J.D. POWER 2014 U.S. INITIAL QUALITY STUDY (IQS)

J.D. Power Reports: Initial Quality Problems Increase as Automakers Struggle to Launch Vehicles with Technology That Consumers Find Easy to Use

Porsche Ranks Highest among Nameplates for a Second Consecutive Year; General Motors Company Receives Six Model-Level Awards; Hyundai Motor Company Receives Five

WESTLAKE VILLAGE, Calif.: Wednesday, June 18, 2014 — The number of problems experienced by new-vehicle owners has increased from the previous year, as automakers continued to be challenged when introducing sophisticated technologies in new vehicles, according to the J.D. Power 2014 U.S. Initial Quality Study^SM (IQS) released today.

The study, now in its 28^th year, examines problems experienced by vehicle owners during the first 90 days of ownership. Initial quality is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

The study finds that overall initial quality averages 116 PP100, a 3 percent increase in problems from 113 PP100 in 2013. This year’s increase in problems follows a similar increase found in the J.D. Power U.S. 2014 Vehicle Dependability Study^SM (VDS) released in February, which measures problems experienced after three years of ownership.

Some Consumers Struggle with New Technology

The study identifies two primary causes of the increased problem levels in 2014. First, newly launched vehicles (those that are completely new to the market or have undergone major redesigns) continue to be more problematic than carryover vehicles (those that did not undergo any significant changes). On average, newly launched vehicles experience 128 PP100, compared with 113 PP100 for carryover vehicles. The increase in problems among all-new vehicles is found mainly in the areas of voice recognition, Bluetooth pairing and audio systems.

“Automakers are trying to give consumers the new features and technology they want without introducing additional quality problems into their vehicles,” said David Sargent, vice president of global automotive at J.D. Power. “However, almost all automakers are struggling to do this flawlessly with some consumers indicating that the technology is hard to understand, difficult to use, or simply does not always work as designed.”

Harsh Weather Conditions also Affect Quality

Some regions experienced increases in problem types associated with harsh weather. Consumers in the South and West regions of the country report the same level of problems as in 2013 (114 PP100). In contrast, consumers in the Northeast and Midwest regions report 117 PP100 in 2014, compared with 112 PP100 in 2013. Most of this increase is found in the heating/ventilation/air conditioning, exterior and engine/transmission categories, three areas in which harsh weather conditions have an adverse effect on vehicles.

“Automakers test vehicles in extreme conditions to ensure they function properly,” said Sargent. “However, it is impossible to completely negate the effects of severe weather. Heating and ventilation systems have more work to do, engines and transmissions aren’t as smooth when cold, and exterior moldings and paint all take some punishment. Consumers generally understand this but still report problems when their vehicle does not wholly live up to their expectations.”

Initial Quality Affects Brand Loyalty

The study also finds that the fewer problems owners experience with their vehicle, the greater their loyalty to the brand. Combined data from previous years’ IQS results and the Power Information Network^® (PIN) from J.D. Power show that 57 percent of owners who reported no problems stayed with the same brand when they purchased their next new vehicle. Brand loyalty slips to 53 percent among owners who reported just a single problem and to only 48 percent among owners who reported two or more problems.

“Even problems experienced in the first 90 days correlate strongly with ultimate repurchase behavior,” said Sargent. “These early problems can set the tone for the entire ownership period and still have an effect years later when consumers replace their vehicle.”

Highest-Ranked Nameplates and Models

For a second consecutive year, Porsche ranks highest in initial quality among all nameplates, with a score of 74 PP100. Following Porsche in the rankings are Jaguar (87 PP100), Lexus (92 PP100) and Hyundai (94 PP100).

General Motors Company receives six segment awards—more than any other automaker for a second consecutive year—for the Buick Encore (tie); Chevrolet Malibu; Chevrolet Silverado HD; Chevrolet Suburban (tie); GMC Terrain; and GMC Yukon (tie). Hyundai Motor Company receives five awards for the Hyundai Accent; Hyundai Elantra; Hyundai Genesis; Kia Cadenza; and Kia Sportage (tie). Other corporations with multiple award recipients are Ford Motor Company (Ford Edge, Ford F-150 LD and Lincoln MKX); Nissan Motor Company (Infiniti QX50, Infiniti QX80 and Nissan JUKE [tie]); Volkswagen AG (Porsche 911, Porsche Boxster and Porsche Panamera); Fiat Chrysler Automobiles (Chrysler Town & Country and Dodge Challenger); and Mazda (Mazda MAZDA5 and Mazda MX-5 Miata). Other models receiving awards are the Honda Ridgeline and Lexus ES.

Plant Assembly Line Quality Awards

Toyota Motor Corporation’s Cambridge South, Ontario, Canada (TMMC) plant, which produces the Lexus RX, receives the Platinum Plant Quality Award for producing models that yield the fewest defects or malfunctions. Plant quality awards are based solely on defects and malfunctions and exclude design-related problems.

Two sister plants receive the Gold Plant Quality Award in the Asia Pacific region. Toyota Motor Corporation’s Kyushu 1, Japan (TMK) plant produces the Lexus CT and RX. Across the road, the same company’s Kyushu 2 plant produces the Lexus ES, IS and RX.

In the Europe and Africa region, Porsche AG receives the Gold Plant Quality Award for its Leipzig, Germany (P), plant, which produces the Porsche Cayenne and Panamera.

The 2014 U.S. Initial Quality Study is based on responses from more than 86,000 purchasers and lessees of new 2014 model-year vehicles surveyed after 90 days of ownership. The study is based on a 233-question battery designed to provide manufacturers with information to facilitate the identification of problems and drive product improvement. The study was fielded between February and May 2014.

Find more detailed information on vehicle quality, as well as model photos and specs, at JDPower.com/quality

 

JAGUAR SECURES ITS PLACE AS A LEADING INITIAL QUALITY BRAND WITH 2ND PLACE SCORE IN J.D. POWER INITIAL QUALITY STUDY

• Improvement in initial quality helps Jaguar achieve a second place ranking among all nameplates in U.S. industry
• Jaguar ranks in top ten in initial quality for the third year in a row
• The Jaguar F-TYPE launches to second place in its segment

(MAHWAH, N.J.) –  June 18, 2014 – J.D. Power today announced Jaguar ranks second among all nameplates in the automotive Industry in its 2014 Initial Quality Study (IQS), giving the British brand its third consecutive year as a top ten scorer in the critical U.S. consumer study. Contributing to the high ranking was the Jaguar F-TYPE which placed second highest in the Midsize Premium Sporty Car segment in its first year. The 2014 MY Jaguar lineup includes the F-TYPE, the XK coupe and convertible and the XF and XJ sedans.

The IQS study collects customer feedback on their vehicles after 90 days of ownership.

“Jaguar is moving forward as a fast rising challenger brand in the luxury car market, adding its achievement in initial quality to the great design and performance that makes people fall in love with our vehicles and the brand,” said Jeff Curry, Brand Vice President, Jaguar North America. “This performance in initial quality, ahead of our larger luxury competitors, is very gratifying for everyone on the global Jaguar team who are so committed to building a new generation of Jaguar enthusiasts.”

The all-aluminum 2015 F-TYPE Coupe, starting at MSRP of $65,000, joins the F-TYPE convertible to expand the Jaguar sports car lineup. The new F-TYPE R Coupe leads the range, powered by a 550hp 5-liter supercharged V8 engine and capable of reaching 60 mph from rest in 4 seconds and achieving a top track speed of 186 mph (electronically limited).

The future holds many exciting advancements for the Jaguar brand. The Jaguar XE, an all-new compact premium sports sedan is slated to arrive in the U.S. in 2016. The Jaguar XE will be the first vehicle powered by the new Ingenium high-output, fuel-efficient two-liter four-cylinder gasoline and diesel engines delivering exceptional performance and low emissions. In addition, Jaguar Land Rover’s innovative new smartphone integration platform –  InControl™ Apps – was launched this year and will be available in new Jaguar and Land Rover models progressively during 2014 starting with the F-TYPE.

 

NEW VEHICLE BUYERS AGAIN RANK PORSCHE HIGHEST IN INITIAL QUALITY

Porsche ranks highest among nameplates overall in latest J.D. Power Initial Quality Study

Atlanta.For the second year in a row, Porsche ranked highest among all nameplates in the J.D. Power Initial Quality StudySM out of a total of 32 international automakers covered in the U.S. study.

The Porsche 911, Boxster, and Panamera models ranked highest in their segments, receiving the J.D. Power Award as the vehicles with the highest level of initial quality in the Midsize Premium Sporty Car, Compact Premium Sporty Car, and Large Pre- mium Car segments, respectively. This is the third year in a row that the Porsche 911 finished highest in its segment and the second year in a row the Boxster finished highest in its segment. The Porsche Cayenne SUV ranked second in the Midsize Premium SUV segment.

The Porsche factory located in Leipzig, Germany, which produces the Cayenne and Panamera models garnered an award for the highest ranking plant in Europe/Africa.

“The acid test is customer satisfaction,” said Matthias Müller, Chairman of the Execu- tive Board of Dr. Ing. h.c. F. Porsche AG. “We are delighted we can meet the high quality demands of Porsche drivers. For us, the ratings are both a demonstration as well as an incentive to continue along our path to quality growth.”

The annual J. D. Power Initial Quality Study, now in its 28th year, serves as an in- dustry benchmark for new vehicle quality measured at 90 days of ownership. The response of more than 86,000 U.S. car buyers forms the basis for the study. These buyers indicated how satisfied they were with the quality of their new cars during the first three months of ownership. The study evaluated a total of 239 vehicle models from 32 carmakers, which were initially registered between November 2013 and Feb- ruary 2014. The owners answered questions on more than 233 criteria from different categories.

KIA RANKS SIXTH AMONG AUTOMAKERS IN 2014 J.D. POWER INITIAL QUALITY STUDY

Cadenza and Sportage Recognized as Segment Leaders as Fast-Moving Brand Moves Up Four Positions Over Last Year

• Kia achieves its highest-ever IQS ranking and outpaces the industry average
• Sportage claims second-consecutive IQS award in a tie while Cadenza receives first-time honors

IRVINE, Calif., June 18, 2014 — J.D. Power 2014 Initial Quality Study (IQS) has ranked the Kia Sportage and Kia Cadenza as leaders in the Small SUV and Large Car segments, respectively.  Furthermore, Kia has moved up four positions over last year’s IQS ranking and now stands at number six (in a tie) in the automotive industry for initial quality out of a field of 32 car brands.  The 2014 Sportage ranked first (in a tie) in the Small SUV segment for the second consecutive year, and the Cadenza ranked highest in the prestigious Large Car category, recognized by IQS for its first U.S. model year.

“The results of the J.D. Power Initial Quality Study demonstrate Kia’s long-term strategy to concentrate on quality, strengthen our brand and elevate the ownership experience,” said John Crowe, vice president, service & aftersale operations, Kia Motors America (KMA).  “The Sportage and the Cadenza are two prime examples of how far the entire Kia model line-up has progressed in the way of design, performance, sophistication and value.”

Aside from Kia’s highest ranking ever and Sportage’s back-to-back honors, Cadenza’s score was the second best for any Kia model in history.  The annual report analyzed responses from 86,118 respondents with regards to 239 vehicle models across 23 segments.  Vehicles were evaluated on driving experience, engine and transmission performance and a broad range of quality problem symptoms reported by vehicle owners.

 

GM RECEIVES MOST INITIAL QUALITY VEHICLE AWARDS

DETROIT – General Motors continues its strong performance in the J.D. Power Initial Quality Study^SM taking more initial quality awards than any other automaker for the second year in a row. GM also has the most models ranked in the top three in their respective segments.

GM’s plant in Ingersoll, Canada, where the Chevrolet Equinox and GMC Terrain are built, was awarded a Silver Plant Assembly Line Quality Award.

In the study, GM swept the Large SUV segment with Chevrolet Suburban and GMC Yukon – both ranking highest in a tie – along with the Chevrolet Tahoe. In addition to the Large SUV segment sweep, two models have now ranked highest in their segments for two years in a row: the Chevrolet Silverado HD and Buick Encore. The Chevrolet Malibu topped the Midsize Car segment.

“We are committed to providing customers with the highest levels of safety, quality and an exceptional ownership experience,” said Alicia Boler-Davis, senior vice president GM Global Quality and Customer Experience. “Having the most award recipients of any automaker shows that we are on the right track by putting the customer front and center in everything we do.”

Brand Highlights

Chevrolet

• Segment Award Recipients
  • Malibu – Midsize Car
  • Silverado HD – Large Heavy-Duty Pickup
  • Suburban – Large SUV (tie)
• Segment Top Three
  • Camaro – Ranked Second – Midsize Sporty Car
  • Equinox – Ranked Second – Compact CUV
  • Tahoe – Ranked Second – Large SUV

Cadillac

• Escalade – Ranked Second – Large Premium CUV

Buick

• Encore – Segment Award Recipient – Small SUV (tie)

GMC

• Terrain – Segment Award Recipient – Compact SUV
• Yukon – Segment Award Recipient – Large SUV (tie)
• Sierra HD – Ranked Second – Large Heavy-Duty Pickup

The 2014 IQS is based on responses from more than 86,000 purchasers and lessees of new 2014 model year vehicles surveyed at 90 days of ownership. The study provides manufacturers with information they can use to quickly identify problems and drive improvement.