The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

J.D. Power and Associates 1998 Initial Quality Study 2(SM):

3 June 1998

J.D. Power and Associates 1998 Initial Quality Study 2(SM):
    Chrysler Receives First-Ever Quality Awards, Lexus Remains the Quality
                                  Benchmark

    AGOURA HILLS, Calif., -- The results of J.D. Power and
Associates completely redesigned annual Initial Quality Study (IQS2) were
unveiled today, and contain an intriguing mix of consistency and surprise.
Noteworthy results include the first IQS awards Chrysler has ever received,
more quality benchmark performances from Lexus, and three top-ranking models
for Honda -- more than any other individual make.
    Chrysler's all-new Concorde debuts with the best quality score of any
premium midsize car.  While all-new models typically launch with quality
"teething" problems, Chrysler Seems to have avoided them with the Concorde.
The Concorde's performance is especially noteworthy given the Concorde's
development process, which relied heavily on virtual design and very little on
clay modeling and physical prototypes.  The Chrysler Cirrus also posts a best-
in-segment performance in the Entry Midsize Car category, giving Chrysler a
clean sweep in the important Midsize Car segments.
    Toyota's Lexus Division continues its consistent excellence in vehicle
quality as the LS400 again earns the best score of any vehicle in the study,
receiving the Best Premium Luxury Car award.  This is the fifth year out of
the last six that the LS400 has earned this distinction.  The ES300 tops the
Entry Luxury Car category, providing Lexus with a sweep of its own in the
Luxury Car segments.
    Honda, another make with a strong quality pedigree, distinguishes itself
again in 1998 with three top-ranking models.  The Prelude earns the best score
of any Sporty Car, the CR-V tops all Compact SUVs, and the Odyssey receives
the Compact Van award in the last year of it's current generation model.
    The Initial Quality Study has been redesigned for 1998 for the first time
since its inception in 1987.  In the decade since its launch, both the
vehicles and the consumers who drive them have changed.
    "The redesign of this annual quality benchmark is intended to keep pace
with industry changes.  IQS2 gives consumers the opportunity to more fully
describe any problems they may have experienced through the addition of more
diagnostic questions.  The study also addresses
technologies and features that are becoming commonplace in today's vehicles,"
commented Chance Parker, director of product research at J.D. Power and
Associates.  "Features like ABS, airbags, remote keyless entry, traction
control, and yes, even cupholders are issues for today's consumer and have
been added to the survey.  All in all, IQS2 simply provides vehicle
manufacturers with a better understanding of how they compare to their
competition, and why," Mr. Parker concluded.
    Due to the increased product and diagnostic coverage of IQS2, it is only
natural that the number of problems reported by consumers would go up compared
to 1997 results.  That is, in fact, the case as the industry average problems
per 100 in IQS2 stands at 176.  This is double the industry average reported
in the 1997 IQS study, but does not mean that quality has deteriorated in the
past year.  In fact, behind-the-scenes research using last year's survey with
owners of 1998 model-year vehicles shows that, overall, the industry has
managed to maintain last year's best-ever-recorded levels of quality.  The
IQS2 problems per 100 number is higher simply because the new survey is more
sensitive to consumer problems and provides more problems to report.
    Conducted annually, the J.D. Power and Associates IQS2 study monitors the
number of problems new-vehicle owners experience in the first three months of
ownership. The study is the industry quality standard in ranking current-year
models based on problems per 100 vehicles covering 135 specific problem areas
over nine vehicle sections. The 1998 study reports responses from more than
58,000 owners of 1998 model-year vehicles.
    J.D. Power and Associates is an international firm best known for its
marketing information services in key business sectors including market
research, forecasting and customer satisfaction.  The firm's quality and
satisfaction measurements are based on actual customer responses from over one
million consumers annually.  With its headquarters in Agoura Hills,
California, the firm also has U.S. offices in Torrance, California; Michigan;
and Connecticut.  Its international locations include Japan, Korea, England,
Canada and Brazil.
    J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com.  Media email contact: john.pepitone@jdpower.com.
    This press release is provided for editorial use only.  No advertising or
other promotional use can be made of the information in this release or J.D.
Power and Associates survey results without the express prior written consent
of J.D. Power and Associates.


           J.D. Power and Associates 1998 Initial Quality Study 2SM
              Top Three Vehicles Per Segment In Initial Quality

    Car Segments                                    Truck Segments

    Compact Car                                     Compact Pickup
    Best: Ford Escort                               Best: Nissan Frontier
    Mercury Tracer                                  Toyota Tacoma
    Honda Civic (tie)                               Mazda B-Series
    Saturn SL Sedan (tie)

    Entry Midsize Car                               Full-Size Pickup
    Best: Chrysler Cirrus                           Best: Toyota T100
    Nissan Altima                                   Ford F-Series
    Ford Contour                                    Chevrolet C/K

    Premium Midsize Car                             Compact Van
    Best: Chrysler Concorde                         Best: Honda Odyssey
    Chevrolet Lumina                                Dodge Caravan
    Mercury Sable                                   Toyota Sienna

    Sporty Car                                      Compact Sport Utility
    Best: Honda Prelude                                 Vehicle
    Acura Integra                                   Best: Honda CR-V
    BMW 318Ti                                       Nissan Pathfinder
                                                    Toyota 4Runner

    Entry Luxury Car                                Full-Size Sport Utility
    Best: Lexus ES300                                   Vehicle
    BMW 3-Series                                    Best: Ford Expedition
    Acura TL                                        Chevrolet Suburban
                                                    GMC Yukon

    Premium Luxury Car                              Luxury Sport Utility
    Best: Lexus LS400                                   Vehicle
    Acura RL                                        Best: Infiniti QX4 (tie)
    BMW 5-Series                                    Best: Lincoln Navigator
                                                        (tie)
                                                    Land Rover Range Rover

    Sports Car
    Best: Mercedes-Benz SLK
    Porsche Boxster (tie)
    Porsche 911 (tie)

    Note: Full-Size Van segment not included due to insufficient sample.
    Charts and graphs extracted from this press release must be accompanied by
a statement identifying J.D. Power and Associates as the publisher, and the
J.D. Power and Associates 1998 Initial Quality Study 2SM as the source.  No
advertising or other promotional use can be made of the information in this
release or J.D. Power and Associates survey results without the express prior
written consent of J.D. Power and Associates.