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Auto on Info  May 2004

Planning to Buy a New Vehicle of a Newly Engineered Model? Cause to Think Twice

In an April 28, 2004, article entitled "Hyundai Up, Nissan Falls in Quality Study," Reuters reports that per the results of the J.D. Power "Initial Quality" survey, the number of complaints per 100 vehicles sold by Nissan North America in the United States rose to 147 in 2004 from 135 in 2003.1 This, by itself, should prompt a goodly amount of concern. In addition, in a May 17, 2004, article entitled "Nissan: The Squeaks Get Louder," Business Week cites instances that suggest that the jump in complaints and the corresponding fall in Nissan's standing among major North American automobile sellers from 6th place to 11th place are reflective of broader quality problems.2 (An earlier AOI article notes that the "initial quality" survey by J.D. Power and Associates may have little, or no, value other than to identify sizable jumps in complaints that may alert consumers to possible broader quality problems. See "Toyota Is First and Honda and Hyundai Tie for Second in the 2004 J.D. Power "Initial Quality" Ranking: Complaints Down," May 2004.) These cited instances, together with the jump in complaints, should prompt the exercise of considerable precaution in the purchase of a new vehicle in the Nissan line, primarily a new vehicle of a newly engineered model. Both articles mention the Titan pickup, the Armada sport utility vehicle, and the Quest minivan as disappointments.1,2

More generally, as several auto manufacturers, especially the Big Three, are planning the introduction of a slew of new models between 2004 and 2007, the current problems of Nissan customers may be precursors to greater-than-usual headaches for buyers of Big Three vehicles of newly engineered models. Consequently, it may be prudent for consumers to shun these new models until there is, if ever, a Reliability Percentrank history satisfactory to the prospective consumer. And better may be to buy a 10-to-25-year-old Toyota or a 10-year-old Honda, provided that good inspection be made prior to purchase.

1"Hyundai Up, Nissan Falls in Quality Study," Reuters, accessible at Yahoo! News

2"Nissan: The Squeaks Get Louder," Business Week, May 17, 2004, p. 44

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1Current data are insufficient to warrant charts.

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Auto on Info Standings for Selected Search Phrases on Auto News

  Site Rank in Results for Search Phrase Car Quality News   Site Rank in Results for Search Phrase Auto Quality News   Site Rank in Results for Search Phrase Auto News
    First by Yahoo! Search from 5,230,000 results     First by Yahoo! Search from 3,510,000 results     Thirty-ninth by Yahoo! Search from 37,600,000 results
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  Standings are as of 14/03/2004.

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