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Vehicle problems soar to all-time high in J.D. Power Initial Quality Study

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Nearly new models poised to become part of your used or certified pre-owned inventory are arriving with soft consumer perceptions.

In the wake of the COVID-19 pandemic, initial vehicle quality notably declined, according to the J.D. Power 2022 U.S. Initial Quality Study (IQS).

Experts explained disruptions caused by the pandemic — supply chain issues, record-high vehicle prices and personnel dislocations — contributed to vehicle problems reaching a record high in the 36-year history of this benchmark study.

Compared with 2021 results, J.D. Power indicated the industry experienced an 11% increase in problems per 100 vehicles (PP100), which is 18 PP100 worse than last year, resulting in an industry average of 180 PP100.

Experts pointed out that a lower score reflects higher vehicle quality. 

J.D. Power highlighted General Motors bucked the trend with an improvement in initial quality that lands it in the highest rank position among automakers

Among its brands, Buick’s quality improved 17 PP100 year-over-year, vaulting it to ranking highest overall in 2022 from 12th place in 2021,

Genesis ranked highest among premium brands.

Just nine of 33 ranked brands improved in vehicle quality year-over-year, according to J.D. Power.

“Given the many challenges automakers and their dealers had to face in the past year, it’s somewhat surprising that initial quality didn’t fall even more dramatically,” said David Amodeo, director of global automotive at J.D. Power.

“In general, initial quality has shown steady improvement throughout the history of this study, so the decline this year is disappointing — yet understandable,” Amodeo continued in a news release. “Automakers continue to launch vehicles that are more and more technologically complex in an era in which there have been many shortages of critical components to support them.”

As mentioned now in its 36th year, the U.S. Initial Quality Study is based this year on responses from 84,165 purchasers and lessees of new 2022 model-year vehicles who were surveyed early in the ownership period.

The study is based on a 223-question battery organized into nine vehicle categories:

—Infotainment
—Features, controls and displays
—Exterior
—Driving assistance
—Interior
—Powertrain
—Seats
—Driving experience
—Climate

The study is designed to provide manufacturers with information to facilitate the identification of problems and to drive product improvement. The study was fielded from February through May.

“Supply chain disruption, especially the shortage of microchips, has caused automakers to seek alternative solutions to get new vehicles into purchasers’ and lessees’ hands,” Amodeo said. “In some cases, new vehicles are being shipped without some features installed. Communication with them about the changes in feature availability, as well as when such features will be reinstated, is critical to their satisfaction.”

Notable findings from 2022

Other key findings of the 2022 study include:

• Deterioration goes beyond launch vehicles: Both all-new and continuing models increase in problems this year, though all-new models worsen the most (23 PP100). The initial quality gap between all-new and continuing models widened this year to 25 PP100 from 20 PP100 in 2021. The 2022 study found four times as many new models performing worse than their segment averages compared with those that perform better than their segment averages. 

• Mass market vehicles experience fewer problems than premium vehicles: Mass market brands averaged 175 PP100, which is 21 PP100 fewer than for premium brands (196 PP100). J.D. Power said premium brand buyers typically purchase more technology in their vehicles, and the added complexity of that tech increases the likelihood of problems.

Given the challenging task of launching new vehicles in the current environment, mass market carryover vehicles are most likely to achieve high-ranking initial quality.

“Owners of premium-brand vehicles experience more problems than mass market vehicle owners, continuing a trend that started in 2016,” Amodeo said. “But some brands, notably Genesis and Lexus, have largely been able to avoid that issue.”

• Infotainment systems remain the most problematic area: The infotainment category continued to be the most problematic, with an average of 45.0 PP100 — which is 19.5 PP100 more problems than the next-highest category.

Six of the top 10 problem areas in the study are infotainment-related, including: Android Auto/Apple CarPlay connectivity (5.8 PP100); built-in voice recognition (4.0 PP100); difficulties with touchscreens/display screens (3.5 PP100); built-in Bluetooth systems (3.4 PP100); not enough power plugs/USB ports (2.9 PP100); and inconsistent audio volume (2.7 PP100).

• Battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) more problematic: Owners of BEVs and PHEVs cited more problems with their vehicles than do owners of vehicles with internal combustion engines (ICE).

ICE vehicles averaged 175 PP100, PHEVs average 239 PP100 and BEVs — excluding Tesla models — average 240 PP100. (Tesla models average 226 PP100 and are shown separate from the BEV average because the predominance of Tesla vehicles could obscure the performance of the legacy automakers that have recently introduced BEVs.)

• Driving assistance issues grow: Problems with advanced driving assistance systems (ADAS) declined in 2021 but have increased in 2022. The most problematic ADAS system is lane departure warning/lane-keeping assistance with 4.1 PP100.

• Tesla Motors officially included for the first time: Tesla Motors is included in the industry calculation for the first time, with a score of 226 PP100.

However, because Tesla Motors does not allow J.D. Power access to owner information in the states where that permission is required by law, Tesla vehicles remain ineligible for awards.

Highest-ranking brands and models

Buick is the highest-ranking brand in overall initial quality with a score of 139 PP100. Dodge (143 PP100) came in second and Chevrolet (147 PP100) finished third.

Among premium brands, Genesis (156 PP100) ranked highest and ranked fourth overall. Lexus (157 PP100) came in second and Cadillac (163 PP100) landed in third.

The parent corporation receiving the most model-level awards is General Motors (nine awards), followed by BMW AG (five); Hyundai Motor Group (three); Ford Motor Co. (two); and Toyota Motor Corp. (two). Among brands, Chevrolet receives the most segment awards (six), followed by BMW (four).

Other specific accolades include:

• GM models that rank highest in their respective segments are Buick Encore GX, Cadillac Escalade, Cadillac XT6, Chevrolet Corvette, Chevrolet Equinox, Chevrolet Malibu, Chevrolet Silverado, Chevrolet Silverado HD and Chevrolet Tahoe. The Chevrolet Corvette is the highest-ranking model overall with 101 PP100.

• BMW AG models that rank highest in their respective segments are BMW 2 Series, BMW 7 Series, BMW X1 and BMW X3.

• Hyundai Motor Group models that rank highest in their respective segments are Genesis G80, Hyundai Accent and Kia Forte.

• Toyota Motor Corp. models that rank highest in their respective segments are Lexus IS and Toyota 4Runner.

• Ford Motor Co. models that rank highest in their respective segments are Ford Ranger and Lincoln Nautilus.

7 fastest-selling used cars last month were alternative-fuel vehicles

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The automotive topic de jour — low vehicle supply, driven by a chip shortage, among other factors — is certainly at play in the iSeeCars.com list of fastest-selling used vehicles in January.

But there’s another major macro-economic driver leading to many of these cars flying off dealer lots: good ol’ fashioned high gas prices.

The entire top seven and 12 of the top 20 fastest-selling used vehicles last month were

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New leader atop list of fastest-selling used vehicles

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An alternative-fuel model once again topped the monthly iSeeCars.com list of fastest-selling used vehicles, but it was not the one that has led the rankings the past four months.

Snapping the Tesla Model 3’s streak in October was the Honda Insight hybrid sedan, which took an average of 20.5 days to sell.

It was one of six hybrids on the list of 20 fastest-selling used cars last month — all from Toyota or Honda — including the Toyota Prius Prime, which was No. 2, taking 21.2 days to sell.

Other hybrids on the list included the Honda Clarity Plug-In Hybrid (sixth, 23.9 days to sell), Toyota Prius (seventh, 24.8), Toyota Highlander Hybrid (12th, 27.6), the Honda Accord Hybrid (14th, 28.9) and the Toyota RAV4 Hybrid (20th, 30.2).

“The Honda Insight debuted in 2019, while the Honda Clarity debuted in 2018, meaning that most used versions are just now becoming available and are in high demand,” iSeeCars executive analyst Karl Brauer said in the analysis.

“Just as in the new car marketplace, Toyota’s used hybrid and plug-in vehicles are hot sellers due to their reliability and advanced technology, not to mention fuel prices that have shot up more than 25 percent over the past 12 months.”

The Model 3, which had been the fastest-selling used vehicle for four straight months, came in at No. 3, with a turn time of 21.5 days.

“The Tesla Model 3 has remained popular since its highly anticipated debut, thanks to impressive technology and performance at a relatively affordable price compared to Tesla’s earlier vehicles,” said Brauer. “A new version of the Model 3’s Standard Range Plus variant is sold out for the remainder of 2021 to further add to the already-high demand for used versions, some of which are being sold at higher prices than new versions.”

To compile the rankings, iSeeCars examined more than 200,000 new- and used-car sale in October. The used cars it analyzed were from the 2016 through 2020 model years.

The average turn time for used cars in the study was 44.7 days, compared to 32.8 days in September. For new cars, the turn-time was 31.7 days, up from 24.6 in September.

“The demand for new and used cars has slowed in October, which is likely the result of increased inventory over September and because elevated car prices may have deterred consumers from buying a car until prices stabilize,” Brauer said. “Production halts and restricted inventory continue to beset the auto industry, but we did see an incremental improvement this past month.”

 

 

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