Automotive Industry Trends News

Hyundai Autonet, Clarion Corporation of America/SANYO Automotive U.S.A. and Panasonic Lead Multimedia Quality Rankings, J.D. Power and Associates Reports

Nearly 40 percent of consumers report having satellite radio capability in their new-vehicle's audio system-marking a considerable increase from 26 percent the previous year, according to the J.D. Power and Associates 2007 Multimedia Quality and Satisfaction Study(SM) released today.

Additionally, 94 percent of owners indicate that their satellite radio is factory or dealer installed-increasing from 92 percent in 2006.

"Buyers want the latest technologies included in their new vehicle's audio system, and the increase in market penetration is a reflection of auto manufacturers' response to consumer demand," said Allison LaDuc, senior research manager of automotive product quality at J.D. Power and Associates. "New and redesigned vehicles-particularly those within the luxury segment-are increasingly being equipped with the latest multimedia features, including satellite radio, MP3/auxiliary output and navigation systems. Market penetration for these audio features will likely increase as time goes on."

The study evaluates owner experiences with the quality, design satisfaction and features of automotive multimedia systems in new vehicles. Twenty-eight different multimedia combinations are evaluated, which include different combinations of the following systems: AM/FM radio, cassette player, single CD player, multiple CD changer, navigation system and satellite radio. Multimedia system suppliers are ranked based on the number of problems experienced per 100 vehicles (PP100) in the three largest segments: AM/FM/Single CD Player, AM/FM/Multi-CD Changer and AM/FM/Multi CD Changer/Satellite Radio. A lower PP100 score indicates higher quality.

Hyundai Autonet ranks highest in the AM/FM/Single CD Player segment with an overall PP100 score of 3.8. In particular, vehicle owners experience little difficulty when operating the front auto/entertainment system controls of the Hyundai Autonet systems. Alpine Electronics (3.9 PP100) and Clarion Corporation (4.1 PP100) follow in the segment rankings.

In a non-competitive (NC) split sourcing arrangement, Clarion Corporation of America/SANYO Automotive U.S.A. rank highest in the AM/FM/Multi-CD Changer segment with an overall PP100 score of 4.0. Clarion supplies the radio and CD changer components, while SANYO supplies the display components within several Mazda vehicle models. Clarion also ranks second with 4.4 PP100 and Pioneer ranks third with 4.8 PP100.

Performing well across all problems measured in the segment, Panasonic ranks highest in the AM/FM/Multi CD Changer/Satellite segment with 4.6 PP100. Panasonic supplies systems to a broad range of models manufactured by General Motors, Honda, Mazda, Nissan, Subaru and Toyota. Following Panasonic in the segment rankings are Pioneer (4.8 PP100) and Delphi (5.7 PP100).

The study also finds that as more features and technologies are included within new-vehicle multimedia systems, the number of owner-reported problems increases. In particular, owners report more problems with navigation systems and satellite radio, such as poor satellite radio reception and issues with navigation system map accuracy.

"It's interesting to note that while consumers who have more complex systems tend to have more problems, they also have higher satisfaction levels than consumers with simpler systems," said LaDuc. "However, quality problems shouldn't be disregarded altogether, as our overall findings show that respondents who don't experience any problems at all have higher satisfaction than those who do report experiencing a problem-regardless of what system type they have."

The 2007 Multimedia Quality and Satisfaction Study is based on responses from 97,390 owners of new 2007 model-year cars and light-duty trucks. The study was fielded from February to May 2007.

To view car audio ratings visit JDPower.com.




NOTE: Only award-eligible suppliers are included in the ranking. To be award eligible, a primary supplier (or a split-sourcing arrangement that is non-competitive) must have sourced at least two vehicle models with sufficient sample within the appropriate award category.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE:MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 billion.

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Source: J.D. Power and Associates