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2023 J.D. Power Initial Quality Study shows there's less quality than last year

Vehicle inventory, vehicle pricing, and the supply chain are finally showing improvement. Vehicle quality, on the other hand, is still going the wrong way. That's the takeaway from the 2023 J.D. Power Initial Quality Study that found overall problems exceeded last year's record high. The study surveyed owners of 2022-model-year vehicles to assess the average rate of problems per 100 vehicles (PP100) during the first 90 days of ownership. The average figure for the 32 ranked manufacturers in 2020 was about 166 problems per 100 vehicles. In the 2021 IQS, that dropped to an average of 162. For 2022, the average jumped to 180 problems. For 2023, the PP100 is up to an industry average of 192 — an increase of 30 problems per 100 vehicles in just two years. Let's get to the good news first: Dodge reclaimed the crown of having the lowest number of problems per 100 vehicles at 140. Buick won last year with 139 PP100, falling to third this year. Dodge was the first American automaker to top the IQS in 2021. Its return as the least problematic gives parent company Stellantis three wins in four years after Ram was crowned in 2021. It also gives U.S. brands a four-peat after Buick topped the chart in 2022 by having owners report the fewest problems. This year's top 10 is Dodge, Ram, Alfa Romeo, Buick, Chevrolet, GMC, Porsche, Cadillac, Kia, and Lexus. Stellantis gathered a few feathers for its cap, in fact. Maserati showed the largest improvement year-on-year, followed by Alfa Romeo, and Alfa Romeo posted the lowest PP100 among the premium class, beating Porsche and Cadillac. Alfa Romeo has been vocal about working to improve quality, mentioning Lexus as a target. Last year the Japanese brand finished sixth, the Italians finished near the bottom, between Jaguar and Mitsubishi. This year Alfa jumped to third, Lexus dropped to tenth. Ram was the third-best on the list of improvers from 2022 to 2023.   The individual model with the lowest PP100 is the Nissan Maxima. Now for the troublesome bits. In the words of Frank Hanley, senior director of auto benchmarking at J.D. Power, "The industry is at a major crossroad and the path each manufacturer chooses is paramount for its future.

Porsche and Buick earn top honors in J.D. Power Sales Satisfaction Index Study

Customer satisfaction with car buying has been at a low point over the past few years, as price increases, inventory shortages, and COVID restrictions have complicated every part of the process. There are signs of improvement, however, as J.D. Power’s 2023 U.S. Sales Satisfaction Index Study showed that customer satisfaction has improved slightly from a year ago. J.D. Power rates satisfaction on a 1,000-point scale, finding that it improved seven points to 793 from last year. Improving inventory levels and a slow leveling off of prices have contributed to that improvement, and fewer people are paying above MSRP for new cars. Some auto brands performed better than others with sales satisfaction. Porsche ranked highest among premium brands, followed by Alfa Romeo. Buick took the top spot among mass-market brands, with GMC, Chevrolet, and Mitsubishi behind. J.D. Power also handed out segment-level awards: Premium Cars: Porsche Premium SUV: Porsche Mass-Market Car: Chevrolet Mass-Market SUV/Minivan: GMC Mass-Market Truck: GMC Despite the increase in sales satisfaction, thereÂ’s still room for improvement to reach pre-pandemic levels. J.D. Power noted gaps in salesperson knowledge as an area of improvement. Buyers rated salespeople much better during a gas vehicle purchase than with EVs, citing their expertise as a challenge. Pricing remains a challenge despite an improvement since 2022, and satisfaction is still below pre-pandemic levels. Mass-market buyers reported a slight bump in satisfaction, while premium buyers felt that pricing was less fair than a year before. ItÂ’s an interesting contrast, showing that dealer pricing tactics can significantly impact satisfaction with the sales process. Fewer people may be paying more than MSRP, but several premium models still list with significant markups. Even more interesting is PorscheÂ’s top spot on the satisfaction list, as its cars often sell with huge upcharges, and itÂ’s exceedingly tricky even to get a build allocation for some models. Buick Chevrolet GMC Porsche Car Buying Ownership

Buick to kill Verano as early as 2017

The Buick Verano's days are allegedly numbered. Citing unnamed sources, Automotive News is reporting that Buick will kill its Delta-platform-based sedan. The company offered the typical "no comment." According to AN, Buick is expecting 70 percent of its sales to come from the Encore, Envision, and Enclave once the Envision goes on sale. And it doesn't take a professor of economics to recognize that when half the vehicles you build account for just 30 percent of the sales, it's time to trim. But the case for killing the Verano is a weird one, because the problem isn't a lack of demand. Struggling sales might be the reason to kill a car, but the Verano is – and has consistently been – Buick's second best-selling sedan. It's beaten the slightly larger, more expensive Regal by at least 12,000 units in each of the last four years. Hell, in 2013, Buick sold 45,000 Veranos to fewer than 19,000 Regals. So why not kill the Regal? Well, the Verano's raison d'etre is irrelevant today. Buick launched its smallest sedan at a time when premium compact four-doors weren't a thing and gas prices were high enough that consumers were still hesitant to tie themselves to a CUV's fuel bill. And while it was roughly the same size as the Chevrolet Cruze that it shared GM's Delta platform with, it had enough unique equipment to stand apart and warrant its price premium. Today, fuel prices are cheap and consumers are flocking to crossovers while Buick is stuck sharing the premium compact pie with much more prestigious names ( Mercedes-Benz and Audi). And because it's sharing showroom space with the super-popular Encore, even the Verano's affordable pricing has become a liability. Today, a lightly equipped Verano is the same price as a base Encore, and they offer broadly similar features (rear-view cameras, a seven-inch touchscreen with Intellilink, Bluetooth, etc.). And if the Encore is too small, there's probably a GMC Terrain sitting in the same showroom, offering more utility and equal equipment to the Verano for a similar price. As one dealer told AN, "For not much more money, customers can get an SUV." Killing the Verano might risk 30,000 to 40,000 sales, but it's a move that proves Buick has tremendous confidence in its CUV lineup – clearly the company thinks the Encore can do the job of luring customers into showrooms. AN's sources claim the Verano will survive through 2017, so we'll be waiting a few years to find out if that faith is misplaced. Related Video: