Domestic auto brands surpass imports in initial quality for first time

Domestic auto brands, as a whole, have demonstrated higher initial quality than import brands for the first time, according to the J.D. Power and Associates 2010 U.S. Initial Quality Study (IQS) released on June 17. The study has been conducted annually for the past 24 years.

Overall, the industry average for initial quality is 109 problems per 100 vehicles (PP100) in 2010, increasing slightly from 108 PP100 in 2009. However, initial quality for domestic brands as a whole has improved by 4 PP100 in 2010 to an average of 108 PP100--slightly better than the initial quality of import brands, which averages 109 PP100 in 2010.

Substantial improvements by many domestic models--including the Ford Focus, Ram 1500 LD and Buick Enclave--drive the overall improvement of domestic automakers in 2010. In particular, initial quality of Ford models has improved steadily for the past nine years. In addition, as a corporation, Ford Motor Company (including Volvo) has 12 models that rank within the top three in their respective segments in 2010--more than any other corporation. General Motors Company has 10 models that rank within the top three in their segments.

Initial quality performance demonstrated by U.S. brands in 2010 contrasts sharply with consumer sentiment from one year ago. According to data collected by the J.D. Power Web Intelligence Division between May and July 2009, much of the online consumer discussion about automotive quality centered around the difficulties U.S. automakers were facing, and perceptions that these problems were largely caused by poor product quality.

"Domestic automakers have made impressive strides in steadily improving vehicle quality, particularly since 2007," said David Sargent, vice president of global vehicle research at J.D. Power and Associates. "This year may mark a key turning point for U.S. brands as they continue to fight the battle against lingering negative perceptions of their quality. However, there is still a long road ahead, and domestic manufacturers need to consistently prove to consumers that they can produce models with quality that equals or beats that of the import brands. Achieving quality comparability is the first half of the battle; convincing consumers--particularly import buyers--that they have done this is the second half."

According to J.D. Power's Web Intelligence Division, online consumer conversations about vehicle quality have recently shifted to a more concrete tone. In 2010, consumers are more often discussing quality as it applies to their own personal vehicle purchase decisions, rather than how domestic brands overall are affected by perceptions of low quality.

Initial quality of new models and major redesigns continues to improve in 2010, led by new launches from Ford, Honda, Lexus, Mercedes-Benz and Porsche.

The all-new Honda Accord Crosstour and the redesigned Ford Mustang, Ford Taurus and Lexus GX 460 each rank highest in initial quality in their respective segments. The Ford Fusion, Mercedes-Benz E-Class Coupe and Sedan and Porsche Panamera also launch with notably high initial quality levels.

Historically, newly launched models have incurred substantially more quality problems than carryover models, on average. However, more than one-half of all models launched during the 2010 model year perform better than their respective segment averages. Furthermore, 12 all-new and redesigned models rank within the top three in their respective segments. Meanwhile, initial quality of carryover and freshened models has declined for the 2010 model year.

"With automakers committing huge budgets for the design, engineering, production and marketing of all-new models and major redesigns, hitting the quality mark out of the gate is critical," said Sargent. "Getting initial quality right on model launches can serve dual purposes for automakers--boosting profitability and also inspiring consumer confidence in the overall quality of their models. Having a strong quality image is essential for automakers to be able to compete in today's market--both in the U.S. and around the globe."

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 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 vehicle durability, which directly impacts consumer purchase decisions. The study captures problems experienced by owners in two distinct categories--design-related problems and defects and malfunctions.

2010 IQS Ranking Highlights
Porsche leads the overall nameplate rankings, averaging 83 PP100. Following in the rankings are, respectively, Acura (which moves from 14th rank position in 2009 to second in 2010), Mercedes-Benz (which improves from sixth rank position in 2009 to third in 2010), Lexus and Ford (which moves into the top five for the first time since the inception of the study). MINI posts the largest improvement in 2010, reducing problems by 32 PP100 from 2009.

Toyota's problem count increases by 16 PP100, moving it from sixth rank position in 2009 to 21st in 2010.

"Clearly, Toyota has endured a difficult year," said Sargent. "Recent consumer concerns regarding Toyota's quality are reflected in the nameplate's performance in the 2010 study. That said, Toyota's success was built on a well-deserved reputation for quality, and there is little doubt that they will do everything possible to regain that reputation."

Ford and Lexus each garner three segment awards. Ford captures awards for the Focus, Mustang and Taurus, while Lexus receives awards for the GS, GX and LS models. The Lexus LS has the fewest quality problems in the industry, with just 55 PP100.

Chevrolet, Honda and Toyota receive two awards each. Chevrolet models earning awards are the Avalanche (in a tie) and the Tahoe. Honda receives awards for the Accord and the Accord Crosstour, while Toyota receives awards for the FJ Cruiser and Sienna.

Also receiving segment awards are: Acura RDX, Cadillac Escalade, GMC Sierra LD (in a tie), Hyundai Accent, Mazda MX-5 Miata, Mercedes-Benz C-Class, Nissan Frontier, Scion xB and Volvo C70.

Assembly Plant Awards
The Daimler assembly plant in East London, South Africa, receives the Platinum Plant Quality Award for producing vehicles yielding the fewest defects and malfunctions. The plant, which averages just 28 PP100, produces the Mercedes-Benz C-Class. Plant awards are based solely on average levels of defects and malfunctions and exclude design-related problems.

Among North and South American plants, the Toyota Motor Corporation plant in Cambridge South, Ontario, Canada, which produces the Lexus RX, achieves the Gold Plant Quality Award.

In the Asia Pacific region, Toyota Motor Corporation's Kyushu 2, Japan, plant, which produces the Lexus ES, IS and RX, receives the Gold Plant Quality Award.

The 2010 Initial Quality Study is based on responses from more than 82,000 purchasers and lessees of new 2010 model-year vehicles surveyed after 90 days of ownership. The study is based on a 228-question battery designed to provide manufacturers with information to facilitate identification of problems and to drive product improvement. The study was fielded between February and May 2010. Visit the J.D. Power Business Center for additional information on J.D. Power's automotive research.

2010 Nameplate IQS Ranking
  Problems per 100 Vehicles
  Porsche                                    83
  Acura                                      86
  Mercedes-Benz                              87
  Lexus                                      88
  Ford                                       93
  Honda                                      95
  Hyundai                                   102
  Lincoln                                   106
  Infiniti                                  107
  Volvo                                     109
  Industry Average                          109
  Ram                                       110
  Audi                                      111
  Cadillac                                  111
  Chevrolet                                 111
  Nissan                                    111
  BMW                                       113
  Mercury                                   113
  Buick                                     114
  Mazda                                     114
  Scion                                     114
  Toyota                                    117
  Subaru                                    121
  Chrysler                                  122
  Suzuki                                    122
  GMC                                       126
  Kia                                       126
  Jeep                                      129
  Dodge                                     130
  Jaguar                                    130
  MINI                                      133
  Volkswagen                                135
  Mitsubishi                                146
  Land Rover                                170


  Top Three Models per Segment
  Car Segments

  Sub-Compact Car
  Highest Ranked: Hyundai Accent
  Toyota Yaris
  Honda Fit

  Compact Car
  Highest Ranked: Ford Focus
  Honda Civic
  Hyundai Elantra

  Compact Sporty Car*
  Highest Ranked: Mazda MX-5 Miata
  Scion tC

  Compact Premium Sporty Car*
  Highest Ranked: Volvo C70
  Mercedes-Benz E-Class Coupe

  Entry Premium Car
  Highest Ranked: Mercedes-Benz C-Class
  Acura TL
  Cadillac CTS

  Midsize Premium Car
  Highest Ranked: Lexus GS
  Mercedes-Benz E-Class Sedan
  Volvo S80

  Midsize Sporty Car*
  Highest Ranked: Ford Mustang
  Dodge Challenger

  Large Premium Car
  Highest Ranked: Lexus LS 460
  Mercedes-Benz S-Class
  Porsche Panamera

  Midsize Car
  Highest Ranked: Honda Accord
  Ford Fusion
  Chevrolet Malibu

  Large Car
  Highest Ranked: Ford Taurus
  Buick Lucerne
  Nissan Maxima

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 were only two premium sporty models and no large van models with sufficient sample size, thus no premium sporty or large van awards have been issued.

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


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

  Compact Crossover/SUV
  Highest Ranked: Toyota FJ Cruiser
  Honda CR-V
  Honda Element

  Compact MPV
  Highest Ranked: Scion xB
  Chrysler PT Cruiser Wagon
  Nissan Cube

  Entry Premium Crossover/SUV
  Highest Ranked: Acura RDX
  BMW X3
  Volvo XC60

  Midsize Crossover/SUV
  Highest Ranked: Honda Accord Crosstour
  Honda Pilot
  Ford Edge

  Large Crossover/SUV
  Highest Ranked: Chevrolet Tahoe
  Chevrolet Suburban
  GMC Yukon

  Midsize Premium Crossover/SUV
  Highest Ranked: Lexus GX 460
  Infiniti FX-Series
  Volvo XC70

  Large Premium Crossover/SUV
  Highest Ranked: Cadillac Escalade
  Mercedes-Benz GL-Class
  Infiniti QX56 (tie)
  Land Rover Range Rover (tie)

  Large Pickup
  Highest Ranked: Chevrolet Avalanche (tie), GMC Sierra LD (tie)
  Ford F-150 LD

  Midsize Pickup
  Highest Ranked: Nissan Frontier
  Ford Ranger
  Ford Explorer Sport Trac

  Minivan
  Highest Ranked: Toyota Sienna
  Kia Sedona
  Dodge Grand Caravan

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 were only two premium sporty models and no large van models with sufficient sample size, thus no premium sporty or large van awards have been issued.

2010 Assembly Plant Quality Award Recipients
  Based on Models Produced for U.S. Market

                                                      
  Award                               PP100          Model(s) Produced at
                                    (defects/        Plant
                                    malfunctions
                                      only)

  Platinum Award
  Daimler, East London, 
   South Africa                           28        Mercedes-Benz C-Class

  North/South America
  -------------------
  Gold Award
  Toyota Motor Company, Cambridge
   South, Ontario (TMMC)                  30        Lexus RX

  Silver Award
  Ford Motor Company, Hermosillo,                   Ford Fusion, Lincoln
   Mexico                                 33        MKZ and Mercury Milan
  Bronze Award
  General Motors Corporation,
   Lansing, MI (Grand River)              37        Cadillac CTS and STS


  Asia Pacific
  ------------
  Gold Award
  Toyota Motor Corporation, Kyushu
   2, Japan (TMK)                         32        Lexus ES, IS and RX

  Silver Award
  Toyota Motor Corporation, Tahara
   3, Japan                               33        Lexus GS, IS and LS

  Bronze Award
  Toyota Motor Corporation, Kyushu
   1, Japan                               37        Lexus HS and RX;
  Toyota Highlander


  Europe and Africa
  -----------------
  Silver Award
  Porsche, Stuttgart, Germany             32        Porsche 911 and Boxster

  Bronze Award
                                                    Mercedes-Benz CL-
                                                    Class; CLS-Class; E-
                                                    Class Sedan; and S-
  Daimler, Sindelfingen, Germany          33        Class