Toyota loses lead in race for reliability
In a blow to the company that is poised to be the largest automaker in the world, Toyota Motor Corp. fell so far in Consumer Reports’ annual reliability survey that the magazine will no longer automatically recommend the company’s new cars and trucks to readers.
The Toyota brand slid from first place last year to fifth place in the 2007 rankings, which were released Tuesday, and Honda Motor Co. replaced Toyota in the top spot.
What’s more, “below-average” ratings were given to two of Toyota’s cars: the six-cylinder Camry sedan and the eight-cylinder, four-wheel-drive Tundra pickup truck. The Lexus brand, which is owned by Toyota, dropped from fifth place to sixth, with the all-wheel-drive Lexus GS also receiving a “below average.”
“To see one of the premium manufacturers have three vehicles fall below average in reliability is a big concern,” said David Champion, head of auto testing for Consumer Reports. “They’ve always been average or better with all their products up to this point.”
Champion added, however, that most “domestic automakers would love to have the record Toyota has now” and called the Japanese company -- which is challenging General Motors Corp. for the title of largest carmaker -- “an extremely reliable manufacturer.”
In fact, of the 39 vehicles named most reliable in the survey, 17 were produced by Toyota. Its youth-oriented Scion brand maintained its No. 3 ranking.
The magazine’s rankings are compiled from responses to surveys about 1.3 million vehicles owned or leased by Consumer Reports subscribers, covering model years 1998 to 2007.
Although Japanese automakers continued to dominate, Champion noted that Ford Motor Co. made strides in quality, with 41 of 44 Ford, Lincoln and Mercury vehicles scoring average or better for predicted reliability.
“Ford continues to improve,” Champion said, citing the Ford Fusion, the Mercury Milan and the Lincoln MKZ.
Toyota’s drop in the rankings was especially significant because some critics have complained that the magazine was partial to Asian imports. The rankings carry weight with many car shoppers, although their reach is somewhat limited because car makers aren’t allowed to trumpet favorable ratings in their advertising.
Consumer Reports has in its past annual editions given a “recommended” rating to all new cars and trucks from Toyota, Honda and Subaru, based on the manufacturers’ track records and survey data. The magazine said it would continue to do so for Honda and Subaru vehicles and that Toyota could regain that privilege if it resumed former quality levels.
Toyota’s drive for global growth has recently begun to show signs of strain, including the defection of several top U.S.-based executives to rival automakers and criticism from environmentalists over the company’s stance on proposed federal fuel economy standards.
On the quality front, the automaker has suffered high-profile setbacks, including recalls of its popular Prius hybrid and settlement of a class-action lawsuit over claims of engine sludge buildup in millions of its vehicles.
But analysts didn’t think that Toyota, which built a powerhouse brand on a reputation for quality, would let the problems fester.
“They’re starting to see some of the volume-related problems that some of their competitors have seen,” said John Wolkonowicz, an automotive analyst with Global Insight Inc. “But unlike some of their competitors, Toyota is on it, and this is not going to continue.”
The Camry is the bestselling sedan in the U. S., and about 20% of Camrys sold are six-cylinder models. Toyota said customers have complained about the shifting of the Camry’s automatic transmission, and that the problem had been remedied with a software adjustment. The company also said the 2007 Camry, on the market for more than a year, had generated the fewest warranty claims in the history of the model, which was introduced more than two decades ago.
“Although a couple of vehicles slipped off the recommended list, it was actually a good performance for us,” Toyota spokesman John Hanson said.
At No. 10, GM’s Buick nameplate was the highest-rank domestic brand. Mercury was 11th and the Ford badge came in 13th, followed by Lincoln.
“We’re very pleased with the results,” said Graydon Reitz, Ford’s director of quality for the Americas. “Where we are today is a point along the journey to be best in the world in quality.”
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