Industry Report Part 2: Toyota Leads J.D. Power Vehicle Dependability Study Corporate Rankings

Kia and Suzuki are Most Improved Players while Nissan and Hyundai Slide Backward

Need some help figuring out which car to buy? To repeat some important information mentioned in yesterdays report, J.D. Powers and Associates tries to make buying a car easier each year, by publishing its Vehicle Dependability Study (VDS) which rates automakers by corporation, nameplate and the top three vehicles in each segment of the market.

The results of the 2004 VDS were obtained by surveying more than 48,000 original owners of 2001 model year cars and light trucks. Being a survey, it cant be construed as an exact science, but nevertheless the Westlake Village, California based company is a force in the market, sending automakers scrambling to engineer their cars to achieve better results. In the end, vehicles are becoming more reliable with each passing year.

Yesterdays J.D. Powers and Associates coverage was on nameplate rankings, which once again showed Lexus in 1st place out of 37 brands, Land Rover in last, and strong performance from Buick, Infiniti, Lincoln, Cadillac and Honda, the latter being the top performing entry brand. All three domestic automakers showed marked improvement with their various nameplates too, the strongest being General Motors Corporation, followed by Ford Motor Company and then DaimlerChrylser.

How do the Big 3 fare in the corporate rankings? Good and not so good, depending on the vantage point. The fact is theyve each improved in problems per 100 vehicles (PP100), with GM and Ford Motor also improving in placement among the 16 automakers surveyed. GM is the only domestic to manage a better than industry average result, now placing 4th out of 16 compared to 6th last year, while Ford Motor moves up from 8th to 7th. DaimlerChrysler, if it can still truly be called a domestic being that Mercedes-Benz is bundled into its corporate fold, remains in 9th place, but the automakers PP100 has improved from 311 to 302. GM and Ford Motor improve too, with the former gaining 2 increments in its move from 264 PP100 to 262, and Ford upping its ante from a score of 287 to 275 PP100.

But as well as the domestic automakers have done in this years VDS, the Japanese manufacturers remain far ahead. Top on the list is Toyota Motor Sales, Inc., that sells the Toyota brand, as well as Lexus and now Scion. Being that the cars surveyed for the 2004 VDS are 2001 models, Scion has yet to enter the picture. Just the same Toyotas 207 PP100 rating puts it up front, beating last years top corporation Porsche Cars North America, Inc., despite having slid backward in its PP100 average from the 2003 VDS results of 196. Porsche, which enjoyed top-spot with 193 PP100 last year, now sits in 3rd with 240 PP100.

Splitting the middle in 2nd place is American Honda Motor Co., achieving an impressive 218 PP100 which is an improvement of one position from last years 3rd place finish, despite a drop of 3 PP100.

Rival Nissan North America was right behind Honda in the 2003 VDS, taking 4th place and better than average status with 258 PP100. What happened with this years results? Thats difficult to ascertain, but whatever the reason the automaker has dropped to 6th place with a PP100 of 271, now just under median level of 269 problems per 100 vehicles (PP100).

BMW is the last car to squeak in above the industry average for dependability remaining in 5th place, impressive considering the many electronic gizmos that often can complicate a car and cause more opportunities for things to go wrong. BMWs rating of 264 PP100 is slightly worse for wear compared to last years 262 PP100 rating, however, showing theres room for improvement.

Subaru of America, Inc. is right in the middle of the pack, sitting in 8th place with 288 PP100 after dropping from 7th with 266 PP100 in the 2003 VDS. While the automakers placement could be much worse, only Mitsubishi Motors North America, Inc., American Suzuki Motor Corporation, and Isuzu Motors America, Inc. (American Isuzu Motors, Inc. last year) are worse off among Japanese automakers (Mazda is bundled into Ford Motors rating).

Of the previously mentioned duo, Mitsubishi remains 10th while upping its problems per 100 vehicles (PP100) from 339 to 327, not bad at all. Suzuki trails Mitsubishi in 11th position and a PP100 score of 365. The good news for the small car and SUV-maker is it has made massive headway in its PP100 score and placement among the 16 automakers. In the 2003 VDS Suzuki didnt even break the 400 barrier with an average of 403 PP100, an improvement of 38 points. It was also 3rd to last place in the 2003 VDS, in 14th place. Its easy to see Suzuki is North Americas most improved automaker, at least in this specific survey.

Volkswagen of America, Inc., in 12th place, is the worst faring European corporation (Volvo is part of Ford Motor by the way, while Saab is under the GM umbrella), with 366 PP100 in the 2004 VDS. Not all is doom and gloom mind you, as the automaker actually managed to move one position up through the ranks from its 13th placement last year, and improved its PP100 rating by 12 increments from its previous score of 378. Obviously, the storied German manufacturer must do more to appear like less of a risk to consumer savvy car shoppers - its sales are down considerably this year.

Having fallen from 11th place with 342 PP100 to 13th with a score of 375, Hyundai Motor America is more of a disappointment than Volkswagen in this years VDS, especially after beating none other than Toyota in initial quality as per the J.D. Powers 2004 Initial Quality Survey (IQS). Of course, the cars in question with regards to the 2004 VDS are 2001 models, so good things are in store for this Korean brand.

No one is really sure exactly what lies in store for Isuzu in the near future, with sales so low dealers are just trying to keep the doors open. Its 2004 VDS prospects arent too rosy either, slipping backward from 12th place with 368 PP100 last year to 14th with 393 PP100. Keep your fingers crossed if youre an Isuzu fan.

Daewoo Motor America, Inc. takes the 15th spot out of 16 automakers with a 411 PP100 result, with the irony being that it doesnt exist as an independent entity anymore. Daewoo Motor America went under when GM and partner Suzuki bought the manufacturing facilities in South Korea and global rights (outside of North America) to the brand name, under its new GMDAT division. Now the cars are sold as Daewoos throughout in foreign (to North America) markets, and Chevrolets, Pontiacs and Suzukis within North America - some models are only available in one of either the U.S. or Canada.

Last place, but making giant-size strides forward is Kia Motors America. While the South Korean automakers 2001 vehicles could only manage 432 problems per 100 vehicles in the 2004 VDS, Kia executives were no doubt lifted by the automakers ability to break past the 500 mark - its 2003 VDS score was a dismal 509 PP100. An improvement of 77 problems per 100 is the best of any automaker. On another note, Kia was recently purchased by Hyundai, and therefore its new cars, which will share general architecture with similarly sized Hyundai cars and SUVs, should show a marked improvement.

Not including Daewoo which is now defunct, the 2004 Vehicle Dependability Study shows that 2001 model year vehicles actually became less reliable than 2000 model year vehicles surveyed in the 2003 VDS. The numbers read as follows: 7 automakers improved their placement, with the same number improving problems per 100 vehicle scores too. A larger proportion of automakers, 8 in total, fell backwards in their PP100 figures, while only 5 dropped in placement among the 15 automakers. A total of 3 automakers remained in the same position from the 2003 VDS to 2004.

In the end, if it wasnt for GM, Ford Motor and DaimlerChrysler which each achieved improvement in PP100 ratings, the overall results would be even less encouraging than they currently are. Even with the domestics, 2001 model cars do not show the same level of dependability as their 2000 model year equivalents. Once again, it is important to review J.D. Powers IQS results to get a better picture about 2004 model year automakers, nameplates and individual cars. A complete review of these results can be seen in the archives of this website (Apr 30, 2004: Industry Report Part 1: New J.D. Power Initial Quality Survey Puts Hyundai Above Toyota; May 1, 2004: Industry Report Part 2: Koreans Overtake Europeans and Domestics in Initial Quality; May 2, 2004: Industry Report Part 3: What Cars, Trucks, SUVs and Vans Are Best in Initial Quality?).

Come back tomorrow for a detailed look at what cars, trucks, SUVs and vans are best in the 2004 Vehicle Dependability Study (VDS).