Auto quality problems on the rise, according to 2014 J.D. Power study

Initial Quality Study finds high-tech problems worsen — but weather also created headaches.

By Paul Eisenstein of The Detroit Bureau 6-20-2014

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Cars like the Porsche Panamera helped position the German maker as the top brand in the 2014 IQS.





The Detroit Bureau

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While they're not necessarily connected, the sudden surge in recalls this year comes at the same time the overall quality of new cars, trucks and crossovers has shown an unexpected decline, according to the latest, widely followed J.D. Power Initial Quality Study.

Automakers seem to be having a lot of trouble getting all-new vehicles into production without launch problems, noted the 2014 IQS. Some of the biggest headaches are the result of the latest high-tech gadgetry that is becoming a must on today's new vehicles. But the report also suggests that the harsh weather that has plagued much of the country over the last year has contributed to some of the problems, especially when it comes to engine and climate control 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."

The 2014 IQS was calculated using responses from 86,000 buyers after they had a chance to spend about 90 days in their 2014-model cars, trucks and crossovers. The study found that, on average, there was a 3% increase in the number of problems reported this year. Using Power metrics, that translated into 116 "problems" per 100 vehicles, or 116 PP100. In the 2013 study, the number was 113 PP100.

The biggest increase came mainly in the high-tech area, primarily with voice recognition, Bluetooth pairing and audio systems. Infotainment systems have accounted for the majority of problems registered by Power's Initial Quality Study for several years. Ford Motor Co. has been particularly hard hit by issues with its Sync-based technologies, the flagship Ford brand lagging in 16th place among the 32 marques in the latest study. Its Lincoln brand managed a 10th-place finish.

That said, traditional mechanical systems have also had problems, particularly in those parts of the country that have suffered from excessively warm or cold weather, noted analyst Sargent, who said that helps explain why buyers in the Midwest and Northeast reported the biggest increase in vehicle problems.

"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," he explained during an appearance at the Detroit Automotive Press Association. "Consumers generally understand this but still report problems when their vehicle does not wholly live up to their expectations."
Among individual manufacturers, Porsche ranked tops in the 2014 IQS, with a score of just 74 problems per 100 vehicles — where the lower the score the better. That compared with 87 PP100 for second-ranked Jaguar and 92 for Lexus, the long-time leader which slipped into third in the 2014 study.

Among perhaps the most notable achievements was Hyundai's climb to fourth, with a score of 94, just behind Lexus and the highest rank of any mainstream brand. Toyota rounded out the Top Five at 105 PP100.
The industry average, according to the latest Power IQS was 116 problems per 100 vehicles.

Fiat landed dead last on the list, with a score of 206, nearly double the industry average. Jeep, second from the bottom, had a relatively modest 146 problems, just behind Mitsubishi at 145.

With its Chevrolet division taking sixth position, the embattled General Motors fared surprisingly well in the latest Power study, nabbing more individual segment awards — for models including the Chevy Silverado pickup and Malibusedan — than any other manufacturer. Hyundai topped the list in five segments, while Ford, Nissan and Porsche led in three.
GM led in segment wins in the 2013 Initial Quality Study, as well. And it has landed at or near the top in a number of other recent studies of short- and long-term quality, as well as customer satisfaction — which suggests that safety-related recall issues aren't always indicators of overall vehicle quality. Or of sales, as GM continues to increase its sales, ahead of the industry overall, despite having recalled nearly 18 million vehicles so far this year.

Despite the modest decline in quality shown by the 2014 IQS, makers are well ahead of where they were a decade ago. And the gap between leaders and mid-pack brands has narrowed sharply. That said, quality has a significant impact on consumer perception — and particularly on brand loyalty, according to Power's Sargent, who said the IQS results "correlate strongly with ultimate repurchase behavior."

Among those who report no problems with their vehicles, 57% typically return to the same brand when trading in, Power has found. For those experiencing one problem, the number falls to 53%, while brand loyalty dips to 48% among those who had two or more problems

Which vehicles topped the chart according to the 2014 Initial Quality Survey? Here's a list of the winners, by product segment.
Small Car
Highest ranked: Hyundai Accent
Mazda MAZDA2
Kia Rio
Compact Car
Highest ranked: Hyundai Elantra
Toyota Corolla
Honda Civic
Compact Premium Car
Highest ranked: Lexus ES
Acura TL
Acura ILX (tie)
BMW 4-Series (tie)
Compact Sporty Car
Highest ranked: Mazda MX-5 Miata
Volkswagen GTI
Scion tC
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2014 Chevrolet Malibu




Compact Premium Sporty Car
Highest ranked: Porsche Boxster
Porsche Cayman
Nissan Z
Midsize Car
Highest ranked: Chevrolet Malibu
Hyundai Sonata
Toyota Camry
Midsize Sporty Car
Highest ranked: Dodge Challenger
Chevrolet Camaro
Midsize Premium Car
Highest ranked: Hyundai Genesis
Lincoln MKS
BMW 6-Series (tie)
Lexus GS (tie)
Mercedes-Benz CLS-Class (tie)
Midsize Premium Sporty Car
Highest ranked: Porsche 911
Jaguar F-TYPE
Large Car
Highest ranked: Kia Cadenza
Nissan Maxima
Toyota Avalon
Large Premium Car
Highest ranked: Porsche Panamera
Lexus LS
Hyundai Equus
Small SUV
Highest ranked: Buick Encore (tie)
Kia Sportage (tie)
Nissan Juke (tie)
Compact SUV
Highest ranked: GMC Terrain
Chevrolet Equinox
Toyota FJ Cruiser
Compact Premium SUV
Highest ranked: Infiniti QX50
BMW X3
Audi Q5
Compact MPV
Highest ranked: Mazda MAZDA5
Kia Soul
Ford C-Max
Midsize SUV
Highest ranked: Ford Edge
Hyundai Santa Fe (tie)
Nissan Murano (tie)

Midsize Premium SUV
Highest ranked: Lincoln MKX
Porsche Cayenne
Infiniti QX70
Midsize Pickup
Highest ranked: Honda Ridgeline
Nissan Frontier (tie)
Toyota Tacoma (tie)
Minivan
Highest ranked: Chrysler Town & Country
Toyota Sienna
Dodge Grand Caravan
Large SUV
Highest ranked: Chevrolet Suburban (tie)
GMC Yukon (tie)
Chevrolet Tahoe
Large Premium SUV
Highest ranked: Infiniti QX80
Cadillac Escalade
Large Light Duty Pickup
Highest ranked: Ford F-150 LD
Toyota Tundra
Ram 1500 LD
Large Heavy Duty Pickup
Highest ranked: Chevrolet Silverado HD
GMC Sierra HD




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