Looking past this year’s rankings: Automotive brand quality over time
BRYANSTON – ‘Most Improved Brand’ for vehicle quality goes to Opel in Passenger Vehicle, Land Rover in Recreational Vehicle and Isuzu in Light Commercial Vehicle.
"There are many success stories when one starts looking at the product quality of individual brands (PP100 or problems per 100 vehicles) over time,” states Richard Rice, Automotive Client Services Director at Synovate. “As a whole, the passenger car market has more than halved its PP100 score since 1998. Light Commercial Vehicles and Recreational Vehicles have also shown a massive improvement which is testament to the enormous effort that has been put in by the manufacturers"
Synovate has been conducting research into vehicle quality since 1991 as part of the largest survey of vehicle owners in South Africa, incorporating more than 55 000 interviews on an annual basis. "Our experience with the manufacturers of motor vehicles in the last 17 years is that product quality is one of the highest items on the agenda and their efforts to improve are intense and ongoing which is of much benefit to the South African motorist", states Rice.
Improvements by Brand (Passenger Vehicles)
Problems per 100 Vehicles over time: Passenger Cars |
|||
|
1998 |
2005 |
2007 |
PC Average |
230 |
140 |
109 |
Audi |
110 |
112 |
103 |
BMW |
127 |
104 |
60 |
Chevrolet |
|
104 |
75 |
Chrysler |
144 |
101 |
|
Fiat |
297 |
208 |
190 |
Ford |
212 |
156 |
124 |
Honda |
|
|
80 |
Jaguar |
135 |
68 |
|
Mazda |
194 |
165 |
107 |
Mercedes Benz |
139 |
104 |
70 |
MINI |
|
129 |
99 |
Nissan |
328 |
145 |
156 |
Opel |
281 |
147 |
94 |
Peugeot |
|
179 |
136 |
Renault |
147 |
144 |
|
Toyota |
219 |
103 |
77 |
Volvo |
|
127 |
98 |
VW |
276 |
195 |
176 |
© Synovate PP100 1998 - 2007 |
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Opel has emerged as the most improved passenger car brand over time. From 281 problems per 100 vehicles (PP100) in 1998, Opel has whittled its problems down to only 94 PP100 in 2007 which means that it has improved on its quality by 67%.
Less than half of BMW drivers that had problems with their vehicles in 1998 still experience a fault with their vehicle. BMW has dropped from 127 PP100 in 1998 to 60 PP100 in 2007. From 104 PP100 and 109 PP100 in 2005 and 2006 respectively, BMW demonstrated a rapid and intense improvement yielding its low score of 60 PP100 last year. This implies that only every second BMW owner reports a problem with their vehicle. “Given the critical nature of the BMW owner, this is a laudable achievement and BMW has been recognised numerous times with the Synovate Gold Quality Awards in the segments in which it competes”, says Rice.
Chevrolet , which has only been part of the study for 3 years, has already shown an improvement of 28%. Starting off with 104 PP100 in 2005, this score reached 75 PP100 last year. Rice comments, “Given that Chevrolet is a relatively new brand and that it has achieved a score of less than 100 PP100, it is well set to challenge some of its rivals in the segments where it is represented.”
Another brand that has shown massive improvement is Nissan. Starting off with 328 problems in 1998, it has progressed remarkably well to only 156 PP100 in 2007. This is a significant 52% upgrade in quality since 1998. “This is a significant improvement for a brand that has mostly focussed on its Light Commercial Vehicle offering over time. The current scores for passenger vehicles show the real improvement in its new models”, says Rice.
Toyota now stands at 77 PP100 across all its passenger car models, from a starting point of 219 PP100 in 1998. Toyota is one of the brands that have shown a consistent decrease without many real peaks throughout the years. 2006 brought about a slight increase to 124 PP100. “This was quickly brought down to 77 PP100 in 2007, however, and considering the breadth of models that Toyota has, this is a world class performance,” states Rice.
Honda ’s performance has only been measured by Synovate for the past two years. In both 2006 and 2007, it has demonstrated excellent quality, with only 70 PP100 and 80 PP100 respectively.
In 1998, Audi had a problem count of 110 PP100 vehicles. In 2001, this jumped to 147 and by 2004, Audi managed to get this down to 86 PP100 again. The major movement for Audi came in 2004, when its score improved by 40% from 2003. “Audi now competes very favourably with the other luxury players both in local and imported products”, states Rice. “The segments where Audi competes are some of the most hard fought in terms of product quality, and to achieve a score of less than 100 problem per 100 vehicles is no mean feat.”
VW has shown a 36% improvement since 1998. Starting off at almost three problems per vehicle, VW now has a problem count of less than two per car sold, standing at a PP100 score of 176 in 2007.
“Fiat has always been extremely transparent in terms of what they are doing to improve product quality and their proportional improvement is clear evidence of their ongoing commitment to improving both their product quality and their value for money offering”, states Rice. After an increase in its PP100 in 1999, reaching 5 problems for each car sold, Fiat undertook a major drive to enhance the quality of their vehicles. In 2007, Fiat has managed to decrease their score to less than 2 problems per vehicle, yielding a 62% improvement in performance.
Renault , a relatively new entrant, returned a score of 147 problems per 100 in 2005 which moved to a higher count of 183 PP100 in 2006. However, in 2007, the score improved to an impressive 144 problems per 100 vehicles which is a dramatic improvement in a very short period of time.
Ford has shown an unfailing decrease in quality problems since 1998, where it started at 212 PP100. In 2001, it reached 173 PP100 and in 2007 sits at a very satisfactory 124 PP100 - its lowest score since being measured. “Although Ford has been criticised in the past, the current scores provide a clear indication of their ongoing commitment to quality and the public acknowledgement of this achievement”, states Rice.
Mazda shares the same commitment to a consistent decrease in quality problems. From 1998, Mazda has experienced a 45% improvement in vehicle quality. Its PP100 stands at a low 107 – below industry average – in the latest 2007 reading.
Although Synovate has only measured Peugeot’s quality count for the last 3 years, it has already witnessed a 24% improvement in product quality from Peugeot. Currently Peugeot as a brand stands at 136 PP100. “With the majority of Peugeot’s products being sold to the very critical first or second time owner, this is an accolade to the French manufacturer,” states Rice.
Jaguar stands at a very impressive 68 PP100 – which means that 3 cars out of 10 sold by Jaguar are problem-free. “Considering the fact that we measure faults as small as squeaks and rattles, it is no small victory for a brand to achieve such great results,” says Rice.
Volvo has shown a marked 30% improvement from 2006 and a 54% improvement from its score of 149 PP100 in 2000. Says Rice, “With a problem count of less than 100 problems per 100 vehicles, this niche manufacturer has achieved a significant level of quality”.
Mercedes-Benz has exactly halved its problems since 1998. Its score has been below one problem per vehicle since 2001, with a minor hiccup in 2005 when its score increased to 104 PP100. In 2007, Mercedes-Benz’ achieved a score of a very low 70 PP100. “Mercedes-Benz has always enjoyed recognition for the quality it delivers and a score of 70 PP100 reinforces their position as being able to deliver the highest quality across a variety of products and segments,” says Rice.
MINI has also demonstrated a dramatic improvement since first being measured. From 238 PP100 in 2002, MINI now boasts a low 99 PP100. This has been achieved with one of the most critical customers in the South African market, the ‘Trendsetter’”, says Rice.
Chrysler ’s major improvement came in 2003 with a drop of 66 PP100 to a low score of 107 PP100. While there have been some increases in quality problems in the years since, Chrysler has managed to get their score back down to 101 PP100 in 2007.
Improvements by Brand: Recreational Vehicle
Problems per 100 Vehicles over time: Recreational Vehicles |
|||
|
1998 |
2005 |
2007 |
RV Average |
359 |
130 |
93 |
Audi |
|
|
86 |
BMW |
85 |
75 |
|
Chrysler |
206 |
126 |
|
Ford |
|
255 |
|
Jeep |
206 |
125 |
|
Land Rover |
752 |
197 |
103 |
Mercedes Benz |
|
152 |
70 |
Mitsubishi |
322 |
103 |
115 |
Nissan |
279 |
132 |
118 |
Toyota |
|
101 |
70 |
Volvo |
88 |
63 |
|
Volkswagen |
166 |
129 |
|
© Synovate, PP100: 1998 - 2007 |
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Recreational Vehicles has displayed a significant improvement overall. This category’s average PP100 has decreased from 359 in 1998 to 93 in 2007 – a 74% increase in vehicle quality. “Recreational Vehicles generally have a high problem count due to the fact that they are used for work and play alike’ explains Rice. “The fact that the vehicles in this category have managed to bring down the average RV PP100 to less than one problem per vehicle is a massive accomplishment’.
Land Rover has demonstrated the most significant movement within the category – an 86% drop in vehicle faults. “From 752 PP100 in 1998 to 103 PP100 in 2007, this is a significant achievement for this brand and shows how committed Land Rover has been to ensuring that its customers only get top quality vehicles,” states Rice.
Over the past 3 years, BMW has seen a drop off of 10 PP100, from 85 PP100 in 2005 to 75 PP100 in 2007. Since 1998, BMW has shown an overall improvement of 41%.
Chrysler has shown a commitment to consistent improvement in quality since 1999. First measured at 222 PP100 in 1998, Chrysler’s PP100 now sits at a very low 126 PP100.
In line with its performance in PC and LCV categories, Toyota has shown an ongoing increase in quality standards – 41% improvement since 2000. In 2007, Toyota’s PP100 stands at only 70, meaning that out of 10 Toyota RVs sold, 3 of them will be completely free of faults.
Another noteworthy achievement in terms in this category is Mitsubishi, which has decreased its problem count by two thirds of its original count. From 322 PP100 in 1998, Mitsubishi has worked its way down to 115 PP100 in 2007.
Mercedes-Benz has demonstrated excellent quality in the RV segment and currently has the lowest PP100 score in the category, at 70 PP 100.
Improvements by Brand: Light Commercial Vehicles
Problems per 100 Vehicles over time: Light Commercial Vehicles |
|||
|
1998 |
2005 |
2007 |
LCV Average |
286 |
176 |
121 |
Ford |
|
214 |
171 |
Isuzu |
333 |
184 |
81 |
Mazda |
|
244 |
225 |
Mitsubishi |
260 |
244 |
165 |
Nissan |
243 |
138 |
119 |
Toyota |
254 |
140 |
103 |
© Synovate, PP100: 1998 - 2007 |
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The LCV average has improved 58% since 1998, and Isuzu is the star performer in this category, which has decreased its problem count by 77% since 1998. Isuzu has consistently decreased its problem count from more than 3 problems per vehicle to less than one per vehicle in 2007, the only LCV brand that can boast such a low problem count.
Toyota has also improved extraordinarily well, showing a drop off from 254 PP100 in 1998 to 103 PP100 in 2007. This has been achieved with the launch of the new Hilux and Toyota’s focus on delivering a new product with high levels of quality with the first vehicles rolling off the line is an example of how the industry has changed,” says Rice, “No longer do OEMs simply launch a vehicle and correct inherent problems over time but they focus on correcting these problems before the first vehicle hits the sales floor”.
Nissan has experienced a 51% improvement in vehicle quality since 1998. The major movement for Nissan happened between 2003 and 2004, when a significant drop from 250 PP100 to 163 occurred. “This is despite the fact that Nissan are still producing the iconic 1400 bakkie as part of their LCV lineup and that their one-tonners are facing up to formidable rivals.” says Rice
Ford has consistently decreased quality problems on its LCVs. While a peak in problems occurred in 2005 and 2007, their score was back down to 171 in 2007.
"Typically we give huge attention to the top and the bottom of the rankings every year and this is understandable given that we are working in a new car market," concludes Rice. "However, the effort and the achievements of the industry as a whole should not go unnoticed. Notwithstanding new technology and the arrival of new models and increasing imported vehicles, the South African motorist is enjoying the benefits of the self-critical and customer-focussed efforts of the South African manufacturers and distributors to deliver world class quality. We are certainly not playing catch-up when compared to international standards but we are, in many instances, leading the way."
This research is part of Synovate’s Competitive Customer Satisfaction (CCSI) research which is the largest survey of its kind in the South African market. Part of this survey includes a Product Quality measurement, which is commonly known as PP100 or Problems per 100 Vehicles. Quite literally this survey measures the number of problems new car owners experience with their vehicles in the first few months of ownership. This means that in this survey, a lower score means a better result.
For the latest Quality Award results on Product Quality (published in October 2007), please go to www.synovate.com/southafrica.
More than 55 000 vehicle owners are interviewed each year and the survey has been extensively used by the manufacturers for more than thirteen years as the benchmark of vehicle quality. Not only is the study utilised by local manufacturers but the information is used by plants exporting vehicles in to South Africa.
About Synovate
Synovate, the market research arm of Aegis Group plc, generates consumer insights that drive competitive marketing solutions. The network provides clients with cohesive global support and a comprehensive suite of research solutions. Synovate employs over 5 700 staff members in 118 cities in 57 countries.
About Aegis Group plc
Aegis Group plc is one of the world's fastest growing marketing communications groups. It operates in media communications with Aegis Media, which includes Carat, Vizeum, Posterscope and Isobar, and market research with Synovate. Listed on the London Stock Exchange, Aegis is capitalised at £1.5 billion. More information on Aegis Group plc can be found at www.aegisplc.com.