Toyota's customer satisfaction takes a hit
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From: Edgerton/St Germain, WI
Toyota's customer satisfaction takes a hit
http://www.nyse.com/interface/jsp/NH...sdowjones=true
Car buyers, in a surprising shift from a year ago, are more satisfied with their American-made Buicks and Lincolns than they are with their Toyotas these days, according to a University of Michigan study published Tuesday.
But the turnabout isn't indicative of quality and reliability improvements up and down model lineups at both General Motors (GM) and Ford (F) .
Instead, the study contends, it's a function of Toyota's (TM) brand, which has suffered from recalls and other uncharacteristic hiccups, dropping from first place and allowing offerings like Buick and Lincoln-Mercury to climb the list.
"What goes up must come down, but it remains to be seen whether this is just a stumble for Toyota or a sign of something more serious," said Claes Fornell, who heads the study.
"But Detroit automakers would be making a huge mistake if they think the Asians will keep falling back to them," he added. "They have to do it on their own."
Domestics have made gains in the American Customer Satisfaction Index in prior years based on price promotions, which tend to erode profits and sully the brand, Fornell said. Lately though, improvements from General Motors and Ford have come on the crucial quality side.
Still, Lexus owns the top spot with a score of 87 out of 100, up from 86 last year and easily topping the industry average of 82. The high-end brand dethroned parent Toyota's namesake brand, which fell all the way to sixth.
Toyota's score of 84 now trails GM's Buick and Cadillac, Ford's Lincoln- Mercury, and BMW, all of which came in at 86.
A Toyota spokesman, without having seen the full report, declined to comment on the findings.
Toyota, like most high-growth companies, is just dealing with the growing pains that come with rapid expansion, Fornell said.
"I'm a little bit skeptical on their approach to fixing their current problems," he said. "But in the long run, Toyota will find a way to handle it."
Ford, which has been closing plants, cutting jobs and shopping some of its luxury brands, has dealt with the opposite problem. The Blue Oval brand has recently improved quality more than any other on the survey, up 7% over the past two years. Still, at 80, it still lags the benchmark.
Chrysler's Jeep brand brought up the rear yet again with its score falling to 75. Mazda and Kia were next from the bottom at 78 each.
The University of Michigan index is based on interviews with more than 65,000 consumers a year and has been released quarterly since 1994. Specific sectors are updated annually.
Last week, J.D. Power's closely watched dependability survey reported similar results, with Buick joining Lexus as the most reliable brand. Lexus had ruled the roost all by itself for 12 straight years.
But while it's true the Big Three are making some headway against the Asian manufactures, as a group, they still rank last. And it'll likely take more than a few positive study results to make a measurable difference in car buyer preferences.
But the turnabout isn't indicative of quality and reliability improvements up and down model lineups at both General Motors (GM) and Ford (F) .
Instead, the study contends, it's a function of Toyota's (TM) brand, which has suffered from recalls and other uncharacteristic hiccups, dropping from first place and allowing offerings like Buick and Lincoln-Mercury to climb the list.
"What goes up must come down, but it remains to be seen whether this is just a stumble for Toyota or a sign of something more serious," said Claes Fornell, who heads the study.
"But Detroit automakers would be making a huge mistake if they think the Asians will keep falling back to them," he added. "They have to do it on their own."
Domestics have made gains in the American Customer Satisfaction Index in prior years based on price promotions, which tend to erode profits and sully the brand, Fornell said. Lately though, improvements from General Motors and Ford have come on the crucial quality side.
Still, Lexus owns the top spot with a score of 87 out of 100, up from 86 last year and easily topping the industry average of 82. The high-end brand dethroned parent Toyota's namesake brand, which fell all the way to sixth.
Toyota's score of 84 now trails GM's Buick and Cadillac, Ford's Lincoln- Mercury, and BMW, all of which came in at 86.
A Toyota spokesman, without having seen the full report, declined to comment on the findings.
Toyota, like most high-growth companies, is just dealing with the growing pains that come with rapid expansion, Fornell said.
"I'm a little bit skeptical on their approach to fixing their current problems," he said. "But in the long run, Toyota will find a way to handle it."
Ford, which has been closing plants, cutting jobs and shopping some of its luxury brands, has dealt with the opposite problem. The Blue Oval brand has recently improved quality more than any other on the survey, up 7% over the past two years. Still, at 80, it still lags the benchmark.
Chrysler's Jeep brand brought up the rear yet again with its score falling to 75. Mazda and Kia were next from the bottom at 78 each.
The University of Michigan index is based on interviews with more than 65,000 consumers a year and has been released quarterly since 1994. Specific sectors are updated annually.
Last week, J.D. Power's closely watched dependability survey reported similar results, with Buick joining Lexus as the most reliable brand. Lexus had ruled the roost all by itself for 12 straight years.
But while it's true the Big Three are making some headway against the Asian manufactures, as a group, they still rank last. And it'll likely take more than a few positive study results to make a measurable difference in car buyer preferences.
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It probably has more to do with GM, Ford and Chrysler now offering decent cars:
Impala, Five HUndred, Fusion, G6, 300, etc... And solid trucks, more than it is a "fall" for Toyota.
84 is still a good score, only 3 points behind Lexus.
I read something a year or so ago, talking about quality. I thin kin the mid 90's, Toyota and Ford enjoyed a 20 - 30 point spread over them (first place) and Hyundai (Last place).
I forget who's in last place today, but the quality margin was like maybe 10 points between the best, and the worst.
In other words, what they were saying is, there is no such thing as "poor quality" or a "bad car" anymore...
Hyundai's Veracruz just spanked Lexus' RX350 in a head to head comparison.
That's high praise...
Looking at this data, it seems the gap is only 9 points between best and worst...
It's hard to buy a bad car today. Everything is reliable. Far more reliable than cars & trucks built just 10 years ago.
I had an employee who worked in Plano, but lived in Corsicana. He bought a Kia Spectra, and put 50,000 miles on that car in 12 months. He worked for me for 3 years, and had over 150,000 miles on that new car, and he never missed a day of work.
Corsicana is no hop & skip from Plano- and with Dallas traffic, and Texas heat. I doubt a Toyota, or Ford (Or Benz or BMW) would have held up any better.
Impala, Five HUndred, Fusion, G6, 300, etc... And solid trucks, more than it is a "fall" for Toyota.
84 is still a good score, only 3 points behind Lexus.
I read something a year or so ago, talking about quality. I thin kin the mid 90's, Toyota and Ford enjoyed a 20 - 30 point spread over them (first place) and Hyundai (Last place).
I forget who's in last place today, but the quality margin was like maybe 10 points between the best, and the worst.
In other words, what they were saying is, there is no such thing as "poor quality" or a "bad car" anymore...
Hyundai's Veracruz just spanked Lexus' RX350 in a head to head comparison.
That's high praise...
Looking at this data, it seems the gap is only 9 points between best and worst...
It's hard to buy a bad car today. Everything is reliable. Far more reliable than cars & trucks built just 10 years ago.
I had an employee who worked in Plano, but lived in Corsicana. He bought a Kia Spectra, and put 50,000 miles on that car in 12 months. He worked for me for 3 years, and had over 150,000 miles on that new car, and he never missed a day of work.
Corsicana is no hop & skip from Plano- and with Dallas traffic, and Texas heat. I doubt a Toyota, or Ford (Or Benz or BMW) would have held up any better.
Last edited by Bighersh; Aug 15, 2007 at 12:07 PM.
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That is true Hersh, it is soo easy for customers who were previously ignorant to quickly become informed now. 10 years ago reliability ratings from all the auto manufacturers wasnt on thirty thousand web pages as a tool for potential customers. Kia could be total crap and word of mouth wasnt enough to make people look past the cheap price. Today any consumer can quickly pull stats on any vehicle, and even stats that can be understood by the average person are available. No more asking a mechanic friend, or buying what dad bought. Due to this manufacturers have been forced to make a reliable product, if not consumers will quickly be made aware. Domestics have made massive leaps in quality, but Nissan and Toyota have gone through some growing pains as they both released many new vehicles in a short period of time. I think they are closer now in quality than they have ever been. The only real difference between the two is in percieved quality
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according to a University of Michigan study published Tuesday.
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I'm glad GM is doing well in the surveys. I hope Ford gets their act together and manages to rebound too. Ford has a long and rough road ahead but in the end it will be worth it.
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Originally Posted by CrAz3D
But honestly, I don't know what y'all mean about koolaid. Is that a black joke?
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Originally Posted by Bighersh
It probably has more to do with GM, Ford and Chrysler now offering decent cars:
Impala, Five HUndred, Fusion, G6, 300, etc... And solid trucks, more than it is a "fall" for Toyota.
Impala, Five HUndred, Fusion, G6, 300, etc... And solid trucks, more than it is a "fall" for Toyota.
I forget who's in last place today, but the quality margin was like maybe 10 points between the best, and the worst.
)
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From: Vernon, NY
I can't wait for the American Revolution to turn back everything to RWD. Remember, Japan was the runner up in front wheel drive innovation.
Face it Toyota, I'd rather buy my gas guzzling, rear wheel drive, American-made set of wheels only because it is cool.
Glad to see Japan and their plastic eaters heading down to the abyss.
Face it Toyota, I'd rather buy my gas guzzling, rear wheel drive, American-made set of wheels only because it is cool.
Glad to see Japan and their plastic eaters heading down to the abyss.
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Originally Posted by Octane36
Not true. Toyota has had several recalls in the past few years, something that was just about unheard of in the past. Toyota's quality has nothing to do with what the other automakers are doing. Toyota's rapid growth and obsession with becoming #1 has been their downfall. Toyota slit their own throat and they really cant blame anyone else for the bad press they have recieved.
Read the article I quoted again, Jeep is in last (now thats a surprise )
Read the article I quoted again, Jeep is in last (now thats a surprise
)Sure, they've had recalls, but lets not forget.
1.) They've moved beyond their bread & butter (Sedans and Cross-over SUV's) into the deep blue waters of the US truck market. There are going to be some growing pains.
2.) Many of their products sold in America, are also made here. Why would we expect an American autoworker to snap together a Toyota, and better than he/she could a Dodge, Ford or Chevy? Perhaps their quality slipped a little, with the shift in their manufacturing.
***Say what you will, but when Nissan, Toyota, and Honda's were mainly shipped to the US; you hardly ever heard about qualiy issues. Even if you don't like the connotation, you must consider the possibility.
The Camry has been built in America for quite a while, I think they have the kinks worked out. But, the new Toyota plant in San Antonio, just like the Nissan Titan/Armada plant in Mississippi, has to go throw some growing pains, before they start spitting them out bulletproof.
The real deal is, America has stepped up- I don't think for a second that Toyota, Honda or Nissan has turned their backs on quality. Today, there really is bang for the buck alternatives to the Camry, Altima, and Accord- The Fusion, the G6, and the Cirrus.
Buick has targeted Lexus for the last 10 years. Good for them. Lincoln needs to target Mercedes, BMW or someone- to move the Town car from renatl fleets, and back into driveways & garages.
With sales slipping, GM had to go for the jugular, as did Ford. Trucks alone could not keep them afloat; not with credible threats from Nissan (Titan) and Toyota (Tundra), coupled with $3.00/gallon gas. Now you see very well built, ergonomically fresh ideas coming out of Detroit & Dearborn.
Thanks- (Jeep) I hadn't read the article, I only skimmed it.
87/100 = 1st place.
78/100 = last place....
Not bad... Today, we live in an automotive world where Infiniti toppled BMW from the handling roost, A Hyundai beat Lexus in a head to head comparo, and Kia builds the world's safest minivan.
The more you think you know, the more things change...
Last edited by Bighersh; Aug 16, 2007 at 01:26 AM.
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Originally Posted by scott1981
Remember the cults drinking the koolaid because they believed they would get thier own planet, the moon, 100 virgins whatever. Pretty much it just means that you buy in to whatevers positives and close your eyes to the negatives so much your just like the morons in the cult. As in shut up the drink the koolaid.
