2011′s Worst-Quality New Cars
Automakers are smart to crow when they earn coveted quality awards. But when the hammer comes down--particularly on brand-new vehicles--the results are usually kept a little more quiet.
One of the benchmark studies of new-vehicle quality has been released for the 2011 model year, and this time, J.D. Power's 2011 Initial Quality Study found that the marked progress made in the past four years is over. While the overall number of problems per 100 vehicles fell, the number of problems for brand-new models was higher than usual.
The experts at Power have some explanations. In large part, they're blaming hands-free communications systems like Ford's Bluetooth-driven MyFord Touch, for creating problems with customer perception where more traditional quality perceptions like fit and finish had improved. Five years ago, connecting an iPhone to a car's Bluetooth system wasn't a common problem--but since then, Power says reports of problems with hands-free systems have skyrocketed, by nearly 240 percent.
In any survey, the winners get to trumpet their achievements. The losers move on to fixing their quality issues. And for 2011, the losers include some high-profile new vehicles just hitting showrooms. These vehicles earned two circles in the 2011 IQS study and are labeled "the rest," the survey's shorthand for cars that failed to wow their new owners.
Subcompacts, Compact Cars and Compact Multi Purpose Vehicles
Among small sedans and hatchbacks, the Power study brought some unwelcome news for the latest entries from Chevy, VW and Ford. Their newest offerings--the Cruze, the Fiesta and the Jetta--each placed at the bottom of their categories, with the Fiesta's SYNC controller and the Jetta's uninspired, plasticky interior driving scores.
Power IQS two-star ratings:
- Chevrolet Aveo
- Chevrolet Cruze
- Dodge Caliber
- Ford Fiesta
- Kia Forte
- Mitsubishi Lancer
- Nissan Cube
- Scion xB
- Subaru Impreza
- Suzuki SX4
- Volkswagen Jetta
Crossovers and SUVs
While crossovers dominate the shopping lists of American car buyers more than ever, the newest crossovers are experiencing some teething troubles. The problems with the Ford Edge, Ford Explorer and Lincoln MKX were called out in particular by Power--but the Nissan Juke and MINI Countryman also have reason to be concerned, since their low ratings are matched by the low overall rankings of their brands.
Power IQS two-star ratings:
- Audi Q5
- BMW X3
- BMW X5
- Cadillac SRX
- Dodge Journey
- Dodge Nitro
- Ford Edge
- Ford Escape
- Ford Expedition
- Ford Explorer
- Infiniti QX56
- Jeep Liberty
- Land Rover LR4
- Land Rover Range Rover
- Land Rover Range Rover Sport
- Lincoln MKT
- Lincoln MKX
- MINI Countryman
- Mitsubishi Outlander
- Nissan Armada
- Nissan Juke
- Porsche Cayenne
- Volkswagen Touareg
- Volvo XC90
Minivans and Pickup Trucks
Utility vehicles often have lower initial quality, because they're made to be more rugged--but buyers tend not to rate them poorly because they expect them to be more basic. It's notable here than none of the brand-new minivans for the 2011 model year--Odyssey, Quest or Sienna--were rated poorly by surveyed owners.
Power IQS two-star ratings:
- Chevrolet Silverado HD
- Dodge Ram 1500/2500
- GMC Canyon
- Kia Sedona
- Nissan Titan
Sports Cars
None of the brand-new sports cars for 2011 were included in the lowest of J.D. Power's initial-quality ratings, but the presence of BMW's Z4 and the Hyundai Genesis Coupe suggests those companies will have to revamp their flagship sporty offerings to continue to build their reputations against the likes of the Ford Mustang and Porsche Boxster.
Power IQS two-star ratings:
Sedans and Luxury Sedans
There's trouble in the Power IQS survey for Buick and Audi. The volume sellers for both brands landed squarely at the bottom of this year's initial quality study. Infiniti's M and Jaguar's new XJ also haven't fared well, though the cars have been well-received by the automotive press.
Power IQS two-star ratings:
- Audi A3
- Audi A4
- Audi A6
- BMW 3-Series
- Buick LaCrosse
- Buick Regal
- Chrysler 200
- Dodge Charger
- Hyundai Azera
- Infiniti M
- Jaguar XJ
- Mitsubishi Galant
- Suzuki Kizashi
- Volvo C30
- Volvo S60
This story originally appeared at The Car Connection
States Toughen Hands-Free Laws, Close Enforcement Loopholes
Don't take talking and texting rules too lightly. As data continues to stream in about the dangers of hand-held cellphone distraction, state legislators—and highway patrols—are getting tough.
The first round of cellphone-related distraction laws were, in some states, vague and poorly crafted when it comes to texting, and how people today use smartphones. And that meant that a lot of offenders were let go with only a warning.
But the days of lax enforcement might be over. In New York—which is already one of the few strictest states that apply points to offenders' driving records—Governor Andrew Cuomo recently introduced a bill aimed at toughening the language in its cellphone law—including closing some loopholes and upping the penalties. Making distracted driving a primary offense is one of the most significant changes of the new bill.
Oregon just this week finished fixing its own flawed hands-free law, which allowed a very generous loophole for hand-held use if the talking or texting was done when they were driving for work and "acting in the scope" of their employment. Police weren't happy with how hard it was to ticket drivers for legitimate distraction offenses, and nearly everyone, it seems, in these days of taking your work on your smartphone, could contest a ticket with the right argument.
In the rewritten version of the Oregon bill, which passed the state legislature this week and is to be signed by governor Kitzhaber—to take effect at the beginning of 2012—the language gets more specific about texting, and it makes exceptions on hand-held use only for police, emergency vehicles, utility crews, tow trucks, and certain types of agricultural vehicles.
Neighboring Washington is one state that amped up its cellphone law a year ago, making it a primary offense; this past week, the Washington State Patrol reported that it's issued about five times as many tickets—6,850 citations in the past year—for the issue than when it was a secondary offense. The citation rate has risen, too, with fewer pulled-over motorists receiving just a recorded warning. Even in Washington, though, just as in most other states with a primary law, cellphone distraction citations still don't go on the driver's permanent record.
That's the next step. If cellphone-related distraction is as dangerous as safety organizations say—handheld users are four times more likely to be in a serious accident, according to the IIHS—and if licensing point systems red-flag speeders and red-light runners to insurance companies, why shouldn't they indicate chronic distraction?
[StreetsBlog; Seattle Times; The Oregonian]
This story originally appeared at The Car Connection
Report: Gas Prices Down, As Are Prices On Small Cars, Hybrids
Oh, what a short memory vehicle shoppers seem to have with respect to high gas prices.
While national-average pump prices surged into May, to a national average peak of about $3.98—topping off 20 consecutive weeks of price gains—they've since started to settle downward to about $3.71 this week.
And it appears that demand for small and fuel-efficient late-model vehicles—including hybrids like the Toyota Prius—is already starting to wane.
According to new data from Kelley Blue Book, the slightly lower gas prices are already influencing purchase decisions, and the strong-demand and short-supply situation for small cars is abating.
So far this year, while on a market-wide basis vehicles are up $950 percent, or about 5.4 percent on average, hybrids are up about $3,000 (more than 20 percent). Hybrids saw a $300 rise in May alone, then dropped $50 just over the past week (ending June 10).
Of course it can be argued that fuel prices weren't entirely to blame; the sudden run on a number of small-car models, as well as the Prius—was also due to supply interruptions related to the March earthquake and resulting tsunami in Japan.
Among compact and subcompact models, the trend was similar; they rose $2,250 and $2,200 respectively in value, year to date, while compacts fell $50 and subcompacts dropped $25 just over the past week.
The KBB figures are based on used vehicles for model-year 2008 through 2010.
Gas prices are expected to continue their downward trend for a while longer, with OPEC's recent decision to maintain current production levels, as U.S. demand remains at lower levels. So we advise that if you're planning to choose a smaller or more fuel-efficient next vehicle, it might really pay to hold off for an extra month or two. Then you'll not only have a lower gas budget the next time high prices roll around; you'll also have paid less for that fuel-stingy vehicle.
This story originally appeared at The Car Connection
How Good Is This Used Car?
Maybe you inherited a car, or possibly you got carried away with your “great find” and purchased a used car without having it checked out. But now, you have to take the guesswork out of evaluating your vehicle--and you need to establish some benchmarks for maintenance and service items going forward, how much you'll spend before you walk away.
So what do you tell your mechanic to look at, so you will know the overall condition of the car?
Start with the basics. You must change the oil regardless of how it looks on the dipstick. This will set the stage for future maintenance. Have the tires checked for not just obvious problems but also cracking and dry rotting, and attempt to establish the age of the tires. The last four digits of the “DOT” number represent the week and the year of the tire’s manufacture. Ask for all the fluids to be checked for level and integrity.
Track down any signs of fluid leakage. Keep your fingers crossed on this one, because it is probably the easiest way to stay out of trouble prior to buying a car. Ask the technician to give you an idea of what fluids are seeping out from where and to prioritize which should be resolved first and at what cost.
Assess the extent of corrosion. You need to know how badly components like brake and gas lines or the exhaust system have been affected by road salt and other corrosives. While the mechanic may not be able to predict the expected life of any corroded parts, he should be able to tell you whether there is corrosion present. If there are issues with the brake or fuel lines, ask how accessible they are in case they need to be replaced, since this will dictate the repair cost. The answers to these questions could change your long-term plans for the vehicle.
Include an extensive road test. Solicit the informed opinion of your trusted car person about how the car performs. They will be evaluating the transmission and the performance of the engine in a number of different driving scenarios. How it reacts under load and at idle will be part of that test and could offer clues to the true worth of your new transportation piece. Ask if the technician felt any slippage in the transmission and if the engine sounds okay.
What about the safety items? Brakes should be first on the list. Ask to be advised of the percentage left on the brake pads or shoes and if there is any sign of a hydraulic problem with the brake system. Inquire about the motor or transmission mounts and any odor of gasoline either under the hood or under the car. Also ask to be made aware of any problem with the usual safety items like the lights, horn and wipers.
Yes, the ideal time to check a car out is prior to purchase, but if you have put the car before the horse there is still time to prevent future problems, you just need to know how to shape the process.This story originally appeared at The Car Connection
Incentives Shrinking, Bringing Vehicle Prices To Record Levels
Remember all the incentives being thrown down on new vehicles a year or two ago? They're pretty much gone, and the transaction prices being paid for new vehicles are now at record levels.
According to the pricing-intelligence firm TrueCar, the average transaction price for a new vehicle is up to $29,817. That's 2.1 percent higher than a year ago, industry-wide, and 0.7 percent higher than just a year ago.
Even though shoppers are choosing smaller, more fuel-efficient vehicles, typically with lower base prices, they're choosing loaded versions of those vehicles, observes TrueCar. "Even though consumers continued to move toward smaller vehicles, they also chose highly contented vehicles that are higher priced, keeping transaction prices high," said the company's VP of trends and insights.
Ford, Honda, and Nissan models have had the largest price hikes, purely when looking at final transaction prices, compared to last year. Ford vehicles priced 5.2-percent higher overall in May, compared to last May, while Honda and Nissan were 4.6-percent and 3.5-percent higher, respectively.
Those numbers are likely bolstered due to the introduction of several all-new mainstream models: Since last year, Ford has introduced a new line of 2012 Focus small cars, along with an all-new 2011 Ford Explorer mid-size crossover; Honda is also rolling out a refreshed 2012 Civic model line.
And though automakers have been limiting price hikes, typically, it's the lack of incentives that's bringing the pricing bottom line back up. Automaker incentive spending is down more than $800 (nearly 29 percent) from May 2010 levels, but in most cases you still won't need to pay sticker; the average is still $2,017 per vehicle. While that still sounds like a very significant amount to be offering off the sticker price of a new car, it's the lowest incentive rate in nine years.
Toyota, which was still getting over its accelerator-related recall hearings a year ago and offering its highest incentives ever, is spending 54-percent less on incentives on its vehicles this May; it now has the lowest incentives among major automakers, at an average $877 per vehicle. Chrysler and GM are still doling out the most to move metal, at about $2,700 per vehicle for each—and still more than nine percent of the vehicle price. That said, both figures are down more than 25 percent from last year. Honda, Hyundai/Kia, and Nissan have each cut incentives more than 40 percent from year-ago levels.
[TrueCar]
This story originally appeared at The Car Connection
May Car Sales A Mixed Bag: Toyota, GM Down; Ford Even; Chrysler Up
New-vehicle sales for May are rolling in today, and the overall numbers are mixed as automakers absorb the double whammy of fewer cars to sell, and lower incentives cutting into demand.
Reuters estimates the annualized rate for sales in May will check in around 12.6 million units, a strong increase over 2010, month over month--but the first month this year in which sales didn't clear the 13-million hurdle.
Of the major factors affecting sales, the March 11 earthquake and tsunami in Japan are hitting some automakers particularly hard, notably Toyota and Honda. Reuters also cites slimmer rebates and incentives as a root cause--they're down by more than 25 percent this year, giving consumers reason to delay new-car purchases as they wait for better deals.
While Toyota and Honda lose share from tight availability, domestic automakers such as GM (NYSE:GM) and Ford (NYSE:F) are expected to pick up share, as are Korea's Kia and Hyundai. Even so, some popular small cars not built in Japan are still in tight supply. The 2012 Ford Focus has a 34-day supply on hand, Reuters reports, while the 2011 Chevrolet Cruze is down to a 39-day inventory--in an industry where a 60-day supply is judged normal.Without small cars to sell, automakers may actually move more SUVs and pickup trucks, even though gas prices are still near $4 a gallon. Along with minivans, trucks and utes could approach 47 percent of new-vehicle sales for May.
The results by automaker, as they come in:
General Motors: GM says sales fell by a percent as it moved fewer fleet vehicles. On a positive spin, GM says retail deliveries were up 9 percent; Buick was up 24 percent and GMC up 8 percent, while Chevrolet fell 4 percent and Cadillac, 6 percent. GM's total sales of 221,192 vehicles broken out by brand included Chevrolet at 161,401 units; Buick at 15,579 units; GMC at 32,589 units; and Cadillac at 11,623 units.
Ford: Ford says May sales were 192,102, roughly equal to a year ago. It's selling more vehicles at the retail level, and fewer to fleets. Sales of the new Explorer are running 135 percent ahead of last year and the old model; Escape, Fusion, Focus and Fiesta were up strongly, while sales of F-Series trucks fell 15 percent year-over-year, while the V-6 F-150 outsold the 5.0-liter V-8 edition. On the year, Ford sales are up 12 percent. Lincoln sales were not mentioned in the Ford numbers save for a boost in MKZ sales of 24 percent, though Automotive News reports the brand down 5 percent on the month.
Chrysler: The Chrysler group of brands posted a 10-percent rise in sales over May 2010. U.S. sales of 115,363 vehicles gave the company its best May since before its bankruptcy filing. The Chrysler 200 saw sales rise 154 percent; the Jeep Grand Cherokee was up 192 percent. All brands were up save for Chrysler itself, which was down 21 percent on losing the PT Cruiser from its lineup.
Toyota / Lexus: As expected, the March 11 earthquake cut deeply into Toyota sales. The Toyota brand's sales were off 27.9 percent with 108,387 sales; Lexus was down 26 percent, at 12,305 units sold.
Honda / Acura: Honda too has been affected dramatically by the March disasters in Japan. Total Honda sales of 90,773 represented a 16.1-percent decline on an adjusted basis. For the year, Honda is up 7.4 percent. At Acura, a total of 9,000 sales meant a drop of 17.1 percent month over month; on the year, Acura is up 3.4 percent.Volkswagen: Volkswagen says it sold 30,100 new vehicles in, a 27.9-percent boost year over year. VW is now selling more vehicles than it did in 2003; for the year, it's up almost 20 percent, and the 2011 Jetta is a hit, up almost 59 percent over last May.
Nissan / Infiniti: Nissan sales of 76,148 units represented a 9.1-percent decrease. Nissan-brand cars fell 7.8 percent, while Infiniti slipped 21 percent from May of 2010. The 2011 Nissan Leaf posted sales of 1142 units in the month.
Hyundai: Hyundai sold 59,214 vehicles in May, up 21 percent and a fifth consecutive monthly record. On the year, the Korean automaker is up 29 percent.
Kia: Kia posted its best-ever monthly sales of 48,212 cars, up 53.4 percent from May 2010.
BMW / MINI: BMW's combined sales of its eponymous and MINI-branded cars rose to 26,452 vehicles in May, an increase of 19.7 percent. BMW-badged vehicles were up 15.6 percent to 20,651 units; MINI checked in with 5,801 sales, a 37-percent boost. Rolls-Royce sales were not reported with the other BMW brands. Subaru: Subaru says its sales were up despite a shortage of parts from quake-ravaged Japan. Sales of 20,036 units meant a month over month increase of nearly 8 percent. Forester, Impreza and Tribeca sales were impacted more by the disaster, Subaru adds.Mercedes-Benz / Smart: The Daimler brands teamed up for mixed results, skewed heavily towards Mercedes' 5.9-percent increase to 20,306 units moved. Smart sold 492 cars, down 29.2 percent.
Mazda: Mazda says it sold 17,875 vehicles in the U.S., off 20.9 percent from last May. For the year, Mazda is up 5.7 percent, with 103,072 total sales.
Audi: Audi had the best May in its U.S. sales history, with 10,457 total sales, up 13.6 percent. Audi's new A8 sedan is up 662 percent over the outgoing model--a huge percentage increase, while total sales of 495 vehicles make its ultra-luxury status a bit more clear.Mitsubishi: The Japanese automaker sold 7,568 vehicles in the U.S. in May, up 59.8 over last May. On the year, Mitsu is up 60.7 percent. However, two models with the strongest sales--the Galant and the Endeavor--are to be discontinued next year, and most are sold to fleets.
Volvo sold 7359 units in May, up 58 percent over last May.
Porsche: The sportscar, sedan and SUV maker is riding a sales wave. With raw numbers up 50 percent in May alone at 2817 sales in May, Porsche's up 47 percent on the year, thanks to Panamera and Cayenne.
Jaguar/Land Rover: Both brands had strong increases in May sales. Land Rover reported 2,891 units sold, up 7 percent; Jaguar sold 1,271 cars, an increase of 32 percent. On the year, combined sales for the brands are up 17 percent.
Suzuki: Suzuki sold 2290 vehicles in May, an increase of 20 percent. On the year, the brand is up 17 percent.
Saab sold 385 cars in May, up over last year's 148 cars when it was in the midst of a change of control.
[Reuters via Yahoo]
This story originally appeared at The Car Connection
May New-Car Sales Fall, Trucks On The Rise
New-vehicle sales for May are rolling in today, and the overall numbers are likely to drop dramatically as automakers absorb the double whammy of fewer cars to sell, and lower incentives cutting into demand.
Reuters estimates the annualized rate for sales in May will check in around 12.6 million units, a strong increase over 2010, month over month--but the first month this year in which sales didn't clear the 13-million hurdle.
Of the major factors affecting sales, the March 11 earthquake and tsunami in Japan are hitting some automakers particularly hard, notably Toyota and Honda. Reuters also cites slimmer rebates and incentives as a root cause--they're down by more than 25 percent this year, giving consumers reason to delay new-car purchases as they wait for better deals.
While Toyota and Honda lose share from tight availability, domestic automakers such as GM (NYSE:GM) and Ford (NYSE:F) are expected to pick up share, as are Korea's Kia and Hyundai. Even so, some popular small cars not built in Japan are still in tight supply. The 2012 Ford Focus has a 34-day supply on hand, Reuters reports, while the 2011 Chevrolet Cruze is down to a 39-day inventory--in an industry where a 60-day supply is judged normal.Without small cars to sell, automakers may actually move more SUVs and pickup trucks, even though gas prices are still near $4 a gallon. Along with minivans, trucks and utes could approach 47 percent of new-vehicle sales for May.
The results by automaker, as they come in:
General Motors: GM says sales fell by a percent as it moved fewer fleet vehicles. On a positive spin, GM says retail deliveries were up 9 percent; Buick was up 24 percent and GMC up 8 percent, while Chevrolet fell 4 percent and Cadillac, 6 percent.
[Reuters via Yahoo]This story originally appeared at The Car Connection
