J.D. Power and Associates and CAR Magazine Report: Initial Quality Gap Between Passenger Vehicles and Pickup Trucks Improves Notably in 2010

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1 J.D. Power and Associates and CAR Magazine Report: Initial Quality Gap Between Passenger Vehicles and Pickup Trucks Improves Notably in 2010 Models from Chevrolet, Honda, Hyundai, Mercedes-Benz, Nissan, Volkswagen and Volvo Each Rank Highest in Initial Quality in South Africa in their Respective Segments; Mercedes-Benz East London Assembly Plant Ranks Highest among Manufacturing Plants JOHANNESBURG: 19 January 2011 New-vehicle quality in South Africa has improved considerably, with the quality gap between passenger vehicles and pickup trucks narrowing by more than 50 percent in 2010, compared with 8, according to the J.D. Power and Associates/CAR Magazine 2010 South Africa Initial Quality Study SM (IQS) released today. The improvement in new-vehicle quality is due to a combination of widespread improvement in existing models and the phasing out of old designs that had lower levels of initial quality, said Brian Walters, vice president of J.D. Power and Associates Europe and Africa research operations. The study is a customer-driven measure of problems experienced during the first three to seven months of ownership, and examines 228 individual problem symptoms across nine factors: vehicle exterior; the driving experience; features/controls/displays; audio/entertainment/navigation; seats; heating, ventilation and air conditioning (HVAC); vehicle interior; engine/transmission; and other problems. All problems are identified as the number reported per 100 vehicles (PP100), with lower scores indicating fewer problems and better quality. Among passenger-vehicle models, initial quality averages 184 PP100 in 2010, compared with 245 PP100 in 8. Similar gains are demonstrated among pickup truck models, with initial quality averaging 227 PP100 in 2010, compared with 333 PP100 in 8. While initial quality is still higher for passenger vehicles, on average, compared with pickup trucks, the gap between the two segments has narrowed from 88 PP100 in 8 to 43 PP100 in Based on international measuring standards, the J. D. Power and Associates Initial Quality Study is seen as the global benchmark of such studies, as it represents the voice of the customer, said Hannes Oosthuizen, editor of CAR Magazine. Car Magazine is delighted to cover these IQS research results with its readers IQS Ranking Highlights Models that receive initial quality awards are as follows: Lower small car segment: Honda Jazz (for a sixth consecutive time) Lower compact car segment: Hyundai i10 Upper small car segment: Volkswagen Jetta Medium car segment: Mercedes-Benz C-Class Compact SUV segment: Nissan X-Trail Medium SUV segment: Volvo XC60 Compact pickup segment: Chevrolet Corsa Utility (Page 1 of 3)

2 The Mercedes-Benz East London assembly plant that produces the Mercedes-Benz C-Class ranks highest among South Africa plants in initial quality for a third consecutive year. Vehicle assembly plants are ranked based solely on the number of defects and malfunctions in vehicles produced at the plant. Following the Mercedes-Benz East London assembly plant in the plant rankings are the Toyota Prospecton and GM Struandale plants. With 103 PP100, Mercedes-Benz ranks highest among passenger-vehicle nameplates. Honda (121 PP100) follows Mercedes-Benz in the rankings. Rounding out the top five are Audi (133 PP100), BMW (138 PP100) and Mazda (142 PP100). The study finds that the number of quality problems experienced has a direct impact on customer recommendation rates. Among customers who experience one or no problems, 82 percent say they definitely would recommend their vehicle to a friend, relative or colleague. Among customers who report two or more problems, the recommendation rate declines to 57 percent. Since its launch in the United States in 1987, the IQS has become a quality standard used by virtually every automotive manufacturer around the world. In addition to South Africa, J.D. Power and Associates conducts the IQS in nine other markets: China, Germany, India, Indonesia, Japan, Malaysia, Thailand, the United Kingdom and the United States. The 2010 South Africa Initial Quality Study is based on a representative sample of more than new-vehicle owners who purchased their vehicles between November 9 and June The study was funded entirely by J.D. Power and Associates as part of its global research programs, in co-operation with the Department of Transport (DOT) and the Road Traffic Management Corporation (RTMC), and includes a section of questions to assist the authorities in measuring the performance of its vehicle and drivers licensing program. About J.D. Power and Associates Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies. About The McGraw-Hill Companies Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor s, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 9 were $5,95 billion. Additional information is available at About CAR Magazine CAR Magazine is read by an average of people each month. CAR Magazine also publishes The results of the J.D. Power and Associates /CAR Magazine 2011 South Africa Initial Quality Study SM (IQS) are published in the February 2011 issue of CAR Magazine. J.D. Power and Associates Media Relations Contacts: John Tews; Troy, Mich., U.S.A; (248) ; Brian Walters; Guildford, Surrey, UK; UK Phone: ; South Africa Phone: ; (Page 2 of 3)

3 No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. # # # (Page 3 of 3) NOTE: Three charts follow.

4 J.D. Power and Associates 2010 South Africa Initial Quality Study SM (IQS) Initial Quality Nameplate Ranking Passenger Vehicles Problems per 100 Vehicles (Lower score reflects better quality performance) Mercedes-Benz 103 Honda Audi BMW Mazda Kia Volvo Suzuki Toyota Hyundai Land Rover Passenger Vehicle Segment Average Volkswagen Chevrolet Daihatsu Ford Nissan 260 Renault 285 NOTE: The passenger vehicle segment includes car and SUV models only. Included in the study, but not ranked due to small sample size are: Chery, Chrysler, Citroën, Dodge, Fiat, Geely, GWM, Jaguar, Jeep, Lexus, MINI, Mitsubishi, Opel, Peugeot and Tata. Source: J.D. Power and Associates 2010 South Africa Initial Quality Study SM (IQS) Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power and Associates as the publisher and the J.D. Power and Associates 2010 South Africa Initial Quality Study SM (IQS) as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates study results without the express prior written consent of J.D. Power and Associates. (Page 2 of 3)

5 J.D. Power and Associates 2010 South Africa Initial Quality Study SM (IQS) Initial Quality Nameplate Ranking Pickup Trucks Problems per 100 Vehicles (Lower score reflects better quality performance) Toyota 165 Opel Isuzu 216 Pickup Truck Segment Average 227 Ford 264 Nissan 288 NOTE: The pickup truck segment includes compact pickup truck and one-ton pickup truck (single and double cab) models only. Included in the study, but not ranked due to small sample size are: BAW, Chevrolet, Fiat, GWM, Hyundai, Kia, Mazda, Mitsubishi and Tata. Source: J.D. Power and Associates 2010 South Africa Initial Quality Study SM (IQS) Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power and Associates as the publisher and the J.D. Power and Associates 2010 South Africa Initial Quality Study SM (IQS) as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates study results without the express prior written consent of J.D. Power and Associates.

6 J.D. Power and Associates 2010 South Africa Initial Quality Study SM (IQS) Top Vehicles per Segment in Initial Quality (Lower score reflects better quality performance) Problems per 100 Vehicles Lower Compact Car Hyundai i10 Chevrolet Spark Lower Small Car Honda Jazz 100 Mazda Opel Corsa 122 Upper Small Car Volkswagen Jetta Audi A3 Mercedes-Benz A-Class Medium Car Mercedes-Benz C-Class 97 Audi A5 98 Compact SUV Nissan X-Trail Volkswagen Tiguan Honda CR-V Medium SUV Volvo XC60 Toyota Land Cruiser Prado Compact Pickup Chevrolet Corsa Utility Opel Corsa Utility 163 NOTE: For an award to be presented, there must be a minimum of three models with sufficient sample in a given vehicle segment. In addition, rankable models must account for at least 67 percent of a vehicle segment s sales. These criteria are not met, and thus, no awards are presented in the following segments: upper compact car; lower luxury car; lower sports car; compact MPV; large MPV; luxury SUV; one-ton single cab/extended cab pickup and one-ton double cab pickup. Source: J.D. Power and Associates 2010 South Africa Initial Quality Study SM (IQS) Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power and Associates as the publisher and the J.D. Power and Associates 2010 South Africa Initial Quality Study SM (IQS) as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates study results without the express prior written consent of J.D. Power and Associates. (Page 2 of 3)

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