Latest Quality Study Shows Hyundai Out Ranking Former Heavyweight Toyota

For the first time ever, the Hyundai brand has produced the most leaders on Strategic Vision’s Total Quality Index™ (TQI), leading in three segments. The San-Diego-based research firm today announced 2007 results, based on the ratings of new vehicle owners in 19 product segments.

The only other brand to produce three leaders was Nissan. Hyundai Motors had a total of five leaders (the Kia brand earning two more), Ford Motor and BMW Group each earned three (one for BMW, two for Mini); GM, Honda, and Mercedes each earned two with Dodge, Lexus and Volkswagen each earning one. BMW repeated as the top scoring brand, the eighth time in nine years, and Volkswagen of America kept its claim as the best full-line corporation.

The Total Quality Index™ is the premier measure of new vehicle owner satisfaction. It asks buyers to rate all aspects of the ownership experience, from buying and owning to driving. Although Toyota improved overall with their TQI scores, the most significant change in 2007 is the lack of any Toyota brand segment leaders. Examining the number of problems or Things-Gone-Wrong per vehicle (the traditional definition of quality), Toyota and Lexus are still among the best. However, Toyota’s lead in this narrower definition of quality is now shared with other brands like Honda, Hyundai, Infiniti and domestic brands such as Ford. For example, the Ford Expedition EL enjoyed a very large lead and had fewest problems in the segment. Expedition EL owners recognized innovative changes, which are key to future domestic success.

“With automotive corporations now doing a terrific job in providing vehicles with minimal problems, the Cues of Quality (those product attributes that signal quality and create customer Trust) have a greater impact on the purchase decision. Perceived Quality has the power to change customer’s perceptions of a vehicle from being ‘interesting’ to eventually considered and purchased,” says Alexander Edwards, Strategic Vision President. “In the past, one could count the number of problems per vehicle; but for automotive customers today and tomorrow, a comprehensive and integrated perception of the ownership experience will be what drives the decision making process.”

“Even though Hyundai is often overlooked by the US customer, Hyundai’s success in 2007 is not surprising given its’ current products and press in leadership that is looking to the near and distant future with new designs from styling to powertrain,” reports Dr. Darrel Edwards, Founder and CEO of Strategic Vision.

Long time leader Honda Odyssey (five years in a row) has now been replaced by the Hyundai Entourage, Kia Sedona and Nissan Quest in a three-way tie for this segment. The Ford F-150 returns to a leadership position in this most tightly contested segment, tied with the Nissan Titan.

Buyers rated the following vehicles tops in their segments:

Segment Winner(s) and Over All Scores
Small Car
Honda Civic 882 points

Small Multi-Function
Volkswagen Rabbit 880 points

Medium Car
Saturn Aura 892 points
Nissan Maxima 891 points

Large Car
Hyundai Azera 901 points

Small Specialty Under $25,000
Mini Cooper 911 points

Near Luxury Car
BMW 3-Series Sedan 919 points

Luxury Car
Mercedes-Benz S-Class Sedan 938 points

Convertibles Under $30,000
Mini Cooper Convertible 905 points

Convertibles Over $30,000
Chevrolet Corvette Convertible 930 points

Minivan Kia Sedona
Hyundai Entourage 866 points
Nissan Quest 865 points

Small SUV
Hyundai Santa Fe 885 points

Medium SUV
Kia Sorento 889 points

Medium Crossover
Dodge Magnum 882 points

Large SUV
Ford Expedition EL 918 points

Near Luxury SUV
Lexus RX 350 905 points

Luxury SUV
Mercedes-Benz ML 915 points

Standard Pick-Up
Honda Ridgeline 879 points

Full-Size Pickup
Nissan Titan 876 points
Ford F-150 875 points

Heavy Duty Pickup
Ford F-250/350 876 points

“Unlike last year, we’re seeing many new or redesigned vehicles not ranking near the top of their segments.“ says Alexander. “These vehicles typically have the potential to deliver more rational and emotional elements which are relevant to buyers. Although the Honda Fit, Nissan Versa and Toyota Yaris all did well, they did not hit the same emotional cord which resounded in the DNA of the Volkswagen Rabbit buyers.”

Responses from more than 27,000 buyers who bought 2007 models in September, October and November of 2006 were used to calculate the Total Quality Index™. Strategic Vision has calculated TQI annually since 1995.

gsh23 - 6/4/2007 1:56:13 PM

0 Boost

its no secret the koreans want to be like the japanese...whether its electronics, cars, karaoke, comics, whatever...

mitchatlexusofmarin - 6/4/2007 2:00:55 PM

+2 Boost

Nobody pays any attention to strategic vision- sorry. Their "complete car cost guide" never caught on.

chuck717 - 6/4/2007 2:12:30 PM

+3 Boost

Mitch good take, nobody cares about this TQI index like you said it really hasn't caught on and doesn't challenge lets say a JD Power survey which has clout, very nice observation.

EL34 - 6/4/2007 2:24:53 PM

-7 Boost

Looks like Toyota is going down the tubes.

Agent009 - 6/4/2007 2:55:45 PM

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The JD Power IQS is out this week, so we will see. The problem with it is, that it intentionally very vague.

Will_ - 6/4/2007 3:02:08 PM

+2 Boost

Hyundai has great quality. Accept it as a truth and move on. Congrats Hyundai.

Will_ - 6/4/2007 3:02:52 PM

+4 Boost

But somebody explain how the RX is "Near Luxury" and the ML is "Luxury?"

S4cabriofoxone - 6/4/2007 6:02:37 PM

-1 Boost

It all comes down to brand name. You should know that.

enthusiastx11 - 6/4/2007 10:10:06 PM

-1 Boost

in the auto industry, 'entry-level' in generally defined as $30-45k. luxury is $45-70k and $70k+ is premium.

the RX bases at $37,000, the ML at 44,000. plus the ML has less standard equipment and far more expensive options. so while most RXs (except for hybrid) roll out the door under $45k, the ML typically goes well into the 50s and over 60 for the ML500.

r_driver04 - 6/5/2007 4:15:50 PM

+1 Boost

But how's they're staying power after the 1st 20K miles? That's where the Koreans started falling behind.

Lexus - 6/4/2007 5:53:03 PM

+2 Boost

Look like the German have another rival coming at them soon. The Hyundai are currently working their premium segment to compete with German as well.

I wonder when will their Audi TT killer arrived at the showroom.

S4cabriofoxone - 6/4/2007 6:03:22 PM

+1 Boost

You don't mention how they're going straight for Toyota, and instead talk about how the Germans have another rival? Strange.

"Volkswagen of America kept its claim as the best full-line corporation."

kart1 - 6/5/2007 11:44:51 AM

0 Boost

Hyundai is a Toyota rival, not a German rival. The big clue is how they are replicating Toyota's best aspects into their cars.

enthusiastx11 - 6/4/2007 10:14:12 PM

-1 Boost

"How do you measure the quality of the buying experience?"

think about the last time you made a major purchase. how did you measure the buying experience?

perhaps things like... knowledgeable/courteous salespeople, available inventory, straightforward pricing, efficient process, etc.

have you ever shopped in say...russia or china or half of continenal europe...HORRENDOUS service.

enthusiastx11 - 6/4/2007 10:16:04 PM

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and, huu, you should know how important this is. isn't one of the major reasons for lexus' success. their dealers are known for providing very good sales and service. lexus was built on that service experience in the early 90s when mercedes and bmw dealers were treating people rather poorly

SixxFive - 6/4/2007 7:33:30 PM

+2 Boost

Congrats for outscoring Lexus!!!

enthusiastx11 - 6/4/2007 10:16:48 PM

-1 Boost

if lexus didn't come out on top, it must be bogus...or so goes the line in here.

kart1 - 6/5/2007 11:47:13 AM

+3 Boost

You got it wrong buddy it is:

What the Japanese do the Koreans do cheaper.

enthusiastx11 - 6/4/2007 10:04:00 PM

+1 Boost

very impressive for a company that was making crap cars just ten years ago.

goes to show you that you really can't differentiate a brand on variables that can be easily imitated....quality, reliability, durability. hyundai is now seriously considered by many consumers along with toyota (something that was rarely done just a few years ago).

zorbeeze - 6/4/2007 10:28:30 PM

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I just want to understand why you Toyota freaks cry when the euro fans call BS on surveys that claim Toyota as no.1 and when a survey comes and states a different company as no.1 you do the same as the euro fans and call BS. Ignorance is bliss. I don't see this childish behaviour from Honda fans. Kinda makes me regret being associated with you seeing as i have a Lexus.

vdiv - 6/5/2007 10:00:05 AM

-1 Boost

This is just a bit subjective. I don't believe Hyundai owners' expectations are on the same level as say BMW's for the quality of their car. That said I am very happy that Hyundai is giving Toyota something to think about as they grow huge and forget how they got there.

XYZZ - 6/6/2007 4:46:31 AM

+2 Boost

Strategic Vision has never been known as a RESPECTED source of valid, objective, information.

even JD Powers has far more credibility. and JDP has come down since its early days.

lately, they have INVENTED award categories so some of their clients (mostly manufacturers) wouldn't be totally SKUNKED in surveys, like those for quality and reliability.

this "total quality index" JUST REEKS of being yet another such "invented" category.