Oct 16, 2007 12:26:20 (ET)
DETROIT (Dow Jones)–Toyota Motor Corp. (TM) has slipped in the Consumer Reports annual Car Reliability Survey to the point where the magazine will no longer automatically recommend the auto maker’s new and redesigned models. Meanwhile, Ford Motor Co. (F) showed significant improvements.
The survey results are the latest blow to Toyota, which has been stealing market share from U.S. auto makers but is dealing with recent challenges. It has posted year-over-year sales declines in recent months and has seen some of its top talent, including its top U.S. executive, defect to U.S. auto makers.
Consumer Reports’ survey follows other studies showing that U.S. auto makers are closing the quality gap with Asian auto makers. Still, brands from Asian auto makers top the overall predicted reliability list and U.S. brands account for almost half of the models on the “Least Reliable” list.
Consumer Reports said 41 of 44 Ford, Lincoln and Mercury models in the survey scored average or better in predicted reliability. The Ford Fusion and Mercury Milan “are among the most reliable cars,” Consumer Reports said in a statement.
Toyota, meanwhile, saw the V-6 version of the Camry and the four-wheel-drive V-8 version of the Tundra pickup truck, both redesigned for 2007, rate below average.
The all-wheel drive version of the Lexus GS sedan, from Toyota’s luxury brand, also received a below-average rating.
“Consumer Reports will no longer recommend any new or redesigned Toyota-built models without reliability data on a specific design,” Consumer Reports said in a press release.
Before, Consumer Reports recommended any new or redesigned Toyota model due to the auto maker’s track record.
“Ford continues to improve,” said David Champion, senior director of Consumer Reports Auto Test Center. “The reliability of their cars has steadily improved over the years and is showing consistency. We believe Toyota is aware of its issues and is trying to fix problems quickly.”
Still, Toyota ranks third in reliability among auto makers, behind Honda Motor Co. (HMC) and Subaru, the automotive division of Fuji Heavy Industries Ltd. (7270.TO).
Consumer Reports said 34 of the 39 models in the “Most Reliable” list are Asian, with 17 from Toyota.
Still, 19 domestic models were added to the “Newly Recommended” list, including General Motors Corp.’s (GM), GMC Acadia and Saturn Outlook, and Chrysler LLC’s Dodge Charger.
Among brand ratings, Honda topped the list – followed by its luxury Acura brand and Toyota’s Scion – while Buick was the highest-rated brand from a U.S. auto maker. Ford’s Mercury brand was close behind Buick.
Ford’s Land Rover brand was judged the least reliable. Ford is looking to sell Land Rover and Jaguar.
The survey’s findings are based on responses on almost 1.3 million vehicles owned or leased by subscribers to Consumer Reports or its Web site. The survey was conducted in the spring of 2007 by the magazine’s national survey research center and covered model years 1998 to 2007.
-By Terry Kosdrosky, Dow Jones Newswires; (248) 204-5532; terry.kosdrosky@dowjones.com
(END) Dow Jones Newswires
October 16, 2007 12:26 ET (16:26 GMT)
