allscion

Paul
Allscion -- an e-commerce Website with news and accessories for your Scion vehicles
http://www.allscion.com/store



http://online.wsj.com/article_print/...514104,00.html

Car Owners Value
Quality Over Cost,
Survey Suggests

Associated Press
August 16, 2005

DETROIT -- A survey to be released today of U.S. vehicle owners indicates that while this summer's "employee-pricing" deals may give auto makers short-term sales gains, improving quality is more important in the long run.

Toyota Motor Corp. of Japan received the top score of 87 out of 100 in the University of Michigan's American Customer Satisfaction Index, which rates auto makers based on owners' satisfaction. Owners were asked about their overall satisfaction and their satisfaction level compared with their expectations. They also were asked to rate how their vehicle compares with their ideal vehicle.

Honda Motor Co., of Japan, BMW AG of Germany and General Motors Corp.'s Cadillac and Buick brands rounded out the top five. Ford Motor Co.'s Ford brand received the lowest score of 75.

Half of the brands improved their scores from last year, including Hyundai Motor Co., of South Korea, and GM's Pontiac brand. One-quarter stayed the same, while one-quarter saw their scores decline, including Nissan Motor Co. of Japan, and Ford's Lincoln and Mercury brands.

Hyundai's rapid climb shows that focusing on quality can significantly improve satisfaction ratings, said University of Michigan professor Claes Fornell, who compiles the index. Hyundai was at the bottom of the index with a record-low score of 68 in 1999, he said. Quality and styling improvements and the introduction of the industry's first 10-year, 100,000-mile warranty catapulted Hyundai to No. 6 in this year's ratings, with a score of 84.

The survey questioned 8,096 people by phone from April 1 to June 30. It has a margin of error of plus or minus 0.3 percentage point, Prof. Fornell said.

The Big Three U.S. auto makers should spend less on incentives and more on quality improvements, Prof. Fornell said. U.S. auto makers spent an average of $4,239 a vehicle on incentives in July, compared with $2,372 for European brands and $1,619 for Asian brands, according to Autodata Corp.

Since July, GM, Ford and DaimlerChrysler AG's Chrysler Group have been offering to all customers on most 2005 vehicles prices typically offered only to employees. Those incentives have a positive effect on customer satisfaction, but it isn't large or sustainable, Prof. Fornell said. He added that Toyota was raising its prices this summer but still received the highest satisfaction score.

GM and Ford both have said they intend to lower their prices and rely less on incentives for the 2006 model year. The Chrysler Group has been trying a similar strategy for several years.

Ford's Lincoln and Mercury brands ranked highest in last year's survey but fell to seventh this year. Lincoln Mercury spokeswoman Sara Tatchio said Lincoln and Mercury have gotten high marks in other recent surveys, including dependability rankings by J.D. Power & Associates.

"We always want to do very well with surveys, and certainly we don't like a downward trend, but it's good to know we're still in the top 10," Ms. Tatchio said.

Copyright © 2005 Associated Press

gen_1_sol

very true