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Vehicle Design plays as Critical a Role in Consumer Perceptions of Quality as Defects and Malfunctions.

JD Power 2006 Initial Quality Study

Lexus and Toyota Together Capture 11 of 19 Initial Quality Model Awards: The way in which technology is integrated into new-vehicle design, particularly interior features and controls, is considered by consumers to be as important to quality as are defects and malfunctions, according to the JD Power and Associates 2006 Initial Quality StudySM (IQS) released on 7th June 2006 in Westlake Village, California. The study is in its 20th year.

IQS, which serves as the industry benchmark for new-vehicle quality measured at 90 days of ownership, has been completely redesigned for 2006 to capture problems experienced by owners in two distinct categories-quality of design and quality of production (defects and malfunctions).

New vehicles today are often packed with new technologies that unfortunately can be complicated and frustrating for the average consumer when their integration is not well executed. In the eyes of consumers, design flaws can have as much of an impact on their perceptions of quality as can a defect. Yet, many manufacturers have tended to address quality solely on the plant floor without considering design factors.

Based on both design quality and production quality considerations, the study finds that auto makers can vary widely in their performance on these two components. Brands with the fewest defects and malfunctions include BMW, Chrysler, Hyundai, Lexus, Porsche and Toyota. Brands with the fewest design problems include GMC, Hyundai, Jaguar, Lexus, Nissan and Porsche.

2006 IQS Ranking Highlights: Lexus and Toyota models continue to dominate initial quality rankings, capturing 11 out of 19 segment awards in 2006. Lexus models rank highest in every segment in which they compete. In addition, the LS 430 ties the Porsche Cayman for having the fewest quality problems in the industry.

Toyota remains a quality benchmark, capturing five model-level awards-for the Corolla, Solara, Camry, Highlander and Sequoia-more than any other non-luxury brand.

Porsche and Lexus lead the luxury brands, while Hyundai, Toyota and Honda set the pace among non-luxury brands. Averaging just 91 problems per 100 (PP100) vehicles, Porsche tops the overall nameplate rankings. Porsche's success can be partly attributed to the all-new Cayman, which tops the compact premium sporty car segment. Porsche is followed in the rankings by Lexus, Hyundai, Toyota and Jaguar, respectively.

Hyundai ranks among the top three nameplates in the study for the first time in the history of IQS. Highlights include a top ranking for the Hyundai Tucson in the compact multi-activity vehicle (MAV) segment, and top-three segment performances for the redesigned Sonata and all-new Azera, as well as the Elantra and Tiburon.

Honda also maintains its position as a quality leader. Although, Honda does not receive any awards outright, five Honda models rank among the top three of their respective segments.

Other nameplates receiving model awards in 2006 include Chevrolet, Chrysler, Ford, Kia, Mazda, Pontiac and Suzuki.

Assembly Plant Awards

Toyota receives a total of four assembly plant quality awards for producing vehicles yielding the fewest defects, including the Platinum Plant Quality Award for its Iwate, Japan plant. The Iwate plant averages just 32 PP100. Plant awards are based solely on scores for defects.

Among North and South American plants, the General Motors Oshawa #2 plant in Ontario, Canada, receives the Gold Plant Quality Award for a second consecutive year. Toyota's Georgetown, Ky plant and DaimlerChrysler's Windsor, Ontario, Canada plant tie for the Silver Plant Quality Award.

In the Asia Pacific region, Toyota's Higashi-Fuji, Japan plant receives the Silver Plant Quality Award. Toyota's Kyushu, Japan plant and American Honda's Saitama, Japan plant tie for the Bronze Plant Quality Award.

Magna Steyr, the Graz, Austria plant receives the Gold Plant Quality Award for Europe. BMW's Dingolfing, Germany plant receives the Silver Plant Quality Award, and Porsche's Val met, Finland plant, the Bronze Plant Quality Award.

The 2006 IQS is based on responses from 63,607 purchasers and lessees of new 2006 model-year cars and trucks surveyed after 90 days of ownership. The redesigned IQS is based on a new 217-question battery-up from 135 in previous years-to provide manufacturers with richer information to improve problem determination and drive product improvement. The study also groups models in a revised JD Power and Associates vehicle segmentation list.