled to achieve very high initial quality with new models," said Sargent. "With product launches and redesigns often being problematic for manufacturers from a quality standpoint, it is particularly impressive that the Chevrolet Malibu and Infiniti EX-Series achieve such high levels of quality that they receive awards in their launch year."

For a third consecutive year, Porsche tops the overall nameplate rankings, averaging 87 PP100. Following in the rankings are Infiniti (which improves from 9th rank position in 2007), Lexus, Mercedes-Benz and Toyota, respectively. Audi posts the largest improvement in ranking, moving from 26th place in 2007 to 10th in 2008.

"Porsche continues its steady improvement and has succeeded in distancing itself from the second-ranked nameplate to a greater degree in 2008 -- by a gap of 11 PP100-compared with 3 PP100 in 2007," said Sargent.

Assembly Plant Awards
The Mercedes-Benz assembly plant in Sindelfingen, Germany, receives the Platinum Plant Quality Award for producing vehicles yielding the fewest defects and malfunctions. Averaging just 33 PP100, the plant produces the Mercedes-Benz CL-Class, CLS-Class, E-Class Sedan, E-Class Wagon and S-Class. Plant awards are based solely on defect and malfunction counts.

Among North and South American plants, the Toyota plant in Baja California, Mexico, which produces the Toyota Tacoma, achieves the Gold Plant Quality Award.

In the Asia Pacific region, Toyota's Fujimatsu, Japan, plant, which produces the Toyota Prius, receives the Gold Plant Quality Award.

The 2008 Initial Quality Study is based on responses from more than 81,500 purchasers and lessees of new 2008 model-year cars and trucks surveyed after 90 days of ownership. The study is based on a 228-question battery designed to provide manufacturers with information to facilitate problem determination and drive product improvement. The study was fielded between February and April 2008.

Find more detailed findings on new-vehicle quality performance as well as model photos and specs by watching a video, reading an article and reviewing quality ratings at JDPower.com.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually.

For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, 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 (NYSE:MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com/.

2008 Nameplate IQS RankingProblems Per 100 Vehicles

Porsche 87
Infiniti 98
Lexus 99
Mercedes-Benz 104
Toyota 104
Mercury 109
Honda 110
Ford 112
Jaguar 112
Audi 113
Cadillac 113
Chevrolet 113
Hyundai 114
Pontiac 114
Lincoln 115
Buick 118
Industry Average 118
Acura 119
Kia 119
Nissan 124
Volvo 124
BMW 126
GMC 127
Mazda 127
Volkswagen 128
HUMMER 132
Subaru 133
Scion 138
Dodge 141
Chrysler 142
Mitsubishi 149
Saab 149
Suzuki 152
Saturn 157
Land Rover 161
MINI 163
Jeep 167

Isuzu and smart are included in the study, but not ranked due to small sample size.

Top Three Models per Segment
Car Segments

Sub-Compact Car
Highest Ranked: Honda Fit
Kia Rio
Hyundai Accent

Compact Car
Highest Ranked: Honda Civic
Toyota Prius
Hyundai Elantra Sedan

Compact Sporty Car
Highest Ranked: Mazda MX-5 Miata
Subaru Impreza
Pontiac Solstice

Compact Premium Sporty Car
Highest Ranked: Mercedes-Benz CLK-Class
Porsche Cayman
Volvo C70

Entry Premium Vehicle
Highest Ranked: Infiniti EX-Series
Infiniti G-Series
Acura TSX (tie)
Volvo S40 (tie)

Midsize Premium Car
Highest Ranked: Infiniti M-Series (tie), Mercedes-Benz E-Class (tie)
Audi A6 (tie), Lexus ES 350 (tie)

Large Premium Car
Highest Ranked: Lexus LS
Mercedes-Benz S-Class
Cadillac DTS

Midsize Car
Highest Ranked: Chevrolet Malibu
Mitsubishi Galant
Ford Fusion

Large Car
Highest Ranked: Pontiac Grand Prix Sedan
Mercury Sable
Mercury Grand Marquis

NOTE: There must be at least four models with sufficient sample in any given award segment for an award to be issued. In 2008, there are only two premium sporty models and three midsize sporty models with sufficient sample, thus no premium sporty and midsize sporty awards are issued.

Top Three Models per Segment
Truck/Multi-Activity Vehicle (MAV) Segments

Compact MAV
Highest Ranked: Honda CR-V
Chrysler PT Cruiser
Ford Escape

Midsize MAV
Highest Ranked: Dodge Durango
Hyundai Santa Fe
Toyota Highlander

Large MAV
Highest Ranked: Toyota Sequoia
Chevrolet Tahoe
GMC Yukon

Midsize Premium MAV
Highest Ranked: Lexus RX
Lexus GX 470
Porsche Cayenne

Large Premium MAV
Highest Ranked: Lincoln Navigator
Infiniti QX56
Cadillac Escalade

Large Pickup
Highest Ranked: Chevrolet Silverado LD
Toyota Tundra
Chevrolet Avalanche

Midsize Pickup
Highest Ranked: Dodge Dakota
Ford Ranger
Toyota Tacoma

Van
Highest Ranked: Ford E-Series
Nissan Quest
Chevrolet Express

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