Hyundai, Kia outpace Japanese, German carmakers in vehicle quality - The Korea Times

Hyundai, Kia outpace Japanese, German carmakers in vehicle quality

By Lee Hyo-sik

Hyundai Motor and its sister company Kia Motors topped a U.S. vehicle quality study, outpacing most German and Japanese carmakers, the two companies said Thursday.

Citing the 2015 U.S. Initial Quality Study released Wednesday by J.D. Power, a U.S. marketing information service provider, they said Kia Motor came in first among 21 non-premium brands, followed by Hyundai Motor, Chevrolet and Toyota.

Among 33 brands, including 12 premium brands, Kia and Hyundai ranked second and fourth, respectively, ahead of BMW, Lexus, Mercedes-Benz and Audi.

Hyundai Motor Group officials are expressing hope that the latest study will boost its sagging U.S. sales in the coming months.

In a report titled, “Korean brands lead industry in initial quality, while Japanese brands struggle to keep up with pace of improvement,” J.D. Power said Korean brands continue to widen the quality gap with other automakers, while Japanese makers collectively fell below the industry average for the first time in 29 years.

The study examines problems experienced by 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.

Among 21 non-premium brands, Kia posted a score of 86 PP100, followed by Hyundai with 95 PP100, Chevrolet with 101 PP100 and Toyota with 104 PP100.

If 12 premium brands are included in the ranking, Kia came in second after Porsche, which ranks highest in initial quality for a third consecutive year with 80 PP100. Hyundai ranked fourth after Jaguar, which posted a score of 93 PP100. BMW, Lexus, Benz and Audi came in sixth, ninth, 14th and 16th, respectively, meaning that the four popular premium carmakers performed poorer in initial quality than the two Korean automakers.

“This marks the first time in the history of the study that Kia led all non-premium makers in initial quality. This is a clear shift in the quality landscape,” said Renee Stephens, vice president of U.S. automotive quality at J.D. Power. “We are seeing Korean makers really accelerate the rate of improvement.”

By vehicle, Hyundai Motor’s Accent sedan topped the small-size sedan segment, while its Tucson sports utility vehicle (SUV) was rated most reliable in the SUV category. Kia’s Sorento SUV and Soul compact multi-purpose vehicle topped the list in their respective categories.

Hyundai and Kia officials are upbeat about J.D. Power’s latest vehicle quality study, saying that it will improve their brand image among consumers in the world’s largest automobile market.

“Korean consumers think that German and Japanese vehicles are better in quality than Hyundai and Kia cars. But this is clearly not true,” said a spokesman for Hyundai Automotive Group. “The J.D. Power study will definitely provide a boost to our U.S. business. We will continue to make every effort to improve the quality of our vehicles and serve our customers as best as we can.”

Lee Hyo-sik

Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.

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