South African-Produced Vehicles Closing the Quality Gap

LONDON, October 31 -- Seven of the top 10 passenger vehicle nameplates in initial quality are exclusively import brands, according to the J.D. Power and Associates 2005 South Africa Initial Quality Study(SM) (IQS) released today.

The IQS is a customer-driven measure of problems experienced during the first three to seven months of ownership based on evaluations by motorists in South Africa. The study examines 315 quality problems across nine categories. The nine categories are: ride, handling and braking; features and controls; seats; sound system; heating, ventilation and cooling (HVAC); vehicle exterior; vehicle interior; transmission; and engine. All problems are summarised as the number of problems reported per 100 vehicles (PP100), with lower scores indicating a lower rate of problem incidence and therefore better quality.

With 144 PP100, Honda is the highest-ranking passenger vehicle nameplate. Following Honda in the passenger vehicle segment are Subaru (171), BMW (177), Mercedes-Benz (187) and Hyundai (193), respectively. Rounding out the top 10 passenger vehicle nameplates are Chevrolet, Audi, Toyota, Peugeot and Daihatsu.

The study finds the average new-passenger vehicle improved 16 PP100 in 2005, or by 6.3 percent. This year-over-year improvement is comparable to that experienced in the United States, where the industry improved by an average of 5.5 percent per year between 1998 and 2005.

Peugeot is the most-improved passenger vehicle nameplate in 2005, improving by 20 percent (54 PP100) from 2004. Other passenger vehicle nameplates registering significant improvement in 2005 include Nissan (+19%), Chevrolet (+18%), Toyota (+18%) and Mazda (+17%).

Opel is the highest-ranked pickup truck nameplate in initial quality at 291 PP100. Closely following Opel is Toyota (292) and Mitsubishi (293). Other above-average pickup truck nameplates include Ford (313) and Isuzu (318). The vast majority of pickup trucks sold in South Africa are made locally.

Each pickup truck nameplate ranked in the 2005 study has improved in initial quality, with the average new pickup truck improving by 10 percent. Mitsubishi is most-improved in the segment, improving by more than 20 percent in 2005. Other pickup truck nameplates making notable improvements include Opel and Nissan, improving by 19 percent and 15 percent, respectively.

With regard to plant quality, BMW's Rosslyn plant leads other South Africa plants in initial quality for a second consecutive year with 177 PP100. DaimlerChrysler's passenger vehicle plant follows closely with 182 PP100, while Toyota's passenger vehicle plant places third with 208 PP100.

"Local manufacturers with well-established export programs, such as BMW and Mercedes-Benz, have plants that rank high in the ratings," said Brian Walters, senior director of automotive research at J.D. Power and Associates. "This arises from the significant investments made by these plants to meet global quality standards. J.D. Power and Associates expects this trend to continue as more South African manufacturers join the global supply chain with export models."

Although the average South African-produced vehicle has nearly 23 percent more problems than the average import vehicle, the gap closed significantly since 2004 when the gap was 43 percent.

Two Toyota models-the Tazz (upper compact car) and Land Cruiser Prado (medium SUV)-receive awards for segment-leading performances in IQS. Other passenger vehicles leading their respective segments in initial quality include the Chevrolet Spark (lower compact), Honda Jazz (lower small car), Mercedes-Benz A-Class (upper small car), BMW 3 Series (medium car) and Subaru Forester (compact SUV). For a second consecutive year, the Honda Jazz has fewer problems than any other model in the industry.

Segment-leading pickup truck models are the Opel Corsa Utility (compact pickup truck), Mitsubishi Colt Single Cab (one-ton single cab pickup truck) and the Mazda Drifter Double Cab (one-ton double cab pickup truck).

J.D. Power and Associates is recognised across the globe as the leading independent authority on consumer-reported quality in the automotive industry. The firm's primary role is to help automotive manufacturers further improve their product quality and service levels through a better understanding of consumers. J.D. Power and Associates also provides its study results to consumers for use as a reference point when purchasing a new vehicle.

Since its launch in the United States in 1987, the IQS has become a quality standard used by virtually every automotive manufacturer around the world. In addition to South Africa, the IQS is currently conducted in many other markets, including China, France, Germany, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand, the United Kingdom and the United States. Each year, more than 1 million new-vehicle buyers around the world receive the J.D. Power and Associates IQS survey.

The South Africa IQS is conducted independently by J.D. Power and Associates in order to establish a benchmark of initial vehicle quality in the South Africa market. The survey was carried out in cooperation with the Department of Transport (DOT), which facilitated the distribution of questionnaires. The South Africa IQS includes data on virtually every manufacturer selling new vehicles in South Africa, including exclusively import nameplates such as Citroen, Hyundai, Kia, Subaru and Tata.

The 2005 South Africa Initial Quality Study is based on responses from more than 9,900 new-vehicle owners who purchased their vehicles between December 2004 and April 2005.

About J.D. Power and Associates

The European headquarters of J.D. Power and Associates is located in Guildford, UK. With world headquarters in Westlake Village, California, U.S.A., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

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