One of the leading indicators of change in the automotive industry is JD Power’s Initial Quality Study in the United States. In 2022, JD Power said plug-in hybrids and battery electric vehicles had several issues, alongside other vehicles. The survey used responses from more than 84,000 new car buyers and lessees in the first months of 2022 to get a quality review. The study found that the vehicles dipped in quality.
The effect of the pandemic and the shortage of chips
High vehicle prices, the pandemic, chip shortages and supply chain issues have significantly contributed to the low vehicle quality problem, according to JD Power. The shortage of semiconductor chips started in 2020 during the pandemic. Although COVID-19 has eased, the issues are not yet resolved and automakers are losing billions, with CNBC estimating lost revenue at $110 billion.
As the auto industry continued to reel from the effects of COVID-19, supply chain issues began when one of the major chip producers had a fire that significantly delayed the industry. Weather-related problems in the United States did not improve the situation.
David Amodeo, director of global automotive at JD Power, said: “The disruption in the supply chain, in particular the shortage of microchips, has caused automakers to seek alternative solutions to put new vehicles between the hands of buyers and tenants. Experts predict that the flea situation could last until 2023; Until then, automakers have turned to sourcing chips from smaller manufacturers.
2022 is the worst year for vehicle quality in nearly four decades
Whenever JD Power releases the results of its US Initial Quality Study, the news is generally positive. However, the 2022 study didn’t offer much hope, signaling that many vehicles lacked quality. The study postulated that quality issues reached an all-time high in 2022, making that year the worst in the initial quality study’s 36-year history.
The study showed that owners saw an 11% increase in problems per 100 vehicles, giving an industry average of 180 PP100. A lower IQS score is always a good thing, and the number rising this year is alarming.
The site noted that the deterioration in quality was widespread. The study found that while continuing and all-new models had more problems in 2022, all-new models were worse with 23 PP100s.
Buick took the crown for overall quality
JD Power found that mainstream brands like Honda, Toyota, and Ford averaged 174 PP100s in the industry, while premium brands like BMW, Lexus, and Mercedes-Benz averaged 196 PP100s. The study suggested that since premium brand buyers are buying more technology into their cars, they are likely to encounter more problems than mass market buyers.
The site gave Buick a high ranking in overall initial quality, rating it at 139 PP100, followed by Dodge with 143 PP100 and Chevrolet at 147 PP100. Buick has made a significant improvement from 12th place last year to the overall quality crown. Genesis leads the premium brands in the quality ranking with a score of 156 PP100. Lexus came close with 157 PP100s while Cadillac placed third with a score of 164 PP100s.
In terms of parent companies, General Motors received the most awards at the model level, with nine awards. BMW AG came second with five awards, while Hyundai Motor Group came third with three awards. Ford Motor Company and Toyota Motor Company tied for fourth with two awards. The site gave the Chevrolet Corvette the highest overall rating with 101 PP100.
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