Rare good news for GM as Buick tops Lexus in quality
One of the great benefits of raw capitalism is that consumers get to vote on product quality every day. This means that companies compete with each other to build and service products that win with customers. In the automobile industry, the gold standard for measuring who's up and who's down is the JD Power Vehicle Dependability Survey. And this year, for the first time, Tata Motors' (TTM) Jaguar and General Motors (GM) Buick knocked Toyota Motor Corp.'s (TM) Lexus out of the top spot.
For me, the most amazing thing about this report is that Jaguar has finally climbed out of the cellar of quality problems for which is was known for decades. Under Ford Motor (F), Jaguar stayed far from the top but India's Tata bought Jaguar in 2007 and its quality improvements have been dramatic. Jaguar's overall rise was due to "fewer reported problems with vehicle exterior, sound system and the overall driving experience," according to AP. But Jaguar is small fry in the US, selling 14,000 vehicles here in 2008, while Buick sold 128,000.
And I have to hand it to GM for producing such a high quality vehicle. Its executives should let America know about this result because it needs to gain all the market share it can. Meanwhile, Lexus ought to view its second place JD Power rank as a significant kick in the posterior. After taking a look at the Lexus LS 460, I got a sinking feeling that this $72,000+ sedan was grossly overpriced and styled to switch off my buying bone. The JD Power survey doesn't address these design issues, but the quality results ought to push Lexus to reinvent itself.
And that's the ultimate long-term benefit of the competition for customer satisfaction -- creative destruction.
Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College. His eighth book is You Can't Order Change: Lessons from Jim McNerney's Turnaround at Boeing. He has no financial interest in the securities mentioned.
D-Day for Harry Reid: Can he wrangle 60 votes for Senate health bill?
Fed stalls on Chinese bank deal, costs taxpayers $1.7 billion
Dell in a handbasket: Should founder Michael Dell resign?
Reader Comments (Page 1 of 2)
3-19-2009 @ 2:10PM
Alvin Tindall said...
I do not believe one word of this GM Buick tops Lexus in Quality. Wonder who posted this,GM ????
Reply
3-19-2009 @ 2:38PM
dan said...
JDPower reported it, based on three years of feedback from customers...you are going to have to look elsewhere for the conspiracy theory...but if it makes you feel any better, 10 of the 20 category cars were toyota and lexus. I cannot understand why people are so shocked that car companies can make good products...Lexus woke everybody up years ago by building a great product, but everybody else started paying attention to what the lexus customer was looking for...and GM, even though you would like to think they are incapable of doing anything right, built a car that is as good as Lexus for reliability...deal with it.
3-19-2009 @ 3:05PM
n.c said...
You have never owned a Buick.
3-19-2009 @ 3:06PM
JoeA said...
I believe that GM produces a better car than the over-rated Lexus. I have owned both products, the most recent being a Lexus ES 350. It is a virtual twin to the Camry, the driving experience is like an old man's car from the '70s, the so-called "superior" japenese engineering is non-existent. For instance, the rain sensitive wipers in the Lexus are so bad that I have turned them off - they kept going after the windshield was dry, smearing it, the engine sounds like a diesel when you start it (fuel pump engineering problem - nothing they can/will do about it), the sound system is terrible for a "luxury" car, the fit/finish is OK but the paint still looks like a GM paint job after two years (car kept in garage all the time when not in use), the HVAC system is marginal (can't even control the volume of air flow through the center vents), the door threshhold material is black plastic painted grey (guess what happes with very little abrasion), and I could go on. Even though my last Olds Aurora had a few issues it was hands down better than the Lexus.
3-19-2009 @ 10:29PM
GM4LIFE said...
I love how some of you still bash on GM. You are the BIGGEST problems with this whole deal. If you knew anything about the products that GM has been putting out for the last how many years you would not own anything but a GM vehicle. GM not only has the best in gas mileage ranking 3rd last year only getting beat by mini which only has very small cars in its line and by Honda that only has one truck that is the ridgeline. GM had all there cars, 1/2 ton and 3/4 ton trucks tested and just fell under the top two. Secondly GM has the best Warranty out there that is also transferable and little to no recalls!! Maybe you guys should pick up a book and learn something before you bash on GM. O and Charles I would love to know how GM has screwed you over so many times!! Maybe it was not GM maybe it was who you were dealing with!! I have had excellent customer service from GM and my GM Dealership!!! I WILL NOT BUY ANYTHING BUT GM!!!!!!!!!!!! My hats off to GM and Buick!!! Keep up the great work!! And if you have not looked at a GM vehicle in the last five years I highly recommend it!!!!!
3-19-2009 @ 4:11PM
dan said...
actually, I have owned a buick recently...2005 Rainier CXL...two year lease, zero problems, excellent vehicle...same with the cadillac sts I just turned in from it's two year lease...zero problems, outstanding vehicle...drives you crazy that some people actually get great cars from an American car company doesn't it?
3-19-2009 @ 2:20PM
charles said...
GM has screwed me so many times that they WILL NEVER GET A NOTHER CHANCE Charles L Neeley
Reply
3-19-2009 @ 2:11PM
Alvin Tindall said...
I,m writting in response to the AIG Bonus Contract.All Pay,No Preformance is exactly what it is.Only in the U.S.can you Bankrupt a Company and get an unbelievable Bonus for doing it. This just goes to show how Stupid the American people are for tollerating it.
Reply
3-19-2009 @ 2:29PM
John Arruda said...
Actually, Jaguar won the JD Power Dependability rating in the mid 1990's, beating out Lexus and Toyota and con tinued to stay on the top 10 mlist for a number of years after that.
Also, Buick has won this award a number of times since the intro of the 1992 model Lesabre. Knocking out Toyota, Honda and Nissan, as well as maintaining it's place in the top ten Power listings for many years after.
Reply
3-19-2009 @ 2:23PM
frog said...
This will never hit the headlines. The japs will pay to have this hid.
Reply
3-19-2009 @ 2:32PM
Steven Van Nostrand said...
Hey great news! American car companies have miraculously cleaned up their act overnight! That's right, the mere threat of bankruptcy has not only opened their eyes to what consumers actually want, but a miraculous act of God has improved their ugly, crappy, intentionally unreliable designs. Sorry GM, if you haven't heard what the Jap car companies and American consumers have been telling you for the last 30 years, there is no one credible to believe in the American corporate culture. I will place my money where it has returned my investment....Toyota.
Reply
3-19-2009 @ 2:50PM
dan said...
Actually, these results were assembled over the last three years, it has nothing to do with the bankruptcy situation or the "bailout" situation...gonna have to look somewhere else for someone to blame on this one...GM actually built some stuff that customers like...good for them, good for American car companies...
3-19-2009 @ 2:33PM
Rick said...
Sour grapes, all of you. I've owned GM products for many years, and I've also had Toyotas and Nissans. I've had nothing but good luck with all of the GM products I've had, including my 1995 Buick and a 2008 Silverado. JD Powers doesn't lie, you can say what you want, the myth that foreign cars are better is now just that--a MYTH.
Reply
3-19-2009 @ 2:50PM
Greg said...
The term "Jap" is a racist word like "Nigger" "Beaner" "Chink" "Wop" "Gook" "Cracker" etc.
Learn the correct way to talk. Have respect for the other person as well as for yourself.
Reply
3-19-2009 @ 2:45PM
jim forrester said...
I have driven Jaguars for the last 10 years. I could not ask for a more dependable vehicle. Been totally trouble free, and luxury to the tee.
Reply
3-19-2009 @ 2:48PM
Wolfy said...
Lexus cars are always in for service especially when there new.They have so many recalls but they have a special word for that.
Reply
3-19-2009 @ 2:50PM
Bill said...
I have been buying cars longer than I care to admit and J.D. Powers is an outfit that can be bought to say and write whatever the customer is willing to pay for. To get a more honest appraisal go to Consumers Reports. Buick better than Lexus...and somewhere in Arkansas there is a pig that can fly and sing the national anthem at the same time.
Reply
3-19-2009 @ 2:50PM
CP said...
Although I've never owned, nor would I consider owning, a foreign car, my 3 Pontiac Grand Prix's have given me nothing but a great experience. Two of them had over 250,000 miles with only normal wear and tear problems. My current 2001 Pontiac GP GTP (the second high-performance Pontiac I've owned - and driven HARD) has 98600 miles and has had 2 sets of front brakes, one set of rear brakes and a new battery. How could I not buy another? My first car was a 1974 Malibu, second car a 1978 Camaro Z28, third a Chevy Blazer, then the Pontiacs. Honestly, I can't remember any problems with any of them that would have made me swear off GM (and in doing so, swear off many of my friends.)
Reply
3-19-2009 @ 2:50PM
Sam said...
Every GM product that our family has purchased gave us more than 250,000 miles. Buy American!
Reply
3-19-2009 @ 2:52PM
Steve Mueller said...
I was especially intrigued to read how Jaguar has become a truly dependable car. When I was in school, the continuing joke about Jags was that each car came with a British mechanic in the trunk! It did nothing to improve Jag's reputation when an episode of "Columbo" had the detective solving a crime using as a clue an oil puddle on a driveway dripped by, you guessed it, a Jaguar. Congratulations, Jaguar!
Reply