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June 6, 2008

Finally, Some Good News For Ford And GM, More Bad news For Chrysler

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Jack Sayer, Managing PartnerJack Sayer
Managing Partner, Sayer Partners LLC
Implications: The quality of vehicles built for American consumers has improved virtually across the board according to J.D. Power. A notable exception: Chrysler.

Analysis: The J.D. Power study showed that overall vehicle quality in 2008 models improved 6 percent over 2007. The study captures problems experienced by buyers in the early days of ownership in two major categories - quality of design as well as defects and malfunctions.

GM failed to crack the top ten with any of its brands, although four GM brands, Cadillac, BUick, Chevrolet and Pontiac rose from below average last year to above average this year. GM was shut out from any brands reaching that status last year.

Ford Motor Co. showed quality improvements for the fourth consecutive year on the way to posting mixed results in 2008.

The Ford and Mercury brands each jumped two spots and both cracked the top eight. Eleven of Ford's 14 nameplates included in the study showed improvement.

A slip by Lincoln dinged Ford's otherwise positive results which are closely watched by consumers. Lincoln fell from No. 3 to No. 15, the last brand ranked above the industry average.

The study had more bad news for Chrysler LLC which was far below the industry average with its three brands.

Jeep was the industry's worst at 167 problems per hundred vehicles. Dodge and Chrysler placed 28th and29th, or in the bottom fourth of all brands in the rankings.

Porsche took the spot among nameplates for the third consecutive year, even improving on last years performance by averaging only 87 problems per 100 vehicles.

Rounding out the top five spots in order were: Infiniti, Lexus, and Mercedes Benz, tying with Toyota.

Consumers answer 228 questions about their vehicles quality: those questions fall into eight categories. Automakers across the board showed improvement in seven of the eight categories. The only one in which they did not improve was the audio, entertainment and navigation section.

Count me among those who have yet to figure out all of the new technology.  



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