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Ford sees new quality gains

Study of long-term durability shows marked improvement

Bryce G. Hoffman / The Detroit News

Fresh from its victory over Toyota Motor Corp. in this year's initial
quality survey by J.D. Power and Associates, Ford Motor Co. now says it has
cut in half its long-term quality gap with the Japanese automaker.
Ford and General Motors Corp. are in a dead heat for third place behind
Toyota and Honda Motor Co. when it comes to the quality of its older cars
and trucks, Ford Americas President Mark Fields told employees in his weekly
Webcast on Wednesday.

Fields cited a study of 2004 models driven by customers over a three-year
period that was prepared for Ford by the RDA Group, a market research firm
based in Bloomfield Hills. "We're seeing consistent improvements and gaining
traction," Fields said, adding that he expects to see more dramatic
improvements next year when the 2005 model year vehicles are put under the
microscope.

Last month, Ford surprised the industry by taking more top awards than any
other automaker in J.D. Powers' closely watched new car quality survey,
which measures customer satisfaction during the first 90 days of ownership.

Fields said the RDA report on 3-year-old models underscores Ford's progress.

RDA Group Managing Director Dennis Pietrowski confirmed the findings, which
he said were based on data from 28,717 vehicles from all manufacturers.
"This is quite encouraging for Ford," he said in an interview. "We've seen
them cut the gap they have with Toyota in half."

Ford spokeswoman Anne Marie Gattari said the latest numbers are further
proof that Ford is on the right track when it comes to quality. "Long-term
durability continues to move in the right direction," she said.

"We are at industry average according to this survey, essentially tied with
GM and trailing Honda and Toyota."

The survey looked at customer satisfaction and the number of problems
encountered by owners of 2004 model year vehicles. It found that Ford's
models experienced 5 percent fewer issues than in last year's survey of 2003
model year vehicles, marking the fourth straight year of improvement for the
Dearborn-based automaker.

Analyst Erich Merkle of IRN Inc. in Grand Rapids noted that several surveys
have shown Ford's vehicle quality is improving. "They actually are making
some real strides, but the perception is taking a long time to catch up."

Standouts in the long-term study included the Mercury Sable sedan, which led
its segment, and the Ford Expedition and Lincoln Navigator sport utility
vehicles, which showed big improvements in quality and customer
satisfaction. The Ford Ranger pickup also did well in the quality
assessment.

The Ford, Mercury and Lincoln brands also topped their respective classes in
overall paint appearance, Gattari noted.

RDA has been conducting the annual survey for Ford since the late 1990s. The
firm conducts similar studies for other automakers, and its findings have
historically hewed close to those independently conducted by J.D. Power. In
fact, RDA's annual report on new car quality showed Ford in a statistical
tie with Toyota before the release of the J.D. Power study.

Ford is optimistic that these findings will be echoed in that firm's
long-term quality survey, which is due out later this year.

You can reach Bryce Hoffman at (313) 222-2443 or bhoffman@detnews.com.