By Associated Press | August 16, 2005
DETROIT -- A survey of vehicle owners released today suggests that
while this summer's employee discounts may give automakers short-term
sales gains, improving quality is more important in the long run.
Toyota Motor Corp. got the top score, 87 out of 100, in the University
of Michigan's American Customer Satisfaction Index. Owners were asked
about their overall satisfaction and their satisfaction level versus
expectations. They also were asked to rate how their vehicles compare
to their ideal vehicles.
Honda Motor Co., BMW AG, and General Motors Corp.'s Cadillac and Buick
brands rounded out the top five. Ford Motor Co.'s Ford brand got the
lowest score, 75.
Half of the brands improved their scores from last year, including
Hyundai Motor Co. and GM's Pontiac brand. One-quarter stayed the same,
while one-quarter saw their scores drop, including Nissan Motor Co.
and Ford's Lincoln and Mercury brands.
University of Michigan professor Claes Fornell, who compiles the index,
said Hyundai's rapid climb shows that focusing on quality can significantly
improve satisfaction ratings. Hyundai was at the bottom of the index
with a record low score of 68 in 1999, Fornell said. Quality and styling
improvements and the introduction of the industry's first 10-year, 10,000-mile
warranty catapulted Hyundai to number six this year.
''That's something to hold up for Detroit, that this can be done. It's
possible," Fornell said. ''You don't have to give away cars."
Fornell said the Big Three US automakers should spend less on incentives
and more on quality improvements. US automakers spent an average of
$4,239 per vehicle on incentives in July, compared to $2,372 for European
brands and $1,619 for Asian brands, according to Autodata Corp.
''It's a dangerous path that the domestic industry is on," he
said.
