Initial Vehicle Defects Can Push Consumers to Competing Brands

Non-premium brand automobiles have higher-quality new vehicles than their premium counterparts, according to a new study by J.D. Power –  American-based global marketing information services firm.

While premium brands averaged 108 problems per 100 vehicles within the first three months of ownership, non-premium brands averaged 104. Initial quality is correlated with repeat business, suggesting that luxury brands should get back to basics and improve quality control before proceeding to make sales.

“For example, for consumers that are very price sensitive (small car buyers or compact car buyers), concerns they have with fuel economy can have a more severe impact on their overall satisfaction with their vehicle than for, say, a luxury or sport car owner,” she said. “A problem with the engine or transmission may have more of an influence than a scratch in the paint. “Certain types of problems may have more influence on a consumer’s satisfaction with their new vehicle,” said Renee Stephens, vice president of U.S. Auto Quality at J.D Power.  

“However, when we look at problems in general, counting all equally, we still see an impact on brand loyalty of any level of problem. Several relatively minor problems can add up to leave the consumer with a poor impression overall, ultimately impacting brand loyalty.”

J.D. Power 2016 U.S. Initial Quality Study tracks the number of problems vehicle owners experienced during the first 90 days of ownership.

Quality control
Kia was the best overall performer, with the brand’s vehicles averaging 83 problems per 100 vehicles (PP100). Porsche was just behind, at 84, while Mercedes-Benz-owned Smart experienced the post, at 216.

BMW and Lexus placed at fifth and eighth at 94 and 96 PP100, respectively. Land Rover trailed all other luxury brands included in the study with 132 PP100, while Jaguar averaged 127.

Every year since 2006, non-premium brands have had more problems, but the change this year reveals that luxury automakers are losing ground in the fundamentals as focus has shifted toward technological advances.

Overall, however, new-vehicle quality has improved by 6 percent, the largest increase since 2009 and more than double last year’s increase. Of the 33 brands, 21 saw a decrease in PP100.

Expected reliability was cited by 49 percent of owners as a top consideration when purchasing a new vehicle, more than any other expectation. Accordingly, J.D. Power found that each problem an owner experiences within the first 90 days of ownership makes her less likely to return to the brand when she is back on the market.

Premium and luxury brands should therefore improve quality control to minimize the possibility that vehicles making their way to dealership will have defects and maximize loyalty. Failing to do so means the customer might switch to a brand that can provide high levels of initial quality.

Among individual vehicle segments, the Lexus CT was the highest ranked small premium car, while the brand’s GS was the top midsize premium. Audi’s TT edged out Porsche’s Boxster and Cayman as the highest ranked premium sport car, and the Q3 is the most reliable small premium SUV.

Porsche’s Macan was named the best compact premium SUV, while the 911 was recognized as the top ranked midsize premium sport car. BMW’s X line SUVs showed well in the top three in their respective classes, with the X5 and X6 as the top two midsize premium SUVs.

“Consumers will and do continue to want new features and capability – particularly to enhance driving and safety – and manufacturers will offer them. But it’s all in how those features are implemented – if they are intuitive and react as consumers expect and work – consumers will not report problems in those areas.”

Source: Luxury Daily 

Images courtesy of Luxury Daily,