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Industry Report Part 1: New J.D. Power Initial Quality Survey Puts Hyundai Above Toyota

Lexus is Still Number One Overall with Honda the Top Entry Nameplate

Which automaker nameplates are the winners and losers in J.D. Powers and Associates 2004 Initial Quality Survey (IQS)? In what might be the biggest shakeup since the Japanese took away quality bragging rights from the Germans, this years biggest winner is Hyundai. This will come as good news to backers of the price-competitive brand as it is just readying a product offensive that will see it launch eleven new vehicles before the end of 2007.

The South Korean firm outpaced Toyota on its way up the IQS charts, moving from its below average rating of 23rd place out of 37 nameplates, to a much more respectable 7th, and as significant, improving

The big winner in this years J.D. Powers and Associates 2004 Initial Quality Survey is Hyundai. (Photo: Hyundai Motor America)

its problems per 100 vehicles (PP100) rating from 143 to 102.

"The fact that Hyundai is now outperforming even perennial quality leaders like Toyota--and in a relatively short amount of time--is nothing short of remarkable considering the vast quality gap it faced just a few years ago," said Ivers. "This kind of improvement simply cannot be achieved without a serious

While edged out by Hyundai, Toyota remains at a respectable 9th place. (Photo: Toyota Motor Sales, U.S.A.)

commitment to quality over the long haul. The question now is whether Hyundai can demonstrate this same level of improvement in terms of new-vehicle launch and long-term vehicle quality."

Its important to note that Toyota hasnt dropped from its 9th place rating, maintaining the impressive position from the 2003 to 2004 IQS and improving its PP100 rating from 121 to 104 in the process, but rather Hyundai displaces Porsche that takes the biggest dive of any

While the Cayenne is critical to Porsches bottom line, the fact that the new SUV incorporates a large proportion of Volkswagen components no doubt hurts the legendary brands overall IQS rating. (Photo: Shawn Pisio, American Auto Press)

automaker, from first place among all European automakers at 7th, to 3rd to last just ahead of Volkswagen (from 117 to 159 PP100).

Why the massive shift to the bottom of the grid? It can only be attributed to initial quality problems with the new Cayenne, Porsches dynamic new sport utility vehicle that now makes up more than half of its sales. While important to the brands bottom line, the SUV includes a large amount of

Land Rover made considerable strides from last year, charging up the charts from second worst place to 28th out of 37 nameplates. (Photo: Shawn Pisio, American Auto Press)

Volkswagen components in its manufacture, from chassis architecture and mechanical components, electrical and safety equipment. Porsche at least has managed to nudge ahead of troubled Volkswagen by one position, but unfortunately Europes most enviable brand for quality seems to have hitched its wagon to what has become a bit of a lame horse. Incidentally, Volkswagen was in 24th place last year, just behind Hyundais 2003 rating. The German brands PP100 falls from 143 to 154.

But at least Volkswagen isnt dead last, that notoriety belongs to GMs Hummer division

This year Jaguar finds itself with a better J.D. Power initial quality score than rivals BMW and Mercedes-Benz. (Photo: Shawn Pisio, American Auto Press)

which shows no improvement in placement when compared to last years survey despite showing a significant rise in initial quality from an abysmal 225 problems per 100 units to 173. Off-road competitor Land Rover, however, that found itself placed a single position ahead of Hummer last year, has jumped significantly forward in the points to 28th out of 37 nameplates (from 190 to 148 PP100). This news should make the recently appointed head of Ford Motor Co.s Premier Automotive Group (PAG) Mark Fields, that organization that oversees Land Rover, very happy. He recently proved to be good humored about LRs previous quality issues by gibing, "The only way they

The top non-premium brand is Honda, shooting up the IQS chart from 11th in 2003 to 4th place in 2004. Acura, however, dropped from 4th place last year to 15th, and from 111 problems per 100 vehicles to 117. (Photo: Trevor Hofmann, American Auto Press)

[quality ratings] look good is when you take the page and turn it upside down." Theres no need to flip the chart anymore.

Other premium manufacturers that show improvement from 2003 to 2004 are Land Rovers kissing cousin Jaguar, also part of the Fords PAG, that pulled itself up from an already strong 10th place to an amazing 3rd (from 122 to 98 PP100), bested only by Lexus in 1st (from 76 to 87 PP100) and Cadillac in 2nd (from 103 to 93 PP100), both not budging in placement from their impressive 2003 survey results in this years IQS. It should be said, however, that while Jaguar and Cadillac moved up with regards to problems per 100 vehicles, Lexus experienced an

Lexus didnt budge from its number one IQS placement, the same rank it held last year. Still, the Japanese luxury marque couldnt duplicate its amazingly low 76 problems per 100 vehicle 2003 rating, instead managing only 87 this year. (Photo: Trevor Hofmann, American Auto Press)

average of 11 additional problems.

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