J.D. Power: Deterioration in Vehicle Quality During the First Three Years of Ownership Has a Major Impact on Customer Satisfaction and Advocacy
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Lexus Ranks Highest in Vehicle Dependability for a 14th Consecutive Year
WESTLAKE VILLAGE, Calif., Aug. 7 -- 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.
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 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/.
2008 Nameplate VDS Ranking Problems Per 100 Vehicles Lexus 120 Mercury 151 Cadillac 155 Toyota 159 Acura 160 Buick 163 BMW 164 Lincoln 165 Honda 177 Jaguar 178 Porsche 193 Mitsubishi 197 Hyundai 200 Ford 204 Infiniti 204 Industry Average 206 Audi 207 Mercedes-Benz 215 Nissan 224 Pontiac 225 GMC 226 Mazda 228 Subaru 228 Chrysler 229 Dodge 230 MINI 233 Chevrolet 239 HUMMER 241 Scion 243 Volvo 244 Saturn 250 Jeep 253 Volkswagen 253 SAAB 254 Isuzu 274 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
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