Honda Models Capture Most Awards in J.D. Power and Associates' 2007 APEAL Study

Higher Vehicle Appeal May Allow for Lower Dealer Incentives

WESTLAKE VILLAGE, Calif., June 28 /PRNewswire-FirstCall/ -- Honda captures four model segment awards -- more than any other vehicle nameplate this year -- according to the J.D. Power and Associates 2007 Automotive Performance, Execution and Layout (APEAL) Study(SM) released today.

The study, now in its 12th year, measures owner delight with the design, content, layout and performance of their new vehicles. APEAL is designed to complement the J.D. Power and Associates Initial Quality Study(SM) (IQS), which focuses on problems experienced by owners during the first 90 days of ownership. APEAL measures how gratifying a new vehicle is to own and drive.

Honda's four segment-leading models are the Fit (in a tie), Honda CR-V, Honda Ridgeline and Honda Odyssey. BMW and Mercedes-Benz receive three segment awards, while Ford, Nissan and Volkswagen each garner two awards. BMW models receiving awards include the BMW 3 Series, BMW 6 Series and BMW X5, while Mercedes-Benz earns awards for the Mercedes-Benz E-Class, Mercedes-Benz S-Class and Mercedes-Benz GL-Class. Ford models earning awards are the Ford Mustang and Ford Edge. Volkswagen receives awards for the Volkswagen Jetta and Volkswagen GTI, while Nissan earns awards for the Nissan Altima Sedan and Nissan Armada.

The study also finds that, for models with higher APEAL scores, vehicle manufacturers and dealers can offer lower incentives to new-vehicle buyers. On average, owners of vehicles with APEAL scores lower than 800, based on a 1,000-point scale, report receiving dealer incentives of approximately $2,000. For purchasers of models with average APEAL scores higher than 800, the incentive amount can decline by up to 10 percent.

"Vehicle models with strong customer appeal tend to be in higher demand, which diminishes the need for dealers to incentivize to boost sales," said Neal Oddes, director of product research and analysis at J.D. Power and Associates. "Offering larger incentives decreases the profitability of vehicles, so it's important for manufacturers to incorporate those 'must-have' features and design elements that will entice buyers, which also reduces the need for large customer cash rebates."

A number of all-new and redesigned models lead the model rankings for 2007. Ten of the top-ranking models in the APEAL study -- the BMW X5, Cadillac Escalade EXT (in a tie), Ford Edge, GMC Sierra LD, Honda Fit, Honda CR-V, Mercedes-Benz GL-Class (in a tie), Mercedes-Benz S-Class, Nissan Altima Sedan and Toyota Yaris (in a tie) -- were all-new or redesigned this year. Also receiving awards are the Hyundai Azera and Porsche Cayman.

"Whether due to fresh designs or innovative features, APEAL scores tend to be highest for models when they are first introduced," said Oddes. "It's essential for manufacturers to get new-vehicle launches right, since vehicles with high appeal scores generally command a higher gross profit and sell more quickly. Two of the redesigned models -- the Mercedes-Benz S-Class (in a tie) and Honda CR-V -- also earned awards in the 2007 Initial Quality Study, and are examples of how manufacturers can learn from preceding models to improve in both initial quality and appeal."

The Nissan Armada ranks highest in its segment for a fourth consecutive year. Several models, including the Ford Mustang, Honda Ridgeline and Honda Odyssey rank highest in their respective segments for a third consecutive year, while the Porsche Cayman and Hyundai Azera earn awards for a second consecutive year. The Mustang and Mercedes-Benz E-Class also rank highest in their segments in both the APEAL study and IQS.

Porsche is the highest-ranking nameplate in APEAL for a third consecutive year. The most improved nameplate in the 2007 study is Scion.

The 2007 APEAL Study is based on responses gathered between February and May 2007 from more than 91,000 purchasers and lessees of new 2007 model-year cars and trucks who were surveyed after the first 90 days of ownership.

Find more detailed findings on new-vehicle APEAL performance as well as model photos and specs by watching a video, reading an article and reviewing appeal ratings at JDPower.com.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE:MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional information is available at http://www.mcgraw-hill.com/

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. http://www.jdpower.com/corporate

2007 Nameplate APEAL Ranking(Based on a 1,000-point scale)

Porsche - 849
BMW - 847
Mercedes-Benz - 844
Jaguar - 841
Lexus - 836
Audi - 829
Infiniti - 823
Cadillac - 818
Land Rover - 816
Acura - 815
Lincoln - 810
Scion - 809
Volkswagen - 800
Volvo - 792
Saab - 784
Mazda - 777
Honda - 776
Nissan - 776
HUMMER - 773
Industry Average - 772
Mitsubishi - 770
GMC - 768
Hyundai - 766
Chevrolet - 763
Pontiac - 762
Toyota - 761
Saturn - 757
Ford - 754
Buick - 750
Mercury - 743
Kia - 742
Chrysler - 740
Suzuki - 738
Dodge - 737
Subaru - 724
Jeep - 718

NOTE: Not included due to small sample size are: Isuzu and MINI.

Top Three Models per Segment
Car Segments
Sub-Compact Car
Highest Ranked: Honda Fit (Tie), Toyota Yaris (Tie)
Nissan Versa

Compact Car
Highest Ranked: Volkswagen Jetta
Volkswagen Rabbit
Honda Civic

Compact Sporty Car
Highest Ranked: Volkswagen GTI
Scion tC
Volkswagen Eos

Compact Premium Sporty Car
Highest Ranked: Porsche Cayman
Porsche Boxster
Mercedes-Benz CLK-Class

Entry Premium Car
Highest Ranked: BMW 3 Series
Lexus IS 250/IS 350
Acura TL (Tie)
Audi A4 (Tie)

Midsize Premium Car
Highest Ranked: Mercedes-Benz E-Class
Lexus GS 350/GS 430/GS 450h
BMW 5 Series

Large Premium Car
Highest Ranked: Mercedes-Benz S-Class
BMW 7 Series
Lexus LS 460

Premium Sporty Car
Highest Ranked: BMW 6 Series
Mercedes-Benz SL-Class
Chevrolet Corvette

Midsize Sporty Car
Highest Ranked: Ford Mustang
Mitsubishi Eclipse
Chevrolet Monte Carlo

Midsize Car
Highest Ranked: Nissan Altima Sedan
Volkswagen Passat
Saturn AURA

Large Car
Highest Ranked: Hyundai Azera
Toyota Avalon
Dodge Charger

Truck / Multi-Activity Vehicle (MAV) Segments
Compact MAV
Highest Ranked: Honda CR-V
Mazda CX-7
Toyota FJ Cruiser

Midsize MAV
Highest Ranked: Ford Edge
Saturn Outlook
GMC Acadia

Large MAV
Highest Ranked: Nissan Armada
Chevrolet Tahoe
Chevrolet Suburban

Midsize Premium MAV
Highest Ranked: BMW X5
Audi Q7 (Tie)
Mercedes-Benz M-Class (Tie)

Large Premium MAV
Highest Ranked: Cadillac Escalade EXT (Tie), Mercedes-Benz GL-Class (Tie)
Lincoln Navigator

Large Pickup
Highest Ranked: GMC Sierra LD
Chevrolet Avalanche
Chevrolet Silverado LD

Midsize Pickup
Highest Ranked: Honda Ridgeline
Ford Explorer Sport Trac
Toyota Tacoma

Van
Highest Ranked: Honda Odyssey
Kia Sedona
Hyundai Entourage

NOTE: Models with multiple trim levels are combined for ranking purposes.



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