Auto Reliability - Manufacturer Product Quality Change in the US Car Market From 1992 to 2010

Each year the Consumer Reports magazine publishesboth.
a list of used cars to avoid based on serious problemsThe Chrysler group has had the third greatest change.
reported by its subscribers. This list encompassesIts share of CR's list of used cars to avoid fell from
convertibles, coupes, sedans, hatchbacks, wagons,25% in 1992 to 18% in 2010. By computation, this is a 7
minivans, sport-utility vehicles with both truck and carpercentage point improvement. However, in this
frames, and pickup trucks. It identifies these vehicles byinstance, the percentage point change may not
model and model year.represent an improvement, for two reasons. The first
The difference between an automobile manufacturer'sis that in 1992 the Chrysler group had 5 lines - Chrysler,
share of entries on this list in 1992 and its share in 2010Dodge, Jeep, Plymouth, and Eagle - and today only 3
provides one measure of a manufacturer's change inof these lines remain, the other two having
product quality. One limitation of this measure is that itdisappeared before 2002. The second is the increased
indexes product quality change only for thosenumber of model offerings by foreign manufacturers
automobile models that fall at the lower or bottom endnoted earlier. Consequently, the reliability stature of
of a manufacturer's product line. Another limitation isChrysler's lower end product offerings may not have
that it does not take account of the large increase inchanged, or may have changed very little.
the number of automobile model offerings andFor the remaining manufacturers with more sizable
automobile sales by manufacturers based in Europesales in the U.S., there has been little change in this
and Asia that has occurred from 1992 to 2010, whichmeasure's values. General Motors Corporation's share
should have occasioned some decline in the shares ofof CR's worst has had a nominal 2 percentage point
the three large U.S.-based manufacturers if their qualitychange from 43% in 1992 to 41% in 2010, Nissan Motor
at the lower end has remained rather constant.Company's share has risen 3 percentage points from
Nonetheless, it is a useful guide for roughly gauging0% to 3%, Toyota Motor Corporation's share has risen
improvement or decline in quality.1 percentage point from 0% in 1992 to 1% in 2010, and
The foregoing measure accords Ford Motor CompanyHonda Motor Company's share has remained
the greatest change in product quality. Ford's share ofunchanged at 0%. General Motors' modest 2
CR's list of used cars to avoid fell from 23% in 1992 topercentage point share decline may represent a slight,
10% in 2010. This gives Ford a 13 percentage pointor greater, worsening in automobile quality at the lower
improvement over the 18-year period. The magnitudeend of its quality spectrum, when account is taken of
of this change, combined with the absence of similarnew foreign model offerings, but Toyota's 1
changes by the other two U.S.-based manufacturers,percentage point increase almost certainly represents
suggests considerable improvement in the quality ofa decline in automobile quality among some of its
Ford's vehicles at the lower end of its quality spectrum.many new and redesigned models of the past
Volkswagen AG has had the second greatest changedecade, as does Nissan's 3 percentage point increase.
by this measure. Its share of CR's list of used cars toIn summary, by change in manufacturer shares of
avoid rose from 2% in 1992 to 11% in 2010. This givesConsumer Reports' used cars to avoid from 1992 to
Volkswagen a 9 percentage point drop in quality over2010, Ford has increased the quality of its products at
the period, although some of the percentage pointthe lower end of its quality spectrum, the Chrysler
change may reflect an increased model offering in thegroup may have increased the quality of its lower end
U.S., or an increase in U.S. sales of existing modelsproducts some, Volkswagen's quality likely has declined
sufficient to provide the consumer survey datasome, and the quality of Toyota's products likely has
necessary to rate more of the existing models, ordeclined a bit or more.