Automotive Industry Sees Improvement in Quality, Despite Plateau

Strategic Insights -

The 2005 Initial Quality Study (IQS) by J.D. Power and Associates reveals that the automotive industry has shown marked improvement in quality, with manufacturers demonstrating overall improvement in more than one-half of the 135 problem symptoms included in the study. Despite a minor increase in industry-wide initial quality in 2005, the study highlights significant gains in quality from some manufacturers, including HUMMER and Nissan. The industry's overall average has improved only one PP100 in 2005 to 118 PP100, indicating a potential plateau in quality.

Key Takeaways:

  • Toyota Motor Corporation earns 10 of the top model segment awards, with the Lexus SC 430 honored as the highest-ranking model for the second consecutive year.
  • General Motors earns five top model segment awards, including those for the Chevrolet Malibu/Malibu Maxx and Buick Century.
  • HUMMER shows a marked improvement in quality, with a 36 percent reduction in reported problems and a total reduction of 115 PP100 since its debut in the 2003 IQS.
  • Nissan demonstrates a significant improvement in quality, with the Nissan Quest recording a 104 PP100 improvement.
  • The Scion tC and Toyota Prius models earn segment awards, with the Toyota RAV4 ranking highest in its segment.
  • Assembly Plant Awards: General Motors' Oshawa #2, Ontario, Canada, plant earns the Gold Plant Quality Award, while Toyota's Tahara, Japan, car plant receives the Platinum Plant Quality Award.
  • Marked improvement in ride/handling/braking and exterior problems continues to be a challenge for manufacturers.

Statistics:

  • Industry-wide initial quality has improved only one PP100 in 2005 to 118 PP100.
  • Toyota Motor Corporation's Lexus SC 430 earns a score of 54 PP100.
  • General Motors' pool of problem symptoms is improved by 12 PP100 from the 2004 study.
  • HUMMER reduces reported problems by 115 PP100 since its debut in the 2003 IQS.
  • The Nissan Quest records a 104 PP100 improvement.
  • Manufacturers demonstrate overall improvement in more than one-half of the 135 problem symptoms included in the study.

Sources:

  • "2005 Initial Quality Study(SM) (IQS)" by J.D. Power and Associates
  • J.D. Power and Associates press release dated May 18, 2005
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