Post by southsidesignmaker on Oct 1, 2010 6:44:11 GMT -6
'Made in America' Means Something Again
Results of the J.D. Power and Associates Initial Quality Study indicate that at least two of Detroit's Big Three automakers are on the right track and looking strong in the eyes of U.S. consumers.
By Chuck Tannert of MSN Autos
The Taurus was one of three Ford products to rank highest in a segment.
If there were any doubts about reports that the American auto industry is on the mend, they were laid to rest today with the release of J.D. Power and Associates' 2010 Initial Quality Study (IQS). Domestic brands, as a whole, demonstrated higher initial quality than the imports for the first time in the study's 24-year history. And, not surprisingly, Ford Motor Co. led the reformation.
Even before the Big Three went to Washington with their hats in hand back in the fall of 2008, Ford had been making sound decisions about the direction of the business. One of the pivotal moves it made was hiring Alan Mulally, the automaker's current CEO, from Boeing. By focusing on the company's balance sheet and leveraging its assets, Mulally was able to cut costs, put money in the bank and avoid taking government bailout money, unlike the other two big American automakers. While this endeared the brand to a financially strapped American public, it also gave Mulally the money needed to aggressively restructure the company and, more importantly, develop better automobiles.
Compare: Ford Taurus vs. Buick Lucerne
It was a gamble, for sure, but one that has paid off in spades, as the Blue Oval is now the highest-ranked mass-market automaker in initial quality. It also jumped into the list of top five brands in overall quality for the first time ever, and has 12 models that rank within the top three in their respective IQS segments — more than any other carmaker in the study — including capturing top honors in three segments with the Focus, Mustang and Taurus.
General Motors (often called "Government Motors" these days) also did well, with 10 models that rank within the top three in their segments. Chrysler didn't fare as well.
This is in sharp contrast to last year's results, when much of the discussion about automotive quality centered on the difficulties U.S. automakers were facing, and the 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," says David Sargent, vice president of global vehicle research at J.D. Power and Associates. What is still lagging, however, is the consumer perception of domestic quality. "It just isn't as high as the imports," Sargent says. "People that own a domestic-brand car love them, but those that don't still believe that foreign automakers build better automobiles. 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."
Getting It Right the First Time
Another trend to emerge from this year's study is that the initial quality of new models and major redesigns continues to improve, led by new launches from Ford, Honda, Lexus, Mercedes-Benz and Porsche.
"There is no penalty anymore for buying new," Sargent quips. "Automakers are getting better about designing quality into the vehicle right from the get-go. No one wants to build something that is hard to manufacture and thus likely temperamental, or is difficult for the consumer to operate."
Compare: Mercedes-Benz C-Class vs. Cadillac CTS
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 performed better than their respective segment averages. Furthermore, 12 all-new and redesigned models ranked within the top three in their respective segments. Meanwhile, initial quality of carryover and freshened models has declined for the 2010 model year.
The all-new Honda Accord Crosstour and the redesigned Ford Mustang, Ford Taurus and Lexus GX 460 each ranked highest in initial quality in their respective segments. The Ford Fusion, Mercedes-Benz E-Class Coupe and Sedan and Porsche Panamera also launched with notably high initial quality levels.
Toyota's Woes Continue
Unlike Ford, Toyota clearly is not having a good year. The once-shining example of quality and reliability fell from the sixth overall position in the manufacturer rankings in 2009 to 21st this year.
"The recent rash of recalls had quite an effect on the nameplate's performance," Sargent says. "Not surprisingly, we've seen an increase in concern over brakes, pedals and floor mats, all issues related to recalls."
However, that doesn't mean Toyota is down for the count. "This is the 24th consecutive year we've done the study, and Toyota was above average for 23 of those years," Sargent says. "Their lowest ranking before this was 13th. Remember, not even the Yankees make the playoffs every year."
Results of the J.D. Power and Associates Initial Quality Study indicate that at least two of Detroit's Big Three automakers are on the right track and looking strong in the eyes of U.S. consumers.
By Chuck Tannert of MSN Autos
The Taurus was one of three Ford products to rank highest in a segment.
If there were any doubts about reports that the American auto industry is on the mend, they were laid to rest today with the release of J.D. Power and Associates' 2010 Initial Quality Study (IQS). Domestic brands, as a whole, demonstrated higher initial quality than the imports for the first time in the study's 24-year history. And, not surprisingly, Ford Motor Co. led the reformation.
Even before the Big Three went to Washington with their hats in hand back in the fall of 2008, Ford had been making sound decisions about the direction of the business. One of the pivotal moves it made was hiring Alan Mulally, the automaker's current CEO, from Boeing. By focusing on the company's balance sheet and leveraging its assets, Mulally was able to cut costs, put money in the bank and avoid taking government bailout money, unlike the other two big American automakers. While this endeared the brand to a financially strapped American public, it also gave Mulally the money needed to aggressively restructure the company and, more importantly, develop better automobiles.
Compare: Ford Taurus vs. Buick Lucerne
It was a gamble, for sure, but one that has paid off in spades, as the Blue Oval is now the highest-ranked mass-market automaker in initial quality. It also jumped into the list of top five brands in overall quality for the first time ever, and has 12 models that rank within the top three in their respective IQS segments — more than any other carmaker in the study — including capturing top honors in three segments with the Focus, Mustang and Taurus.
General Motors (often called "Government Motors" these days) also did well, with 10 models that rank within the top three in their segments. Chrysler didn't fare as well.
This is in sharp contrast to last year's results, when much of the discussion about automotive quality centered on the difficulties U.S. automakers were facing, and the 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," says David Sargent, vice president of global vehicle research at J.D. Power and Associates. What is still lagging, however, is the consumer perception of domestic quality. "It just isn't as high as the imports," Sargent says. "People that own a domestic-brand car love them, but those that don't still believe that foreign automakers build better automobiles. 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."
Getting It Right the First Time
Another trend to emerge from this year's study is that the initial quality of new models and major redesigns continues to improve, led by new launches from Ford, Honda, Lexus, Mercedes-Benz and Porsche.
"There is no penalty anymore for buying new," Sargent quips. "Automakers are getting better about designing quality into the vehicle right from the get-go. No one wants to build something that is hard to manufacture and thus likely temperamental, or is difficult for the consumer to operate."
Compare: Mercedes-Benz C-Class vs. Cadillac CTS
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 performed better than their respective segment averages. Furthermore, 12 all-new and redesigned models ranked within the top three in their respective segments. Meanwhile, initial quality of carryover and freshened models has declined for the 2010 model year.
The all-new Honda Accord Crosstour and the redesigned Ford Mustang, Ford Taurus and Lexus GX 460 each ranked highest in initial quality in their respective segments. The Ford Fusion, Mercedes-Benz E-Class Coupe and Sedan and Porsche Panamera also launched with notably high initial quality levels.
Toyota's Woes Continue
Unlike Ford, Toyota clearly is not having a good year. The once-shining example of quality and reliability fell from the sixth overall position in the manufacturer rankings in 2009 to 21st this year.
"The recent rash of recalls had quite an effect on the nameplate's performance," Sargent says. "Not surprisingly, we've seen an increase in concern over brakes, pedals and floor mats, all issues related to recalls."
However, that doesn't mean Toyota is down for the count. "This is the 24th consecutive year we've done the study, and Toyota was above average for 23 of those years," Sargent says. "Their lowest ranking before this was 13th. Remember, not even the Yankees make the playoffs every year."
