DETROIT (June 24, 2011) — Buyer satisfaction with new cars and trucks from Ford Motor Co., a strength that has helped the car maker increase sales and market share in recent years, has tumbled, and Toyota has rebounded from its abnormally poor year-ago showing, according to an annual study released June 23.
In a J.D. Power and Associates survey that tracks problems reported during the first 90 days of ownership, the Ford and Lincoln brands rose above the industry average of 107 problems reported per 100 models studied.
Power said the results are being shaded by two increasingly important factors: Complex infotainment features are causing discomfort among new users; and fuel-saving powertrain refinements make automatic transmissions seem to hesitate in an unfamiliar way when they shift gears or accelerate.
Ford, which ranked fifth and was the highest mass-market brand in last year's Initial Quality Study (IQS), fell to No. 23, and its problems per 100 vehicles rose to 116, from 93.
It was the first time since the 2006 model year that the Ford brand fared worse than the industry average in the closely watched study.
Lincoln dropped from 8th place in 2010 to 17th this year, with 111 problems reported per 100 vehicles.
Lexus topped all brands with 73 problems per 100 vehicles. It was followed by Honda, Acura, Mercedes-Benz, Mazda and Porsche, which placed first in 2010. The Lexus LS sedan had the fewest defects of any model, with 54 problems per100 cars.
Dodge finished last, with 137 problems per 100 vehicles. Suzuki, Mitsubishi, Volkswagen and Mini also placed at the bottom of the survey.
The Toyota brand, which dropped below the industry average last year for the first time in the wake of its unintended-acceleration crisis, rebounded to place seventh, with 101 problems per 100 vehicles.
Quality up, gains slow
Overall, Power said, initial vehicle quality keeps getting better, but bobbles on several new-model launches is slowing the pace of industry improvement to a crawl.
The industry average of 107 problems per 100 vehicles was down from 109 a year ago.
But the results for redesigned or freshened vehicles slipped 10 percent, to 122 problems per 100, from 111, after launch quality had improved from 2007 to 2010.
“We're not seeing the average improve as much as we'd like,” said David Sargent, vice president of global vehicle research at J.D. Power.
What's hurting the scores of newly introduced models?
Mr. Sargent cited a surge in complaints about two types of problems: engines and transmissions that “hesitate” when accelerating or shifting gears, and non-intuitive electronic controls as auto makers rush to offer enhanced infotainment features such as voice-activated controls.
And auto makers, responding to demand for better fuel economy, have tweaked engine and transmission software to boost mpg figures.
Mr. Sargent described the problems of mass-market brands in introducing advanced technology “as an echo” of the quality-score lumps luxury brands took earlier when they added similar features.
“Consumers are interested in having new technologies in their vehicles, but auto makers must ensure the technology is ready for prime time,” he said. “Auto makers must be careful to walk before they can run.”
Technology glitches
He also blames cutbacks in engineering during the auto industry's latest downturn and a rush to introduce fresh products for the rise in complaints.
“Manufacturers are trying to do a lot very quickly,” he said. “In the slump they had to cut head count. Now they're beefing up, but they may be stressing the system to do so much.”
The introduction of new technology is expected to continue to pose challenges for auto makers. Overall problem rates for audio, entertainment and navigation systems in 2011 are 18 percent higher than in 2010 and 28 percent higher than in 2009, Power said.
“Anytime you add a new feature the potential for a new problem grows,” Mr. Sargent said. “It's an industry-wide problem. Pretty much any auto maker that adds a lot of technology has a problem short term.”
In Ford's case, the company launched the Fiesta subcompact and the redesigned Edge crossover and Mustang coupe in the months before survey respondents bought their cars. Ford has also rapidly expanded the availability of its Sync, MyKey and MyFord Touch technologies that provide touch-screen displays and hands-free, voice-activated controls.
Ford said this week it was repairing problems with the MyFordTouch system. The fixes include software changes to prevent screens from blanking out.
“We're largely back on track on some of these early issues,” Mark Fields, Ford's head of the Americas, said earlier this week. Ford's quality performance in North America will be “mixed” this year and will fall short of a goal to improve, he said.
Toyota, which tumbled to No. 21 in the 2010 study after years of strong finishes, has had a quieter new-product year. This year its score rebounded to its 2009 level of 101 problems per 100 vehicles.
But Toyota's Scion brand, which launched a new tC model in 2010, plummeted to No. 27 from 20th last year.
Cadillac, GMC above average
General Motors Co. brands generally fared better this year. The auto maker's best performer was Cadillac, with 103 problems per 100 vehicles, enough to climb above the industry average and place 9th.
GMC, which cut its problems to 104 per 100 from 126, also vaulted into the top 10 brands. Mr. Sargent noted GMC had no new product launches before the survey, which was conducted from February through May.
“Any year you don't have launches, you can concentrate on quality improvements and GMC shows the kind of changes you can achieve,” he said.
GM was the only U.S. auto maker with brands above the industry average.
“We're making solid progress and expect future studies to reflect this improvement,” Terry Woychowski, GM's vice president of global quality, said in a statement.
The Honda brand—benefiting from a 2011 model lineup that was largely carried over and unchanged from 2010—enjoyed its best showing ever in the study. Honda's previous best showing in the survey was third in 1997.
Hyundai dropped slightly below the industry average with 108 problems per 100 vehicles, from 102 last year. The brand was hurt by the redesigned Sonata mid-size sedan and Elantra compact car, both top sellers for the Korean auto maker, Power said.
The Hyundai Equus luxury sedan and Dodge Durango SUV were among the new or redesigned models that fared well in the study, J.D. Power said.
Mr. Sargent said Dodge's older models—such as the Nitro and Caliber—hurt the brand's latest results, while new models such as the Durango scored well.
“Dodge is one to watch,” Mr. Sargent told Bloomberg News. “I doubt they'll be on the bottom for long.”
The Chrysler Town & Country—one of 16 models Chrysler Group has redesigned or refreshed for 2011—placed first among minivans, edging out the new Honda Odyssey.
“We've made steady gains, improving reliability by 58 percent in the past four years, according to our internal warranty data,” Doug Betts, head of quality at Chrysler, said in a statement. “We still have more work to do as we continue to improve the quality of all our products.”
Power's IQS results are based on responses from 73,000 U.S. purchasers and lessees of 2011-model light vehicles after 90 days of ownership. The 228-question survey attempts to capture problems experienced by owners in two areas: design-related problems and defects and malfunctions.
This report appeared in Automotive News, a Detroit-based sister publication of Tire Business.