JD Power Study Finds European Car Quality Slipping

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Thought y'all might find this of interest...shows that a driving a Benz doesn't mean much anymore...J.D. Power Study Finds European Car Quality SlippingTue Jul 8, 2:11 PM ET Link to storyBy Ann Keeton CHICAGO -- "Wouldn't you really rather own a Buick?" Maybe so. After three years of ownership, car owners reported that Buicks had fewer problems than almost all other vehicles, including DaimlerChrysler AG's Mercedes-Benz, Volkswagen AG's Audi, and Ford Motor Co.'s Volvo and Land Rover brands. A study released Tuesday by J.D. Power and Associates found that, after three years, car buyers ranked General Motors Corp.'s Buick the No. 3 brand behind perennial luxury favorites Lexus, made by Toyota Motor Corp. (news - web sites) , and Infiniti, made by Nissan Motor Co. . Buick, particularly the Park Avenue, has been a strong performer in the mid- price category for several years, said Brian Walters, senior director of product research for J.D. Powers. Overall, Japanese-branded cars still dominate all categories of long-term vehicle quality, J.D. Power found. What's surprising is that, while U.S. and European-made cars started out about even in terms of quality when they were new, after three years domestically made cars had just half as many reported problems as did European cars, according to their owners. "Conventional wisdom said that dependability was the property of the Japanese and Europeans," said Joe Ivers, a partner at J.D. Power. "While that's still true for auto makers like Toyota and Honda, it's no longer the case for many of the Europeans." Porsche AG's Porsche, Ford's Jaguar, GM's Saab and BMW AG's BMW performed above industry averages, but many others did not, he said. The study on long-term auto quality is closely watched because 52% of new car buyers rank it among their most important factors in choosing a vehicle, according to J.D. Power. It's especially important to manufacturers because customers with few problems tend to remain loyal to a brand. Among used car buyers, 42% say they prefer to buy a used car over a new one because they think the quality of a used car - particularly one with a trusted name like Mercedes-Benz - is as good as that of a new one. But this year, the European luxury brands came in well below average in owner satisfaction. "Brand image is tough to turn around," said Mr. Walters. "At this point, Mercedes is benefitting from a good reputation." Once at the top of the quality ranking, Mercedes has been slipping for a decade. If the downward trend continues, "it's going to come back to hurt Mercedes-Benz," Mr. Walters said. He said long-term quality is especially important in luxury cars, where the certified used car market continues to grow. A spokeswoman for Mercedes said problems have been resolved or are being addressed. The spokeswoman, Donna Boland, said the customer complaints that lowered Mercedes' rating on the survey were related to vehicle features and controls, and car interiors, and weren't performance issues. This year's study is based on responses from more than 55,000 original owners of 2000 model-year cars and light trucks. The study covered 147 problems that can occur in nine different systems in a car. They included problems like excessive brake wear or the replacement of components not called for under the normal maintenance schedule. Brake problems are the single biggest complaint from long-term car owners, Mr. Walters said. Measured in problems per hundred vehicles, Lexus ranked at the top, with the fewest complaints, at 163. Kia Motors Corp.'s Kia ranked last with 509, well below the industry average of 273 reported problems. Chrysler, the U.S. unit of DaimlerChrysler, and Ford ranked just below the industry average, about where they have been in the past. General Motors came in above the industry average. For the first time since the study commenced in 1988, J.D. Power reviewed models after three years of ownership instead of four or five years. A shorter review period will allow manufacturers to use the data to improve their next- generation products, Mr. Walters said. In the past, the study was too long to influence new car designs, which come out every four to five years. The industry, too, has shortened turnaround times for making design changes to fix problems more quickly. At Chrysler, warranty costs since 1997 have dropped by about 5% per year, reflecting the company's ability to build better quality cars, a spokesman said. "From 2002 to 2003, we're looking at a 15% to 20% additional drop," said spokesman Sam Locricchio. Mr. Walters said high-milage cars in the three-year study showed similar problems to those studied after five years, so information on longer-term wear could still be used. -By Ann Keeton; Dow Jones Newswires; 312-750-4120;ann.keeton@dowjones.com

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Lexus Tops J.D. Power Dependability Study Tue Jul 8, 4:16 PM ET Add Business - AP to My Yahoo! Link to articleBy JOHN PORRETTO, AP Auto Writer DETROIT - For the ninth consecutive year, Lexus was the highest ranking brand in the J.D. Power and Associates vehicle dependability study, the marketing research firm said Tuesday. Lexus, the luxury division of Toyota Motor Corp. (news - web sites), was followed by Nissan Motor Co.'s Infiniti brand, General Motors Corp.'s Buick nameplate, Porsche AG and Honda Motor Co. (news - web sites)'s Acura label. GM was the only one of Detroit's Big Three automakers to score better than the industry average of 273 problems per 100 vehicles. "The Lexus brand has become one of the bulletproof brands out there," said Mike Wall, an industry analyst with CSM Worldwide. "In terms of quality, efficiency and overall manufacturing, I think Toyota's been head and shoulders above the rest." The closely watched study is based on responses from more than 55,000 original owners of 2000 model-year cars and light trucks. For the first time, J.D. Power reviewed models at three years of ownership instead of four to five years to better support manufacturers' efforts to improve next-generation replacement models. Because of the change, 2003 results are not directly comparable to previous studies. Some of the most common problems in the new survey were excessive brake wear, wind noise and the replacement of components not called for under the normal maintenance schedule. "Conventional wisdom said that dependability was the property of the Japanese and Europeans," said Joe Ivers, executive director of quality/customer satisfaction at J.D. Power. "While it's still true for automakers like Toyota and Honda, it's no longer the case for many Europeans." Ivers noted that while Porsche, Jaguar, Saab and BMW scored above the industry average for dependability, Audi, Mercedes-Benz and Volvo were well below the standard. J.D. Power said Mercedes-Benz had the largest gap between initial quality and long-term quality measurements. In fact, DaimlerChrysler AG's Chrysler, Dodge and now-defunct Plymouth brands all scored higher than Mercedes-Benz in the 2003 study. Wall said Mercedes-Benz's score was partly attributable to problems with its M-Class sport utility vehicle. Among manufacturers overall, Porsche Cars North America topped the list with 193 problems per 100 vehicles, followed by Toyota Motor Sales USA (196), American Honda (215), Nissan North America (258) and BMW of North America (262). GM was next with 264 problems per 100 vehicles. This spring, GM began a national advertising campaign acknowledging quality lapses of the past to underscore progress it's made in recent years. "GM's quality has been improving, and I think this reinforces that," Wall said. "Their biggest challenge has been getting consumers to recognize that and bringing them back in the fold from the Hondas, Toyotas and Nissans of the world." Ford Motor Co.'s Lincoln brand outranked Honda in the survey, and its Mercury brand also scored above the industry average. But the Ford brand itself had 22 more problems per 100 vehicles than the average, dragging down the company as a whole. Ford Motor had 287 problems per 100 vehicles — 14 more than the industry average — followed by DaimlerChrysler with 311. J.D. Power said 52 percent of new-vehicle buyers indicated that long-term durability was among the most important factors in their decision. "With the proliferation of long-term warranties ... and the increasing popularity of manufacturer-sponsored used-vehicle certification programs, long-term quality issues are critical to manufacturers and their bottom lines," Ivers said. ___ On the Net: J.D. Power and Associates, http://www.jdpa.com