Auto Industry

Big Three outdo Europeans


By GREG KEENAN
From Tuesday's Globe and Mail

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New vehicles from Detroit-based auto makers jumped ahead of those from European companies in a widely watched survey of reliability, as the three companies' intense focus on improving quality pushed them to their highest scores in 25 years.

Vehicles made by the Chrysler group, Ford Motor Co. and General Motors Corp. edged ahead of those from European auto makers such as BMW AG, Volkswagen AG and others in the annual survey of about 675,000 American new car buyers done by Consumer Reports magazine.

The results from these studies and another annual quality study done by consulting firm J.D. Power and Associates show that the Detroit-based companies are narrowing the gap when it comes to quality, said veteran auto industry analyst Joe Phillippi, who heads Auto Trends Consulting Inc. in Short Hills, N.J.

"We can do it," Mr. Phillippi said. "It's just a question of maintaining focus."

Producing vehicles with higher quality -- or the perception in consumers' minds in North America that the Big Three don't match up -- has helped manufacturers from Asia and Europe steadily grab market share away from Chrysler, Ford and GM. Offshore-based manufacturers now hold 50 per cent of the market for passenger cars in North America and are focusing their attention on assaulting the Big Three's long domination of the truck and sport utility vehicle market.

Among the cars that helped Chrysler, Ford and GM to a stronger ranking were two made at General Motors of Canada Ltd. plants in Oshawa, Ont. That's where GM makes the Buick Regal, which was the most reliable family sedan over the past three years, ranking ahead of such perennial winners as the Toyota Camry and Nissan Maxima.

GM's most reliable 2003 model year vehicle was the Chevrolet Monte Carlo, a coupe made at a neighbouring plant in Oshawa.

The Jeep Liberty compact SUV was the most reliable model from DaimlerChrysler AG's Chrysler group.

Ford was described as having teething problems with redesigned vehicles, but improved the reliability of some older cars and trucks such as the Focus compact and the Escape compact SUV.

Mr. Phillippi said the Big Three began to focus on the quality issue in the mid to late eighties, when they saw their market share beginning to hemorrhage.

As his own measure of the quality improvement, he recently drove the new Chrysler 300C and Dodge Magnum cars being assembled in Brampton, Ont., which Chrysler is hoping will help restore its lustre in the passenger car side of the market.

"The interiors of those cars were just exquisite," Mr. Phillippi said, adding that there was little road noise at speeds of 145 kilometres an hour.

Vehicles from Asia-based companies rank at the top of the latest list as measured by the number of problems for every 100 vehicles. These cars had problems with 12 for every 100, compared with an industry average of 17 problems per 100. Big Three cars had 18 problems per 100 and European-based companies had 20 per 100.

Despite their gains, the three Detroit-based companies managed only three vehicles on the list of the most satisfying cars, trucks, minivans or sport utility vehicles to own. The other 30 places on that list were held by vehicles from Europe- or Asia-based auto makers.

In such key market segments as car-based SUVs, which is one of the fastest-growing niches in North America, there were no vehicles from Detroit. Two vehicles made by Honda Motor Co. Ltd. and one by Toyota Motor Corp. in Canada roared on to the most satisfying list in the car-based SUV segment -- the Acura MD-X and Pilot SUVs made in Alliston, Ont., by Honda of Canada Mfg., and the Lexus RX330 SUV made in Cambridge, Ont., at Toyota Motor Manufacturing Canada Inc. Chrysler, Ford and GM took 15 of 27 spots on the list of the least satisfying vehicles.

To generate that list, Consumer Reports received 226,000 responses from Americans to the question: Would you buy that car again?

To measure overall quality, subscribers were asked to point out serious problems in 14 different areas, including body hardware, electrical systems and the engines and transmissions of their vehicles.

Getting Satisfaction

GM's Buick Regal was named the most reliable family sedan in Consumer Reports magazine's April issue, which contains an annual survey of the best and the worst in cars. The Regal out-performed repeated winners such as the Toyota Camry and Nissan Maxima. Consumer Reports used a three year weighted average to predict liability.

MOST SATISFYING

SMALL CARS

Toyota Prius

Mini Cooper

Honda Civic Hybrid

MIDSIZED/LARGE CARS

Honda Accord

Toyota Avalon

LUXURY CARS

Lexus LS4430

BMW 3 Series

COUPES/CONVERTIBLES

Infiniti G35 coupe

Lexus SC 430

SPORTS/SPORTY CARS

Chevrolet Corvette

Honda S2000

BMW Z4

Nissan 350Z

Mazda MX-5 Miata

Subaru Impreza

WRX

BMW M3

Porsche Boxster

MINIVANS

Toyota Sienna

Honda Odyssey

CAR-BASED SUVs

Lexus RX330

Honda Element

Nissan Murano

Honda Pilot

Volvo XC90

Toyota Highlander

Acura MDX

Infiniti FX

Subaru Forester

CONVENTIONAL SUVs

Toyota 4Runner

Lexus GX470

Hummer H2

PICKUP TRUCKS

Toyota Tundra

Chev Avalanche

LEAST SATISFYING

SMALL CAR

Hyundai Accent

Nissan Sentra

Chevrolet Cavalier

MIDSIZED CARS

Chrysler Sebring sedan

Dodge Stratus sedan

COUPES

Sebring coupe

Stratus coupe

Chev Cavalier coupe

Pontiac Sunfire coupe

SPORTS/SPORTY/CARS

Mitsubishi Eclipse

MINIVANS

Dodge Caravan (4 cyl.)

Chevy Venture (reg.)

CONVENTIONAL SUVs

Suzuki Vitara

Suzuki Grand Vitara

Nissan Xterra

Jeep Grand Cherokee (6 cyl.)

Mitsubishi Montero

Chevrolet Tracker

Land Rover Discovery

Mercedes Benz ML 500

Chevrolet Blazer

Mitsubishi Montero Sport

Isuzu Rodeo

PICKUP TRUCKS

Nissan Frontier

Dodge Dakota (V6)

GMC Sonoma S-15 (V6, 4WD)

Chevrolet S-10 (V6, 4WD)



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1.  Honda Accord
2.  Acura TL
3.  Volkswagen Jetta
4.  Mercedes-Benz C-Class
5.  Audi A4
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