By David Kiley, USA TODAY
DETROIT — In the J.D. Power Initial Quality Survey out Wednesday, Korean automaker Hyundai Motor America shocked the auto industry by scoring a virtual dead-heat with quality leaders Honda and Toyota, tying Honda with 102 problems per 100 vehicles and just one point behind Toyota.
Driven by that extraordinary improvement by Hyundai America, Korean manufacturers, Kia Motors included, now rank higher than European and U.S automakers for vehicle quality based on complaints reported by customers during the first three months of ownership.
http://www.usatoday.com/_common/_images/clear.gif 2004 QUALITY RANKINGShttp://www.usatoday.com/_common/_images/clear.gifhttp://www.usatoday.com/_common/_images/clear.gifCompany
•2004 rankings by nameplate http://images.usatoday.com/_common/_images/clear.gif"A decade ago, as Korean manufacturers struggled with a universally poor reputation for vehicle quality, none would have predicted they could not only keep pace, but actually pass domestics and other imports in terms of initial quality," said Joe Ivers, partner and executive director of J.D. Power and Associates.
Hyundai's one-year improvement was so great, and so altered this year's industry average that automakers like Ford, GM and DaimlerChrysler, which improved in quality and handily beat last year's industry average of 133 problems per 100 vehicles, remained below this year's much lower industry average of 119 problems per 100 vehicles.
Hyundai last year tallied 142 problems per 100 vehicles reported by customers, worse than the industry average. Because of an aggressive campaign by the Korean company to eliminate squeaks and rattles and improve the ride of its vehicles, Hyundai owners reported fewer problems per 100 vehicles than owners of most of its rivals including Toyota, Nissan, Chevrolet and Ford. (Chart: 2004 ranking by nameplate)
"We knew we were making good progress on quality, but to be acknowledged this way by the leading arbiter of quality in the world .....we are over the moon today," said Hyundai Motor spokesman Chris Hosford. "But the competitiveness of the ranking also tells us we can't rest on our laurels for even five minutes," said Hosford.
Hyundai jumped 16 rank positions from last year, improving 29% to seventh place. Between 1998 and 2004, Hyundai improved quality by 62%, twice the improvement of the industry as a whole.
Hyundai Sonata topped all entry-level mid-sized sedans in Power's ranking, topping Chevy Malibu, Honda Accord and Toyota Camry. It's Santa Fe SUV placed second to Honda's Element in that category. And its Accent entry-priced small car placed second to Toyota's Corolla.
Other highlights of the survey:
• Kia Motors improved from 168 problems per 100 vehicles last year to 153 this year.
• GM improved 10% to 120 problems. Ford improved 7%. DaimlerChrysler improved 12%.
• Toyota, the industry leader, improved 12%. It's Lexus brand topped the list, as it does most years, with 87 problems per 100 vehicles. Toyota brand vehicles, which have been up and down the last three years improved 13%.
• GM's Cadillac brand improved 10% and held on to its second-place ranking behind Lexus. GM's Hummer brand ranked dead last among brands for the second straight year, but improved 23%.
As the industry average for quality got much better, not all automakers improved.
• Porsche, which ranked second among all automakers last year, fell to last this year as its sales of the Cayenne sport utility sent both its sales and complaints soaring.
• Volkswagen, which has been struggling with quality, worsened by 15%, though the company's Audi brand improved Mazda worsened by 6%.
Powers' Ivers says the improvement of most automakers and the narrowing of the gap among U.S. automakers, Japanese, Korean and European automakers means that the IQS Survey is becoming less important as a differentiator among car companies, but it remains a sign post for how reliable vehicles will be over three to five years of ownership.
Power has a survey that tracks long-term quality, which comes out later this year. And Ivers says the IQS survey has historically proven a good indicator of how vehicle brands will perform over the long term.
Power also ranks vehicle manufacturing plants for quality. GM's Lansing plant that produced Cadillac's was the top ranked North American factory.
DETROIT — In the J.D. Power Initial Quality Survey out Wednesday, Korean automaker Hyundai Motor America shocked the auto industry by scoring a virtual dead-heat with quality leaders Honda and Toyota, tying Honda with 102 problems per 100 vehicles and just one point behind Toyota.
Driven by that extraordinary improvement by Hyundai America, Korean manufacturers, Kia Motors included, now rank higher than European and U.S automakers for vehicle quality based on complaints reported by customers during the first three months of ownership.
http://www.usatoday.com/_common/_images/clear.gif 2004 QUALITY RANKINGShttp://www.usatoday.com/_common/_images/clear.gifhttp://www.usatoday.com/_common/_images/clear.gifCompany
Problems per 100 vehicles
Toyota 101
Honda 102
Hyundai 102
BMW 116
Industry average119
General Motors 120
DaimlerChrysler123
Subaru 123
Ford 127
Mitsubishi 130
Volkswagen141
Nissan 147
Suzuki 149
Kia 153
Porsche159
Source: J.D. Power and Associates•2004 rankings by nameplate http://images.usatoday.com/_common/_images/clear.gif"A decade ago, as Korean manufacturers struggled with a universally poor reputation for vehicle quality, none would have predicted they could not only keep pace, but actually pass domestics and other imports in terms of initial quality," said Joe Ivers, partner and executive director of J.D. Power and Associates.
Hyundai's one-year improvement was so great, and so altered this year's industry average that automakers like Ford, GM and DaimlerChrysler, which improved in quality and handily beat last year's industry average of 133 problems per 100 vehicles, remained below this year's much lower industry average of 119 problems per 100 vehicles.
Hyundai last year tallied 142 problems per 100 vehicles reported by customers, worse than the industry average. Because of an aggressive campaign by the Korean company to eliminate squeaks and rattles and improve the ride of its vehicles, Hyundai owners reported fewer problems per 100 vehicles than owners of most of its rivals including Toyota, Nissan, Chevrolet and Ford. (Chart: 2004 ranking by nameplate)
"We knew we were making good progress on quality, but to be acknowledged this way by the leading arbiter of quality in the world .....we are over the moon today," said Hyundai Motor spokesman Chris Hosford. "But the competitiveness of the ranking also tells us we can't rest on our laurels for even five minutes," said Hosford.
Hyundai jumped 16 rank positions from last year, improving 29% to seventh place. Between 1998 and 2004, Hyundai improved quality by 62%, twice the improvement of the industry as a whole.
Hyundai Sonata topped all entry-level mid-sized sedans in Power's ranking, topping Chevy Malibu, Honda Accord and Toyota Camry. It's Santa Fe SUV placed second to Honda's Element in that category. And its Accent entry-priced small car placed second to Toyota's Corolla.
Other highlights of the survey:
• Kia Motors improved from 168 problems per 100 vehicles last year to 153 this year.
• GM improved 10% to 120 problems. Ford improved 7%. DaimlerChrysler improved 12%.
• Toyota, the industry leader, improved 12%. It's Lexus brand topped the list, as it does most years, with 87 problems per 100 vehicles. Toyota brand vehicles, which have been up and down the last three years improved 13%.
• GM's Cadillac brand improved 10% and held on to its second-place ranking behind Lexus. GM's Hummer brand ranked dead last among brands for the second straight year, but improved 23%.
As the industry average for quality got much better, not all automakers improved.
• Porsche, which ranked second among all automakers last year, fell to last this year as its sales of the Cayenne sport utility sent both its sales and complaints soaring.
• Volkswagen, which has been struggling with quality, worsened by 15%, though the company's Audi brand improved Mazda worsened by 6%.
Powers' Ivers says the improvement of most automakers and the narrowing of the gap among U.S. automakers, Japanese, Korean and European automakers means that the IQS Survey is becoming less important as a differentiator among car companies, but it remains a sign post for how reliable vehicles will be over three to five years of ownership.
Power has a survey that tracks long-term quality, which comes out later this year. And Ivers says the IQS survey has historically proven a good indicator of how vehicle brands will perform over the long term.
Power also ranks vehicle manufacturing plants for quality. GM's Lansing plant that produced Cadillac's was the top ranked North American factory.
