Rising Domestic Vehicle Quality Is A Sign Of Good Things To Come
By Gary Molinaro | July 2nd, 2010 | Category: Perspective | No Comments »In the June 30 issue of our sister newsletter, Service Executive, we reported on the J.D. Power & Associates U.S. Initial Quality Study (IQS), a study that has taken place now for 24 years. Each year, tens of thousands of new-vehicle owners respond to the surveys to provide feedback on quality during the first 90 days of new-vehicle ownership. Those car owners are asked to rate both mechanical quality and design quality — basically, how well a particular feature works.
Study results are tabulated using a “problems per 100 vehicles (PP100)” metric, where a lower PP100 indicates higher initial quality. Awards are given to the top-performing model in each segment with the lowest PP100, as well as to the assembly plant that produces the vehicles with the fewest number of problems (plant awards are based on defects and malfunctions only and not design quality).
What we noted in that Service Executive report was fascinating to me: Domestic auto brands, as a whole, have demonstrated higher initial quality than import brands for the first time.
The industry average for initial quality was 109 problems per 100 vehicles (PP100) in 2010, increasing slightly from 108 PP100 in 2009. Initial quality for domestic brands improved by 4 PP100 in 2010 to an average of 108 PP100, which was slightly better than the initial quality of import brands, which averaged 109 PP100 in 2010.
Most notably, substantial improvements by many domestic models — including the Ford Focus, Ram 1500 LD and Buick Enclave — drove the overall improvement for domestic automakers in 2010. In particular, the initial quality of Ford models has improved steadily for the past nine years. And, as a corporation, the Ford Motor Co. (including Volvo) had 12 models that ranked within the Top 3 in their respective segments in 2010 — more than any other corporation. General Motors had 10 models that ranked within the Top 3 in their segments.
In that same Service Executive issue, we reported that two domestic luxury nameplates (Lincoln and Cadillac) are offering free scheduled maintenance for U.S. customers who purchase or lease new cards. Lincoln’s program covers oil changes, tire rotations, vehicle inspections, engine belts and hoses for three years or 45,000 miles, as well as wear items, including brake pads and wiper blades. Cadillac says it will provide owners of all 2011 models with “frequently required maintenance services” for the first four years or 50,000 miles. The program, called Cadillac Premium Care Maintenance, covers scheduled oil changes, tire rotations, replacement of engine and cabin air filters, and a multi-point vehicle inspection.
Both of these items reminded me how the new car sales marketplace has changed so much over the past two years; from a near disaster with almost no sales and two of the Big 3 being bailed out to new car sales that are on a general upswing. All six of the largest automakers’ sales are projected to report growth in June from a year ago, according to car-shopping website Edmunds.com. There are concerns, though, that the vehicle sales market’s recovery could be stalling after months of slow but encouraging gains.
With some true commitments to quality and value, U.S. car makers are finally back in the game. And, even though the downturn in new car sales bolstered aftermarket business, we don’t live long-term without a significant vehicle fleet that is aging, otherwise there will be a significant gap in service and maintenance down the road for everyone in the aftermarket.
For the sake of U.S.-based car makers, it is good to see sales picking up. And particularly pleasing to see the perception of these U.S. car makers’ brands. For the sake of the American consumer, it is good to see these U.S. car makers meet the quality standard set over the past several decades by the import nameplates.
Looks like a win-win for all involved, and we are all involved.
