Kia And Genesis Take The JD Power Initial Quality Study's Top Two Spots — Does The REST Of The Auto Landscape Have Something To Learn?

You have to give it up for the Korean automakers. They're crushing it.

Not only have the past several years shown us how to turn around an automaking empire, their vehicles are becoming desirable in a big way.

Hell, I remember the days when driving a Hyundai or Kia meant you were shrouded with embarrassment. Now, you're a smart guy or gal if you snap one of their rides up. That's because their economical, typically boast aggressive retail prices and come with what is, arguably, a great warranty.

And now Kia and Hyundai's Genesis are cleaning up when it comes to the JD Power Initial Quality Study. Kia and Genesis took the first and second place spots, respectively. Third place went to Porsche who followed closely behind Genesis.

But if you look at the chart below, it's clear that the Korean automakers are onto something and they're beating the rest of the auto manufacturers by a clear mile — the lower score is what you want.

So, I've got to ask: Does the REST of the automotive landscape have something to learn?

The J.D. Power U.S. Initial Quality Study^SM (IQS), published since 1987, examines problems experienced by original vehicle owners during the first 90 days of ownership. Initial quality is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

This year’s study shows an 8% improvement in quality. Once again, the Korean brands outperform their Japanese, domestic, and European competitors. And, Kia ranks highest overall for a second consecutive year...

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MDarringer - 6/22/2017 8:26:49 AM

-3 Boost

No, but it means that Kia and Genesis are doing a lot to provide an excellent customer experience. The "initial quality" measure is heavily shaped by customer experience with the dealer. If the customer can be kept happy through the honeymoon phase, their responses to IQS will tend to be favorable.

TheSteve - 6/22/2017 11:56:32 AM

+4 Boost

I've done the J.D.Powers initial quality survey. It does NOT measure defects. It does not even measure independently validated facts. It reports on how the customer FEELS about things. In other words, "customer complaints." This does not discredit the report, but it does reposition it as being primarily subjective.

Examples of potential customer complaints, which are reported as "problems", could include:
- Infotainment system is complex
- I don't like the engine sound
- My wife complains that the ride is too harsh
- I can feel the automatic transmission downshift as I approach a stoplight
- I hate the Engine Stop/Start system
- I don't like that I got a space-saver spare
- My fuel economy is worse than expected
etc. etc.

So in large part, the ratings on this survey are actually reporting the difference between the consumers' expectations and what was actually delivered. It's possible, and arguably likely, that when someone buys an economy car or a "saved a lot of money with the brand" car, the consumer's expectations are comparatively lower than when buying a mid-market or premium vehicle.

In light of this, what could other manufacturers learn from these survey results? Well, if you make a nice economy car, and brand it and price it as such, your customers will tend to have a smaller gap between their expectations and your product's offerings.

cidflekken - 6/22/2017 2:37:59 PM

+3 Boost

I agree with Steve as well. I was sent this survey and was a bit perplexed by the questions that didn't seem like true "problems" to me.

TomM - 6/22/2017 3:25:45 PM

+3 Boost

And I agree as well. I have pointed out for a while that until I actually SEE the survey questions - and find out WHO was asked and how they were chosen - I put little confidence in customer "survey polls". This is an example where the survey is called the Initial Quality Survey - but it really does not measure initial quality at all - it really measures Initial Customer Satisfaction - which we know to be something different.

I have participated in many polls where the questions were obviously leading you to a specific conclusion - and were asked in such a way that you could not go in their direction. I also participated - when I was in College - in a study of Ducks - which essentially was to determine if Ducks gained weight if given more food. (Most animals do only to a certain point - most will not gain so much weight as to affect their ability to protect themselves.) However - at the time - it really seemed stupid to me.

Agent00R - 6/22/2017 7:17:51 PM

0 Boost

Completely valid points, Steve.

But how a customer FEELS is a big part of the experience these days in the influencer economy...

TheSteve - 6/23/2017 2:23:58 AM

+1 Boost

Agent00R: I agree that the way a new car-owner feels about their car does have an impact. You see this in terms of word of mouth, brand loyalty, and so on.

I'm just highlighting that J.D. Powers' "Initial Quality" report has less to do with quality -- as defined by lack of defects, high level of fit and finish, luxurious materials, etc. -- and more to do with meeting entirely arbitrary consumer expectations, which don't translate well for comparison purposes outside of the survey-filler's narrow context. For example, I believe Rolls Royce could not leverage Kia's "talent" or "insights" to increase their own "quality" survey, because RR customers have dramatically different expectations that those of Kia customers.

Perhaps a more accurate (but less marketable) name for this report would be... well, um... more accurate... but rendering the report less marketable. "The New Car Initial Customer Expectation Fulfillment Report"? Meh.

countguy - 6/22/2017 1:25:31 PM

+2 Boost

Not surprising as people who buy lower end car brands have lower expectations, while luxury performance brand buyers expect more and have higher standards.

MDarringer - 6/22/2017 4:26:22 PM

0 Boost

The real issue with JD Power is that they are in business to sell their endorsement to manufacturers to use in advertising.

JD Power doesn't care what consumers think, they care only what they can get them to say.

I fully expect VW to suddenly be #1 in IQS suddenly because (1) VW needs that for advertising and (2) VW will pay to get it.

JD Power to the rescue!