J.D. Power: Initial Quality Shows Largest Improvement in Seven Years
Kia ended the 27-year reign of premium brands by ranking highest among all nameplates in J.D. Power’s annual study. Overall, new-vehicle quality improved 6%, which was double last year’s 3% improvement.
DETROIT — J.D. Power’s 2016 U.S. Initial Quality Study showed the largest improvement in seven years, with new-vehicle quality improving 6%. That’s more than double last year’s 3% improvement.
Now it in its 30th year, the study examines problems experience by vehicle owners during the first 90 days of ownership. Initial quality is determined by the number of problems experience per 100 vehicles (PP100), with a lower score reflecting higher quality.
According to this year’s study, quality improved across all eight problem categories measured, with 21 of the 33 brands included in the study improving their quality this year and one remaining the same.
“Manufacturers are currently making some of the highest quality products we’ve ever seen,” said Renee Stephens, vice president of U.S. automotive quality at J.D. Power. “Tracking our data over the past several years, it has become clear that automakers are listening to the customer, identifying pain points and are focused on continuous improvement. Even as they add more content, including advanced technologies that have had a reputation for causing problems, overall quality continues to improve.”
For the second time in the 30-year history of the study, U.S. domestic brands collectively showed lower problem levels than all their import counterparts combined. All three U.S. domestic brands posted year-over-year improvement, with the Detroit Three increasing their combined average by 10% from a year ago to 103 PP100.
And for the first time since 2006, non-premium brands showed fewer problems (104 PP100) than premium brands (108 PP100). Leading the way was Kia with a score of 83 PP100; the first time in 27 years a non-premium brand topped the rankings. It was also the second consecutive year that Kia, which ranked second in 2015, has led non-premium makes in initial quality.
Porsche ranked second with 84 PP100, followed by Hyundai with 92 PP100, Toyota with 93 PP100, and BMW with 94 PP100. Showing the most improvement were Chrysler and Jeep, with each reducing the number of problems by 28 PP100 from 2015.
Additionally, General Motors received seven model-level awards, following by Toyota Motor Corp. with six and Hyundai Motor Co. and Volkswagen with four each.
General Motors models that ranked highest in their respective segments were the Buick Cascada; Chevrolet Equinox; Chevrolet Silverado HD; Chevrolet Silverado LD; Chevrolet Spark; Chevrolet Tahoe; and GMC Terrain.
Toyota Motor Corp. models that ranked highest in their segment were the Lexus CT; Lexus GS; Scion tC; Toyota Camry; Toyota Corolla; and Toyota Highlander.
Hyundai Motor Co. models that ranked highest in their segment were the Hyundai Accent; Hyundai Azera; Kia Soul; and Kia Sportage.
Volkswagen AG models that ranked highest in their segment were the Audi Q3, Audi TT, Porsche Macan and Porsche 911.
The 2016 U.S. Initial Quality Study is based on responses from more than 80,000 purchasers and lessees of new 2016 model-year vehicles surveyed after 90 days. The study is based on a 233-question battery organized into eight problem categories.
More F&I

Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →
Focus on the Opening
F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.
Read More →
F&I Reaches for the Sky
The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
The 90/10 Rule
In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.
Read More →