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Industry Report Part 2: Koreans Overtake Europeans and Domestics in Initial Quality

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Khatir Soltani

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The release of J.D. Powers and Associate's annual Initial Quality Survey (IQS) is make it or break it time for those automakers that sell their wares in North America. So which companies surged forward it and which fell behind?

In this year's J.D. Powers and Associate's annual Initial Quality Survey it was the Korean-brands that showed the greatest gains. (Photo: Shawn Pisio, Canadian Auto Press)

It was the Korean-brands that showed the greatest gains, led by Hyundai which, as reported yesterday, surpassed Toyota in the nameplate rankings. As for the corporations, once again Japan leads the field with Toyota Motor Sales, U.S.A., which includes the Toyota brand, Lexus and Scion, at the top of the pack. Not only did Toyota once again dominate first position, it raised its own standard from 115 problems per 100 vehicles (PP100) to 101.

Honda Motor Co., which also includes Acura, tied for second place overall with Hyundai. (Photo: Trevor Hofmann, Canadian Auto Press)

The number two placement is shared by American Honda Motor Co., which also includes Acura, and Hyundai Motor America. Hardly off the mark set by Toyota, both Honda and Hyundai find themselves ranked only one problem per 100 vehicles behind at 102. Compared to last year's IQS the two Asian brands show strong improvement, with Honda moving up from 4th place and 126 PP100, and Hyundai shooting forward from well below average in 10th position with 143 PP100.

"A decade ago, as Korean manufacturers struggled with a universally poor reputation for vehicle quality, no one would have predicted they could not only keep pace, but actually pass Domestics and other imports in terms of initial quality," commented Joe Ivers, partner and executive director of quality/customer satisfaction at J.D. Power and Associates. "This demonstrates how vastly more competitive the market has become--which is good news for consumers, who will ultimately benefit."

Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 6 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada