Tesla is right at the bottom, but it's got plenty of company.
The results of the 2023 J.D. Power US Initial Quality Study (IQS) have been released, and the main takeaway is that automakers need to be ashamed across the board. According to J.D. Power, new vehicles are more problematic than ever before, with the number of problems per 100 vehicles (PP100) increasing by a record 30 points over the past two years.
Last year, the industry average was 180 PP100, which was an increase of 18 PP100 compared to the 2021 average. The 2023 average is 192 PP100, which is another 12-point increase.
“The automotive industry is facing a wide range of quality problems, a phenomenon not seen in the 37-year history of the IQS,” said Frank Hanley, senior director of auto benchmarking at J.D. Power. “The industry is at a major crossroads, and the path each manufacturer chooses is paramount for its future.”
With that in mind, let's take a closer look at the winners, losers, causes of problems, and key findings from the 2023 IQS report. But first, a quick look at the study itself.
How Winners And Losers Are Chosen
The J.D. Power US Initial Quality Study has been the benchmark for measuring the first 90 days of the ownership experience for nearly four decades. It says initial quality perceptions are excellent indicators of long-term reliability, and we're inclined to agree.
The reason why this report is so relevant is the fact that it's based on actual ownership experiences. J.D. Power obtains real customer feedback on every significant car on the market, and automakers can use this feedback to improve scores, which is a win-win for everyone involved.
According to J.D. Power, its study examines 223 problems organized into nine categories. The categories are climate, driving assistance, driving experience, exterior, features/controls/displays, infotainment, interior, powertrain, and seats.
The Winners
The days of American cars being poorly-built jalopies with poor-quality interiors are over. American brands claimed the top three spots for the second year in a row, though Chevrolet dropped off the podium.
Ram is the highest-ranking of the mass-market brands in terms of initial quality, scoring 140 PP100. Dodge scored second place, ending up just one point worse. The third step of the podium belongs to last year's winner, Buick. This year, Buick ended on 162 PP100, compared to the 139 PP100 from last year. This illustrates the widespread problem, even at the sharp end of the stick.
This may come as a surprise, but Alfa Romeo ranked the highest of the premium brands with a score of 143 PP100. Interestingly, Alfa Romeo also came out tops in the J.D. Power Customer Satisfaction Index, measuring the sales experience. As American cars are turning stereotypes on their head, Alfa is doing the same for Italian automobiles. Porsche placed second with 167 PP100, and Cadillac came third with 170 PP100.
The award for most improved year-on-year goes to Maserati, shedding 73 PP100 from last year's score. Second is Alfa Romeo, which is 68 points down. Ram dropped 45 PP100 to score that impressive outright win.
J.D. Power also gave awards to parent corporations that built segment leaders in a particular category.
General Motors walked away with the most, thanks to the Buick Encore GX, Cadillac Escalade, Cadillac XT6, Chevrolet Camaro, Chevrolet Corvette, Chevrolet Equinox, and Chevrolet Tahoe. Hyundai was the second-best manufacturer, with the Genesis G80, Kia Carnival, Kia Forte, Kia Rio, and Kia Stinger at the top of their categories. Toyota is third, thanks to the Lexus GX, Lexus IS, Toyota Camry, and Toyota 4Runner.
Nissan also deserves a special mention. The Nissan Murano ranked highest in its segment, but the real star is the Nissan Maxima, the highest-ranking individual model. It scored a mere 106 PP100.
Speaking of segment leaders, we have to include the winner in each segment. The best small car is the Kia Rio, while the best premium small car is Audi's A3. Toyota's Camry is the midsize car king, and the Stinger claimed the title in the premium category.
The Kia Forte finished first in the compact car segment, joined by the Lexus IS as the premium winner. The best midsize premium car is the Genesis G80, and in the large premium category, the BMW 8 Series took the win.
The SUV category winners include the Lexus GX, Toyota 4Runner, Alfa Romeo Stelvio, and Cadillac Escalade. The best minivan is the Kia Carnival.
The enthusiasts out there will enjoy the list of sporty winners. The best compact sporty car is the Mini Cooper, while the best premium sporty car is the Chevrolet Corvette Stingray. The Corvette also won in the non-premium category, where no other vehicle performed at or above the average. Kudos to Chevy for beating the beloved Porsche 911; the C8 has come a long way since its trouble-fraught initial release.
The truck segment winners are bound to spark a debate. The Ford Ranger and Jeep Gladiator are tied for first place in the midsize category. The best large light-duty pickup truck is the Ram 1500. Neither Ford nor Chevrolet even gets a mention.
The Losers
Tesla and Polestar continue to disappoint, scoring 257 and 313 PP100, respectively. While Polestar finished dead last, it has managed to decrease its 2022 score (328 PP100) to 313 PP100. Tesla went backward from 226 PP100 last year to 257 PP100 in 2023. We're not quite sure what's going on in Sweden, but Volvo matched Chrysler with 250 PP100.
Other automakers that fell below the average included Mitsubishi, Toyota, Ford, Mercedes-Benz, Land Rover, Mazda, Acura, Lincoln, Infiniti, Audi, and Volkswagen.
While we expect Ford to be below average due to more recalls than ever, it is strange to see Toyota perform below average. The brand usually dominates the more long-term US Vehicle Dependability Study, so it will be interesting to see how this initial quality score impacts the brand in the long run.
It's worth pointing out that Tesla and Polestar are unofficially ranked. They don't rank because, in states requiring permission, these manufacturers refused to allow J.D. Power to survey its owners. The data from states where permission isn't needed is included.
Lucid and Rivian failed to match the necessary sample size, but based on what J.D. Power had to work with, Rivian scored 282 PP100, while Lucid received a shocking 340 PP100 rating. If Lucid's sample size was large enough, it would likely be the most problematic brand in the USA. This does not bode well for the challenged EV maker.
The Flaws
A car might not be satisfying within the first three months for many reasons. In the case of Tesla, the steering wheel might come off. Or a person may have purchased the automotive equivalent of being trapped inside a ping pong ball. The Mitsubishi Mirage comes to mind.
According to J.D. Power, the chief causes for the overall poor performance these last few years are the increased “penetration of technology, continued integration of known problematic audio systems into other new models, poor sounding horns, cupholders that don't serve their purpose, and new models with 11 PP100 more than carryover models.”
The key findings narrow the problems down even further. An interesting flaw is the humble door handle or, rather, the lack of a humble door handle. As automakers try to outdo each other, they develop new high-tech approaches to systems that worked just fine before. Basically, the touchpad on a modern door handle is causing more problems than the old method of just pulling the handle and opening the door. For the sake of our argument, we're ignoring the minor aerodynamic benefits provided by flush door handles.
Safety systems are also problematic, and J.D. Power's research is not the only source indicating this phenomenon. It's good to hear more than 80% of owners say that their cars are equipped with the four primary advanced driver assistance features – forward collision warning, lane-keeping aid, lane departure warning, and blind spot warning. Unfortunately, customers are reporting increased problems with these systems, with lane departure and forward collision warnings being the main culprits. Wireless charging pads are also a problem.
There is some good news, however. Owners are happier than ever with manufacturer smartphone apps. The market penetration has grown to 76%. EV owners use their apps the most, as you'd expect. It's the easiest way to check charge levels without being near the car.
Our Take
We agree with J.D. Power's assessment that technology is to blame. For proof, look no further than the current Golf GTI. The Mk 8 is a brilliant car, but haptic controls and an idiotic infotainment system completely ruin it. Luckily, VW is slowly starting to fix the problem, but you'd be much better off buying a used Mk 6 or Mk 7 GTI for now.
We've also experienced safety systems gone wrong, mainly in Volvos. While we applaud Volvo's mission of its cars not killing anyone, its safety systems intervene way too early. Few vehicles are as paranoid as an XC90 on a gravel road. As soon as a wheel slips, the crash mitigation system grabs hold and refuses to let go.
We've driven some amazing cars, but sometimes you come across a vehicle with so much technology that you're left wishing for a big red button that turns every single system (apart from ABS) off.
New technologies lead to progress, but they need to be better tested before paying customers experience them for the first time. Anything else will mean worse scores in initial quality studies.
Keyword: New Vehicle Quality Is At Another All-Time Low