The U.S. auto industry might be suffering, but at least the initial quality of what they are building is improving.
So says J.D. Power and Associates, which as part of its
2009 Initial Quality Study says that new vehicles sold by Chrysler Group LLC, Ford Motor Co. (NYSE:F) and General Motors Corp. have improved by an average of 10% on its scale compared to 2008.
Despite the improvements, the Detroit three could not over take Toyota Motor Corp., the world's largest automaker, in terms of quality. Toyota's Lexus nameplate was the top brand in the annual survey of vehicle owners, and the Japanese company also captured the most segment awards with 10.
Rounding out the top 10 after Lexus were Porsche, Cadillac, Hyundai, Honda, Mercedes-Benz, Toyota, Ford, Chevrolet and Suzuki. Ford won three segment awards, with Nissan and Honda the only other multiple segment winners.
The U.S. government has committed more than $50 billion to restructuring GM and Chrysler, and Ford is working to revamp its operations without help from lawmakers. The quality numbers are important because absent a better reputation, and a corresponding boost in sales, no amount of financial restructuring will be enough to save the Detroit companies.
"Even in the face of unprecedented challenges, the Detroit automakers are keeping their focus on designing and building high-quality vehicles, which is a precondition for long-term success," David Sargent, J.D. Power vice president of automotive research, said in a statement. "High quality generally translates into reduced re-engineering costs and lower warranty expenses during a vehicle's life cycle. High quality also enhances an automaker's reputation for reliability, which is a critical purchase consideration for many consumers."
Of the U.S. companies Chrysler was the most challenged, with all of its brands finishing in the bottom 10. The company's only segment win was a tie for the PT Cruiser Wagon, which shared the top award in the compact activity vehicle segment with Honda's CR-V. Chrysler, however, is discontinuing that car. -
Lou Whiteman
Lou Whiteman is a senior writer covering the automotive, transportation and industrial sectors. Follow him on Twitter @louwhiteman
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
As usual J D Powers are showing their bias toward the Domestic automakers