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J.D. Power and Associates Reports: Deterioration in Vehicle Quality During the First Three Years of Ownership Has a Major Impact on Customer Satisfaction and Advocacy

Posted : Thu, 07 Aug 2008 11:02:58 GMT
Author : J.D. Power and Associates
Category : Press Release
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Lexus Ranks Highest in Vehicle Dependability for a 14th Consecutive Year WESTLAKE VILLAGE, Calif., Aug. 7
WESTLAKE VILLAGE, Calif., Aug. 7 /PRNewswire/ -- Deterioration in vehicle quality during the first three years of ownership -- determined by comparing long-term dependability rates to initial quality problem rates -- strongly affects overall customer satisfaction as well as customer willingness to recommend their vehicle model, according to the J.D. Power and Associates 2008 Vehicle Dependability Study(SM) (VDS) released today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
The study, which measures problems experienced by original owners of 3-year-old (2005 model year) vehicles, finds that, on average, customers report experiencing 75 percent more problems in the third year of ownership than during the first 90 days. Those models with the largest increase in problem levels show the most pronounced declines in satisfaction and the likelihood of owners to recommend their vehicle model. In addition, while no model has fewer reported problems in the third year of ownership compared with the first three months, those models that average less than 35 percent problem growth actually demonstrate improvement in overall satisfaction during the three-year period.
"Understanding and minimizing quality deterioration is critical for manufacturers, as it is a key driver of owner satisfaction and word of mouth recommendations," said David Sargent, vice president of automotive research at J.D. Power and Associates. "It is imperative that manufacturers design models that not only achieve high levels of initial quality but also attain high levels of longer-term dependability. Vehicle models that stand the test of time will help automaker profitability through superior owner satisfaction and recommendation rates."
The study also finds that five of the top 10 problems reported industry-wide in the 2008 Vehicle Dependability Study were also among the top 10 most frequently reported problems in the 2005 Initial Quality Study, suggesting that the problems are identified by owners during the initial ownership period, but have not been rectified by automakers during the three-year ownership period.
The problems include:
  1. Excessive wind noise
  2. Noisy brakes
  3. Vehicle pulling to the left or right
  4. Issues with the instrument panel/dashboard
  5. Excessive window fogging

"Although automakers have achieved tremendous gains in initial quality and dependability in recent years by specifically addressing customer concerns, these particular problems still prove challenging for manufacturers," said Sargent. "The fact that these problems have endured throughout the industry for many years suggests that additional focus on these issues prior to vehicle launch would benefit not only consumers, but also automakers through increased customer satisfaction."
For a 14th consecutive year, Lexus ranks highest in vehicle dependability, improving by 25 problems per 100 vehicles since 2007 to achieve a score of 120 PP100. Following in the top five rankings are Mercury, Cadillac, Toyota and Acura, respectively.
In addition, Lexus garners six segment awards -- the most of any nameplate in 2008 -- for the ES 330, GX 470, IS 300, LS 430, LX 470 and SC 430. Toyota follows with five segment awards for the Highlander, Prius, RAV4, Sequoia, and Tundra. Ford and Honda each capture two awards. Ford models receiving awards are the Crown Victoria and Ranger, while Honda earns awards for the Element and S2000. Models by Buick, Chevrolet, Hyundai, Mazda and Mercury each rank highest in one segment.
SAAB is the most improved brand in the study, although it continues to rank below the industry average. SAAB improves by 65 PP100 since 2007.
The study finds that long-term vehicle quality has improved by 5 percent industry-wide in 2008 -- with an overall decrease of 10 problems per 100 vehicles -- compared with 2007. More than 60 percent of the 38 nameplates included in the study improve in 2008, compared with 2007. Among the 19 segments included in the study, the midsize premium MAV segment demonstrates the most improvement in 2008 -- 36 PP100 fewer than in 2007. The compact car and midsize car segments also have much lower problem levels in 2008 than in 2007, and together account for more than one-half of the overall industry improvement.
"The gains in dependability for compact and midsize vehicles are good news for consumers who are downsizing their vehicles due to increasing fuel prices," said Sargent. "Consumers who purchase these smaller vehicles benefit not only from immediate gains in fuel economy, but also from improvements in long-term dependability, compared with previous years."
The 2008 Vehicle Dependability Study is based on responses from more than 52,000 original owners of 2005 model-year vehicles. The study was fielded from January through April 2008.
Find more detailed findings on vehicle dependability as well as model photos and specs by watching a video, reading an article and reviewing brand and segment dependability 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 TewsSyvetril Perryman
 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 VDS Ranking
Problems Per 100 Vehicles
Lexus120
Mercury  151
Cadillac 155
Toyota   159
Acura160
Buick163
BMW  164
Lincoln  165
Honda177
Jaguar   178
Porsche  193
Mitsubishi   197
Hyundai  200
Ford 204
Infiniti 204
Industry Average 206
Audi 207
Mercedes-Benz215
Nissan   224
Pontiac  225
GMC  226
Mazda228
Subaru   228
Chrysler 229
Dodge230
MINI 233
Chevrolet239
HUMMER   241
Scion243
Volvo244
Saturn   250
Jeep 253
Volkswagen   253
SAAB 254
Isuzu274
Kia  278
Suzuki   302
Land Rover   344
Note: Maserati 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: Hyundai Accent
  Scion xA
  Chevrolet Aveo

Compact Car
Highest Ranked: Toyota Prius
  Mitsubishi Lancer
  Toyota Corolla

Compact Sporty Car
Highest Ranked: Mazda Miata
  Toyota Celica
  Subaru Outback Sport

Midsize Sporty Car
Highest Ranked: Chevrolet Monte Carlo
  Toyota Camry Solara Coupe/Convertible
  Mitsubishi Eclipse

Midsize Car
Highest Ranked: Buick Century
  Mercury Sable
  Toyota Camry Sedan

Large Car
Highest Ranked: Ford Crown Victoria
  Mercury Grand Marquis
  Buick Park Avenue

Compact Premium Sporty Car
Highest Ranked: Honda S2000
  BMW Z4 (tie)
  Porsche Boxster (tie)

Entry Premium Vehicle
Highest Ranked: Lexus IS 300/IS 300 SportCross
  BMW 3 Series
  BMW X3

Midsize Premium Car
Highest Ranked: Lexus ES 330
  Lexus GS 300/GS 430
  Acura RL

Large Premium Car
Highest Ranked: Lexus LS 430
  Lincoln Town Car
  Cadillac DeVille

Premium Sporty Car
Highest Ranked: Lexus SC 430
  Ford Thunderbird
  Porsche 911

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

Compact MAV
Highest Ranked: Honda Element (tie)
  Toyota RAV4 (tie)
  Honda CR-V

Midsize MAV
Highest Ranked: Toyota Highlander
  Buick Rainier
  Mercury Mountaineer

Large MAV
Highest Ranked: Toyota Sequoia
  Chevrolet Suburban
  Ford Excursion

Large Pickup
Highest Ranked: Toyota Tundra
  Ford F-150 LD
  Dodge Ram Pickup LD

Midsize Pickup
Highest Ranked: Ford Ranger
  Toyota Tacoma
  Dodge Dakota

Van
Highest Ranked: Mercury Monterey
  Ford E-Series
  GMC Savana

Midsize Premium MAV
Highest Ranked: Lexus GX 470
  Lexus RX 330
  Volvo XC70

Large Premium MAV
Highest Ranked: Lexus LX 470
  Cadillac Escalade EXT
  Cadillac Escalade/Escalade ESV

Available Topic Expert(s): For information on the listed expert(s), click
appropriate link.
Neal Oddes
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=58144

SOURCE J.D. Power and Associates

Copyright © 2008 PR Newswire. All rights reserved.




Article : J.D. Power and Associates Reports: Deterioration in Vehicle Quality During the First Three Years of Ownership Has a Major Impact on Customer Satisfaction and Advocacy
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Your Comments

Why bother with brand level scores?
By: Michael Karesh , Thu, 07 Aug 2008 15:11:24 GMT

Why bother with brand scores, since you're buying a model, not a brand? Scores can vary quite a bit from model to model within a brand.

When the score worsens for a brand, it will often be because one or two models were redesigned three years ago. And when one improves, it can be because a redesign happened four or five years ago. For example, Saab launched the redesigned 9-3 in 2003, and worked the bugs out in the first two model years.

In Buick's case, the troublesome Terraza minivan was launched in the 2005 model year. Problems with the Terraza have no bearing on other Buicks, so why bother with a brand-level score at all?

TrueDelta's results, which are updated every three months, and provide scores for individual models:

http://www.truedelta.com/latest_results.php




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