J.D. Power and Associates Reports: Overall Initial Quality Improves Considerably,...

J.D. Power and Associates Reports: Overall Initial Quality Improves
Considerably, With Gains Shared Across Most Manufacturers
American Honda, Ford Motor Company, General Motors Corporation and Toyota
Motor Sales Each Capture Three Initial Quality Model Awards

WESTLAKE VILLAGE, Calif., June 4 /PRNewswire/ -- 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.
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"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.
J.D. Power and Associates Media Relations Contacts:
John Tews Syvetril Perryman
Director, Media Relations Media Relations Specialist
Troy, Mich. Westlake Village, Calif.
(248) 312-4119 (805) 418-8103
john.tews@jdpa.com syvetril.perryman@jdpa.com

No advertising or other promotional use can be made of the information in
this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com/corporate.
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

2008 Assembly Plant Quality Award Recipients
Based on Vehicles Produced for U.S. Market

Award PP100 Model(s) Produced
(defects/malfunctions only) at Plant
Platinum Award
Mercedes-Benz,
Sindelfingen, Germany 33 CL-Class, CLS-Class,
E-Class Sedan and
Wagon and S-Class

North/South America
Gold Award
Toyota, Baja California,
Mexico 42 Toyota Tacoma

Silver Award
Toyota, San Antonio, Texas 43 Toyota Tundra

Bronze Award
General Motors Corporation,
Fairfax II, Kansas 45 Chevrolet Malibu and
Saturn AURA

Asia Pacific
Gold Award
Toyota, Fujimatsu, Japan 38 Toyota Prius

Silver Award
Nissan Motor Company,
Tochigi, Japan 43 Infiniti EX Series,
G35 Sedan, G37 Coupe
M35, M45; Nissan
350Z Coupe and
Roadster

Bronze Award
Toyota Motor Corporation,
Tahara, Japan 44 Lexus GS 350/GS
460/GS 450h, GX 470,
IS 250/IS 350/IS-F,
LS 460/LS 600h;
Toyota 4Runner, Land
Cruiser, and RAV4

Europe
Silver Award
Porsche, Stuttgart, Germany 37 Porsche 911
Cabriolet and Coupe

Bronze Award
BMW, Regensberg Germany 39 BMW 3 Series
Convertible, Coupe
and Sedan

SOURCE J.D. Power and Associates

John Tews, Director, Media Relations, +1-248-312-4119, john.tews@jdpa.com, or
Syvetril Perryman, Media Relations Specialist, +1-805-418-8103,
syvetril.perryman@jdpa.com, both of J.D. Power and Associates