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Europeans Fight Back in `98 U.K. Car Customer Satisfaction Study

9 April 1998

Europeans Fight Back in `98 U.K. Car Customer Satisfaction Study

    LONDON, April 9 -- For the first time since J.D. Power and
Associates (and BBC Top Gear magazine) began monitoring U.K. motorists'
satisfaction with their cars, a European manufacturer has emerged as the
highest ranked nameplate in the 1998 U.K. Car Customer Satisfaction Study
(CSI).
    The European fight-back after four years of domination by Japanese brands
is led not by a prestige or volume manufacturer, but by Skoda.  The Czech
company's success is shared by sister Volkswagen AG Group member Seat, which
carries off the title of the most improved nameplate in the study which was
conducted in association with BBC Top Gear, the country's premier TV motoring
program magazine.
    The Subaru Impreza and Honda Prelude rank as the most satisfying
individual models to own, followed by a three-way tie between the Kia Mentor,
Skoda Felicia and Toyota Corolla.  Next up is Nissan's Micra, with the Jaguar
XJS, Mazda Xedos 6, Nissan QX and Toyota Celica completing the top 10 model
list.  The entire model rankings are detailed exclusively in the May issue of
BBC Top Gear magazine distributed today.
    Now in its fifth year, the J.D. Power and Associates/BBC Top Gear Study is
the only independent evaluation of both private and company car drivers'
satisfaction with their vehicles published in the U.K.  Over 29,000 owners of
"N" registered (`95/`96) cars -- almost twice as many as last year -- provided
their views on all aspects of ownership, from performance and reliability to
customer care and service charges.
    More models are covered in the 1998 study than ever before.  From Alfa
Romeo to Volvo, 120 individual models come under scrutiny.  At a special
awards dinner in London last night (4-8-98), the chairman and founder of J.D.
Power and Associates, J.D. Power III, presented awards to the highest-ranked
manufacturers.  The Gold Award recipient was Skoda, with Subaru taking the
Silver Award and the Bronze Award going to Mazda.  A special award was made to
Seat as the most improved nameplate.
    "These results," said David Sargent, director of European operations for
J.D. Power and Associates, "show just what can be achieved when a company sets
its mind to exceeding customer expectations.  In Skoda's case a preconceived
myth is now well and truly dispelled."
    He confirmed that Skoda's new status was the result of several years of
rapid improvement.  It is the first time a European brand has led the
industry.  Last year's leader, Subaru, also improved but has not been able to
combat the rise of the Czech nameplate.  A substantial gap in customer
satisfaction has become apparent in the latest study between these two makes
and the remaining vehicles.
    There was some disappointment in the study findings which resulted in the
overall industry average being only one index point higher than it was when
this study began in 1994.  "With a few notable exceptions, the situation is
little better than last year," Sargent adds.  "Many brands are struggling to
keep up with the ever-increasing demands of the U.K. motoring public."
    Sargent said that the lack of improvement by the U.K. motor industry as a
whole contrasts sharply with the research company's experience in the U.S.
market, where the industry's performance has risen by an average of three to
four index points each year for the past 11 years, albeit more slowly in
recent years.
    Asian brands still have an edge in the U.K. study over most of the
European makes although the gap is starting to shrink.  Europeans now hold
three of the top six places in the manufacturers' Index.  J.D. Power and
Associates experts believe that this narrowing of the gap will continue if
long-awaited improvements in European quality come through.
    "The latest study clearly shows that over the past few years manufacturers
have made strong gains in vehicle performance," Sargent adds.  "Cars today are
faster, quieter, safer and more efficient than ever, but customer loyalty
cannot be won by image or performance alone."
    "For manufacturers the message is clear.  Great products and image are
powerful ways to attract new customers, but you must have the reliability and
customer service to keep them happy and loyal throughout the ownership
experience."
    His views are echoed by BBC Top Gear magazine editor Kevin Blick, who
adds: "It's very depressing.  Year after year we've seen some of the best-
known names in the British motor industry right down at the bottom of the
league table and we've heard the same excuses.  Skoda shows what can be done
with a good honest family car and decent dealers.  It should be an object
lesson to them."
    Appendix: Overall satisfaction is measured by an index.  The industry
average was set at 100 in 1994 -- the first year of the U.K. CSI.  The higher
the index score, the better.  The first chart attached shows the leading makes
for 1998 in descending order.  The manufacturers' rankings represent an
average of all the models in their respective ranges.
    The second chart shows all the makes that improved their scores from 1997
to 1998 and also scored higher than the industry average of 101 this year.
The overall industry average score rose by one index point between 1997 and
1998.
    J.D. Power and Associates is an international firm best known for its
marketing information services in key business sectors including market
research, forecasting and customer satisfaction.  The firm's quality and
satisfaction measurements are based on actual customer responses from over one
million consumers annually.  With its headquarters in Agoura Hills,
California, the firm also has U.S. offices in Torrance, California; Michigan;
and Connecticut.  Its international locations include Japan, Korea, England,
Canada and Brazil.
    J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com.  Media email contact: john.pepitone@jdpower.com.
    This press release is provided for editorial use only.  No advertising or
other promotional use can be made of the information in this release or J.D.
Power and Associates survey results without the express prior written consent
of J.D. Power and Associates.

                          J.D. Power and Associates
                1998 U.K. Car Customer Satisfaction Study(SM):
                                  Top Makes

      Skoda:                147
      Subaru:               144
      Mazda:                136
      Jaguar:               135
      Nissan:               134
      BMW:                  133
      Honda:                132
      Toyota:               130
      Daewoo:               128
      Daihatsu:             128
      Proton:               126
      Saab:                 125
      Mercedes-Benz:        124
      Mitsubishi:           124
               1997 Industry Average:  101
                          J.D. Power and Associates
                1998 U.K. Car Customer Satisfaction Study(SM):
                        Improving Above-Average Makes

      Seat:                   9
      Skoda:                  9
      Hyundai:                8
      Citroen:                3
      Subaru:                 2
      Volvo:                  2
      BMW:                    1
      Saab:                   1
      Industry Average:       1

    Charts and graphs extracted from this press release must be accompanied by
a statement identifying J.D. Power and Associates as the publisher, and the
J.D. Power and Associates 1998 U.K. Car Customer Satisfaction Study(SM) as the
source.  No advertising or other promotional use can be made of the
information in this release or J.D. Power and Associates survey results
without the express prior written consent of J.D. Power and Associates.

SOURCE  J.D. Power and Associates