| -

WESTLAKE VILLAGE, Calif. — Never before in the 24 years J.D. Power and Associates has compiled its U.S. Initial Quality Study have domestic brands performed this well.

J.D. Power revealed the 2010 report Thursday, and for the first time domestic brands demonstrated higher initial quality than import nameplates.

Overall, the firm revealed the 2010 industry average for initial quality was 109 problems per 100 vehicles (PP100). The mark was slightly higher than last year when it was 108 PP100.

J.D. Power indicated domestic brands performed exactly at the industry average. However, import nameplates had a slightly lower initial quality figure at 109 PP100 for 2010.

Executives mentioned what ignited this breakthrough result was substantial improvements by many domestic models. They pinpointed examples such as the Ford Focus, Ram 1500 LD and Buick Enclave.

Ford is leading the domestic brand charge as J.D. Power asserted the automaker has improved the initial quality of its models steadily for the past nine years. The study indicated the company posted 12 models within the top three in their respective segments for 2010. The group included Volvo units, but was still the most of any company.

Ford's leadership shared an enthusiastic reaction to the automaker's performance.

"These results are remarkable in many ways," declared Bennie Fowler, Ford group vice president for global quality and new model launches.

"Steady and meticulous attention to new-model launches along with consistency in how we do them across the brand and the globe are having a very positive effect on the initial quality of our all-new or redesigned products," Fowler highlighted. "These results are a true testament to the strength of the One Ford plan."

Meanwhile, General Motors wasn't far off of Ford's pace. GM posted 10 models that rank within the top three in their segments.

"Delivering top-quality vehicles for our customers is our overriding priority," asserted Dan Nicholson, GM's vice president of global quality.

"Our entire team is committed to improving our vehicles, and we never lose sight of the fact that the competition is also moving fast," Nicholson continued.

J.D. Power emphasized that initial quality performance demonstrated by domestic brands this year contrasts sharply with consumer sentiment from a year ago.

According to data collected by the firm's Web intelligence division between May and July of 2009, much of the online consumer discussion about automotive quality centered around the difficulties U.S. automakers were facing, and perceptions that these problems were largely caused by poor product quality.

"Domestic automakers have made impressive strides in steadily improving vehicle quality, particularly since 2007," explained David Sargent, vice president of global vehicle research at J.D. Power.

"This year may mark a key turning point for U.S. brands as they continue to fight the battle against lingering negative perceptions of their quality," Sargent continued.

"However, there is still a long road ahead," he went on to say, "and domestic manufacturers need to consistently prove to consumers that they can produce models with quality that equals or beats that of the import brands. Achieving quality comparability is the first half of the battle; convincing consumers — particularly import buyers — that they have done this is the second half."

Web intelligence division analysts also noticed online consumer conversations about vehicle quality have recently shifted to a "more concrete tone." They found buyers more often are talking about quality as it applies to their own personal vehicle purchase decisions, rather than how domestic brands overall are affected by perceptions of low quality.

Delving deeper into this year's IQS, J.D. Power determined initial quality of new models and major redesigns continues to improve. The company indicated this trend was led by new launches from Ford, Honda, Lexus, Mercedes-Benz and Porsche.

For example, study authors noted the all-new Honda Accord Crosstour and the redesigned Ford Mustang, Ford Taurus and Lexus GX 460 each rank highest in initial quality in their respective segments. Moreover, they pointed out the Ford Fusion, Mercedes-Benz E-Class Coupe and Sedan and Porsche Panamera also have been launched with notably high initial quality levels.

J.D. Power conceded that newly launched models have incurred substantially more quality problems than carryover models, based on an historical average. This year, however, the firm found more than half of all models launched during the 2010 model year performed better than their respective segment averages.

Even more telling, analysts indicated 12 all-new and redesigned models rank within the top three in their respective segments. Meanwhile, they noted initial quality of carryover and freshened models declined for the 2010 model year.

"With automakers committing huge budgets for the design, engineering, production and marketing of all-new models and major redesigns, hitting the quality mark out of the gate is critical," Sargent explained

"Getting initial quality right on model launches can serve dual purposes for automakers — boosting profitability and also inspiring consumer confidence in the overall quality of their models," he continued.

"Having a strong quality image is essential for automakers to be able to compete in today's market — both in the U.S. and around the globe," Sargent went on to say.

J.D. Power emphasized that its Initial Quality Study serves as the industry benchmark for new-vehicle quality measured at 90 days of ownership. The firm believes 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 over the years to be an excellent predictor of long-term vehicle durability, which directly impacts consumer purchase decisions," J.D. Power officials stressed.

They also added that the study captures problems experienced by owners in two distinct categories: design-related problems and defects and malfunctions.

More 2010 IQS Ranking Highlights

J.D. Power shared Porsche leads the overall nameplate rankings, averaging 83 PP100. Followed in the rankings were Acura, which moved up from 14th last year to second this year, and Mercedes-Benz, which climbed three spots from No. 6 in the 2009 study.

The rest of the top five brands in the overall rankings included Lexus and Ford, which J.D. Power said had never performed so well in previous studies.

"The blue oval is becoming synonymous with high quality," insisted Fowler, whose employer had the segment leader in three categories with the Focus, Mustang and Taurus.

"While we are pleased with where we are today, our job is not done," he added. "Our plan is to keep improving quality each and every year."

Also noteworthy was the performance by Mini. J.D. Power pointed out this brand made the greatest improvement from a year ago, reducing problems by 32 PP100 from 2009.

Swinging in the opposite way however was Toyota. The study revealed the brand's problem count increased by 16 PP100, causing Toyota to slide down from No. 6 a year ago to No. 21 in the 2010 rankings.

"Clearly, Toyota has endured a difficult year," Sargent conceded. "Recent consumer concerns regarding Toyota's quality are reflected in the nameplate's performance in the 2010 study.

"That said, Toyota's success was built on a well-deserved reputation for quality, and there is little doubt that they will do everything possible to regain that reputation," he went on to say.

Jim Lentz, president and chief operating officer of Toyota Motor Sales, offered a response, reinforcing the current and past performance of not just Toyota, but Lexus and Scion as well.

"We are very pleased to have earned the six segment awards and by the strong showing of our Lexus brand and the Scion xB in the 2010 IQS," Lentz stated. "However, the 2010 study was conducted at the height of intense media coverage of Toyota's and Lexus' recalls earlier this year, so we anticipated an impact on this specific ranking of these vehicles.

"The IQS 90-day feedback is one measurement — along with warranty claims, long-term durability, resale value and buyer loyalty — that helps us gauge the overall quality of our products," Lentz further noted. "We stand behind our strong performance in these and other areas and remain firmly committed to ensuring the superior quality, safety and long-term value of our cars and trucks."

Toyota still had two units come in as the leader in their study segment, the FJ Cruiser and Sienna.

Along with the top-five overall ranking, Lexus had three models lead its segment, according to the study. That group included the GS, GX and LS models as the LS had the fewest quality problems in the industry — just 55 PP100.

Assembly Plant Awards

J.D. Power revealed the Daimler assembly plant in East London, South Africa, received the Platinum Plant Quality Award for producing vehicles yielding the fewest defects and malfunctions. The plant, which averaged just 28 PP100, produces the Mercedes-Benz C-Class.

Analysts pointed out that plant awards are based solely on average levels of defects and malfunctions and exclude design-related problems.

Among North and South American plants, J.D. Power stated the Toyota Motor Corp. plant in Cambridge South, Ontario, which produces the Lexus RX, achieved the Gold Plant Quality Award.

Another Toyota facility — the Kyushu 2 in Japan which produces the Lexus ES, IS and RX — took the honor as the Gold Plant Quality Award in the Asia Pacific region.

Entire Award Listings

J.D. Power emphasized the 2010 Initial Quality Study is based on responses from more than 82,000 purchasers and lessees of new 2010 model-year vehicles surveyed after 90 days of ownership. Analysts explained the study is based on 228 questions designed to provide manufacturers with information to facilitate identification of problems and to drive product improvement. The study was fielded between February and May of this year.

Problems per 100 Vehicles

Porsche: 83

Acura: 86

Mercedes-Benz: 87

Lexus: 88

Ford: 93

Honda: 95

Hyundai: 102

Lincoln: 106

Infiniti: 107

Volvo: 109

Industry Average: 109

Ram: 110

Audi: 111

Cadillac: 111

Chevrolet: 111

Nissan: 111

BMW: 113

Mercury: 113

Buick: 114

Mazda: 114

Scion: 114

Toyota: 117

Subaru: 121

Chrysler: 122

Suzuki: 122

GMC: 126

Kia: 126

Jeep: 129

Dodge: 130

Jaguar: 130

Mini: 133

Volkswagen: 135

Mitsubishi: 146

Land Rover: 170

 

Top Three Models per Segment

Sub-Compact Car

Highest Ranked: Hyundai Accent

Toyota Yaris

Honda Fit

Compact Car

Highest Ranked: Ford Focus

Honda Civic

Hyundai Elantra

Compact Sporty Car*

Highest Ranked: Mazda MX-5 Miata

Scion tC

Compact Premium Sporty Car*

Highest Ranked: Volvo C70

Mercedes-Benz E-Class Coupe

Entry Premium Car

Highest Ranked: Mercedes-Benz C-Class

Acura TL

Cadillac CTS

Midsize Premium Car

Highest Ranked: Lexus GS

Mercedes-Benz E-Class Sedan

Volvo S80

Midsize Sporty Car*

Highest Ranked: Ford Mustang

Dodge Challenger

Large Premium Car

Highest Ranked: Lexus LS 460

Mercedes-Benz S-Class

Porsche Panamera

Midsize Car

Highest Ranked: Honda Accord

Ford Fusion

Chevrolet Malibu

Large Car

Highest Ranked: Ford Taurus

Buick Lucerne

Nissan Maxima

Compact Crossover/SUV

Highest Ranked: Toyota FJ Cruiser

Honda CR-V

Honda Element

Compact MPV

Highest Ranked: Scion xB

Chrysler PT Cruiser Wagon

Nissan Cube

Entry Premium Crossover/SUV

Highest Ranked: Acura RDX

BMW X3

Volvo XC60

Midsize Crossover/SUV

Highest Ranked: Honda Accord Crosstour

Honda Pilot

Ford Edge

Large Crossover/SUV

Highest Ranked: Chevrolet Tahoe

Chevrolet Suburban

GMC Yukon

Midsize Premium Crossover/SUV

Highest Ranked: Lexus GX 460

Infiniti FX-Series

Volvo XC70

Large Premium Crossover/SUV

Highest Ranked: Cadillac Escalade

Mercedes-Benz GL-Class

Infiniti QX56 (tie)

Land Rover Range Rover (tie)

Large Pickup

Highest Ranked: Chevrolet Avalanche (tie), GMC Sierra LD (tie)

Ford F-150 LD

Midsize Pickup

Highest Ranked: Nissan Frontier

Ford Ranger

Ford Explorer Sport Trac

Minivan

Highest Ranked: Toyota Sienna

Kia Sedona

Dodge Grand Caravan

* J.D. Power Note: For a segment award to be issued, analysts stated there must be at least three models with sufficient sample that comprise 80 percent of market sales within an award segment.