Redesigned Malaysia Automotive Initial Quality Study Shows Customers Experience Most Problems with Vehicle Exterior and Engine/T

J.D. Power Asia Pacific Reports: Perodua Myvi, Honda City, Honda Civic, Toyota Innova, and Ford Ranger Rank Highest in Initial Quality in Their Respective Segments

SINGAPORE: 30 November 2007 — Malaysian new-vehicle owners report experiencing the most problems with the vehicle exterior and engine/transmission, according to the J.D. Power Asia Pacific 2007 Malaysia Initial Quality StudySM (IQS) released today.

The study, which serves as the industry benchmark for new-vehicle quality measured at two to six months of ownership, has been completely redesigned in 2007 and now the study measures more than 200 problem symptoms covering eight vehicle components: vehicle exterior; driving experience; features/controls/displays; audio/entertainment/navigation; seats; HVAC; vehicle interior; and engine/transmission. All problems are summarized as the number of problems reported per 100 vehicles (PP100), with lower scores indicating a lower rate of problem incidences and higher quality.

The study finds that initial quality of new vehicles in Malaysia averages 146 PP100. Issues concerning the vehicle exterior and engine/transmission account for approximately 40 percent of total problems reported. Among vehicle exterior problems, customers cite “excessive wind noise” most frequently, while “excessive fuel consumption” is cited the most within engine/transmission category.

“The redesigned IQS still highlights the pivotal role of vehicle quality in brand advocacy,” said Endina Widartama, country manager at J.D. Power Asia Pacific, Singapore. “Among customers who say they have experienced no problems with their new vehicle, 40 percent say that they ‘definitely would’ recommend the model they bought to friends or relatives. However, when customers start experiencing problems, this percentage drops to 29 percent. In recent years, new-vehicle sales have started to show signs of slowing. Therefore, it is critical for manufacturers to continuously improve their product quality in order to reap the benefit of positive word of mouth.”

2007 IQS Ranking Highlights

For a second consecutive year, Perodua models lead the compact car segment. The Perodua Myvi ranks highest in the segment with 142 PP100, followed by the Perodua Kelisa and Proton Savvy, in a tie (161 PP100).

Honda models capture two of five segment awards—more than any other automaker in the study. The Honda City ranks highest in the entry midsize car segment with a score of 84 PP100. For a second consecutive year, the Honda Civic leads the midsize car segment, earning a score of 112 PP100.

In the MPV/ Van segment, the Toyota Innova leads the rankings with a score of 102 PP100, followed by the Naza Citra (153 PP100) and Toyota Avanza (155 PP100).

In the pickup segment, the Ford Ranger ranks highest with a score of 98 PP100. Following the Ford Ranger in the segment rankings are the Toyota Hilux (101 PP100) and the Nissan Frontier (180 PP100).

The 2007 Malaysia IQS is based on evaluations from approximately 2,800 owners who purchased their new vehicle between October 2006 and June 2007. Vehicles evaluated included 52 passenger car, pickup and utility vehicle models covering 14 different brands. Fieldwork for the study was conducted from April to August 2007.

The IQS is one of three consumer-based studies that J.D. Power Asia Pacific conducts in Malaysia. The 2007 Malaysia Customer Satisfaction Index (CSI) Study, which measures customer satisfaction with authorized dealer after-sales service, was released in July 2007. The 2007 Malaysia Sales Satisfaction Index (SSI) Study, which measures customer satisfaction with the new-vehicle sales process, was released in October 2007.

About J.D. Power Asia Pacific
J.D. Power in the Asia Pacific region has offices in Tokyo, Singapore and China conducting customer satisfaction research and providing consulting services in the automotive, information technology and finance industries. Together, the three offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at http://www.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. www.jdpower.com/corporate

Source: J.D. Power and Associates

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