Japanese Claim Top Ratings in Vehicle Quality Survey

By MICHAEL ELLIS

May 5, 2000 12 AM PT

REUTERS

DETROIT —

Japanese luxury auto makers reclaimed the three top spots in a widely watched survey for initial vehicle quality released Thursday. Results for U.S. auto makers were mixed, and Korean brands fared the worst.

According to the J.D. Power & Associates initial-quality survey, Honda Motor Co.’s Acura division registered 95 defects per 100 vehicles during the first three months of ownership, bettering by far the industry average of 158.

Toyota Motor Corp.’s Lexus division finished second with 107 defects and Nissan Motor Co.’s Infiniti ranked third at 110 in the survey by Agoura Hills-based J.D. Power of more than 47,000 owners of model year 2000 cars and trucks.

Auto makers often tout the results of the study in their advertising, and some consumers place a premium on quality when shopping for a new vehicle, analysts said.

“There is clearly a group of relatively well-educated and very anal-retentive boomers who probably obsess on this stuff,” said PaineWebber analyst Joseph Phillippi.

Last year’s winner, Ford Motor Co.’s Jaguar unit, fell to 10th place with 139 defects, versus 110 last year, in one of the largest initial-quality declines in the survey.

General Motors Corp.’s Buick division, last year’s second-place finisher, dropped to eighth place with 135 defects, up from 114. Infiniti placed third last year, as it did this year.

Toyota, Japan’s largest auto maker, captured the top spot in quality in eight of 14 vehicle segments, including compact car (Toyota Corolla), entry-level luxury car (Lexus ES 300), premium luxury car (Lexus LS 400), full-size pickup (Toyota Tundra) and minivan (Toyota Sienna).

Archrival Honda won in the categories of best sporty car (Acura Integra) and best small sport-utility vehicle (Honda CR-V).

The only domestic brand to win a top spot was DaimlerChrysler’s Plymouth, whose Breeze was the highest-ranked entry mid-size car. Ironically, that model was recently discontinued and the Plymouth brand, tops among U.S. makes at 11th place in the Power survey, will cease production after the 2001 model year.

In all, the industry showed a 5% drop in reported problems over last year’s results, despite the record U.S. sales pace that has strained manufacturing plants.

“While increased demands on the assembly process have raised the potential for problems for new vehicles, manufacturers seem more determined than ever to deliver vehicles with the best possible quality,” George Owens, manager of product research at J.D. Power, said in a statement.

South Korean auto makers Hyundai Motor Co., Daewoo Motor Co. and Kia Motors Corp., a unit of Hyundai, finished at the bottom in 34th, 36th and 37th place, respectively. Suzuki Motor Corp. of Japan placed 35th.

Despite the Koreans’ shortfall on quality, their combined U.S. sales surged 88% last year, an increase that industry analysts attributed to competitive pricing.

Continuing the recent trend, the gap between the worst and best continued to narrow, spurring some analysts and company executives to suggest that price, style and functionality will become more important in the buying process.

“Years ago . . . there were some significant gaps in there. Now you look at it, and we are fractions of one problem away from each other,” said Cindy Hess, vice president of corporate quality for DaimlerChrysler’s U.S. brands: Chrysler, Jeep, Plymouth and Dodge.

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Satisfaction Survey

Vehicles rated best in J.D. Power & Associates’ survey of 47,000 owners on the initial quality of their new cars and light trucks.

CARS

* Compact car: Toyota Corolla

* Entry mid-size car: Plymouth Breeze

* Premium mid-size car: Toyota Avalon

* Sporty car: Acura Integra

* Entry luxury car: Lexus ES 300

* Premium luxury car: Lexus LS 400

* Sports car: Porsche 911

TRUCKS