UPDATE: J.D. Power and Associates Reports: Porsche Ranks Highest Among Nameplates, While Mercedes-Benz Improves Notably in U.S. Initial Quality Study

MUNICH, June 17 /PRNewswire/ --

In the news release, J.D. Power and Associates Reports: Porsche Ranks Highest Among Nameplates, While Mercedes-Benz Improves Notably in U.S. Initial Quality Study, issued on June 17, 2010 over PR Newswire, in the chart titled, “2010 Assembly Plant Quality Award Recipients,” the third item in the Asia Pacific section should show that Kia Motors Corporation Kwangju Plant 2 in South Korea receives a Bronze Award with 35 problems per 100 vehicles (PP100), rather than the Toyota Motor Corporation Kyushu 1 plant in Kyushu, Japan, with 37 PP100, as originally issued.

To calculate plant quality scores, J.D. Power and Associates uses detailed plant and vehicle model information provided by auto manufacturers. It was discovered after the press release was issued that one piece of information that J.D. Power received was inaccurate. Scores were recalculated based on the corrected information, resulting in the change in plant awards.

The original data for Kia Motors Corporation Kwangju Plant 2 inadvertently included some Kia Soul units that were actually produced at Kia Motors Corporation Kwangju Plant 1. Based on this correction, the score for Kwangju Plant 2 is 35 PP100, which is lower than that of the Toyota Motor Corporation Kyushu 1 plant.  Thus, Kia Motors Corporation Kwangju Plant 2 receives the Bronze Award, while the Toyota Motor Corporation Kyushu 1 plant ranks fourth in plant quality in the Asia Pacific region.

Only the plant scores for Kia Motors Corporation Kwangju Plant 2 and the Toyota Motor Corporation Kyushu 1 plant are affected by the correction; all other data in the press release remain unchanged.

Porsche ranks highest among nameplates in initial quality, while Mercedes-Benz improves substantially from sixth rank position in 2009 to third in 2010, according to the J.D. Power and Associates 2010 U.S. Initial Quality Study(SM) (IQS) released today.

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Porsche averages 83 problems per 100 vehicles (PP100). Following in the rankings are, respectively, Acura (which moves from 14th rank position in 2009 to second in 2010), Mercedes-Benz, 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. Lower PP100 scores indicate a lower rate of problem incidences and higher quality.

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 problems per 100 vehicles (PP100), produces the Mercedes-Benz C-Class.

"Daimler's East London, South Africa, plant has been a top performer for the past three years, and its achievement in 2010 is particularly impressive," said Brian Walters, vice president of Europe, Middle East and Africa operations at J.D. Power and Associates. "Daimler's rigorous quality management processes are a key reason for why the brand has been able to assemble consistently high-quality vehicles in different regions of the world."

2010 U.S. Initial Quality Study Findings

For the first time since the inception of the study 24 years ago, U.S. auto brands, as a whole, have demonstrated higher initial quality than import brands (automakers headquartered in Europe or Asia Pacific).

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 U.S. 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 U.S. 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 the 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 U.S. IQS Ranking Highlights

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.

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."

2010 Plant Quality Award Recipients

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.

About J.D. Power and Associates

The European headquarters of J.D. Power and Associates is located in Munich, Germany.  With world headquarters in Westlake Village, California, U.S.A., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company's quality and satisfaction measurements are based on responses from millions of consumers annually.  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 global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.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. www.jdpower.com/corporate.

SOURCE J.D. Power and Associates

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