Conejo Valley Blog

The official guide of things to do, where to eat and places to go in, and around, the Conejo Valley

Archive for the 'Automotive' Category

2007 Kia Rio/rio 5 Tops J.d. Power and Associates Sub-compact Segment

westlake village
Zeke Gervis asked:


J.D. Power and Associates has recently released its 2007 Initial Quality Study SM (IQS) and the 2007 Kia Rio/Rio5 ranked highest in initial quality in the sub-compact segment. This is the second consecutive year that Rio/Rio5 has received this honor.

In 2006 the study was completely redesigned to capture issues experienced by owners in two distinct categories – quality of design and quality of production (defects and malfunctions).

In the study, the Kia Rio/Rio5 topped the sub-compact segment at 102 problems per 100 vehicles (PP100). The annual report measures 228 vehicle attributes across eight categories, including the driving experience, engine and transmission, and a broad range of quality problem symptoms reported by vehicle owners.

For 2007, the Rio and Rio5 model lineup, which includes three trim levels for the four-door sedan – Base, LX and SX – and the Rio5 SX five-door, continues to offer the same combination of engine performance and fuel economy as the 2006 model.

All 2007 Rios feature a 1.6-liter, 4-cylinder, 110-hp engine with a standard 5-speed manual or optional 4-speed automatic. Base models are about as base as they get, without even power steering. The new SX is equipped with larger 15-inch tires, foglights, sporty metallic interior trim, and a leather-wrapped steering wheel. This is on top of what the top-end LX offers, such as power steering, front console and air conditioning.

None of the trims come standard with power features, though there is an optional power package. Rear seats fold 60/40, and the Rio5 hatchback has expanded trunk space. When the seats are down in the hatch, the trunk offers 49.5 cubic feet of storage.

Rio and Rio5 also offer one of the largest interior volumes in their class, as well as six standard airbags, including full-length side-curtain airbags.

Kia Motors America – the sales, marketing and distribution arm of Kia Motors Corp. in Seoul, South Korea – offers a complete line of vehicles through more than 630 retailers throughout the United States. Kia is also maker of top of the line Kia auto parts including Kia oxygen sensor. For more information, including photography, visit www.kiamedia.com.

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually.

Find more detailed findings on new-vehicle quality performance as well as model photos and specs by watching a video, reading an article and reviewing quality ratings at JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.



Virtualization with VMware ESXi
No comments

Ford Tops J.d. Power and Associates’ Survey, Unseats Toyota

westlake village
Kraig Johanssen asked:


Ford Motor Co. has unseated Toyota from the top spot in J.D. Power and Associates’ annual initial quality rankings released Wednesday last week, grabbing more individual awards than any other automaker for the first time since 1998, when it tied for the top spot.

Ford ranked highest in five of 19 segments in this year’s survey. The last time a U.S. automaker was on top was in 1998, when Ford tied with Toyota and Honda. The Dearborn automaker earned segment awards for the Ford Mustang, Lincoln Mark LT, Lincoln MKZ, Mercury Milan and Mazda MX-5 Miata. Mazda, maker of top of the line Mazda timing belt kit, is 33.4 percent owned by Ford.

Ford’s Lincoln brand, which jumped from 12th to third in overall vehicle quality, averaged 100 problems per 100 vehicles — just behind Porsche and Toyota’s Lexus luxury brand, which averaged 94 problems per 100 vehicles.

In the overall ranking of brands, Porsche again dominated — averaging 91 problems per 100 vehicles, as it had last year. That compared with a 2007 industry average of 125 problems per 100 vehicles. Last year it was 124.

Meanwhile world’s current number one automaker, Toyota Motor Corp., captured only four this year — the 4Runner, Sequoia, Tacoma and Lexus RX350/RX400h. The Japanese automaker grabbed the top spot in 11 segments last year.

Toyota had seen its list of quality leaders drop in a quality study released Monday by Strategic Vision Inc., a San Diego-based market research company and consultant to automakers. Despite improving its overall quality, Toyota led in one category in that study - down from four in 2006. South Korean automaker Hyundai Motor Co. led in five categories, outperforming its Japanese, European and U.S. competitors. Last year, it had no winners.

According to Joe Ivers, J.D. Power’s executive director of quality and customer satisfaction, there’s no clear answer for Toyota’s drop. Several vehicles however, brought its quality performance down this year, including the Corolla, Prius and Lexus models.

Toyota spokesman Mike Michels said the company was pleased with its results, adding that Toyota was the second-ranked non-luxury brand and stayed in the top 10 overall. Lexus also maintained its second-place ranking overall.

The LS460 was for the first time not the top-ranked in its segment, coming in a close second to the Audi A8 and Mercedes Benz S-Class, which tied for first. Toyota appears nonplussed with that showing, since it was a redesigned model and had just been shipped to dealers before the survey-taking began.

In the J.D. Power survey, Hyundai fell from third overall to 12th. Oddes said relaunched vehicles such as the Santa Fe did not do as well as the automaker had hoped. The redesigned Elantra however, performed well in its segment.

Lincoln was followed by Honda, Mercedes-Benz, Jaguar and Toyota. Honda, with the fewest problems per 100 vehicles among non-luxury brands, improved in the ranking to fourth from sixth in 2006.

The most improved nameplates in the study are Land Rover, Saab and Mercedes-Benz.

J.D. Power also gave the Platinum Plant Quality Award for producing vehicles producing the fewest defects to Ford’s Wixom Assembly Plant, which stopped making cars last May 31. The Detroit-area plant produced the Lincoln Town Car, which averages 35 problems per 100 vehicles. It was the first North American assembly plant to receive the honor since 1999.

For the study, Westlake Village, Calif.-based J.D. Power collected responses from more than 97,000 buyers and lessees of new 2007 model year vehicles after 90 days of ownership.

This year’s survey included 228 questions and asked for information specifically about design and production, such as defects and malfunctions.



Lincoln Air Suspension
No comments

Chrysler Dropped Plans on the Imperial Luxury Sedan

westlake village
Jason Moore asked:


Chrysler part of the used to be Detroit’s Big Three and producer of American Motors catalytic converter is now down to being the fourth-largest US automaker. And just recently it has announced that it is dropping its plans for a new Imperial luxury sedan due to the rising gasoline prices and tougher fuel-economy regulations.

It can be noted that the Senate has passed a bill last month calling for automakers to raise their average fuel mileage to at least 35 miles a gallon by 2020 the same proposal in the House would also hold manufacturers to the same standard by 2018.

Chrysler’s executives have made the decision within the past few weeks according to the automaker’s spokesman Ed Saenz. The Auburn Hills, Michigan-based automaker has unveiled its Imperial two years ago and has scheduled the production to start in 2009 in Brampton, Ontario.

Saenz said, “There was no business case for us to bring it to the market. We will continue to look for a future product for the plant.” He also added that the decision has put $597 million of investment in the factory on hold but will not affect any of the plant’s 3,500 jobs.

Chrysler will be investing $3 billion in order to produce more fuel-efficient engines and other powertrain components. It is no secret that the automaker has been badly hurt by its reliance on pickup trucks, sport-utility vehicles and minivans that are continuously losing sales as US gasoline prices soared nearly to $3 a gallon. Another reason for Chrysler’s decision to divert its production target is the fact that the US Congress is also considering an increase in fuel-efficiency standards.

Tom Libby, an analyst at marketing-research firm J.D. Power & Associates in Westlake Village, California said, “It makes sense not to build a high-end, lower-volume car when the direction of the market is moving toward smaller vehicles. If there is a hole left in Chrysler’s product lineup without the Imperial, it’s a not a hole in the growing part of the market.”

Chrysler has also planned to pull the production of a new vehicle from the Brampton plant if the Canadian Auto Workers didn’t agree to give up a wage premium of about C$125 a week. The union has initially rejected the pay provision but then changed its decision last March 11 giving way for the planned investment.

Chrysler is being sold by parent DaimlerChrysler AG to Cerberus Capital Management LP which is purchasing 80.1 percent stake in Chrysler in an agreement that includes a $7.4 billion investment and will be completed this quarter.

It was the Windsor Star in Windsor, Ontario that reported the change in plan of Chrysler which is not to go on with the production of the Imperial.



Nissan Pathfinder Suspension - Struts & Parts
No comments

Chrysler Dealers Still Hoping for the Automaker’s Survival

westlake village
Gertrude asked:


The same day that American billionaire and investor Kirk Kerkorian offered a bid of $4.5 billion for Chrysler Corp., is the time that a car salesman in Southold, New York was also dusting off a framed print.

Chrysler dealer Dick Mullen said last April 5 while smiling at an editorial cartoon from the 80s, “Time to hang this up again. It shows a car bursting from the ground beneath a gravestone marked “Chrysler: R.I.P.”

Mullen’s shop has stayed on Long Island’s northeast corner for 80 years and has witness to the rise and fall of Chrysler through decades of miscues. Way back in the 80s the good old Mullen has loaned Chrysler some $10,000 when it was nearing bankruptcy. And today Chrysler’s future is again on the brink as its German parent DaimlerChrysler AG is opening all options for its sale. Despite the somewhat bleak future that Chrysler is facing today, Mullen remained calm and unafraid leavening the wait gallows humor.

According to Mullen, 70 when he told sales Chief Steve Landry at New York Auto Show last April 4, “It’s the fourth time I’m going out of business with you guys, I’m getting a little tired of it.” He also suggested for Chrysler to write a book based partly on his up-and-down ride and pass it out to future executives.

Landry said as a way of confirming his conversation with Mullen, “Most of our dealers have faith, and they know that whatever happens, our brands and products are not going anywhere.” He also said that he plans of meeting with as many as 50dealers this year to answer questions and to mend relationships.

Surveying the business of Mullen and the rest of his fellow car dealers on Long Island, it’s hard to miss the obvious fact that the Japanese carmakers influence has also reached Long Island.

The Union

Chrysler maker of Dodge truck parts and Dodge truck accessories has been a one of the ‘Big Three’ US automaker alongside General Motors Corp. and Ford Motor Co. way back in 1929. Unfortunately out of the ‘Big Three” it’s only GM that has successfully maintained its post.

The wrong decisions that have been plaguing Chrysler started back in 1970s when the Auburn Hills, Michigan-based automaker try to push gas guzzlers as oil buying habits were changing. Chairman Lee Iacocca was able to avoid bankruptcy when it acquired $1.5 billion government-guaranteed loans. After a revival behind the compact K-car and the minivan, the US automaker once again embarked in 1998 on a rocky $36 billion union with Daimler, the maker of Mercedes-Benz.

The union only plunged Chrysler to graver financial crises that went on for more years than anyone can remember. Chrysler has obtained a $1.5 billion loss which prompted its German parent to investigate a sale. It was also then that Chrysler has surrendered the No.3 slot in the US market share to Toyota Motor Corp. Jeeps, Dodge trucks, and minivans have accounted for 70 percent of Chrysler’s sales at the time when gasoline cost nearly $3 a gallon in the US.

The Struggle of Chrysler Dealerships

Mullen for his long years of selling Chrysler products have weathered out very storm. He and his father each bought $10,000 of Chrysler’s debentures in 1980 that earns them 11 percent interest per year interest. It was also their Chrysler dealership that was the first to sell Jeep in the US after the company bought American Motors in 1987. Mullen has met Iacocca twice and later he was invited along a handful of dealers at a lunch at New York’s Waldorf Astoria hotel.

The main purpose of Daimler for purchasing Chrysler is to gain mass-market American foothold. Unfortunately instead of the gain it is expecting it has found itself struggling because of price discounts and union retiree costs that add $1,300 to the price of each car. And today with oil prices surging high some investors see the future of Chrysler as becoming bleaker than before.

According to Tim Gilbert, who helps manage $10 billion in assets including DaimlerChrysler bonds at principal Global Investors in Des Moines, Iowa, “When the product cycle turned, the ugly really outweighed the good.” He also said that he firm is adding more bonds of the Stuttgart Germany-based carmaker because it should be more stable if it sells Chrysler.

DaimlerChrysler shares on the New York Stock Exchange have jumped 25 percent to $80.69 since the company has announced last February 14 of its plans of getting rid of its money-losing arm Chrysler.

Overproduction is the Problem

Mullen says that Eaton was smart to sell when Chrysler was riding high. But he was less happy last year, when Chrysler’s production outstripped demand. Mullen and the other dealers were left with unwanted vehicles. This has provided Mullen with the idea for his book which he has given the theme: ‘Overproduction causes problems.’

Landry also said that he is aware that dealers were upset and that is why he’s meeting with many of them this year. The most perplexing thing that Mullen found on the potential sale is that Chrysler cars have never been better. As a matter of fact the Crossfire sports car shares 40 percent of its parts with Mercedes including the engine. The Chrysler 300 on the other hand makes use of the same axles and transmission as the Mercedes E-Class sedan.

Chrysler is also narrowing the quality gap with Toyota just last year the average new Chrysler had 12 percent more problems than a typical Toyota basing on the results found by researcher J.D. Power & Associates in Westlake Village, California. But despite such that average is much better than the average industry gap of 15 percent and far better than the 22 percent that Chrysler incurred in 2000.



No comments

Ford’s Quality in Par With Toyota

westlake village
Jerick Brooks asked:


The results of the new studies conducted on Dearborn automakers comprising of Ford, Toyota, Nissan, and Honda—shows that the initial vehicle quality of Ford Motor Co. is in only in par with Japan’s Toyota Motor Corp and Nissan Motor Corp. The three automakers were ranked second place. On the other hand, Honda Motor Co. was chosen as the quality leader.

The RDA Group is a market research firm based in Bloomfield Hills that conducts a survey for Ford manufacturer of top-of-the-line Mercury mufflers. The research group in ask 31,000 new vehicle owners of 2007 model cars and trucks from all full-line manufacturers regarding problems that they encountered during the first 90 days of ownership.

The Detroit News in turn evaluates the findings with sources familiar with the report. And according to these sources four Ford vehicles namely the Mercury Milan, Ford Expedition EL, Lincoln Navigator, and Ford Shelby GT-500 — led their segments in initial quality. The main objective of Ford for hiring a research group is to improve further its quality as it tries to hold on to the remaining US market share after years of continuously losing to foreign competitors.

The results of the RDA study show that Ford cars and trucks had 1,458 problems per 1000 vehicles which is 32 problems short of the industry average of 1,490 and 128 lower than what Ford customers has reported last year.

For Ford’s North American brands the results were even better showing Ford, Mercury, and Lincoln with only 1,456 problems per 1,000 vehicles. According to some sources the overall number was slightly affected by the automaker’s European brands. The Mercury Milan with its quality Mercury muffler was one of Ford’s problem-free vehicles obtaining only 910 problems per 1000 vehicles.

Ford spokeswoman Anne Marie Gattari has confirmed the existence of the report but refused to give any details of the said findings. However she said that the company will release the details as soon as possible but they prefer to tell the employees first. She also added that the company’s main concern for now is improving quality which is the very core of the company’s Way Forward turnaround plan.

According to Gattari, “We are pleased with the direction of our quality, but we’re not satisfied. This is something we have to continue to be diligent with. Quality, along with safety, innovation and design, are our top priorities in delivering more vehicles that customers want.”

Attracting consumers…

Although the RDA study has shown that Ford is catching up with its Japanese rivals but it is still behind its Asian competitors when it comes to customer satisfaction which is vital since it determines whether or not customers would endorse the brand to other buyers.

RDA has been conducting an annual survey for Ford way back late 1990s. The research group is also doing the same studies for other automakers. Its findings are as reliable as the closely-watched initial quality survey conducted independently by J.D. Power and Associates of Westlake Village, California. And same with the RDA findings, the J.D. Power study has also shown that Ford’s brands only comes second to Toyota.

Other independent analysts are also conducting their own studies such as the notably Consumer Reports magazine which has taken note of the quality improvement in Ford and recently announced the Milan and its Blue Oval sibling, the Ford Fusion as the most impressive new vehicles for the 2007 model year.

David Champion, senior director for automotive testing at Consumer Reports said, “We see Ford as the top domestic in many ways. They’ve realized they’re going to be eaten for lunch if they don’t produce reliable vehicles.”

Champion also added that the new products of Ford shows some remarkable improvement compared to the previous products that the automaker was offering a few years back. He said that it’s good that Ford is finally learning from its past mistakes as well as from its Japanese affiliate, Mazda Motor Corp. which shares similar production practices with Toyota. However he also said that it would take more than strong initial quality reports to convince car buyer to patronize the brand.



Business Continuity with Asempra
No comments