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July 13, 2007

New Vehicle Quality Around The World

Each year, J.D. Power and Associates conducts its Initial Quality StudySM (IQS) to measure owner-reported problems after 90 days of new-vehicle ownership. The IQS study, first conducted in the United States in 1987, is the firm's most recognized study today. In addition to the U.S. IQS, the firm conducts IQS in other countries, including Japan, South Africa, Malaysia, India, Indonesia, Thailand, the Philippines, and China.

In the firm's 2006 Japan Mini-Car IQS, the Daihatsu Move Latte (which sounds like a coffee drink from Starbucks) ranks highest in initial quality. Following the Latte are the Mitsubishi i, the Honda Zest, the Nissan Moco, the Honda Life (a great car name), and the Daihatsu Esse and Move, all of which performed above industry average.

In Indonesia, Thailand, and the Philippines, automakers Toyota and Honda dominate the ranking, which makes it challenging for local, domestic automakers. In the 2006 Indonesia IQS, the Toyota Yaris, the Toyota Vios (think Corolla), the Toyota Fortuner (think 4Runner), and the Toyota Kijang Innova (think small Mercedes-Benz R-Class) lead their respective segments.

In the 2006 Thailand IQS, the Toyota Yaris, Toyota Corolla Altis, Toyota Hilux Vigo (like the U.S. Tacoma), and the Toyota Hilux Vigo Prerunner lead their segment. And in the 2006 Philippines IQS, the Honda CR-V and Toyota Corolla Altis receive the highest scores. Remember that all of these rankings are based on each country's new-vehicle owner ratings and not the opinions or preferences of J.D. Power and Associates.

The model rankings are more diverse in South Africa. In the 2006 South Africa IQS, Honda, BMW, Mercedes-Benz, Subaru, and Audi are the top five industry nameplates, with only six nameplates ranking below industry average. In the 2006 Malaysia IQS, models such as the Perodua Kelisa (looks like a modern, updated Yugo, but is unrelated), Toyota Vios, Honda Civic, and Inokom Matrix (rebadged Hyundai mini-MPV) are the top-performing models in their respective segments.

In India, segment leaders include the Maruti Zen (think Chevy Aveo, but smaller), Ford Ikon (a sedan version of the Ford Fiesta), Honda City, Honda Civic, and Toyota Innova. In China, top-ranked models include the Chevrolet Spark; Suzuki Swift; Nissan Tiida (similar to our Nissan Versa); and the Honda Civic, Accord, and Odyssey.

With more than 300 models available in the United States, we have the largest range of choices by far. A few of the same models that earn top initial quality scores in the U.S. were the same ones that earned the highest rankings in initial quality abroad, although the models might be slight variations on the same theme. In addition, even global models—such as the Toyota Corolla—offer different engines, features and styling options for consumers in different parts of the world.

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