J.D. Power and Associates Reports

Posted on Saturday, 20 March 2010 , 08:03:41 byEmil

Filed under jd-powerreportsdependability-studystudyjdpowerporscheTechnologyGermanJapanese

J.D. Power and Associates Reports

J.D. Power and Associates Reports: Despite Overall Industry Improvement in Long-Term Dependability, Some Vehicle Brands Don`t Receive the Credit They`re Due

Japanese Models Capture Nine Segment Awards, While Domestic Models Garner Seven and European Models Earn Three; For the First Time in More than A Decade, A Domestic Model Achieves Lowest Incidence of Problems

Twenty-five of 36 vehicle brands have improved in long-term dependability in 2010, compared with their performance in 2009, continuing a steady trend of industry-wide improvement. However, for some of these brands, consumer perceptions have not kept pace with their actual performance, according to the J.D. Power and Associates 2010 U.S. Vehicle Dependability Study(SM) (VDS) released today.

The study, which measures problems experienced by original owners of three-year-old (2007 model year) vehicles, includes 198 different problem symptoms across all areas of the vehicle. Overall dependability is determined by the level of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

The Vehicle Dependability Study is used extensively by vehicle manufacturers worldwide to help design and build better vehicles--which typically translates to higher resale values--and by consumers to help them make more-informed choices for both new- and used- vehicle purchases. According to J.D. Power and Associates, among new-vehicle shoppers, perception of quality and dependability is the most influential factor in their decision to purchase a specific vehicle model.

The study finds that several brands that perform well in long-term dependability in 2010 are avoided at relatively high rates due to consumer concerns about dependability(1). Among brands included in VDS, Cadillac, Ford, Hyundai, Lincoln and Mercury have the greatest lags between dependability performance and consumer perception.

"Producing vehicles with world-class quality is just part of the battle for automakers; convincing consumers to believe in their quality is equally as important," said David Sargent, vice president of global vehicle research at J.D. Power and Associates. "It takes considerable time to positively change consumer perceptions of quality and dependability--sometimes a decade or more--so it is vital for manufacturers to continually improve quality and also to convince consumers of these gains."

According to Sargent, approaches that can help reinforce perceptions of high quality in consumers` minds include: providing extended warranties, which demonstrates a brand`s faith in its products; incorporating features, materials and finishes in vehicles that have a rich feel; and ensuring that new models launch with better quality than their predecessors. In addition, automakers need to increase communication efforts about their high quality and dependability through social media channels such as blogs, Facebook and Twitter, as well as through traditional channels.

Toyota continues to perform well in long-term dependability and garners four segment awards--more than any other nameplate in 2010--for the Highlander, Prius, Sequoia and Tundra. Honda receives three segment awards for the CR-V, Fit and Ridgeline. Lincoln captures two awards for the Mark LT and MKZ. In addition, Audi, BMW, Buick, Cadillac, Chevrolet, Ford, Lexus, Mazda, Mercedes-Benz and Mercury each receive a model segment award.

Porsche leads the overall nameplate rankings in 2010, which is consistent with its performance in the J.D. Power and Associates 2007 Initial Quality Study(SM), which measures new-vehicle quality at 90 days of ownership. Lincoln improves by six rank positions from 2009 to follow Porsche in the nameplate rankings. Rounding out the top five nameplates are Buick, Lexus and Mercury. In addition, seven of the 10 models with the lowest incidence of problems in the industry are from Ford and General Motors, including the 2007 model-year Buick Lacrosse, Buick Lucerne, Cadillac DTS, Ford Five Hundred, Lincoln MKZ, Mercury Milan, and Mercury Montego. The Cadillac DTS has the fewest problems in the industry, with just 76 problems per 100 vehicles. This marks the first time in more than a decade that a model from a domestic automaker has achieved the lowest PP100 score in the Vehicle Dependability Study.

Overall vehicle dependability has improved by 7 percent in 2010 to an average of 155 PP100, compared with 167 PP100 in 2009(2) - a rate that is consistent with historical industry gains. In addition to the improvement in overall dependability, the rate of component replacement has also been reduced from 2009. Approximately 65 percent of owners indicate they replaced a vehicle component in 2010, compared with 68 percent in 2009.

"The improvements in long-term dependability and component replacement rates are good news for both consumers and manufacturers," said Sargent. "Manufacturers benefit from lower warranty expenses, while consumers incur lower maintenance and repair costs, as well as less inconvenience."

The study also finds that long-term dependability has a significant positive effect on repurchase intent. Among owners who say they did not experience problems with their vehicle, 43 percent indicate they "definitely will" repurchase their current brand. This figure declines to 28 percent among owners who say they experienced at least one problem with their vehicle.

The 2010 Vehicle Dependability Study is based on responses from more than 52,000 original owners of 2007 model-year vehicles. The study was fielded between October and December 2009.

Find more detailed findings on vehicle dependability as well as model photos and specs by reading an article and reviewing brand and segment dependability ratings at JDPower.com.

(1) Source: J.D. Power and Associates 2009 Avoider Study(SM)

(2) Due to a change in the problem battery in 2010, PP100 scores for 2009 have been adjusted to allow for comparison with 2010 PP100 scores.

2010 Nameplate Ranking Problems per 100 Vehicles

1.Porsche 110
2.Lincoln 114
3.Buick 115
4.Lexus 115
5.Mercury 121
6.Toyota 128
7.Honda 132
8.Ford 141
9.Mercedes-Benz 142
10.Acura 143
11.Hyundai 148
12.Cadillac 150
13.Infiniti 150
14.Subaru 155
15.Industry Average 155
16.SAAB 158
17.Saturn 164
18.BMW 165
19.GMC 165
20.Chrysler 166
21.Kia 167
22.Volvo 167
23.HUMMER 169
24.Jaguar 175
25.Chevrolet 176
26.Nissan 180
27.Audi 182
28.Dodge 190
29.Pontiac 192
30.Mazda 195
31.Scion 201
32.Mitsubishi 202
33.MINI 203
34.Jeep 222
35.Volkswagen 225
36.Suzuki 253
37.Land Rover 255

NOTE: Isuzu is 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
Toyota Yaris

Compact Car
Highest Ranked: Toyota Prius
Toyota Corolla
Pontiac Vibe

Compact Sporty Car
Highest Ranked: Mazda MX-5 Miata
Saturn SKY
Pontiac Solstice Convertible

Midsize Sporty Car
Highest Ranked: Chevrolet Monte Carlo
Toyota Solara
Ford Mustang

Midsize Car
Highest Ranked: Buick LaCrosse
Mercury Milan
Honda Accord

Large Car
Highest Ranked: Mercury Montego
Buick Lucerne (tie)
Ford Five Hundred (tie)

Compact Premium Sporty Car*
Highest Ranked: BMW Z4

Entry Premium Vehicle
Highest Ranked: Lincoln MKZ
Acura TSX
Cadillac CTS

Midsize Premium Car
Highest Ranked: Audi A6
Lexus ES 350
Cadillac STS (tie)
Infiniti M-Series (tie)

Large Premium Car*
Highest Ranked: Cadillac DTS
Lexus LS 460

Premium Sporty Car*
Highest Ranked: Mercedes-Benz SL-Class
Porsche 911

*No other model in this segment performs above the segment average.

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

Compact MAV
Highest Ranked: Honda CR-V
Subaru Forester
Hyundai Tucson

Midsize MAV
Highest Ranked: Toyota Highlander
Toyota 4Runner
Ford Freestyle

Large MAV
Highest Ranked: Toyota Sequoia
GMC Yukon
Ford Expedition

Large Pickup
Highest Ranked: Toyota Tundra
Ford F-150 LD
Chevrolet Silverado Classic HD

Midsize Pickup
Highest Ranked: Honda Ridgeline
Dodge Dakota
Ford Ranger

Midsize Van
Highest Ranked: Ford Freestar
Toyota Sienna
Buick Terraza (tie)
Chrysler Town & Country (tie)

Midsize Premium MAV
Highest Ranked: Lexus GX 470
Lexus RX
Infiniti FX-Series

Large Premium MAV
Highest Ranked: Lincoln Mark LT
Lincoln Navigator
Cadillac Escalade EXT

NOTE: For a segment award to be issued, there must be at least three models with sufficient sample that comprise 80 percent of market sales within an award segment. There is only one large van model with sufficient sample size, thus no large van awards have been presented.