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New Study Says People Count in Measuring Automotive Defects

1 June 1998

New Study Says People Count in Measuring Automotive Defects

    SAN DIEGO, June 1 -- Strategic Vision today announced the
results of its Problem Impact Measure (PIM) that gauges the effect of initial
problems on new car buyers.  The new study reveals that if fixed or not
serious, many defects have little or no impact on customers' satisfaction with
their new vehicles.
    Based on responses of more that 32,000 owners, the best full-line
corporation was Honda, with only nine percent reporting defects unresolved or
serious enough to affect their sense of satisfaction.  General Motors was
highest at 18 percent.
    By brand, only six percent of Acura owners reported defects lowered their
sense of satisfaction, while 35 percent of Kia owners were affected.  Tying as
the least impacted models were the Acura Integra, the BMW 318 ti and the
Mercedes Benz S-Class at four percent.
    "When we reviewed the automotive reliability statistics from other
companies," said Strategic Vision vice president Daniel Gorrell," we
discovered that they rely on a simple count of problems, usually expressed in
terms of things-gone-wrong.  They leave people out of the equation."
    "Basically they treat an engine failure the same as a loose screw in a
trim piece, while in fact, only five percent of new vehicle owners report
defects as serious.  How does the problem impact the owner - is it a nuisance
or does if hinder the freedom to go where you want and the security of getting
there safely?"
    "Other companies also fail to take into consideration how the problem is
resolved by the dealer.  In reality, Strategic Vision's research shows that a
problem fixed quickly by the dealer can actually improve customers' overall
satisfaction with their vehicle."
    Plus, Gorrell said, Strategic Vision factors into its measure the often-
overlooked issue of owner expectations.  "Owners of Lexus and Hyundai vehicles
have far different expectations of reliability and, thus, the impact of
defects will be quite different for each."
    Overall, the study revealed reliability for 1998 models was generally
under control.  Industry wide, 36 percent of new owners reported a defect.
Those problems affected new vehicle satisfaction for only 15 percent.

    Other highlights, showing the percentage of buyers who were impacted by
problems, reveal:
    *  Worst individual model:  1997 Kia Sephia (36 percent; the 1998 models
may be better)
    *  Most improved from 1997:  Land Rover, now at an industry-average 15
percent impacted.  A tremendous effort by the Rover Group and its dealers is
paying off.
    *  Biggest surprise:  Lexus, with 15 percent impacted, equal to the
industry average and pulled down by the GS300 / 400.

    New owners surveyed had purchased their vehicles in October and November
of 1997 and had driven them at least 90 days before they were surveyed.
    Despite relatively low impact scores, "manufacturers shouldn't stop
attending to reliability," said Gorrell.  "Any defect costs money in warranty
claims and damage to brand reputation.  The Problem Impact Measure is,
however, a wakeup call to manufacturers and consumers to consider severity and
resolution of problems as well as incidence when they hear defect statistics
cited."
    Additional information on Strategic Vision, its Total Quality Index(TM)
and the Problem Impact Measure are available at http://www.vision-inc.com.