New-Vehicle Launches Still Problematic, But Improving

Those Costly Glitches and Embarrassing hiccups that historically accompany new-model launches are becoming less frequent, says a J.D. Power and Associates researcher.

While it is “still largely true” that problems are associated with new-product introductions, auto makers are becoming more proficient because of improved manufacturing processes and accumulated experience, says Dave Sargent, the consultancy's vice president-research.

“Some models still come out with quality challenges, but as a whole, OEMs are getting better at avoiding those,” he tells Ward's as J.D. Power releases results of its inaugural Vehicle Launch Index.

The new index considers turn rates, vehicle revenue, dealer profit, incentive spend, credit quality and residual values to determine the overall success of a new-model launch. Results of the consultancy's annual quality and consumer appeal surveys also are taken into account.

J.D. Power studied data associated with 27 '08 and '09 all-new or redesigned vehicles launched during the first 10 months of last year. The '09 Hyundai Genesis sedan was judged to have the best launch with a score of 689.

The '09 Ford F-150 and '09 Volkswagen Tiguan placed second and third with tallies of 673 and 663, respectively.

The '09 Toyota Matrix occupied the bottom ranking with a score of 439. The '09 Dodge Ram placed 26th with a tally of 459, while the '09 Pontiac Vibe, which shares its platform with the Matrix, scored 504.

“It is more critical than ever for manufacturers to launch new models that meet their financial targets, as well as product quality and consumer-appeal benchmarks,” says Gary Dilts, J.D. Power's senior vice president-global automotive.

“Strong showings by new models are vital to the economic security of the auto makers and will be instrumental in rebuilding Americans' confidence in the auto industry.”

Through June, confidence was clearly waning, according to Ward's data. The seasonally adjusted annual rate of sales was 9.6 million, compared with prior-year's 14.6 million.

No Gain in Vehicle Quality, Power Study Reveals
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