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June 6, 2008
Friday Car-Quality Question: Who's Moving?
Question marks in the headline can mean only one thing: it's time for you to weigh in! In lieu of Light Friday today, and based on some new findings, we're considering anew the better-car-quality question: Asian or American?
As the global automotive industry continues to evolve, the used-to-be-Big Three have been under intense competitive pressure from foreign-based firms while enduring high labor costs at home. Lately, though, the Detroit, Mich., companies seem to be doing better when compared to what seemed like a Japanese juggernaut.
Yesterday, J.D. Power & Associates announced the results of its 2008 Initial Quality Study. Overall quality has improved to 118 problems per 100 (PP100) vehicles in 2008, down from 125 PP100 in 2007. The study, which serves as an industry benchmark for new-vehicle quality measured at 90 days of ownership, concludes that overall initial quality has improved considerably, with gains shared across most manufacturers.
J.D. Power & Assoc. has determined that 86 percent of the overall improvement is due to advances in eliminating defects and malfunctions. However, minimizing design problems remains a major challenge for the industry, particularly as new technology — such as navigation and entertainment devices — is becoming increasingly common in today's new vehicles.
But what really stands out is this: two American cars, the 2008 Chevrolet Malibu (General Motors) and Ford Fusion, were in the top three in the mid-size car segment!
This follows Consumer Reports' latest Annual Car Reliability Survey concluding with Ford's improvement and Toyota's slipping in reliability.
So what's going on here? Are American cars catching up with the Japanese, or are the Japanese getting worse? Are both improving but American automakers have retaken control of setting the pace? Or is it simply that so many people's expectations for American cars are so low?
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6 CommentsJapanese are so far ahead of our lazy American companies. While American companies are always thinking about turning up profit for this quarter, the Japanese are interested in building a better quality product.
Japanese are more in touch with reality then American companies.
June 6, 2008 12:05 PM
I want Light Friday.
June 6, 2008 12:11 PMBetter worse. . .it is all relative. In the late 60's when I was buying cars as a kid. Nothing with over 50k-75k miles seemed like a good idea, especially a volkswagen.
Since then I have had Hondas and Toyotas get over 200k with out a problem. My brother has a Honda that could hit 1/2 million miles soon and it still gets 34mpg.
Currently, I have a 96 ranger with 215K miles. Not a single problem beyond normal wear and tear. The Saturns we have owned and own all zoomed well past 150k without a problem.
My rule now is don't even bother buying a car unless it has 50k-100k miles on it already. Why pay the high price for the vanity and risk of owning new vehicle.
A higher mileage, well maintained, used vehicle has passed the test of time and, IMHO is less like to be problematic than a new untested, rushed to market.
If a car today won't go 200k without problems, it is a total waste of money.
Bottom line, what is the cost per mile. With out getting too complicated, (which I have done) take the purchase price + any major repair expense and divide it by the number of miles driven. That is a good cost per mile figure. My ranger is down to .07 per mile now.
If I buy a new car that gets twice the mileage, I will never recoup the cost of the investment on fuel savings alone. The savings would only come if the Ford becomes a high repair cost liability for me.
When the time comes, it will be another high mileage, proven commodity for me.
It is all about cost per mile.
June 6, 2008 1:00 PMThe Asians got to where they are by quality-controlling American technology. It took awhile for the Big Three to stave off union empathy and ditch the days of consumer quality-control (can you say "recall"?). But eventually they got American products back to the standard that we here in this country had enjoyed for years. "Artisan" and "craftsmanship" aren't heard as much these days, but it is the fabric that built our industry. There will always be imitators.
Foreign industry spent years trying to catch up, much of their successes borne of US assistance in the form of foreign aid and sharing our engineering genius. Just look at other countries that have had much less US influence and you will see, if left to their own devises, the typical competition would be more like the Yugo. Give me a Ford or Chevy any time.
June 6, 2008 3:11 PMGood to see American companies are catching up. It remains to be seen if it's too little, too late.
We have suffered a multitude of problems in the past: a semi-skilled workforce that demanded excessive wages compared to other industries, arcane labor rules that prevented keeping these highly paid workers fully productive, poor quality investors focused exclusively on quarterly profits. Not to mention timid designs and lack of foresight on changing conditions (why GM, Ford or Chrysler never had a hybrid before Toyota is way beyond me).
June 6, 2008 3:31 PMInitial quality seems to be important, but that is QUALITY WHILE UNDER WARRANTY, what about the real measure of quality which is durability and dependability over the long term? This it seems is where US auto quality takes a deep dip. Initial quality should be a given....even a cheap 99 cent screw driver drives a few screws, but will it still be in your tool box five years down the road?
The US auto industry has improved, not because it wanted to, but because it was forced to; not because it lead in innovation, but because it copied innovation. Continuous quality improvement, lean manufacturing, just-in-time delivery, bottom-up -- not top-down -- improvement and scores of other catch phrases for simply doing it better than you did in the past all came from someplace other than the US auto industry.
Thank GOD they have finally awakened, but is it too little too late?
June 6, 2008 4:38 PM
