DETROIT--Issues with long-term automotive quality significantly
affect consumer choice with most buyers choosing to switch brands
on their next purchase if they experience even one major problem
with their current car or pickup truck, according to an annual
survey.
More than half of economy-vehicle buyers--who reported one issue
with their vehicle when surveyed by J.D. Power and Associates in
the past--bought a different brand on their next car-buying trip.
Luxury drivers were more loyal, with 53% sticking with their brand
with one issue. Two issues, however, and 53% switched. Issues
included everything from mechanical and battery problems to wind
noise, interior trim and electronics.
The willingness to abandon a brand underscores the challenges
most of the world's auto makers face in the U.S. market as more
consumers now expect their vehicles to remain reliable for a longer
period of time. J.D Power, a unit of McGraw-Hill Cos. (MHP),
compiled the data for the first time by surveying the buying habits
of 8,000 people.
In this year's annual vehicle-dependability survey, Toyota Motor
Corp.'s (TM, 7203.TO) Lexus brand retained the No. 1 spot while
General Motors Co.'s (GM) Cadillac took a tumble from the top three
finishers where it was replaced by Ford Motor Co.'s (F) Lincoln
brand.
The survey, which measures problems experienced by original
owners of 2010 model-year vehicles over a 12-month period, found
Lexus leading the pack with the least amount of troubles, according
to J.D. Power. Volkswagen AG's (VOW.XE) Porsche was second,
followed by Lincoln and Toyota, which tied for third, and then
Daimler AG's (DAI.XE) Mercedes-Benz. About 37,000 owners were
surveyed. The results were released Wednesday.
Overall, vehicles are now more dependable than ever, with the
lowest problem count since the surveyed was initiated in 1989. This
is also the first time in four years there were fewer reported
problems for all-new or redesigned models compared with older
"carryover" vehicles that received no upgrades.
"There is a perception that all-new models, or models that
undergo a major redesign, are more problematic than carryover
models," said David Sargent, vice president of global automotive at
J.D. Power and Associates. "Data suggests that this is not the
case. The rapid improvement in fundamental vehicle dependability
each year is more than offsetting any initial glitches that all-new
or redesigned models may have."
Cadillac took a sizeable hit in the vehicle-dependability
survey, falling from its third place finish a year ago to 14th
place, also putting it below the industry average. The results are
sure to be a disappointment for Cadillac, which is attempting to
establish itself as a competitor to the current luxury-car players
in the U.S. Cadillac is also pushing this year to make Cadillac
more of a global brand.
Many of the problems with Cadillac were rooted in the 2010 SRX
model.
"It wasn't the greatest launch," Mr. Sargent said. "We are not
talking about the vehicle breaking down on the side of the road but
there were some minor problems with a piece of trim falling off the
vehicle which detracted from the enjoyment of the product. That has
now been fixed."
Among the Detroit Three, however, Chrysler Group LLC, a unit of
Fiat SpA (F.MI, FIATY), still found the majority of its brands
languishing at the bottom again. Jeep, Dodge and Chrysler were both
ranked among the seven worst. Mr. Sargent pointed out that the
survey doesn't yet include the vehicle portfolio redesign initiated
by Chrysler Chief Executive Sergio Marchionne after he took over
the auto maker following its bankruptcy in 2009.
The redesigned versions will appear in next year's survey.
Chrysler's one bright spot was the Ram pickup-truck brand, which
jumped to the ninth spot overall. Last year, it was fourth from the
bottom.
In a rundown of the rankings: Lexus had 71 problems per 100
vehicles, followed by Porsche, with 94; Lincoln and Toyota, tied
with 112, and Mercedes-Benz, with 115. The industry average was 126
problems.
On the opposite end, Tata Motors Ltd.'s (TTM, 500570.BY) Land
Rover finished last with 221 problems per 100 vehicles, followed by
Dodge with 190, Mitsubishi Motors Corp.'s (7211.TO)Mitsubishi and
Jeep tied with 178 and Volkswagen with 174.
Write to Jeff Bennett at jeff.bennett@dowjones.com
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