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J.D. Power and Associates Reports: Honda and Toyota Models Rank Highest in Initial Quality in a Total of Six Segments

JOHANNESBURG, South Africa, November 28 --

- Importance of Design Highlights Changing Consumer Expectations About Vehicle Quality

Honda and Toyota combined garner six initial quality model awards in the J.D. Power and Associates 2006 South Africa Initial Quality Study(SM) (IQS) released today.

A customer-driven measure of problems experienced during the first three to seven months of ownership, the South Africa Initial Quality Study has been completely redesigned for 2006 to more precisely monitor consumer attitudes toward quality.

The study examines 228 individual problem symptoms across nine categories: vehicle exterior; the driving experience; features/controls/displays; audio/entertainment/navigation; seats; heating, ventilation and air conditioning (HVAC); vehicle interior; engine/transmission; and other problems. All problems are identified as the number reported per 100 vehicles (PP100), with lower scores indicating fewer problems and therefore better quality.

"Continued quality improvements have caused consumers to focus increasingly more attention on soft quality issues, or vehicle design-related problems, rather than solely on a more traditional view of quality characterized by defects and malfunctions," said Brian Walters, senior director of J.D. Power and Associates Europe, Middle East and Africa operations.

To facilitate a deeper analysis, IQS problem symptoms have been further classified to two dimensions: defects/malfunctions and design-related problems. Nameplates with the fewest defects/malfunctions include Audi, BMW, Honda, Mercedes-Benz and Subaru. Those with the fewest design-related problems include Audi, Daihatsu, Honda, Subaru, Toyota and Volvo.

"To satisfy owners and fully understand consumer perceptions of quality, manufacturers must consider both dimensions of vehicle quality," said Walters. "For instance, BMW models, along with those from Honda and Mercedes-Benz, have among the fewest defects/malfunctions. Yet, BMW's approach to features/controls/displays often creates some problems for customers, which ultimately contributes to more overall design-related anomalies when compared with Honda and Mercedes-Benz."

2006 IQS Ranking Highlights

With 150 PP100 (combined defects/malfunctions and design-related problems), Honda retains its position as the highest-ranking passenger vehicle nameplate. BMW ranks second (154), followed by Mercedes-Benz (157), Subaru (166) and Audi (169). Hyundai, Toyota, Kia, Chevrolet and Daihatsu round out the top 10 passenger vehicle nameplates.

Toyota is the highest-ranked pickup truck nameplate at 202 PP100, followed by Isuzu (267).

Registering fewer problems than any other model in the industry, Toyota's RAV4 (compact SUV) is one of four Toyota models to receive IQS awards. The Tazz (upper compact car), Hilux Single Cab (one-ton single cab pickup) and Hilux Double Cab (one-ton double cab pickup) also rank highest in their respective segments. Honda's Civic ranks highest in the upper small car segment, while its Jazz is one of the top-performing models in the industry and has lead the lower small car segment in initial quality for three consecutive years.

Other models leading their respective segments in initial quality are the Hyundai Atoz (lower compact car), Volkswagen Touran (compact MPV), the Opel Corsa Utility (compact pickup), and the BMW 3 Series, which has been the top-performing medium car for three consecutive years.

Assembly Plants

Vehicle assembly plants are ranked based solely on the number of defects and malfunctions. BMW's Rosslyn plant leads other South African plants in initial quality for a third consecutive year with 88 PP100. DaimlerChrysler's passenger vehicle plant, which produces the Mercedes-Benz C-Class, follows with 104 PP100, while Toyota's Durban truck line, which produces the Toyota Hilux pickup, ranks third with 155 PP100.

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, J.D. Power and Associates conducts vehicle quality research 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 a J.D. Power and Associates IQS survey.

The 2006 South Africa Initial Quality Study is based on a representative sample of more than 9 600 new-vehicle owners who purchased their vehicles between December 2005 and April 2006. The survey was funded entirely by J.D. Power and Associates as a part of its global research programs and included a section of questions to assist the Department of Transport in measuring the performance of its vehicle licensing programme.

    
    Initial Quality Nameplate Ranking -- Passenger Vehicles
    Problems per 100 Vehicles
     (Lower score reflects better quality performance)

    Honda                                   150
    BMW                                     154
    Mercedes-Benz                           157
    Subaru                                  166
    Audi                                    169
    Hyundai                                 190
    Toyota                                  197
    Kia                                     200
    Chevrolet                               213
    Daihatsu                                214
    Mazda                                   219
    Volvo                                   221
    Nissan                                  232
    Peugeot                                 237
    Opel                                    238
    Passenger Vehicle Segment Average       239
    Ford                                    243
    Renault                                 258
    Citroen                                 287
    Fiat                                    346
    Volkswagen                              347
    Tata                                    598

    Initial Quality Nameplate Ranking -- Pickup Trucks
    Problems per 100 Vehicles
    (Lower score reflects better quality performance)

    Toyota                            202
    Isuzu                             267
    Pickup Truck Segment Average      304
    Opel                              317
    Ford                              341
    Nissan                            351

    Top Vehicles per Segment in Initial Quality
    Problems per 100 Vehicles
     (Lower score reflects better quality performance)

                                    Total PP100
    Lower Compact Car 
    Hyundai Atoz                    162 
    Kia Picanto                     168 
    Fiat Panda                      176 
 
    Upper Compact Car                  
    Toyota Tazz                     281 
 
    Lower Small Car                    
    Honda Jazz                      120 
    Toyota Yaris                    148 
    Hyundai Getz                    190 
 
    Upper Small Car                    
    Honda Civic                     158 
    Mercedes-Benz A-Class           165 
    BMW 1 Series                    170 
 
    Medium Car                         
    BMW 3 Series                    150 
    Mercedes-Benz C-Class           161 
    Audi A4                         163 
 
    Compact MAV                        
    Volkswagen Touran               200 
    Toyota Corolla Verso            208 
 
    Compact SUV                        
    Toyota RAV4 (Old)               102 
    Subaru Forester                 142 
    Honda CR-V                      151 
 
    Compact Pickup                     
    Opel Corsa Utility              317 
    Ford Bantam                     349 
 
    One-Ton Single Cab Pickup          
    Toyota Hilux Single Cab         208 
    Isuzu KB Single Cab             259 
 
    One-Ton Double Cab Pickup          
    Toyota Hilux Double Cab         224 
    Nissan Navara Double Cab        256 
    Isuzu KB Double Cab             278

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., 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. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands including Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2005 were US$6.0 billion. Additional information is available at www.mcgraw-hill.com.