VW, Ford, Honda & Nissan Headline Strategic Vision 2011 Total Quality Index

With three models rated as total quality leaders, Volkswagen of America was named the best full-line automaker in Strategic Vision’s 2011 Total Quality Index released Tuesday.

Propelling the German OEM to the top spot with a score of 881 was Strategic Vision tapping the Golf, Jetta and Tiguan as segment leaders. Analysts based their assessment on attributes of design and exterior styling that particularly impressed owners along with many other cues of quality that were very impactful upon owners.

"Volkswagen of America is excited about the outstanding recognition that our company and vehicles have received in the 2011 Total Quality Index,” stated Jonathan Browning, president and chief executive officer of Volkswagen Group of America.

"It is clear that Volkswagen is top of mind among our growing customer base and that our vehicles continue to provide a stimulating driving experience," Browning added.

Strategic Vision also highlighted Ford Motor Co. had the second best total quality score (863), just ahead of American Honda Corp. and Nissan Motor Corp. that both scored 862.

Analysts explained Ford’s total quality score received bolstering from segment leaders Mustang Coupe and Convertible, Flex, F-150, and 250/350 along with a number of other models that ranked very high.

Strategic Vision’s study did capture that Ford owners reported a higher penetration (28 percent) than the industry average (24 percent) level of problems. But the strength of Ford’s design, other important quality cues and innovation, along with brand strength kept sales and total quality scores high, according to Strategic Vision.

While another study was critical of Ford’s technology, Strategic Vision chairman and founder Darrel Edwards wasn’t. Edwards first referenced how J.D. Power and Associates was critical of Ford when the firm recently released its 2011 U.S. Initial Quality Study.

“Ford — a quality leader in our study — innovated, and we who count problems discovered that Ford received a large number of complaints primarily about one thing, Sync. — an in-car connectivity system,” Edwards began. “Does that warrant their ‘tumble’ in some quality metrics?”

Edwards does not think so.

“Decades ago, we decided to measure ‘quality’ from the ‘total’ perspective of the driver/owner because this is how people actually judge ‘quality’ in terms of the decision to purchase or not,” Edwards declared.

“The number of complaints is considered, but there is absolutely justification — even requirement — for also considering the total positive experience created for the owner/driver,” he continued.

While coming right behind Ford, Strategic Vision said Honda continued a strong run of performances with Civic Hybrid, Accord Crosstour, Odyssey and Ridgeline being segment winners.

“The Honda Ridgeline is basically in a class of its own among standard pickups, having been the segment leader since its introduction,” Strategic Vision interjected.

As a brand, the firm insisted Nissan is starting to show the results of “hard work and improvement,” while securing a tie for second place in the overall total quality charts. The Nissan Maxima was the large car total quality winner in what Strategic Vision called a very strong segment.

Elsewhere, the index release indicated Chrysler Group also showed “signs of resurgence” as the Dodge Challenger and redesigned Jeep Grand Cherokee were named winners in their popular respective segments.

Though not listed as a winner, analysts mentioned the Chrysler Town & Country ranked second behind Odyssey in the minivan segment, and “with the right innovation, may threaten for leadership again.”

When just considering the problem impact score, Strategic Vision acknowledged Toyota Motor Sales would be considered the industry leader with the least problems. But the firm said owners are still looking for more of a “total quality” experience such as they have found with segment leader Sequoia.

Perhaps the biggest story among luxury manufacturers was what Strategic Vision described as the “comeback” of Land Rover and Jaguar.

Analysts noted Jaguar XJ was a leader — and with the highest total quality score in the industry — in the luxury cars segment. They also highlighted the Land Rover LR4 took the nod in the near-luxury SUV category.

In other luxury segments, Strategic Vision indicated BMW had two leaders with the 1-Series and X6, but the Mercedes C-Class took leadership in the near-luxury car segment.

More Explanation about What “Quality” Is

Expanding on its points about why Ford’s technology should not be confused with a lack of quality, Strategic Vision discussed two particular units, the Volkswagen Jetta and Hyundai Sonata.

Analysts said these two vehicles tied for the top position of total quality in the midsize car segment. They conceded both vehicles had a higher incidence of owners reporting problems (30 percent) than the segment average (22 percent) “which isn’t a good start to a customer’s perception of quality.”

However, Strategic Vision contends the impact of those problems on the customer’s perception of quality is negligible because few customers (only 1 in 20) experienced a “serious” problem, which is often fixed immediately at the dealership.

Then, and what analysts think is most important, vehicle attributes from exterior styling to interior room combined with the emotional benefits delivered by the driving and ownership experience create some of the highest perceptions of delight and love for their vehicle.

“When customers explicitly state ‘I love [this] about my vehicle,’ it results in increased sales,” explained Alexander Edwards, president of Strategic Vision.

“We explicitly measure the emotional impact of each vehicle attribute and ask the customer what they love about their vehicle,” Edwards continued. “Jetta and Sonata owners report more love than most all of their competitors. This is why it is no surprise to us that the Jetta and Sonata have had their best sales ever with their 2011 models.”

Christopher Chaney, Strategic Vision’s vice president of automotive research, elaborated on the points.

“Anyone who rejects the concept of the ‘total quality’ of a customer’s experience being most important should beware, and ask themselves about how the emotional experience (intensity) and quality all work together,” Chaney declared.

“Case in point, when Apple released the first generation iPhone it had a number of problems unique to its innovative position,” Chaney offered. “I suppose it could have been subjected to a simple quality study which would have deemed it among the worst of solidly built, but innovatively boring, competitors.

“However, billions of dollars in profit and $335 per share later, competitors to Apple are desperately chasing the iPhone’s tail winds — with some being left in the dust,” he went on to say.

“When our total quality data is used correctly, companies don’t find themselves asking ‘How did we get so far behind?’ Rather they ask, ‘how do we remain in the lead,” Chaney added.

Who is also winning big in the total quality race? Strategic Vision believes it’s the buyers.

“Quality is becoming an increasingly more elusive concept for those in the automotive industry that don’t understand its total nature,” Darrel Edwards surmised. Even Webster’s dictionary struggles with a definition that barely defines the attribute.

“Since transmissions are not falling out, and basic — but foundationally important — security issues are solid with most cars, our decision is to measure quality from the total perspective of the driver which is essential to understanding future success,” Edwards continued.

Study Background

Strategic Vision reiterated its Total Quality Index asks buyers to rate all aspects of the ownership experience from buying and owning to performance and driving.

The company thinks its analysis is “much more than simply counting problems, although problems and the impact the problems have on the customers’ experiences are included in the calculation.

“Results from studies that measure the number of problems or the overall satisfaction of a vehicle do not measure the customers’ commitment to, advocacy for, loyalty, or the delight and love of their vehicles accurately,” Strategic Vision went on to say.

Analysts said the Total Quality Index was calculated from 37,069 buyers who bought 2011 models in September to December of 2010.

Strategic Vision has presented the Total Quality Awards annually since 1995.