GM Reaps in J.D. Power Initial Quality Awards

The addition of the latest and hottest technology sometimes leads to increased problems with brand-new vehicles, according to the just-published J.D. Power 2014 U.S. Initial Quality StudySM (IQS). The study, now in its 28th year, examines problems experienced by vehicle owners during the first 90 days of ownership. The study determines initial quality according to the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. Overall initial quality in the 2014 IQS measures 116 PP100, a slight increase in problems from 113 PP100 in 2013. This year's increase in problems follows a similar increase found in the J.D. Power U.S. 2014 Vehicle Dependability StudySM (VDS), released in February, which measures problems experienced after three years of ownership. New Tech Features Often Cause Quality Issues The study attributes this increase in problems to the fact that new, more sophisticated technologies have been introduced in several newly launched models (i.e. those that are completely new to the market or have undergone major redesigns). They are more problematic than "carryover" vehicles (those that did not undergo any significant changes from last year's model to this year's). This year's IQS finds newly launched models experience an average of 128 PP100, compared with 113 PP100 for carryover models. The increase in problems among all-new models are seen mainly in the areas of voice recognition, Bluetooth pairing, and audio systems. "Automakers are trying to give consumers the new features and technology they want without introducing additional quality problems into their vehicles," said David Sargent, vice president of global automotive at J.D. Power. "However, almost all automakers are struggling to do this flawlessly with some consumers indicating that the technology is hard to understand, difficult to use, or simply does not always work as designed." A Single Problem Can Affect Brand Loyalty The study also finds that the fewer problems owners experience with their vehicle, the greater their loyalty to the brand. Combined data from previous years' IQS results and the Power Information Network(R) (PIN) from J.D. Power show that 58% of owners who experienced no problems stayed with the same brand when they purchased their next new vehicle. Brand loyalty slips to 53% among owners who experienced just a single problem, and to 48% among owners who experienced two or more problems. "Even problems experienced in the first 90 days correlate strongly with ultimate repurchase behavior," said Sargent. "These early problems can set the tone for the entire ownership period and still have an effect years later when consumers replace their vehicle." GM Again Receives Most Initial Quality Vehicle Awards General Motors continues its strong performance in the J.D. Power Initial Quality Study taking more initial quality awards than any other automaker for the second year in a row. GM also has the most models ranked in the top three in their respective segments.

GM’s plant in Ingersoll, Canada, where the Chevrolet Equinox and GMC Terrain are built, was awarded a Silver Plant Assembly Line Quality Award.

In the study, GM swept the Large SUV segment with Chevrolet Suburban and GMC Yukon – both ranking highest in a tie – along with the Chevrolet Tahoe. In addition to the Large SUV segment sweep, two models have now ranked highest in their segments for two years in a row: the Chevrolet Silverado HD and Buick Encore. The Chevrolet Malibu topped the Midsize Car segment.

“We are committed to providing customers with the highest levels of safety, quality and an exceptional ownership experience,” said Alicia Boler-Davis, senior vice president GM Global Quality and Customer Experience. “Having the most award recipients of any automaker shows that we are on the right track by putting the customer front and center in everything we do.”

Brand Highlights
Chevrolet
 Segment Award Recipients
 Malibu – Midsize Car
 Silverado HD – Large Heavy-Duty Pickup
 Suburban – Large SUV (tie)
 Segment Top Three
 Camaro – Ranked Second – Midsize Sporty Car
 Equinox – Ranked Second – Compact CUV
 Tahoe – Ranked Second – Large SUV
Cadillac
 Escalade – Ranked Second - Large Premium CUV
Buick
 Encore – Segment Award Recipient – Small SUV (tie)
GMC
 Terrain – Segment Award Recipient – Compact SUV
 Yukon – Segment Award Recipient – Large SUV (tie)
 Sierra HD – Ranked Second – Large Heavy-Duty Pickup

About the Study
The 2014 U.S. Initial Quality Study is based on responses from more than 86,000 purchasers and lessees of new 2014 model-year vehicles surveyed after 90 days of ownership. The study is based on a 233-question battery designed to provide manufacturers with information to facilitate the identification of problems and drive product improvement. The study was fielded between February and May 2014.