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Old 07-13-2003, 02:00 AM   #1
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J.D. Power and Associates Reports: While Japanese- Branded Vehicles Continue to Le...

WESTLAKE VILLAGE, Calif., July 8 -- While Japanese-branded
vehicles continue to dominate in terms of long-term vehicle quality, the
Europeans have lost their edge over the U.S. domestic-branded vehicles,
according to the J.D. Power and Associates 2003 Vehicle Dependability
Study(SM) (VDS) released today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030603/JDLOGO )
The 2003 study, which measures problems reported by original owners of
2000 model-year vehicles at three years of ownership, finds that although
there is near parity between U.S. Domestics and Europeans in terms of initial
quality, substantial quality gaps appear between the Domestics and the
Europeans in long-term durability. On average, models by domestic automakers
outpace the Europeans by 49 problems per 100 (PP100) vehicles at three years
of ownership.
"Conventional wisdom said that dependability was the property of the
Japanese and Europeans," said Joe Ivers, partner and executive director of
quality/customer satisfaction at J.D. Power and Associates. "While that's
still true for automakers like Toyota and Honda, it's no longer the case for
many of the Europeans. Porsche, Jaguar, Saab and BMW perform well above the
industry average in dependability, but many other European brands are bought
based on a reputation for long-term quality and fall far short of even the
average. This is in stark contrast to the results of the first VDS, conducted
in 1990, when Mercedes-Benz led the industry."
Toyota Motor Sales, U.S.A., Inc. boasts nine models with top segment
rankings, followed by Ford Motor Company and General Motors with three each,
and American Honda and Porsche Cars North America with one each. Lexus is the
top-ranked nameplate for the ninth consecutive year. Porsche Cars North
America leads the corporate ranking, while Toyota Motor Sales leads among the
full-range vehicle manufacturers. General Motors is the only domestic
manufacturer to rank above the industry average in the corporate rankings,
with 12 models finishing in the top three of the segment rankings, second only
to Toyota Motor Sales with 13.
Other notable performances in the 2003 results include Subaru and GMC,
which both performed considerably better when measured at three years in VDS
than when they were measured at 90 days of ownership. At the other end of the
spectrum is Mercedes-Benz, which experiences the largest quality gap between
initial quality and long-term quality measurements. Also deteriorating more
rapidly than the average vehicle are Audi and Volvo.
Some problems that occur much more frequently as vehicles age include
excessive brake wear, air conditioning system issues, wind noise and the
replacement of components not called for under the normal maintenance
schedule. New problems that arise as vehicles age include issues with shocks
and struts; faded, cracked or worn materials; worn or broken moldings; cracked
and peeling paint; and various fluid leaks.
Long-term quality measures have a big consumer impact. Among new-vehicle
buyers, 52 percent indicate that long-term durability is among their most
important factors in choosing a vehicle. Further, among used-vehicle buyers,
42 percent report buying a used vehicle instead of a new vehicle because they
felt that the quality of the used vehicle is as good as a new one. This is
particularly true among luxury used-vehicle buyers.
"With the proliferation of long-term warranties being offered on new
vehicles and the increasing popularity of manufacturer-sponsored used-vehicle
certification programs, long-term quality issues are critical to manufacturers
and their bottom lines," said Ivers. "Manufacturers must align themselves
with consumer expectations for durability. Long-term quality issues have a
substantial impact on customer retention, even among 'got to have' models that
seem impervious to quality issues at their introductions."
The 2003 Vehicle Dependability Study is based on responses from more than
55,000 original owners of 2000 model-year cars and light trucks. The study
covers 147 specific problem symptoms grouped into nine major vehicle systems.
For the first time, the study reviews models at three years of ownership
instead of the historical four- to five-year period in order to better support
manufacturer product improvement efforts in next-generation replacement
models.

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an
ISO 9001-registered global marketing information services firm operating in
key business sectors including market research, forecasting, consulting,
training and customer satisfaction. The firm's quality and satisfaction
measurements are based on responses from millions of consumers annually.
Media e-mail contact: michael.greywitt@jdpa.com or john.tews@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. http://www.jdpower.com

Multimedia Available: To view and download supplementary video, audio,
text, graphics and photos, please visit J.D. Power and Associate's enhanced
news release at http://www.prnewswire.com/mnr/jdpower/11054/

CONTACT: Michael Greywitt (805) 418-8000, West Coast
John Tews (248) 267-6800, East Coast



SOURCE J.D. Power and Associates
Photo Notes: NewsCom:
http://www.newscom.com/cgi-bin/prnh/20030603/JDLOGO PRN Photo
Desk, 888-776-6555 or 212-782-2840
Web Site: http://www.jdpower.com
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