Stellantis NV reclaimed the top spots in J.D. Power’s 2023 Initial Quality Study with Dodge, Ram and Alfa Romeo notching the No. 1, 2 and 3 spots of 33 brands evaluated.
It was a redemption story for the automaker’s brands, which all posted improved scores that bucked the industry trend, after 2022 marked a significant drop in quality for the industry, mostly from new technologies and amid supply-chain issues.
Jeep finished at No. 19, though Chrysler tied for last. General Motors Co.’s Buick, Chevrolet, GMC and Cadillac brands finished No. 4, 5, 6 and 8, respectively. Ford Motor Co.’s two brands were both below the industry average.
Buick last year had claimed No. 1, with 2021’s No. 1, Ram, falling to below the industry average. Dodge, which had placed No. 1 in 2020 and No. 2 in 2021, has been consistent, at No. 2 last year.
Meanwhile, Alfa Romeo — a brand that had gained a reputation for complexity, breaking down and “if it wasn’t leaking oil, it didn’t have any” prior to leaving the U.S. market originally in 1995 — saw the largest surge in the study’s results compared to 2022, jumping 24 places. Alfa’s Stelvio ranked as the best compact premium SUV. The Giulia sedan would have topped its segment, too, said David McDonald, Stellantis’ head of customer experience in North America, if there had been a larger sample size.
“The formula is working,” he said. “We know what to do. We’re not where we want to be. We want every single brand, every single vehicle line to be No. 1, but we know the strategy, and it’s worked.”
Overall, the industry on average saw an increase of 12 problems per 100 vehicles based on the study that included 93,380 purchasers and lessees of new 2023 model-year vehicles who were surveyed from February to May. That was a record increase of 30 problems per 100 vehicles over the past two years to 192 problems. A lower score reflects higher vehicle quality. Greater use and penetration of technology, poor audio systems, flawed cupholders and new launches contributed to the decrease in initial quality.
“The automotive industry is facing a wide range of quality problems, a phenomenon not seen in the 37-year history of the IQS,” Frank Hanley, senior director of auto benchmarking at J.D. Power, said in a statement.”The industry is at a major crossroad and the path each manufacturer chooses is paramount for its future. From persistent problems carrying over from years past to an increase in new types of problems, today’s new vehicles are more complex — offering new and exciting technology — but not always satisfying owners.”
Stellantis has said it wants to be the top automaker in the industry when it comes to quality to satisfy customers and reduce warranty and repair costs. Its 2030 strategy calls for doubling its annual revenue and posting an adjusted operating income of more than 15% even as electric vehicles represent a roughly 40% increase in cost over their internal combustion engine counterparts.
The results put Dodge and its aged lineup as one of the top two brands for four consecutive years. It had 140 problems per 100 vehicles. Meanwhile, Ram improved 16 places, the most of any mass-market brand, after taking a hit from the launch of the Uconnect 5 infotainment system in its trucks in 2022’s results. This year is the truck brand’s third time among the study’s top three brands since 2020. It posted 45 problems per 100 vehicles and the Ram 1500 ranked as the best full-size light-duty pickup.
Alfa Romeo’s improvement by 68 problems per 100 vehicles to 143 was the second best, only behind the 73 decrease in problems by Stellantis’ own Maserati. The luxury brand finished as No. 14, an improvement of 17 places.
Stellantis, McDonald said, has combined best practices from both Fiat Chrysler Automobiles NV and French rival Groupe PSA, which merged in 2021 to create the transatlantic automaker. One example is a “control tower,” someone who reads every claim for a plant’s products and directs engineers to contain any problems as quickly as possible.
We’re “making the shift for quality from corporate into ‘the hub is the assembly plant,'” McDonald said. “Everything goes into the assembly plants.”
That means having spaces in the plants to pull together the people responsible for every area when it comes to customer experience or suppliers, for example. The company also has strengthened relationships between plants and dealers that includes sending engineers to the retailers at times and having service technicians tour the facility.
“It’s the entire customer journey,” McDonald said. “It’s not just quality lives within the plant and (the Chrysler Technology Center in Auburn Hills), this building. No, no, no, it’s that our customers are at the dealers. You’ve got to get out there to see reality.”
In the IQS, Jeep finished better than the industry and up from No. 23 a year ago. The Jeep Gladiator tied at the top of the midsize pickup segment with the Ford Ranger. The Wagoneer would’ve ranked, too, McDonald said, if it had a few more vehicles included. The company, he said, is focused on improving results from the Grand Cherokee especially.
Chrysler, tying for last with Volvo, posted 250 problems per 100 vehicles, a decrease of 15 issues. The Pacifica as a minivan that’s offered as a plug-in hybrid represents significant complexities that the automaker is working to address, McDonald. Fiat wasn’t included in the study.
“We know that we’ve got the recipe book,” McDonald said. “We just need to make sure every plant is making the same cake in the right way every single time.”
All of GM’s brands saw increases in the number of reported issues. Buick reported 162 problems per 100 vehicles. The Encore GX ranked as the top small SUV. Chevrolet’s was 166 with the Camaro, Corvette, Equinox and Tahoe ranking top in their segments. GMC’s was 167, tied with Porsche. Cadillac’s was 170, tied with Kia. The XT6 and Escalade were No. 1 in upper midsize premium SUVs and large premium SUVs, respectively.
Ford had 201 problems per 100 vehicles. Lincoln’s was 208. Both were more than last year, but the Dearborn automaker says it has a new blueprint based off the launch of its new super-duty trucks to address its long-running issues.
Several of the all-electric brands were included in the industry results for the first time, but weren’t ranked or award-eligible because of their sample size and didn’t meet the needed criteria. Tesla had 257 problems per 100 vehicles, an increase by 31. Polestar improved by 15 to 313 problems per 100 vehicles. Lucid posted 340 problems per 100 vehicles. Rivian’s was 282.
Stellantis is set to launch its first all-electric vehicle, the Ram ProMaster commercial van, later this year with more to come next year and after. With J.D. Power reporting that new models on average have 11 more problems per 100 vehicles, McDonald said Stellantis will look to its plants in Europe that already are producing EVs as it launches them in North America.
Stellantis now also requires that a certain number of batches of vehicles meet a certain quality score before a plant can ramp up production of a new vehicle, which has resulted in the launch delays at its plants globally, McDonald said. Prior to that change, vehicles could be built and held until a software fix was available, for example.
“It can be very difficult and painful for our supply-chain friends, but we will not start that ramp-up until the product is right,” he said. “Every customer counts, and every journey matters. We want to be, and we will be No. 1 on every (brand).”
bnoble@detroitnews.com
Twitter: @BreanaCNoble