great news for GM!

[alocispepraluger102]

Toyota's customer satisfaction takes a hit

U.S. automakers still trail but make strides against foreign rivals in study

By Shawn Langlois, MarketWatch

Last Update: 12:01 AM ET Aug 14, 2007

SAN FRANCISCO (MarketWatch) -- Car buyers, in a surprising shift from a year ago, are more satisfied with their American-made Buicks and Lincolns than they are with their Toyotas these days, according to a University of Michigan study published Tuesday.

But the turnabout isn't indicative of quality and reliability improvements up and down model lineups at both General Motors brand, which has suffered from recalls and other uncharacteristic hiccups, dropping from first place and allowing offerings like Buick and Lincoln-Mercury to climb the list.

"What goes up must come down, but it remains to be seen whether this is just a stumble for Toyota or a sign of something more serious," said Claes Fornell, who heads the study.

"But Detroit automakers would be making a huge mistake if they think the Asians will keep falling back to them," he added. "They have to do it on their own."

Domestics have made gains in the American Customer Satisfaction Index in prior years based on price promotions, which tend to erode profits and sully the brand, Fornell said. Lately though, improvements from General Motors and Ford have come on the crucial quality side.

Still, Lexus owns the top spot with a score of 87 out of 100, up from 86 last year and easily topping the industry average of 82. The high-end brand dethroned parent Toyota's namesake brand, which fell all the way to sixth.

Toyota's score of 84 now trails GM's Buick and Cadillac, Ford's Lincoln-Mercury, and BMW (DE:519000: news, chart, profile) , all of which came in at 86.

A Toyota spokesman, without having seen the full report, declined to comment on the findings.

Toyota, like most high-growth companies, is just dealing with the growing pains that come with rapid expansion, Fornell said.

"I'm a little bit skeptical on their approach to fixing their current problems," he said. "But in the long run, Toyota will find a way to handle it."

Ford, which has been closing plants, cutting jobs and shopping some of its luxury brands, has dealt with the opposite problem. The Blue Oval brand has recently improved quality more than any other on the survey, up 7% over the past two years. Still, at 80, it lags the benchmark.

Chrysler's Jeep brand brought up the rear yet again with its score falling to 75. Mazda and Kia were next from the bottom at 78 each.

The University of Michigan index is based on interviews with more than 65,000 consumers a year and has been released quarterly since 1994. Specific sectors are updated annually.

Last week, J.D. Power's closely watched dependability survey reported similar results, with Buick joining Lexus as the most reliable brand. Lexus had ruled the roost all by itself for 12 straight years. See full story.

But while it's true the Big Three are making some headway against the Asian manufactures, as a group, they still rank last. And it'll likely take more than a few positive study results to make a measurable difference in car buyer preferences. End of Story

Shawn Langlois is a reporter for MarketWatch, and the editor of its community message boards.

Edited August 14, 2007 by alocispepraluger102

[Rooster_Ties]

My wife and I bought a Prius about 15 months ago, with absolutely no complaints. Would buy another one again in a heartbeat.

And even without the 45 MPG gas mileage (sometimes closer to 50), I'd still buy the car again based solely on performance, handling, and comfort alone.

The only thing I wish is that there had been a Prius station wagon, although with the back seats down and the hatchback, the car is at least 2/3rds of a station wagon already.

[Jazzmoose]

Damn; slapping my monitor really hurt. Thanks a lot, Tom...

[Chuck Nessa]

Guess they didn't talk to our daughter. Her Chevy roof leaks and drops water in the back seat. It's her first GM machine and she won't get another.

Edit to say the silverish plastic (on the armrests, surrounding the window controls) are really black plastic with silver paint. Fingernails, searching for the controls, scrape the paint off.

Edited August 16, 2007 by Chuck Nessa

[alocispepraluger102]

Guess they didn't talk to our daughter. Her Chevy roof leaks and drops water in the back seat. It's her first GM machine and she won't get another.

Edit to say the silverish plastic (on the armrests, surrounding the window controls) are really black plastic with silver paint. Fingernails, searching for the controls, scrape the paint off.

aloc was chagrinned to note that dashboards are no longer real chrome, like his 54 and 62 chevys, nor are the the bumpers metal with shiny shiny chrome.

aloc buys a car every 10 or 15 years, so he isnt very up to date on things.

the aloc was offering encouragement to his michigan friends.

Edited August 16, 2007 by alocispepraluger102

[T.D.]

I guess you could consider it a good sign, but I don't think GM (or Ford, or Chrysler) makes any money on US sales of passenger cars (the $ is made in trucks and certain foreign markets). So it's essentially a story about "loss leaders".

I'll definitely look to Asia for my next auto. Aside from quality issues, GM doesn't really offer models I'd want...