\'04 Total Quality Index: Defects Down

2004 Cadillac XLR

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Cadillac’s new XLR roadster was the highest-rated vehicle in the 2004 Total Quality Index, underscoring a sharp comeback for U.S. automotive giant General Motors.

Now in its tenth year, the TQI is designed to record not only the problems car buyers face during their first 90 days of ownership, but also to measure how pleased motorists are with their vehicles.

While Japanese automakers fared well, GM and the South Korean carmaker, Hyundai, proved unexpectedly strong contenders. Meanwhile, the study’s perennial winner, BMW, was knocked out of the top spot, according to Strategic Vision, the California-based research firm that produces the annual Total Quality Index.

General Motors took the top spot in 10 of 19 separate product segments, with a mix of specialty and mainstream cars, trucks and crossovers. These included the XLR, Chevrolet Malibu, Monte Carlo and Corvette, and Saturn ION and VUE. The study put Cadillac on a nearly equal par with such long-term customer satisfaction leaders as Lexus, Jaguar, and BMW

“There are definite signs GM is coming back,” said Dan Gorrell, one of the founders of Strategic Vision. “I don’t think this represents GM at its fullest bloom yet, but it suggests that over the next couple years we’ll see the effects of their product-led revolution.”

GM’s strong performance was a mixed bag, Strategic Vision found. It still lagged behind Volkswagen, Nissan, and Honda, among full-line producers. And, along with the other Big Three automakers, there is “no real sign they are making any real inroads into conquesting (winning over) import buyers.”

Cautions and parallels

Though they compete in only a relative handful of niches, Nissan’s Infiniti division and Mercedes-Benz were the top-scoring brands in the 2004 TQI. Meanwhile, Volkswagen ranked tops among full-line carmakers, those that compete in most or all product segments.

But the story wasn’t quite as good as it might seem for VW, Gorrell cautioned. With the exception of the new Touareg sport-utility vehicle, VW scores well with its loyal core customer base. But it is actually “shrinking,” said Gorrell, as quality problems frustrate less loyal newcomers to the brand.

There was a time when a new-car buyer could expect to experience a number of problems during the first 90 days of ownership. Not anymore, it seems. Of the six large, full-line brands including in the TQI, only about one in four owners reported any defects or other problems during the 2004 study.

A number of recent studies have echoed Strategic Vision’s findings that initial quality is generally on the rise industry-wide, but some brands, like VW, have been slipping a bit. Others brands are pushing the quality envelope and, in the process, surprising and delighting their customers.

Once a laggard in the TQI study, Hyundai has fast been climbing up the chart. And that’s “not just (because of the) traditional measure of quality, but the overall product experience,” stressed Gorrell.

He quickly likened that Hyundai’s improvement to a “three-legged stool,” combining exciting new products, improved quality that is backed by a ten-year warranty, and Hyundai’s traditional low prices. But “if any leg is knocked out,” warned Gorrell, “Hyundai will come tumbling down.”

Things gone right

In a number of ways the Total Quality Index reiterates the findings of the widely-quoted J.D Power Initial Quality Survey. But there are some notable differences, reflecting TQI’s focus on both things gone wrong, as well as what might be called “things gone right.”

So while Toyota ’s Lexus division routinely soars to the top in the IQS, which focuses solely on defects, it came in mid-pack among luxury brands in the Total Quality Index, behind both Mercedes and Infiniti. Despite its reputation for bulletproof reliability, the parent company, Toyota, also scores in mid-pack on the TQI, reflecting what Gorrell describes as “bland ubiquity.”

Passion for a brand can be a strong selling point, on the other hand, propelling Mini to the top of its segment, despite its less than segment-leading quality.

This emotional attachment to a brand had been the source of BMW’s long-running strength. But another notable finding in the 2004 TQI was the decline of that brand, long the nameplate to beat. A variety of factors appears to be hurting the German marque, said Gorrell, including “some owner discomfort” with BMW’s edgy new design theme, as well as its complicated iDrive electronic control system.

The TQI is compiled from questionnaires completed by approximately 40,000 U.S. new car, truck and crossover buyers. The higher the score, the better a manufacturer, brand or product performed.

FULL-LINE CORPORATIONS:

VW 876

Nissan 867

Honda 864

General Motors 860

Industry Average 858

Toyota 855

Ford* 852

Chrysler 847

*Excluding Jaguar, Land Rover and Volvo

BRANDS UNDER $23,000

Saturn 871

Hyundai 868

Honda 861

Industry Average 858

Mitsubishi 857

Pontiac 845

Kia 830

Suzuki 817

Isuzu 808

BRANDS $23,000 - $30,000

VW 874

Nissan 862

Chevrolet 861

Industry Average 858

Mercury 851

Chrysler 851

Dodge 850

Ford 850

Buick 849

Toyota 848

Mazda 843

Oldsmobile 838

Subaru 838

Jeep 838

BRANDS MORE THAN $30,000

Infiniti 898

Mercedes-Benz 898

Cadillac 896

Jaguar 895

Lexus 894

BMW 893

Acura 886

Audi 883

Lincoln 890

Saab 880

Volvo 873

Industry Average 858

GMC 852

Land Rover 849

TOP CARS:

Small: Hyundai Elantra/Saturn Ion (tie)

Compact Hyundai Sonata/Chevrolet Malibu (tie)

Midsize Acura TSX

Larger Buick LeSabre/Chrysler Concorde (tie)

Small Specialty Mini Cooper

Small Spec. Corvette

Mid Specialty Chevrolet Monte Carlo

Near Luxury Infiniti G35/Cadillac DeVille (tie)

Luxury Lexus LS430

Convertible >$30k XLR

TOP TRUCKS

Minivan Honda Odyssey/Mercury Monterey (tie)

Small SUV Hyundai Santa Fe

Midsize SUV Nissan Murano/Saturn Vue (tie)

Full-size SUV Ford Excursion

Near-Luxury SUV Infiniti FX

Luxury SUV Cadillac Escalade

Compact Pickup Dodge Dakota

Full-size Pickup Chevrolet Avalanche

Heavy-Duty PU Chevrolet Silverado