Industry Report Part 2: Koreans Overtake Europeans and Domestics in Initial Quality

Greatest Gains Shown by Hyundai and DaimlerChrysler while Largest Losses by Porsche and Nissan The release of J.D. Powers and Associates annual Initial Quality Survey (IQS) is make it or break it time for those automakers that sell their wares in North America. So which companies surged forward it and which fell behind? It was the Korean-brands that showed the greatest gains, led by Hyundai which, as reported yesterday, surpassed Toyota in the nameplate rankings. As for the corporations, once again Japan leads the field with Toyota Motor Sales, U.S.A., which includes the Toyota brand, Lexus and Scion, at the top of the pack. Not only did Toyota once again dominate first position, it raised its own standard from 115 problems per 100 vehicles (PP100) to 101.

In this years J.D. Powers and Associates annual Initial Quality Survey it was the Korean-brands that showed the greatest gains. (Photo: Shawn Pisio, American Auto Press)

Honda Motor Co., which also includes Acura, tied for second place overall with Hyundai. (Photo: Trevor Hofmann, American Auto Press)

"A decade ago, as Korean manufacturers struggled with a universally poor reputation for vehicle quality, no one would have predicted they could not only keep pace, but actually pass Domestics and other imports in terms of initial quality," commented Joe Ivers, partner and executive director of quality/customer satisfaction at J.D. Power and Associates. "This demonstrates how vastly more competitive the market has become--which is good news for consumers, who will ultimately benefit."

The BMW group, which includes the brand

Even though BMW placed high at 4th place, it must sting to have lost their 3rd place ranking from 2003 ranking to Hyundai. (Photo: Shawn Pisio, American Auto Press)

Of course, BMW shouldnt feel as badly as Porsche, which nosedived from a 2nd place finish in the 2003 IQS to last place in the 2004 survey with 159 PP100. What happened? As explained in yesterdays news story, Porsches alignment with 10th place Volkswagen, also well below the industry average, to develop

Porsche nosedived from a 2nd place finish in the 2003 IQS to last place in the 2004 survey. (Photo: Shawn Pisio, American Auto Press)

General Motors, at just below the industry average of 119 problems per 100 vehicles, manages 5th place just like it did last year, and with that top billing for the domestics. Its 120 PP100 ranking in the 2004 IQS, however, showed a marked improvement over the 2003 tally of 134 PP100.

DaimlerChrysler has improved its game substantially, up to 6th place with 123 PP100 from only 8th with 139 PP100 in

Mitsubishi Motors North America, Inc. must be pleased, moving from second last in 2003 all the way up to 9th place this year. (Photo: Trevor Hofmann, American Auto Press)

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