County-Based Mazda and Hyundai Rated Among Best in Auto Satisfaction Survey
Two car companies that have U.S. headquarters in Orange County--Mazda and Hyundai--ranked among the best in an annual survey of customer satisfaction among new-car buyers.
The survey, released this week by J.D. Power & Associates, amounts to a report card for domestic, Japanese and European autos. The Agoura Hills marketing research firm scores the makes according to customer satisfaction for both product quality and dealer service over the first 12 months of car ownership.
For that reason, the Power survey is one of the most influential in the auto industry.
Average Jumps 10 Points
J.D. Power asked more than 24,000 owners of 1988 models about 16 categories ranging from satisfaction with the dealer to mechanical problems and vehicle repair. The survey ranks 158 models of 35 makes, or nameplates.
In the 1989 survey, the industry average--for domestic, Japanese and European autos--was 118, a whopping 10-point jump above last year’s industry average. On one hand, the increase in the average score is good news: It means that satisfaction levels have gone up over time. But on the other hand, manufacturers can also expect that “customer satisfaction will also rise--so it will be more difficult to maintain those high levels of satisfaction,” said William Fleming, an account executive with J.D. Power.
Among manufacturers with operations in Orange County, Mazda got the highest marks. The Japanese company, which has U.S. headquarters in Irvine, ranked No. 8 with a score of 125--an eight-point jump from the 1988 score of 117.
In comments released with the survey, J.D. Power states, “Mazda’s people skills improved dramatically to move above the industry average. . . . (The) vehicle repair/reliability score stayed relatively constant, but remained above the industry average. The problem-at-delivery level continues to be below the industry average. . . .
“The proportion of owners indicating they are ‘very satisfied’ with dealers . . . and their overall ownership experience are both significantly higher than the industry average.”
Hyundai, a South Korean company with U.S. headquarters in Garden Grove, ranked No. 14 with a score of 119, one point above the industry average. That meant that Hyundai dropped from its 13th-place slot on last year’s rankings, even though its score climbed by seven points.
In comments on the survey, J.D. Power states that Hyundai’s customer handling skills are about equal to last year’s. “However, the improving industry average put the nameplate under the total industry average” compared to last year.
Two Others in Top 25
“Hyundai’s slightly improved repair/reliability performance did not keep up with the gains made by the total industry,” the survey continues. “Both problems during the warranty period and service delays due to lack of parts are below the industry average.
“Owners’ satisfaction with their new vehicles and their ownership experience remain well below the industry averages. . . . However, Hyundai owners were more likely to indicate they are ‘very satisfied’ with dealers selling their make and their overall ownership experience than were Hyundai owners in the 1988 survey.”
Two other Japanese companies with U.S. headquarters in Orange County--Daihatsu and Mitsubishi--were ranked by J.D. Power among the top 25.
Daihatsu tied with two other manufacturers for 17th place, scoring 117, one point below the industry average.
The car, which was introduced in January, 1988, scored lower in the service-advisory categories and “very high” in the product categories, said C.R. Brown, chief operating officer with Los Alamitos-based Daihatsu American Inc.
Those scores translate to customers that are unhappy with treatment at the dealership, particularly with the apparent lack of knowledge on the part of service managers who write up repair orders at dealerships.
Brown said that because the Daihatsu is a new product, all of its dealerships are new. So when the survey was completed, “many of our dealers had just been in business 30, 60 or 90 days. It takes time to get fully trained and indoctrinated on the product. . . . We’ll improve as service advisers have more experience,” he said.
Daihatsu got high marks in the J.D. Power IQS survey, which measures problems encountered by customers in the first 90 days of ownership. That separate survey, which was released in June, ranked Daihatsu above average with fewer problems per 100 vehicles than the industry average. The industry average was 153 problems per 100 cars.
In the car satisfaction survey, meanwhile, Mitsubishi, was ranked 21st--a drop from last year’s No. 18 ranking.
In that survey, Mitsubishi scored 112, six points below the industry average of 118. Even so, the score marks an improvement over last year when the manufacturer scored 109 on an industry average of 108.
“We dropped slightly this year because the entire industry is moving ahead,” said Tom Benson, Mitsubishi’s vice president of service. Kim Custer, a spokesman with Cypress-based Mitsubishi Motor Sales of America, added that Mitsubishi will soon announce a “comprehensive effort” to improve overall customer satisfaction.
CUSTOMER SATISFACTION
Ranking of cars for 1988 model year according to customer satisfaction. Includes top 15 plus others made by companies with U.S. headquarters in Orange County.
Rank Company Score 1. Acura 147 2. Mercedes-Benz 138 3. Honda 137 4. Toyota 134 5. Cadillac 131 6. Nissan 128 7. Subaru 126 8. (tie) Mazda 125 8. (tie) BMW 125 10. Buick 123 11. Plymouth 122 12. (tie) Audi 121 12. (tie) Volvo 121 14. Hyundai 119 15. (tie) Porsche 118 15. (tie) Mercury 118 17. (tie) Daihatsu 117 21. Mitsubishi 112
Source: J.D. Power & Associates
PROBLEMS WITH NEW CARS
Problems reported per 100 cars from 1988 model year by owners in first 90 days of ownership. Mercedes-Benz: 103 Porsche: 106 Nissan: 111 Honda: 112 Toyota: 117 Acura: 120 Buick: 121 Mazda: 133 Mercury: 134 Daihatsu: 140 Lincoln: 142 Oldsmobile: 142 Cadillac: 145 Industry Average: 153
Source: J.D. Power & Associates
