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What do J.D. Power's quality ratings really measure?

Check these recently released J.D. Power Initial Quality Study (IQS) results. Do they raise any questions in your mind? Premium sports-car maker Porsche sits in first place for the third straight year, so are Porsches really the best-built cars in the U.S. market? Korean brands Kia and Hyundai are second and fourth, so are Korean vehicles suddenly better than their US, European, and Japanese competitors? Are workaday Chevrolets (seventh place) better than premium Buicks (11th), and Buicks better than luxury Cadillacs (21st), even though all are assembled in General Motors plants with the same processes and many shared parts? Are Japanese Acuras (26th) worse than German Volkswagens (24th)? And is "quality" really what it used to be (and what most perceive it to be), a measure of build excellence? Or has it evolved into much more a measure of likeability and ease of use? To properly analyze these widely watched results, we must first understand what IQS actually studies, and what the numerical scores really mean. First, as its name indicates, it's all about "initial" quality, measured by problems reported by new-vehicle owners in their first 90 days of ownership. If something breaks or falls off four months in, it doesn't count here. Second, the scores are problems per 100 vehicles, or PP100. So Power's 2015 IQS industry average of 112 PP100 translates to just 1.12 reported problems per vehicle. Third, no attempt is made to differentiate BIG problems from minor ones. Thus a transmission or engine failure counts the same as a squeaky glove box door, tricky phone pairing, inconsistent voice recognition, or anything else that annoys the owner. Traditionally, a high-quality vehicle is one that is well-bolted together. It doesn't leak, squeak, rattle, shed parts, show gaps between panels, or break down and leave you stranded. By this standard, there are very few poor-quality new vehicles in today's U.S. market. But what "quality" should not mean, is subjective likeability: ease of operation of the radio, climate controls, or seat adjusters, phone pairing, music downloading, sizes of touch pads on an infotainment screen, quickness of system response, or accuracy of voice-recognition. These are ergonomic "human factors" issues, not "quality" problems. Yet these kinds of pleasability issues are now dominating today's JDP "quality" ratings.

Good Samaritan pulls key from hit-and-run driver

A man in England stopped a hit-and-run driver from fleeing the scene by grabbing her keys from the ignition. On February 13, Michael Scott witnessed a crash on a busy road in Birmingham, England according to the Telegraph. He watched as a Vauxhall Astra crashed into a Porsche right in front of his vehicle. At first, it seemed like the offending driver was going to stop, but she just kept going. Luckily, Scott had his dashboard camera rolling at the time. "I was shocked when the Astra driver didn't stop, and just carried on accelerating up the road," Scott told the Telegraph. "I thought the driver was trying to do a runner, so when the car in front of me moved off I managed to speed up and block the Astra in. Scott rushed ahead of traffic to cut off the Vauxhall in a turn lane a few hundred feet from where the crash originally occurred. The running driver then maneuvered around Scott, but was blocked by another car from making a clean getaway. Scott then nabbed the driver's keys to keep her from fleeing again. "I was in a rush so I couldn't stop, but I gave her keys to the Porsche driver and left," Scott told the Telegraph. "I contacted the police to let them know I had footage of the incident too." When police arrived they found both drivers were unhurt, though the Porsche will probably need some expensive repairs. The fleeing driver was charged with drinking and driving and is currently out on bail.

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury