J.D. Power and Associates Reports: Overall Initial Quality Improves Considerably, With Gains Shared Across Most Manufacturers

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 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