JD Power 2015 US Quality Survey: Korean cars Tops

WESTLAKE VILLAGE, Calif.: 17 June 2015 — With a significant year-over-year improvement, Korean brands continue to widen the quality gap with other automakers, while Japanese makes collectively fall below industry average for the first time in 29 years, according to the J.D. Power 2015 U.S. Initial Quality StudySM (IQS) released today.

The study examines problems experienced by vehicle owners during the first 90 days of ownership. Initial quality is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

The industry experiences a 3 percent year-over-year improvement in initial quality, averaging 112 PP100 compared with 116 PP100 in 2014.

Historic Shifts in Performance by Brand Origin

Korean brands lead the industry in initial quality by the widest margin ever, averaging 90 PP100, which is an 11 PP100 improvement from 2014. For the first time in the study, European brands (113 PP100) surpass Japanese brands (114 PP100), while domestic makes (114 PP100) equal the Japanese for only a second time.

Although Japanese brands overall experience a 2 PP100 improvement from 2014, this has proven insufficient to keep pace with the industry, causing Japanese makes overall to fall below industry average for the first time in the 29-year history of the U.S. Initial Quality Study. Only four of the 10 Japanese brands included in the study post an improvement.

“This is a clear shift in the quality landscape,” said Renee Stephens, vice president of U.S. automotive quality at J.D. Power. “For so long, Japanese brands have been viewed by many as the gold standard in vehicle quality. While the Japanese automakers continue to make improvements, we’re seeing other brands, most notably Korean makes, really accelerating the rate of improvement. Leading companies are not only stepping up the pace of improvements on existing models, but are also working up front to launch vehicles with higher quality and more intuitive designs.”

Technology Continues to be a Trouble Spot for the Industry

• Entertainment and connectivity systems remain the most problem-prone area for a third consecutive year, with voice recognition and Bluetooth pairing continuing to top the problem list.
• The majority of models included in the study that have voice recognition systems experience 10 or more PP100 related to this feature.
• The number of owners who indicate having voice recognition in their new vehicle has increased to 67 percent in 2015 from 57 percent in 2013. Based on results from the J.D. Power 2015 U.S. Tech Choice Study,SM this will continue to increase as simple wireless device and near field communication are the top two entertainment/connectivity technologies consumers indicate wanting on their next vehicle.

“Smartphones have set high consumer expectations of how well technology should work, and automakers are struggling to match that success in their new vehicles,” said Stephens. “However, we are seeing some OEMs make important improvements along the way. What’s clear is that they can’t afford to wait for the next generation of models to launch before making important updates to these systems.”

Highest-Ranked Nameplates and Models

Porsche ranks highest in initial quality for a third consecutive year, posting a score of 80 PP100. With a 20 PP100 improvement from 2014, Kia follows Porsche in the rankings at 86 PP100. This marks the first time in the history of the study that Kia has led all non-premium makes in initial quality.

Jaguar (93 PP100), Hyundai (95 PP100) and Infiniti (97 PP100) round out the top five nameplates. Infiniti is one of the most improved brands in the study, lowering its problem score by 31 PP100 from 2014.

Model awards are spread among several corporations, with many receiving multiple awards.

General Motors (4): Chevrolet Equinox (tie); Chevrolet Malibu; Chevrolet Silverado LD; and Chevrolet Spark
Hyundai Motor Company (4): Hyundai Accent; Hyundai Tucson; Kia Sorento; and Kia Soul
Nissan Motor Company (4): Infiniti QX70; Infiniti QX80; Nissan Sentra; and Nissan Quest
Volkswagen AG (4): Audi Q3; Porsche 911; Porsche Boxster; and Porsche Macan
BMW (3): BMW 2 Series; BMW 4 Series; and BMW 5 Series
Toyota Motor Corporation (3): Lexus LS; Toyota Tacoma; and Toyota Sequoia
Fiat Chrysler Automobiles (2): Chrysler 300 and Dodge Challenger
Ford Motor Company (2): Ford Escape (tie) and Ford Super Duty
Mazda (1): Mazda MX-5 Miata

Plant Assembly Line Quality Awards

BMW AG’s Rosslyn, South Africa plant, which produces the BMW 3 Series, receives the Platinum Plant Quality Award for producing models with the fewest defects or malfunctions. Plant quality awards are based solely on defects and malfunctions and exclude design-related problems.

In the North America/South America region, Toyota Motor Corporation’s Cambridge North, Ontario, Canada (TMMC) plant, which produces the Toyota Corolla, receives the Gold Plant Quality Award.

Kia Motors Corporation’s Kwangju Plant 1, Korea, which produces the Kia Soul, receives the Gold Plant Quality Award in the Asia Pacific region.

The 2015 U.S. Initial Quality Study is based on responses from more than 84,000 purchasers and lessees of new 2015 model-year vehicles surveyed after 90 days of ownership. The study, now in its 29th year, is based on a 233-question battery organized into eight problem categories designed to provide manufacturers with information to facilitate the identification of problems and drive product improvement. The study was fielded between February and May 2015.

Find detailed information on vehicle quality, as well as model photos and specs, at jdpower.com/quality.

Media Relations Contacts

John Tews; J.D. Power; Troy, Mich.; 248-680-6218; media.relations@jdpa.com

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

About McGraw Hill Financial www.mhfi.com

- See more at: http://www.jdpower.com/press-releases/2015-us-initial-quality-study-iqs#sthash.o6j9mekY.dpuf

JDPower 2011 New Car Malaysia Survey

J.D. Power Asia Pacific Reports:
Notifying Customers When Vehicle Maintenance Is Due Has a Strong Positive Impact on New-Vehicle Owner Satisfaction with After-Sales Service

BMW Ranks Highest in Customer Service Satisfaction in Malaysia

SINGAPORE: 1 August 2011 — Notifying customers when their vehicle is due for service contributes to higher levels of customer satisfaction with after-sales service, according to the J.D. Power Asia Pacific 2011 Malaysia Customer Service Index (CSI) Study^SM.

The study, now in its ninth year, measures the overall customer satisfaction among vehicle owners who visited their authorized service centre for maintenance or repair work during the first 12 to 24 months of ownership. 

 The study evaluates new-vehicle owner satisfaction with the after-sales service experience by examining dealership performance in five factors. In order of importance, they are: service quality, vehicle pick-up, service initiation, service advisor and service facility. CSI performance is reported as an index score based on a 1,000-point scale. Overall customer satisfaction averages 718 in 2011, an improvement of eight points from 2010.

Among the 12 brands included in the study, BMW ranks highest with a score of 804. BMW performs particularly well in the vehicle pickup and service quality factors. Mercedes-Benz (799) and Isuzu (770) follow in the rankings. Both BMW and Mercedes-Benz are ranked for the first time in this 2011 study.

The study finds the proportion of customers who indicate the dealer informed them that their vehicle was due for routine maintenance has increased notably to an average of 38 percent in 2011, compared with 16 percent in 2010.  Among those customers who received advance notification about routine maintenance from the service dealer, satisfaction averages 21 points higher than the industry average.

“Initiating customer contact for routine maintenance is a value-added service that is increasingly being performed by service dealers,” said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore. 

“Implementing processes that notify customers when service is due encourage them to make service appointments, allowing dealers to better plan service flow and resources. This customer touch point also contributes to higher levels of customer loyalty and advocacy to both the dealership and the brand.”

The study also finds that customers who say their actual service costs were the same or less than estimated are notably more satisfied (733, on average) than customers who either do not receive an estimate (683) or whose actual costs were higher than the estimate (657).

“In a competitive market such as Malaysia, it is especially important to provide customers with estimates at the time of service initiation and to ensure that these estimates are accurate,” said Arora. “In addition, dealerships must provide effective and timely communication in cases where initial estimates and actual costs are different.”

Rates of customer loyalty and advocacy intent for brands and dealerships are strongly affected by satisfaction with authorized service dealers. Approximately 42 percent of highly satisfied customers (service satisfaction scores averaging above 796) say they “definitely will” recommend their dealership to friends and relatives. Similarly, 40 percent of highly satisfied customers say they “definitely will” revisit their service dealer for post warranty service.

This study is based on the responses from 2,667 new-vehicle owners who purchased their vehicles between February 2009 and May 2010 and took their vehicle for service to an authorized dealer or service center between August 2010 and May 2011. The study was fielded between February and May 2011.

About J.D. Power Asia Pacific

J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide performance analytics services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: sammy_arvis@jdpower.com.sg.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries.  Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

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Editor Chips Yap: chips@motortrader.com.my

 

JD Power Customer Satisfaction Index 2010

Included in the study but not ranked due to small sample size were BMW, Ford, Hyundai, Kia and Mercedes-Benz. Chart source: JD Power Asia-Pacific 2010 Malaysia CSI Study

Decreasing the amount of time needed to service a vehicle or the amount of time customers have to wait for vehicle pick-up has a positive impact on overall customer satisfaction with after-sales service, according to the J.D. Power Asia Pacific 2010 Malaysia Customer Service Index (CSI) Study. 

The study measures new-vehicle owner satisfaction with the after-sales service process by examining 5 factors of dealership performance. In order of importance, they are: service quality, vehicle pick-up, service initiation, service advisor and service facility. CSI performance is reported as an index score based on a 1,000-point scale. Overall customer satisfaction averaged 710 in 2010, improving by 5 points from 2009. 

The study found that 98% of vehicles taken to dealerships for service are serviced within the same day. Among customers whose service was completed within the same day, 67% had service completed within two hours. Overall satisfaction averaged 8 points above the industry average when service was completed within two hours. However, satisfaction averaged 13% below the industry average when customers had to wait 3 hours or more to have service completed. 

Similarly, the study also found that satisfaction decreases as the total vehicle pick-up time, including finishing any paperwork, increases. Satisfaction averaged 24 points below the industry average when customers had to spend an average of 15 minutes or more at vehicle pick-up. 

“Prompt vehicle service and faster administrative processing times are critical elements of the customer experience,” said Taku Kimoto, GM for the Malaysia office at J.D. Power Asia Pacific, based in Singapore. “Dealerships should aim to improve time-related aspects and pay more attention to delivering service in a timely manner in order to enhance customer satisfaction and meet rising customer expectations.” 

Among the 10 brands included in the study, Honda performed particularly well in service initiation, vehicle pick-up and service quality to score the highest points of 736. Following Honda in the rankings were Toyota (733) and Nissan (721). Isuzu improved by 18 points in 2010, compared with 2009—more than any other brand—with its score of 719. 

The study found customers who are highly satisfied with the overall service performance of the dealer have, not surprisingly, higher levels of advocacy and loyalty to both dealerships and the brand. Among customers who were highly satisfied with their service experience at the dealership (service satisfaction scores averaging above 778), 35% stated they “definitely will” revisit their service dealer for post-warranty service. In contrast, only 8% of highly dissatisfied customers (service satisfaction scores averaging below 652) felt the same way. Similarly, 37% of highly satisfied customers said they “definitely will” recommend their service dealer to a friend or relative, compared to just 5% of highly dissatisfied customers.

 

The study found that service quality is the most important factor (38%) contributing to overall customer satisfaction		Service advisors play an important role in ensuring customer satisfaction and need to ensure that paperwork is processed promptly

 

The 2010 Malaysia Customer Service Index (CSI) study measured the overall satisfaction of vehicle owners who visit an authorized dealer/service center for maintenance or repair work during the first 12 to 24 months of ownership. It was based on the responses from 2,653 new-vehicle owners who purchased their vehicles between February 2008 and May 2009 and took their vehicle for service to an authorized dealer or service centre between August 2009 and May 2010. The study was conducted between February and May 2010. All vehicle owners who participated were not from information provided by the car companies and obtained independently. They were thoroughly screened for suitability before being invited to participate. 

JD Power studies have been conducted since the 1970s and are recognized by the industry globally. This is the eighth year that the company has conducted its studies of the Malaysian auto market.

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Source:

http://www.motortrader.com.my/Cars/NewsHeader/News-in-2010/Local-News/JD-Power-Customer-Satisfaction-Index-for-2010.aspx

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