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Innovative Designs and Continuous Improvements are Key

18 September 1998

J.D. Power and Associates Reports: Innovative Designs and Continuous Improvements are Key to Exciting and Delighting Vehicle Buyers
         New Vehicle Designs for Compact Car and Luxury SUV Segments
                         Show Strong Consumer Appeal

    AGOURA HILLS, Calif., Sept. 16 -- Vehicle manufacturers who
market exciting, relevant and innovative products that are responsive to
consumers' needs tend to achieve high rankings in J.D. Power and Associates
APEAL (Automotive Performance, Execution And Layout)(SM) studies, continuing a
trend that began at the study's inception in 1995.
    "Understanding consumer hot buttons, as revealed in three prior APEAL
studies, allows manufacturers to design or modify products to more
specifically address the needs of consumers," said Chance Parker, partner and
director of product research at J.D. Power and Associates.  "High APEAL scores
tend to result when manufacturers respond to consumer preferences with
effectively designed vehicles."
    The study shows that two particularly interesting debut models in the
compact car and luxury SUV niches are home runs from consumers perspective.
In the area of innovative new designs, the VW Beetle and Lexus RX 300 luxury
SUV are highly responsive to consumer desires.  The Beetle, with its unique
styling, addresses consumer preferences for a nostalgic, entry-level vehicle.
Owners of the RX 300, a car/truck hybrid leading the luxury SUV segment, find
the vehicle's unique packaging and car-like creature comforts to be most
appealing.  Owners report that these and other vehicles are redefining the
compact car and luxury SUV segments and are generating excitement in areas
that previously recorded less appealing results.
    Although compact cars typically have generated the lowest scores of any
segment leader, the Beetle's score is higher than awardees in both mid-size
segments.
    A similar trend is occurring in the luxury SUV area.  In the past, the
promise of luxury SUVs remained largely unfulfilled as owners migrating from
premium luxury cars to luxury SUVs reported relatively low ratings.  The
results from this year's line of luxury SUVs are now more closely aligned with
the expectations of the luxury buyer.
    "Several redesigned vehicles leapfrog their competition and take home
awards in this year's study; however, redesigns alone don't guarantee
success," said Jacques daCosta, manager of the APEAL study at J.D. Power and
Associates.  "This year, as in the past, several established models remain the
benchmark among their competitors, illustrating the value some manufacturers
have achieved by successfully combining innovative design with continuous
improvements."
    According to the study, the Chevrolet Corvette, Lexus LS 400, Dodge Dakota
and Dodge Ram remain the benchmarks in this area and are leaders in their
segments.  The Dodge Ram is the most appealing full-size pickup for an
unprecedented fourth consecutive year.
    Other segment leaders include the BMW 318ti, BMW M3, Pontiac Grand Am,
VW Passat, GMC Savana, Land Rover Discovery, Toyota Land Cruiser and Toyota
Sienna.
    The APEAL Study is based on responses from nearly 98,000 car and
light-truck owners after three months of ownership -- the firm's largest
automobile study sample ever produced.  The study addresses eight specific
areas of vehicle performance and design that uncover why consumers feel the
way they do about their vehicles.  These areas include Vehicle Styling; Engine
and Transmission; Comfort and Convenience; Ride and Handling; Seats; Heating,
Ventilation and Cooling; Cockpit and Instrument Panel; and Sound System.
    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 more
than one million consumers annually.  Headquartered in Agoura Hills, Calif.,
the company has U.S. offices in Torrance, Calif., Michigan and Connecticut.
The firm also has international offices serving Canada the United
Kingdom/Europe and the Asia Pacific region.
    J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com.  Media e-mail 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 APEAL Study(SM)

                        America's Most Appealing Cars

    Segment and Award Recipient              Highest Rated Features
    Most Appealing Compact Car
    Volkswagen Beetle                        -- Unique styling
                                             -- Front/rear exterior styling
                                             -- Driver and front passenger leg
                                                and headroom
                                             -- Appearance and style of
                                                wheels
    Most Appealing Entry Mid-Size Car
    Pontiac Grand Am                         -- Unique and expressive styling
                                             -- Interior ventilation and
                                                circulation
                                             -- Useful interior storage space
                                             -- User-friendly interior
                                                controls
    Most Appealing Premium Mid-Size Car
    Volkswagen Passat                        -- Styling of profile, unique
                                                appearance
                                             -- Handling stability, powerful
                                                brakes
                                             -- Spacious interior and headroom
                                             -- Useful trunk and cargo areas
    Most Appealing Sporty Car
    BMW 318ti                                -- Rear seat comfort and
                                                headroom
                                             -- Vehicle ground clearance
                                             -- Driver's visibility
                                             -- Useful and unique cargo space
    Most Appealing Premium Sports Car
    Chevrolet Corvette                       -- Interior comfort
                                             -- Driving range between fuel
                                                stops
                                             -- Driver's seat comfort
                                             -- Powerful engine performance
    Most Appealing Entry Luxury Car
    BMW M3                                   -- Powerful and smooth engine
                                                performance
                                             -- Passing power on the highway
                                             -- Handling stability
                                             -- Automatic transmission
                                                performance
    Most Appealing Premium Luxury Car
    Lexus LS 400                             -- Interior comfort and useful
                                                storage space
                                             -- Fuel economy and driving range
                                             -- Rear passenger legroom
                                             -- Smooth and quiet engine


                J.D. Power and Associates 1998 APEAL Study(SM)

                       America's Most Appealing Trucks

    Segment and Award Recipient              Highest Rated Features
    Most Appealing Compact Pickup
    Dodge Dakota                             -- Overall styling
                                             -- Interior comfort and amenities
                                             -- Smoothness of ride
                                             -- Interior storage space
    Most Appealing Full-Size Pickup
    Dodge Ram                                -- Unique styling
                                             -- Cupholder design
                                             -- Interior storage space
                                             -- Smooth shifting manual
                                                transmission
    Most Appealing Compact Sport Utility
    Land Rover Discovery                     -- Interior passenger headroom
                                             -- Off-road ride and handling
                                             -- Uniqueness of styling
                                             -- Useable storage space
    Most Appealing Full-Size Sport Utility
    Toyota Land Cruiser                      -- Smooth, quiet engine
                                             -- 2WD/4WD ride and handling
                                             -- Driver's visibility
                                             -- Precise automatic transmission
    Most Appealing Luxury Sport Utility
    Lexus RX 300                             -- Fuel economy
                                             -- Interior comfort and cupholder
                                                design
                                             -- Exterior color choices
                                             -- Smooth, quiet engine
                                                performance
    Most Appealing Compact Van
    Toyota Sienna                            -- Smoothness of automatic
                                                transmission shifts
                                             -- Convenience of cupholders
                                             -- Engine smoothness
                                             -- Quietness during highway
                                                driving
    Most Appealing Full-Size Van
    GMC Savana                               -- Useful cargo space
                                             -- Passenger head and legroom
                                             -- Effectiveness of rear air
                                                conditioning
                                             -- Passing power on the highway
                J.D. Power and Associates 1998  APEAL Study(SM)

                   Top Three Models in 12 Major Categories

    Car Segments                         Truck Segments

    Compact Car                          Compact Pickup
    Most Appealing: Volkswagen Beetle    Most Appealing: Dodge Dakota
    Volkswagen Golf                      Chevrolet S-Series
    Pontiac Sunfire                      Ford Ranger

    Entry Mid-size Car                   Full-Size Pickup
    Most Appealing: 1999 Pontiac         Most Appealing: Dodge Ram
     Grand Am
    Volkswagen Jetta                     Chevrolet C/K (tie)
    Chevrolet Malibu (tie)               Ford F-Series (tie)
    Chrysler Cirrus (tie)

    Premium Mid-size Car                 Compact Sport Utility Vehicle
    Most Appealing: Volkswagen Passat    Most Appealing: Land Rover Discovery
    Chrysler Concorde                    Dodge Durango
    Pontiac Grand Prix                   Mercury Mountaineer

    Entry Luxury Car                     Full-Size Sport Utility Vehicle
    Most Appealing: BMW M3               Most Appealing: Toyota Land Cruiser
    Lexus ES 300                         Ford Expedition
    BMW 3-Series                         Chevrolet Tahoe

    Premium Luxury Car                   Luxury Sport Utility Vehicle
    Most Appealing: Lexus LS 400         Most Appealing: Lexus RX 300
    BMW 7-Series                         Lincoln Navigator
    Lexus GS Sedan                       Mercedes-Benz M-Class

    Sporty Car                           Compact Van
    Most Appealing: BMW 318ti            Most Appealing: Toyota Sienna
    Honda Prelude                        Chrysler Town & Country
    Volkswagen GTI                       Honda Odyssey (tie)
                                         Pontiac Trans Sport (tie)

    Premium Sports Car                   Full-Size Van
    Most Appealing: Chevrolet Corvette   Most Appealing: GMC Savana
    Porsche 911                          Chevrolet Express/Sport
    Porsche Boxster                      Ford Van

    Source:  J.D. Power and Associates 1998
             Automotive Performance, Execution And Layout -- APEAL Study(SM)