2011 J.D. Power Initial Quality report praises Lexus, Honda, pans Ford

The calendar has kicked over to summer, and that means J.D. Power has just updated its Initial Quality report. The 2011 edition of the IQS is a bit surprising, mostly because the quality of new model launches has been trending upward since 2007 for the entire industry on average. The tune has changed for 2011, as J.D. Power notes the first quality decline in four years, though it notes that carryover models performed better than ever - it's the new models that are drawing complaints. It's not all bad news, though, as a few automakers have managed to stand out from the competition:

According to the study, which tracks buyer satisfaction after 90 days of ownership, Honda is a notable leader in quality, and its lineup shares seven awards for specific models. The Accord, Accord Crosstour, Civic, Element, Fit, Insight and Ridgeline all receive recognition from J.D. Power. Lexus isn't too far behind Honda, with four models getting the 2011 IQS thumbs up. Lexus also leads automakers in across-the-line quality, with Honda, Acura, Mercedes-Benz and Mazda chugging along right behind. Toyota showed strong signs of a comeback, motoring all the way from 21st place in 2010 back up to 7th place. Another item of note, is that Land Rover made a major leap in quality, and has reduced quality issues by 47 problem per every 100 vehicles.

According to JDP, the leading reasons noted for a drop in quality includes growing consumer dissatisfaction with engine/transmission issues and audio/navigation matters. Chief among those who were dinged by both factors is Ford, which drew black marks for its complex MyFordTouch/Sync technologies, along with its PowerShift dual clutch transmission behavior. The technology updates saw Ford plummet from 5th place overall (first among non-premium marques) to 23rd place out of 32 brands.

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J.D. Power and Associates Reports: Initial Quality of Recent Vehicle Launches is Considerably Lower Than in 2010, While Carryover Model Quality is Better Than Ever

Honda Receives Seven Model-Level Awards; Lexus Receives Four

WESTLAKE VILLAGE, Calif., June 23, 2011 /PRNewswire/ -- After an improvement in the quality of newly launched models every year from 2007 to 2010, the initial quality of 2011 new model launches has declined considerably, according to the J.D. Power and Associates 2011 U.S. Initial Quality Study(SM) (IQS) released today. The study has been conducted annually for the past 25 years.

Vehicle Launch Challenges
Overall initial quality improves to an average of 107 problems per 100 vehicles (PP100) in 2011 from 109 PP100 in 2010. However, the initial quality of launch models-those that are all-new or have had major redesigns-worsens by 10 percent to an average of 122 PP100 in 2011 from 111 PP100 in 2010. Conversely, carryover models-those that have had no significant redesign in the past year-have better initial quality than ever before. Owners of these vehicles report an average of just 103 PP100 in 2011, compared with 108 PP100 in 2010. Lower PP100 scores indicate a lower rate of problem incidences and therefore higher initial quality.

"Exciting models with the latest features are crucial for winning over today's demanding consumers," said David Sargent, vice president of global vehicle research at J.D. Power and Associates. "However, automakers must not lose their focus on the importance of these models also achieving exceptional quality levels. Expected reliability continues to be the single-most-important reason why new-vehicle buyers choose one model over another, and no manufacturer can afford to give consumers any doubts regarding the quality of their latest products."

Only seven all-new or redesigned models rank among the top three of their respective award segments, compared with 17 models in 2010, and only one launch model receives a segment award this year versus five launch models in 2010. Just one-fourth of redesigned models perform better than the outgoing previous-generation model did in 2010, and eight all-new models perform above their respective award segment average.

Software and Technology Challenges
The decline in vehicle launch quality is evident in a number of areas, most notably the engine/transmission and audio/entertainment/navigation categories. There are two primary causes for this quality decline:

With high fuel prices and more stringent government regulations, automakers are designing engine and transmission software to make their models as economical as possible. However, this sometimes leads to the engine or transmission "hesitating" when accelerating or changing gears, and consumers this year are reporting this as a problem more often than in past years.
Automakers are also accelerating the introduction of multimedia technology into their models, including hands-free and voice-activation systems. Many consumers are attracted by this type of technology, which is perceived to enhance convenience and safety, but some vehicle owners report that their system is not intuitive and/or does not always function properly.

"Clearly, consumers are interested in having new technology in their vehicles, but automakers must ensure that the technology is ready for prime time," said Sargent. "Successful companies will be those that can take this incredibly complex technology and make it reliable, seamless and easy for owners to operate while they are driving. There is an understandable desire to bring these technologies to market quickly, but automakers must be careful to walk before they run."
While overall vehicle quality continues to improve, the introduction of new technology is expected to continue to pose challenges for automakers. Overall problem rates for audio/entertainment/navigation systems in 2011 are 18 percent higher than in 2010 and 28 percent higher than in 2009.

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 throughout the years to be an excellent predictor of long-term 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.

2011 IQS Ranking Highlights
Lexus leads the overall nameplate rankings with 73 PP100 on average. Following in the rankings are Honda (which improves to second rank position in 2011 from sixth in 2010), Acura, Mercedes-Benz and Mazda (which improves to fifth rank position in 2011 from 18th in 2010), respectively. Land Rover posts the largest improvement in 2011, reducing problems by 47 PP100 from 2010.

Honda garners seven segment awards for the Accord, Accord Crosstour, Civic (in a tie), Element, Fit, Insight (in a tie) and Ridgeline. Lexus receives four segment awards for the ES, GS, GX and LS models. For a second consecutive year, the Lexus LS has the fewest quality problems in the industry with just 54 PP100.

Chevrolet, Ford and Mercedes-Benz receive two awards each. Chevrolet receives awards for the HHR and the Tahoe; Ford for the F-150 and the Taurus; and Mercedes-Benz for the GLK-Class and the E-Class cabriolet/coupe. Also receiving segment awards are the Cadillac Escalade; Chrysler Town & Country; Dodge Challenger; and Mazda MX-5 Miata.

Among all-new and redesigned models, the Hyundai Equus and Dodge Durango are notably strong performers, each ranking second in their respective segment.

Assembly Plant Awards
Three assembly plants receive Platinum Plant Quality Awards (in a three-way tie) for producing models yielding the fewest defects and malfunctions: the Toyota Motor Corporation Cambridge South, Ontario, Canada, plant (which produces the Lexus RX); the Toyota Motor Corporation Kyushu 2, Japan, plant (which produces the Lexus ES, IS and RX); and the Honda Motor Company plant in Greensburg, Ind. (which produces the Civic). These plants average just 24 PP100. Plant awards are based solely on average levels of defects and malfunctions and exclude design-related problems.

In the Europe and Africa region, Daimler's Bremen 1, Germany, and East London, South Africa, plants each receive a Gold Plant Quality Award in a tie. The Bremen 1 plant produces the Mercedes-Benz C-Class, E-Class cabriolet/coupe and GLK-Class, while the East London plant produces the C-Class.

The 2011 U.S. Initial Quality Study is based on responses from more than 73,000 purchasers and lessees of new 2011 model-year cars, trucks and multi-activity vehicles surveyed after 90 days of ownership. The study is based on a 228-question battery designed to provide manufacturers with information to facilitate identifying problems and drive product improvement. The study was fielded between February and May 2011.

2011 Nameplate IQS Ranking
Problems per 100 Vehicles

Nameplate PP100
Lexus 73
Honda 86
Acura 89
Mercedes-Benz 94
Mazda 100
Porsche 100
Toyota 101
Infiniti 102
Cadillac 103
GMC 104
Industry Average 107
Hyundai 108
Subaru 108
BMW 109
Chevrolet 109
Volvo 109
Chrysler 110
Lincoln 111
Audi 113
Kia 113
Buick 114
Jaguar 114
Ram 114
Ford 116
Nissan 117
Jeep 122
Land Rover 123
Scion 123
MINI 131
Volkswagen 131
Mitsubishi 133
Suzuki 136
Dodge 137

Top Three Models per Segment

Sub-Compact Car
Highest Ranked: Honda Fit
Kia Rio
Hyundai Accent

Compact Car
Highest Ranked: Honda Civic (tie)
Highest Ranked: Honda Insight (tie)
Toyota Prius

Compact Sporty Car
Highest Ranked: Mazda MX-5 Miata
Volkswagen Eos
Volkswagen GTI

Compact Premium Sporty Car*
Highest Ranked: Mercedes-Benz E-Class Cabriolet/Coupe

Entry Premium Car
Highest Ranked: Lexus ES
Acura TSX
Lexus IS

Midsize Premium Car
Highest Ranked: Lexus GS
Jaguar XF
Mercedes-Benz E-Class Sedan/Wagon

Midsize Sporty Car*
Highest Ranked: Dodge Challenger
Chevrolet Camaro

Large Premium Car
Highest Ranked: Lexus LS
Hyundai Equus
Porsche Panamera

Midsize Car
Highest Ranked: Honda Accord
Subaru Legacy
Toyota Camry

Large Car
Highest Ranked: Ford Taurus
Buick Lucerne
Nissan Maxima

Compact Crossover/SUV
Highest Ranked: Honda Element
Honda CR-V
Toyota FJ Cruiser

Compact MPV*
Highest Ranked: Chevrolet HHR

Entry Premium Crossover/SUV
Highest Ranked: Mercedes-Benz GLK-Class
Acura RDX
Volvo XC60

Midsize Crossover/SUV
Highest Ranked: Honda Accord Crosstour
Dodge Durango (tie)
Subaru Outback Wagon (tie)

Large Crossover/SUV
Highest Ranked: Chevrolet Tahoe
GMC Yukon
Chevrolet Suburban

Midsize Premium Crossover/SUV
Highest Ranked: Lexus GX
Lexus RX
BMW X6 (tie)
Infiniti FX-Series (tie)
Volvo XC70 (tie)

Large Premium Crossover/SUV
Highest Ranked: Cadillac Escalade
Mercedes-Benz GL-Class
Lincoln Navigator

Large Pickup
Highest Ranked: Ford F-150 LD
Toyota Tundra
Chevrolet Avalanche

Midsize Pickup
Highest Ranked: Honda Ridgeline
Nissan Frontier
Ram Dakota

Highest Ranked: Chrysler Town & Country
Honda Odyssey
Dodge Grand Caravan

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 were only two premium sporty models with sufficient sample size, thus no premium sporty award has been issued.
*No other model in this segment performs above the segment average.
2011 Assembly Plant Quality Award Recipients

Based on Models Produced for U.S. Market

Platinum Award
Toyota Motor Corporation-Cambridge South, Ontario (TMMC) 24 PP100
Honda Motor Company-Greensburg, Indiana (HMIN) 24 PP100
Toyota Motor Corporation-Kyushu 2, Japan (TMK) 24 PP100

Honda Motor Company-East Liberty, Ohio (ELP) Bronze 30 PP100

Asia Pacific
Toyota Motor Corporation-Kyushu 1, Japan (TMK) Silver 27 PP100
Honda Motor Company-Suzuka 1, Mie, Japan (Sss) Silver 27 PP100

Europe and Africa
Daimler AG-Bremen 1, Germany Gold 31 PP100
Daimler AG-East London, South Africa Gold 31 PP100
Porsche AG-Stuttgart, Germany Bronze 35 PP100

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