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J.D. Power and Associates Reports: Market Penetration of Satellite Radio and Navigation Systems in New Vehicles Increases Dramatically


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Alpine Electronics of America, Panasonic Automotive Systems Company of America, Delphi Corp. and Clarion Corp. of America Rank Highest in Vehicle Multimedia Quality

WESTLAKE VILLAGE, Calif., Aug. 6 -- Growth in consumer demand for high-tech features supplied in new vehicles has led to a significant increase in market penetration for satellite radio and navigation systems according to the J.D. Power and Associates 2008 Multimedia Quality and Satisfaction Study(SM) released today.

The study finds that 55 percent of new-vehicle owners report having satellite radio capability in their audio system, up considerably from 39 percent in 2007. Additionally, market penetration for navigation systems has also increased -- up to 25 percent in 2008 from 20 percent in 2007.

"New-vehicle buyers are looking for the latest technologies in audio systems, and the presence of features such as satellite radio and navigation systems will only increase as manufacturers try to meet consumer demand," said Allison LaDuc, senior research manager of automotive product quality at J.D. Power and Associates. "For instance, nearly 60 percent of consumers say they want a navigation system on their next vehicle, and 66 percent of consumers want the ability to play MP3 files. To meet or exceed consumer expectations, manufacturers will need to focus on incorporating high-tech features in multimedia systems while avoiding increases in problem levels."

The study evaluates owner experiences with the quality, design satisfaction and features of automotive multimedia systems in their new vehicles. Problems are measured per 100 vehicles (PP100). A lower PP100 score indicates higher quality. Twenty-eight different multimedia permutations are evaluated, which include different combinations of the following systems: AM/FM radio; cassette player; single CD player; multiple CD changer; navigation system; and satellite radio. Multimedia system suppliers are ranked based on the number of problems experienced per 100 vehicles (PP100) in four segments: AM/FM/single CD player, AM/FM/multi-CD changer, AM/FM/single CD player/satellite radio and AM/FM/multi-CD changer/satellite radio.

Alpine Electronics of America ranks highest in the AM/FM/single CD player segment with an overall PP100 score of 2.6, marking an improvement of 1.3 PP100 from 2007. Panasonic Automotive Systems Company of America (4.4 PP100) follows Alpine in the rankings, while Clarion Corp. of America and Continental Corp. tie to rank third with 4.5 PP100.

In the AM/FM/multi-CD changer segment, Panasonic Automotive Systems Company of America ranks highest with an overall PP100 score of 4.3, followed by Pioneer (4.6 PP100). SANYO Automotive U.S.A. ranks third with 5.0 PP100.

Delphi Corp. ranks highest in the AM/FM/single CD player/satellite radio segment with an overall PP100 score of 2.7. Visteon Corp. (3.6 PP100) and Panasonic Automotive Systems Company of America (4.1 PP100) follow in the rankings.

Ranking highest in the AM/FM/multi-CD changer/satellite radio segment is Clarion Corp. with an overall PP100 score of 5.4, followed by Delphi Corp. (5.6 PP100) and Visteon Corp. (6.0 PP100).

The study also finds that, for a third consecutive year, the three most commonly reported multimedia problems are front audio/entertainment system controls difficult to understand/difficult to use/poor location; navigation system map/wrong directions/poor location; and AM/FM radio poor/no reception. These issues account for nearly 60 percent of the total reported multimedia problems.

The 2008 Multimedia Quality and Satisfaction Study is based on responses from 81,530 new-vehicle owners who purchased a 2008 model-year vehicle. The study was fielded between February and April 2008.

  AM/FM/Single CD Player
  Problems per 100 Vehicles*

  Supplier                                                   PP100
  Alpine Electronics of America Inc.                         2.6
  Panasonic Automotive Systems Company of America            4.4
  Clarion Corp. of America                                   4.5
  Continental Corp.                                          4.5
  Hyundai Autonet                                            5.1
  Delphi Corp.                                               5.3
  Pioneer                                                    5.8
  SANYO Automotive U.S.A. Inc.                               6.5
  AM/FM/Single CD Player Segment Average                     8.1
  Fujitsu Ten Corp. of America                              26.0

  AM/FM/Multi-CD Changer
  Problems per 100 Vehicles*

  Supplier                                                   PP100
  Panasonic Automotive Systems Company of America            4.3
  Pioneer                                                    4.6
  SANYO Automotive U.S.A. Inc.                               5.0
  Clarion Corp. of America                                   5.3
  AM/FM/Multi-CD Changer Segment Average                     5.3
  Delphi Corp.                                               5.9
  Clarion/SANYO - NC                                         6.9
  Mitsubishi Electric Automotive America Inc.                8.0
  Fujitsu Ten Corp. of America                               8.3

  AM/FM/Single CD/Satellite Radio
  Problems per 100 Vehicles*

  Supplier                                                   PP100
  Delphi Corp.                                               2.7
  Visteon Corp.                                              3.6
  Panasonic Automotive Systems Company of America            4.1
  AM/FM/Single CD/Satellite Radio Segment Average            5.3
  Continental Corp.                                          6.7
  Hyundai Autonet                                           10.0
  Fujitsu Ten Corp. of America                              10.4

  AM/FM/Multi-CD Changer/Satellite Radio
  Problems per 100 Vehicles*

  Supplier                                                   PP100
  Clarion Corp. of America                                   5.4
  Delphi Corp.                                               5.6
  Visteon Corp.                                              6.0
  AM/FM/Multi-CD Changer/Satellite Radio Segment Average     6.5
  Panasonic Automotive Systems Company of America            6.6
  Pioneer                                                    7.6

  *  Problems per 100 vehicles is measured via actual customer feedback
     related to the number of  "things gone wrong." A lower score reflects
     better quality performance.