Toyota Models Rank Highest in Three Taiwan Initial Quality Award Segments

J.D. Power Asia Pacific Reports: Initial Vehicle Quality Records Industry-Wide Improvement in 2007

SINGAPORE: 8 October 2007 — Toyota ranks highest in initial quality in three of eight segments, according to the J.D. Power Asia Pacific 2007 Taiwan Initial Quality StudySM (IQS) released today. Honda, Hyundai, Lexus, Nissan and Suzuki each rank highest in one vehicle segment.

The study measures problems that customers experience with their new vehicles during the first two to six months of ownership. The study examines more than 200 problem symptoms affecting quality across eight categories: vehicle exterior; driving experience; features, controls and displays; audio, entertainment and navigation; seats; heating, ventilation and cooling (HVAC); vehicle interior; and engine and transmission. Overall performance is determined by the problems experienced per 100 vehicles (PP100), with lower scores indicating a lower rate of problem incidences and higher quality.

For a second consecutive year, Toyota models rank highest in three segments, with the Toyota Camry leading the premium midsize car segment at 228 PP100. The Toyota Vios (275 PP100) ranks highest in the entry midsize segment, while the Toyota Previa (206 PP100) ranks highest in the MPV segment. The Lexus ES continues to rank highest in the luxury car segment with 108 PP100, setting an industry benchmark with the fewest problems reported among models examined in the study.

The Hyundai Getz (277 PP100) ranks highest in the compact car segment, while the Suzuki SX4 (256 PP100) tops the rankings in the premium compact car segment. Debuting in the midsize car segment in 2007 is the Nissan Sylphy, which ranks highest at 281 PP100, and the Honda New CR-V (215 PP100) leads in the SUV segment.

“On average, new models initially encounter more problems at launch due to the changeover of the manufacturing line,” said Sareem Chen, senior manager of automotive research at J.D. Power and Associates, Singapore. “This general trend, however, has deviated in 2007, as four of the highest-ranking models are either new launches—such as the Nissan Sylphy and Suzuki SX4—or are redesigned models, such as the Hyundai Getz and Honda CR-V. This shows that manufacturers are striving to achieve higher initial quality when launching new models to ensure solid competitiveness in the marketplace.”

The study finds that problems experienced with new vehicles in Taiwan have declined 21 percent from 2006 to 325 PP100 in 2007. Among the 42 models included in both the 2007 and 2006 studies, 39 have recorded quality improvements from 2006. Additionally, the quality gap between the highest- and lowest-ranking makes has decreased from 450 PP100 in 2006 to 307 PP100 in 2007.

“The shrinking quality gap highlights the fact that all manufacturers are striving to improve their vehicle quality,” said Chen. “This demonstrates how much more competitive the market has become, which is good news for consumers, who will ultimately benefit.”

While manufacturers demonstrate overall improvements in two-thirds of the problem symptoms examined in the study compared to 2006, the most considerable improvements are in the areas of driving experience, vehicle interior, and engine and transmission.

The study also finds that on average, owners experience three problems with their new vehicle during the first two to six months of ownership.

The 2007 Taiwan Initial Quality Study (IQS) is based on evaluations from nearly 6,000 owners who purchased a new vehicle between December 2006 and May 2007. The study includes 50 vehicle models among 12 different makes. The study was fielded in July 2007.

The 2007 Taiwan Automotive Performance, Execution, and Layout (APEAL) Study, measuring what excites and delights owners about their new-vehicles’ performance and design, will be released mid-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. J.D. Power Asia Pacific was first established in Tokyo followed by J.D. Power and Associates, Singapore in 1999 and J.D. Power and Associates in China in 2004. 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 http://www.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 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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