Reports: Despite Overall Industry Improvement in Long-Term Dependability, Some Vehicle Brands Don t Receive the Credit They re Due Japanese Models Capture Nine Segment Awards, While Domestic Models Garner Seven and European Models Earn Three; For the First Time in More than A Decade, A Domestic Model Achieves Lowest Incidence of Problems WESTLAKE VILLAGE, Calif.: 18 March 2010 Twenty-five of 36 vehicle brands have improved in longterm dependability in 2010, compared with their performance in 2009, continuing a steady trend of industry-wide improvement. However, for some of these brands, consumer perceptions have not kept pace with their actual performance, according to the J.D. Power and Associates 2010 U.S. Vehicle Dependability Study SM (VDS) released today. The study, which measures problems experienced by original owners of three-year-old (2007 model year) vehicles, includes 198 different problem symptoms across all areas of the vehicle. Overall dependability is determined by the level of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. The Vehicle Dependability Study is used extensively by vehicle manufacturers worldwide to help design and build better vehicles which typically translates to higher resale values and by consumers to help them make more-informed choices for both new- and used- vehicle purchases. According to J.D. Power and Associates, among new-vehicle shoppers, perception of quality and dependability is the most influential factor in their decision to purchase a specific vehicle model. The study finds that several brands that perform well in long-term dependability in 2010 are avoided at relatively high rates due to consumer concerns about dependability. 1 Among brands included in VDS, Cadillac, Ford, Hyundai, Lincoln and Mercury have the greatest lags between dependability performance and consumer perception. Producing vehicles with world-class quality is just part of the battle for automakers; convincing consumers to believe in their quality is equally as important, said David Sargent, vice president of global vehicle research at J.D. Power and Associates. It takes considerable time to positively change consumer perceptions of quality and dependability sometimes a decade or more so it is vital for manufacturers to continually improve quality and also to convince consumers of these gains. According to Sargent, approaches that can help reinforce perceptions of high quality in consumers minds include: providing extended warranties, which demonstrates a brand s faith in its products; incorporating features, materials and finishes in vehicles that have a rich feel; and ensuring that new models launch with better quality than their predecessors. In addition, automakers need to increase communication efforts about their high quality and dependability through social media channels such as blogs, Facebook and Twitter, as well as through traditional channels. Toyota continues to perform well in long-term dependability and garners four segment awards more than any other nameplate in 2010 for the Highlander, Prius, Sequoia and Tundra. Honda receives three segment awards for the CR-V, Fit and Ridgeline. Lincoln captures two awards for the Mark LT and MKZ. In addition, Audi, BMW, Buick, Cadillac, Chevrolet, Ford, Lexus, Mazda, Mercedes-Benz and Mercury each receive a model segment award. 1 Source: J.D. Power and Associates 2009 Avoider Study SM (Page 1 of 2)
Porsche leads the overall nameplate rankings in 2010, which is consistent with its performance in the J.D. Power and Associates 2007 Initial Quality Study, SM which measures new-vehicle quality at 90 days of ownership. Lincoln improves by six rank positions from 2009 to follow Porsche in the nameplate rankings. Rounding out the top five nameplates are Buick, Lexus and Mercury. In addition, seven of the 10 models with the lowest incidence of problems in the industry are from Ford and General Motors, including the 2007 model-year Buick Lacrosse, Buick Lucerne, Cadillac DTS, Ford Five Hundred, Lincoln MKZ, Mercury Milan, and Mercury Montego. The Cadillac DTS has the fewest problems in the industry, with just 76 problems per 100 vehicles. This marks the first time in more than a decade that a model from a domestic automaker has achieved the lowest PP100 score in the Vehicle Dependability Study. Overall vehicle dependability has improved by 7 percent in 2010 to an average of 155 PP100, compared with 167 PP100 in 2009 2 a rate that is consistent with historical industry gains. In addition to the improvement in overall dependability, the rate of component replacement has also been reduced from 2009. Approximately 65 percent of owners indicate they replaced a vehicle component in 2010, compared with 68 percent in 2009. The improvements in long-term dependability and component replacement rates are good news for both consumers and manufacturers, said Sargent. Manufacturers benefit from lower warranty expenses, while consumers incur lower maintenance and repair costs, as well as less inconvenience. The study also finds that long-term dependability has a significant positive effect on repurchase intent. Among owners who say they did not experience problems with their vehicle, 43 percent indicate they definitely will repurchase their current brand. This figure declines to 28 percent among owners who say they experienced at least one problem with their vehicle. The 2010 Vehicle Dependability Study is based on responses from more than 52,000 original owners of 2007 model-year vehicles. The study was fielded between October and December 2009. Find more detailed findings on vehicle dependability as well as model photos and specs by 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, Web intelligence 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 company meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor s, McGraw-Hill Education, Platts, Capital IQ, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. 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/. J.D. Power and Associates Media Relations Contacts: John Tews; Troy, Mich.; (248) 312-4119; media.relations@jdpa.com Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; media.relations@jdpa.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. # # # (Page 2 of 2) NOTE: Three charts follow. 2 Due to a change in the problem battery in 2010, PP100 scores for 2009 have been adjusted to allow for comparison with 2010 PP100 scores.
2010 Nameplate Ranking Problems per 100 Vehicles 0 100 200 300 400 Porsche Lincoln Buick Lexus Mercury Toyota Honda Ford Mercedes-Benz Acura Hyundai Cadillac Infiniti Subaru Industry Average SAAB Saturn BMW GMC Chrysler Kia Volvo HUMMER Jaguar Chevrolet Nissan Audi Dodge Pontiac Mazda Scion Mitsubishi MINI Jeep Volkswagen Suzuki Land Rover 110 114 115 115 121 128 132 141 142 143 148 150 150 155 155 158 164 165 165 166 167 167 169 175 176 180 182 190 192 195 201 202 203 222 225 253 255 NOTE: Isuzu 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: Honda Fit Toyota Yaris Compact Car Highest Ranked: Toyota Prius Toyota Corolla Pontiac Vibe Compact Sporty Car Highest Ranked: Mazda MX-5 Miata Saturn SKY Pontiac Solstice Convertible Midsize Sporty Car Highest Ranked: Chevrolet Monte Carlo Toyota Solara Ford Mustang Midsize Car Highest Ranked: Buick LaCrosse Mercury Milan Honda Accord Compact Premium Sporty Car* Highest Ranked: BMW Z4 Entry Premium Vehicle Highest Ranked: Lincoln MKZ Acura TSX Cadillac CTS Midsize Premium Car Highest Ranked: Audi A6 Lexus ES 350 Cadillac STS (tie) Infiniti M-Series (tie) Large Premium Car* Highest Ranked: Cadillac DTS Lexus LS 460 Premium Sporty Car* Highest Ranked: Mercedes-Benz SL-Class Porsche 911 Large Car Highest Ranked: Mercury Montego Buick Lucerne (tie) Ford Five Hundred (tie) For more detailed findings on vehicle quality and dependability performance, visit www.jdpower.com *No other model in this segment performs above the segment average.
Top Three Models per Segment Truck / Multi-Activity Vehicle (MAV) Segments Compact MAV Highest Ranked: Honda CR-V Subaru Forester Hyundai Tucson Midsize MAV Highest Ranked: Toyota Highlander Toyota 4Runner Ford Freestyle Large MAV Highest Ranked: Toyota Sequoia GMC Yukon Ford Expedition Large Pickup Highest Ranked: Toyota Tundra Ford F-150 LD Chevrolet Silverado Classic HD Midsize Pickup Highest Ranked: Honda Ridgeline Dodge Dakota Ford Ranger Midsize Van Highest Ranked: Ford Freestar Toyota Sienna Buick Terraza (tie) Chrysler Town & Country (tie) Midsize Premium MAV Highest Ranked: Lexus GX 470 Lexus RX Infiniti FX-Series Large Premium MAV Highest Ranked: Lincoln Mark LT Lincoln Navigator Cadillac Escalade EXT For more detailed findings on vehicle quality and dependability performance, visit www.jdpower.com 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 is only one large van model with sufficient sample size, thus no large van awards have been presented.