2010 J.D. Power and Associates Initial Quality Study
Key Messages and Q & A
June 17, 2010
JD POWER IQS SURVEY JUNE 2010
HYUNDAI KEY MESSAGE
Hyundai remained well above industry average and within striking distance of the lead in the 2010 J.D. Power and Associates Initial Quality Study. Our number three non-premium ranking (number seven overall) shows that our quality improvements are keeping us in the top echelon of manufacturers. Accent’s win in the sub-compact category proves that quality and value can go hand in hand. Tucson’s incredible improvement shows that even all-new models can come to market with outstanding quality, when the appropriate processes and controls are applied.
But we are never satisfied with just being above industry average. Hyundai’s goal is nothing short of quality leadership, and the report shows we have work to do. So we’ll get back to work to ensure an even better performance in next year’s study.
Q: What attributed to Hyundai’s drop in the overall rankings?
A: Sales mix became the critical factor in 2010 in the overall decline. In fact, the IQS report shows that Hyundai lost 7 points over its 2009 score (which led all non-premium brands) and that the entire decline was attributable to sales mix. We were in the middle of model-year changeovers with some of our high-volume models. Our dealers were still selling 2009s, yet only 2010s are eligible for the study. That affected our mix and, we feel, skewed the results. As an example, vehicles like the 2010 Tucson, which performed well, were under-represented by sales volume over the span of the study, and models like the Genesis Coupe were over-represented. We’ve asked J.D. Power and Associates to review this methodology. But there’s no doubt the study shows we have room for improvement.
Q: Are you concerned with the results?
A: We’re always concerned with quality. It is our top priority at Hyundai. But we remained in the top three among non-premium nameplates and the gap between Hyundai, Honda and Ford was very close. And we significantly outperformed some brands like Toyota, Nissan and Subaru.
Q: How did the new Tucson do in IQS?
A: Tucson scored the second-best improvement over any model in the study, improving by 53 problems per 100. It proves that an all-new model can still have great initial quality when the proper protocols and controls are in place.
Q: Was HMMA responsible for your drop in the rankings?
A: No. In fact, HMMA was the highest-rated Hyundai manufacturing facility in this report.
Q: How did Toyota’s quality issues affect the study?
A: Hard to say, but I think if nothing else, Toyota’s issue points out the need to keep quality on top of every manufacturer’s priority list.
Q: What changes are you going to make to improve your ranking?
A: Hyundai is always evaluating ways to improve processes so we can do better and will continue to do so. We are always trying improve processes with product development, dealers, benchmarking the competition, meeting customers needs with current products and developing new products to exceed those needs.
Q: What has been the reaction of your parent company?
A: HMA and HMC share the same vision for the Hyundai brand – to build the highest quality vehicles in the industry. Together we will analyze the data and it will reinvigorate our commitment to improve quality across all models. We know the competition won’t stand still, and we won’t either.