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    2005 - 2009

    The 2005-2009 White Paper on Korean Automobile Quality

    / Jin-Kook Kim

    / Kyong-Seok Lee

    / Young H. Kim

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    2005 - 2009

    :

    :

    : November 15 2004 No. 22-2640

    : 216-3 4/6

    : 82-2-6004-7600 FAX: 82-2-543-5984www.mktinsight.co.krE-mail: [email protected]

    ISBN-89-955940-0-4

    20,000

    ()

    .

    The 2005-2009 White Paper on Korean Automobile Quality

    Publisher : Jin-Kook Kim

    Publishing body : Marketing Insight

    Publishing registration : November 15 2004 No. 22-2640

    Address : 4F/6F, HYAR Bldg., 216-3, Nonhyun-dong, Gangnam-gu, SeoulTelephone : 82-2-6004-7600 FAX: 82-2-543-5984www.mktinsight.co.krE-mail: [email protected]

    ISBN-89-955940-0-4

    Price 20,000

    Copyright 2009 by Marketing Insight Inc. Reproduction in whole or in part is forbidden

    without prior written permission of the author and is never permitted for commercial purposes.

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    Preface

    () (www. mktinsight.

    co. kr) 7

    10

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    2003

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    2005-2009 5

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    A/S .

    .

    ,

    The White Paper on Korean Automobile

    Quality is a summary of quality related

    findings from The Syndicated Automotive

    Research which is being conducted by

    the one and only automotive research

    firm in Korea, Marketing Insight, Inc.(www. mktinsight. co. kr), in every July

    with 100k samples, and published in every

    November. From the first release in 2003,

    the White Paper has attracted intense

    attention of automotive industry and now

    has grown as the industry standard of

    automobile quality shared by all including

    foreigners who are interested in Korean

    automobile market. This book 'The

    2005-2009 White Paper on Korean

    Automobile Quality' will show you what

    kind of changes had been made and what

    is going on in automobile quality during

    past 5 years.

    The quality level of Korean automobile

    industry is becoming better. The problems

    in TGW-i and TGW-d are steadily

    decreasing, and the scores for sales and

    A/S are also slowly improving. However,

    the expectation level of consumers is

    being escalated at a greater margin than

    those. Although consumers are enjoying

    better products and services than before,

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    .

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    ?,

    ?, , ?

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    they are still coldly saying 'that's not enough'.

    It was stated in last year's White Paper

    that the expectations and evaluations of

    consumers had moved to a disquietingdirection. It had warned that consumers

    were building up reasons for why they

    should buy imported cars. The research

    results of this year clearly explain why

    consumers behaved like that. Imported

    brands were far ahead of domestic brands

    in product quality and service quality.

    Especially in all the areas of product

    quality including TGW-i, TGW-d and

    TGR, they were surely greater.

    In the past, consumers had to convince

    themselves first to buy imported cars.

    Consumers had to throw these questions to

    themselves Wouldn't others see me

    negatively?, Isn't the car price too

    expensive?, Wouldn't the repair and

    maintenance fee cost too much? and then

    get over with them. But now, many

    consumers are thinking hard for why they

    have to consider domestic cars only.

    Questions such as Are domestic cars

    cheaper?, Do they have better service?,

    Are there reasons why we have to

    continue buying them? must be resolved.

    It is now becoming harder and harder toanswer confidently to the questions like

    Why should we buy domestic cars when

    imported cars have better service,

    appearance, safety and less problems

    while there is even not much difference in

    price?'

    Korea has the most selfish and closed

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    1,

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    5

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    500

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    automobile market in the world that boasts

    the #1 in export against domestic sales rate

    and #1 in domestic market share by

    domestic manufacturers. The government,manufacturers and consumers has been

    contributed to build this with one mind

    and kept it. But now we can find a

    symptom of partial collapsing of it. Not a

    small number of consumers are turning

    against the idea of cheering and supporting

    Korean automobile industry while

    experiencing their efforts disappeared in

    vain. The dominance of Hyundai-Kia

    Motors over domestic automobile market

    has been increased but consumer-friendly

    environment is absolutely worsened.

    Once the imported car market surpassed

    the 50,000 units, the global powerhouses

    are now ready to compete. Toyota the

    world's strongest powerhouse has taken it's

    first step cautiously in the Korean market

    after watching over for a long time without

    a word. They proclaimed that they would

    like to contribute to the Korean society by

    just selling 500 cars per month. And that is

    with a surprisingly low price tag. When

    considering inevitable fierce competition

    with domestic makers over price and

    fuel-efficiency, their business goal ofcontribution to society and environment

    is persuasive. That's because Korean

    consumers will be able to select

    inexpensive and quality cars. But behind

    the generous face there may be a strategy

    of fettering Hyundai-Kia Motors in their

    backyard which has been an obstacle in

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    .

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    . 2005

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    , . ,

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    ,

    overseas markets.

    There is a thickening belief while

    publishing the 7th White Paper. The

    quality research has a correct answer andis predictable. If there is a change in a

    certain part of a model by a certain maker,

    the research result certainly finds out the

    change. And if there is a trend to a certain

    direction, the next research result has

    backed up the fact.

    Renault Samsung's run at the top for

    TGW-d has been ended for the first time

    this year by Hyundai. This is a predicted

    result. The surpassing of Hyundai in

    TGW-i in 2005 was also a predicted result.

    The results from this year show that the

    predominance of quality of imported cars

    are expanding. This predominance of

    imported cars is expected to continue. The

    price competitiveness of imported cars is

    expected to be stronger. Consumer's range

    of selection will become wider and

    quality will become more essential.

    Success is not guaranteed because

    of good quality. However, if the

    quality is poor, selective elimination is

    inevitable. Nobody can sell a car with

    bad quality for an extended period of

    time in a large volume. No companycan survive a long period of time

    while providing poor product and

    service.

    There are many people who have

    worked hard for this book to be made.

    I give my deepest gratitude to the auto

    industry personnel who have given

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    ()

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    9

    105

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    2009 11

    (Jin-Kook Kim)

    much suggestions for better data and

    to the employees of Marketing Insight

    who have worked their hardest to

    carry-out the processes of thisresearch without any fault. But more

    than anyone, I would like to thank and

    acknowledge the 1,050,000 consumers

    who have replied with sincerity for

    this research during the last 9 times

    including this one. I dedicate this

    book along with the service and

    product quality, which will be

    improved through the book, to the

    consumers.

    November 2009

    Jin-Kook Kim

    CEO & President,

    Marketing Insight Inc.

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    Contents

    (Preface)

    Chapter 1 (Introduction)

    1. (Approach to Quality).....14

    2. CPQ (CPQ Research Design).....14

    3. (Understanding CPQ).....16

    4. (CEQ Measurement).....17

    5. CPQ (CPQ Indices).....18

    6. CPQ .....19 (Respondents and Study Contents of CPQ Indices)

    7. CPQ (Types and Definition of CPQ Indices).....21

    8. (Cautions in data interpretation).....27

    Chapter 2 2009 (Summary)

    1. (2005 - 2009).....30(Trends in Major Quality Indices 2005 - 2009)

    2. 2009 .....32(2009 Major Quality Indices by Maker)

    Chapter 3 (Things Gone Wrong - initial)

    1. (TGW-i Scores by Maker).....38

    2. (TGW-i Scores by Vehicle Class).....41

    3. (TGW-i Model Ranking).....43

    4. (TGW-i Scores by Category).....46

    5. Worst 10 (TGW-i Worst 10 Items).....47

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    Chapter 4 (Things Gone Wrong - durability)

    1. (TGW-d Scores by Maker).....50

    2. (TGW-d Scores by Vehicle Class).....53

    3. (TGW-d Model Ranking).....54

    4. (TGW-d Scores by Category).....57

    5. Worst 10 (TGW-d Worst 10 Items).....58

    Chapter 5 (Things Gone Right)

    1. (TGR Scores by Maker).....62

    2. (TGR Scores by Category).....65

    3. / .....66(Product Attractiveness Best 10/Worst 10)

    4. (TGR Model Ranking).....69

    Chapter 6 (Sales Satisfaction Index)

    1. SSI (SSI Composition and Importance).....74

    2. SSI(SSI Scores by Maker).....76

    3. SSI (SSI Scores by Category).....79

    Chapter 7 (Customer Service Index)

    1. CSI (CSI Composition and Importance).....82

    2. CSI(CSI Scores by Maker).....83

    3. CSI (CSI Scores by Category).....87

    4. (Maker Competitiveness by Region).....88

    Chapter 8 (Quality Stress Index)1. (QSI by Maker).....92

    2. (QSI Model Ranking).....94

    3. (QSI Scores by Item).....97

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    Chapter 9 (Overall Satisfaction)

    1. (OSAT by Maker).....102

    2. (OSP Rankings by Model).....105

    Chapter 10 (Imports Quality Analysis)

    1. .....110(Note for Interpreting Indices for Imports)

    2. (TGW Scores of Imports).....112

    3. (CSI Scores of Imports).....115

    4. (QSI Scores of Imports).....116

    5. (Overall Satisfaction of Imports).....118

    6. (Image Analysis by Maker).....120

    Chapter 12 (Appendix)

    1. (Glossary).....124

    2. (Production Period by Model).....126

    3. (Overall Satisfaction).....130

    4. (Sales Satisfaction Index).....141

    5. (Customer Service Index).....146

    6. TGR(Things Gone Right).....151

    7. TGW(Things Gone Wrong).....158

    8. (Quality Stress Index).....192

    9. (Import).....199

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    Chapter 1 (Introduction)

    1. (Approach to Quality).....14

    2. CPQ (CPQ Research Design).....14

    3. (Understanding CPQ)....16

    4. (CEQ Measurement).....17

    5. CPQ (CPQ Indices).....18

    6. CPQ .....19

    (Respondents and Study Contents of CPQ Indices)

    7. CPQ .....21

    (Types and Definition of CPQ Indices)

    8. .....27

    (Cautions in data interpretation)

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    12 Chapter 1

    Chapter 1 (Introduction)

    1. (Approach to Quality)

    , . , , ,

    , (CPQ: Consumer Perceived Quality)

    . .

    Approach to Quality :

    Quality involves all stages from planning and designing of the product and

    service to the final consumption, and none of them is any less important than the

    other. These include design quality, purchase quality, inspection quality, and

    assembly quality, etc. Yet the most important quality is the one consumers judge,

    which is called CPQ (Consumer Perceived Quality). The quality referred in this

    book is CPQ.

    2. CPQ (CPQ Research Design)

    CPQ ,

    100,000 .

    8 (2002-2009) [Tab. 1-1]

    CPQ Research Design :

    Marketing Insight uses e-mail survey for its CPQ research, a large scale study

    with around 100,000 samples. The following is the overview of the research design

    that has been used in the last eight studies (2002-2009) [Tab. 1-1].

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    Chapter 1 Introduction 13

    2 : (, , )

    100,000

    7

    1 : e-mail 2 : e-mail mail 3 : e-mail 4 :

    4 - - - -

    ( )

    (www.mktinsight.co.kr) -

    ,

    - 60 60

    2 : (, , )

    100,000

    7

    1 : e-mail 2 : e-mail mail 3 : e-mail 4 :

    4 - - - -

    ( )

    (www.mktinsight.co.kr) -

    ,

    - 60 60

    Population Vehicle owners/Intenders (license holders) within next 2 years Target vehicle : Passenger cars (Commercial vehicles excluded)

    Sample size Around 100,000 persons

    DataCollection

    method

    Method e-mail survey

    Period Every July

    Process

    1st Stage: Send invitation e-mail to selected samples to participate in survey 2nd Stage: e-mail recipients decide whether they will participate in survey 3rd Stage: Respondents open the e-mail and respond to the questionnaire 4th Stage: All responses are accumulated in the server of Marketing Insight

    Study content s

    Study contents comprise of the following four areas.- Ownership, Usage & Attitudes- Product evaluation- Service evaluation- Explanatory variables such as demographics

    Data collection t ool(Questionnaire)

    Data collection tools of each index are presented with basic findings inMarketing Insight website (www.mktinsight.co.kr)

    Data analysis

    - Samples in the primary data cannot accurately represent populationThe data is weighted by gender and model's sales volume of the year torepresent the population

    - Models with less than 60 cases are considered to have an insufficient number ofsamples and eliminated from the rankings

    Population Vehicle owners/Intenders (license holders) within next 2 years Target vehicle : Passenger cars (Commercial vehicles excluded)

    Sample size Around 100,000 persons

    DataCollection

    method

    Method e-mail survey

    Period Every July

    Process

    1st Stage: Send invitation e-mail to selected samples to participate in survey 2nd Stage: e-mail recipients decide whether they will participate in survey 3rd Stage: Respondents open the e-mail and respond to the questionnaire 4th Stage: All responses are accumulated in the server of Marketing Insight

    Study content s

    Study contents comprise of the following four areas.- Ownership, Usage & Attitudes- Product evaluation- Service evaluation- Explanatory variables such as demographics

    Data collection t ool(Questionnaire)

    Data collection tools of each index are presented with basic findings inMarketing Insight website (www.mktinsight.co.kr)

    Data analysis

    - Samples in the primary data cannot accurately represent populationThe data is weighted by gender and model's sales volume of the year torepresent the population

    - Models with less than 60 cases are considered to have an insufficient number ofsamples and eliminated from the rankings

    [Tab. 1-1] CPQ

    [Tab. 1-1] CPQ Study Design

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    14 Chapter 1

    3. (Understanding CPQ)

    .

    (Quality Image) .

    ,

    . ,

    .

    (Quality Evaluation) .

    .

    -, -

    .

    (CEQ: Consumer Experienced Quality) .

    .

    ,

    .

    ,

    . .

    .

    Understanding CPQ :

    There are various kinds of CPQ depending on who the consumers are, what they

    evaluate, and what criterion they use.

    First, Quality Image refers to consumer judgment of make and model

    irrespective of whether they actually own or use the vehicle. Evaluations such as a

    certain maker "makes good engines" or some model "has few minor troubles" are

    typical examples.

    Another type of CPQ is Quality Evaluation. It measures consumer experiences

    on an emotional basis. Consumers evaluate a product or service which they have

    used on a dimension of "Good Poor" and/or "Satisfied Dissatisfied".

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    Chapter 1 Introduction 15

    And there is Consumer Experienced Quality (CEQ). This involves concrete

    incidents experienced by consumers, and not an abstract image or emotional

    evaluation. Its purpose is to measure positive or negative experiences like, "My

    car pulls to one side" or "I have made a complaint to the manufacturer".

    This report does not cover Quality Image, and only a part of Quality Evaluation.

    Most of the quality measurement is centered around CEQ because CEQ responses

    are the most sensitive to quality changes and are easy to be understood and

    utilized.

    4. (CEQ Measurement)

    . TGR

    (Things Gone Right) .

    TGW(Things Gone Wrong) .

    . (CEQ)

    TGW, ,

    , .

    . 6 (Six Sigma) 1

    (PPM: Parts per Million) 1 (PPH: Problems Per

    Hundred Vehicles) .

    CEQ Measurement :

    CEQ indicates advantages and disadvantages experienced by consumers while

    using a certain product or service. Of consumer experiences, positive ones that

    increase satisfaction are measured as TGR (Things Gone Right), often referred to

    as Attractiveness Quality. On the other hand, negative experiences that cause

    dissatisfaction and complaints are called TGW (Things Gone Wrong), or Must-be

    Quality. In a broader meaning of CEQ, TGW is the index that draws the most

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    16 Chapter 1

    attention, and involves problems, defects, and malfunctions experienced by

    consumers.

    CEQ measurement measures the number of problems or defects consumers

    experienced. Just as six sigma metrics count the number of defects by PPM (Parts

    Per Million), PPH (Problems Per Hundred Vehicles) is used as a measurement unit

    in the same way.

    5. CPQ (CPQ Indices)

    CPQ .

    . , A/S,

    , , .

    .

    7.

    , A/S ,

    , , ,

    7 [Fig. 1-1].

    CPQ Indices :

    Vehicle CPQ is very complicated one. From an automotive manufacturer's point

    of view, different types of quality evaluation are called for by various departments

    such as sales, A/S, assembly production, research, product planning, and so on.

    Thus, one or two quality indices will not be able to meet their different needs.

    This paper covers a total of seven quality indices: overall satisfaction that asks

    all aspects of quality; sales and A/S in the service area; initial quality, durability,

    and attractiveness in the product area; and quality stress that measures

    psychological responses to overall quality [Fig. 1-1].

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    Chapter 1 Introduction 17

    [Fig. 1-1] 7 CPQ (7 CPQ Indices)

    C P Q

    Service

    Product

    Overall

    SSI (Sales Satisfaction Index)

    CSI (Customer Service Index)

    QSI (Quality Stress Index)

    OSAT (Overall Satisfaction)

    TGW-i (Things Gone Wrong - initial)

    TGW-d (Things Gone Wrong - durability)

    TGR (Things Gone Right)

    C P Q

    Service

    Product

    Overall

    SSI (Sales Satisfaction Index)

    CSI (Customer Service Index)

    QSI (Quality Stress Index)

    OSAT (Overall Satisfaction)

    TGW-i (Things Gone Wrong - initial)

    TGW-d (Things Gone Wrong - durability)

    TGR (Things Gone Right)

    C P Q

    Service

    Product

    Overall

    SSI (Sales Satisfaction Index)

    CSI (Customer Service Index)

    SSI (Sales Satisfaction Index)

    CSI (Customer Service Index)

    QSI (Quality Stress Index)

    OSAT (Overall Satisfaction)

    QSI (Quality Stress Index)

    OSAT (Overall Satisfaction)

    TGW-i (Things Gone Wrong - initial)

    TGW-d (Things Gone Wrong - durability)

    TGR (Things Gone Right)

    TGW-i (Things Gone Wrong - initial)

    TGW-d (Things Gone Wrong - durability)

    TGR (Things Gone Right)

    6. CPQ

    (Respondents and Study Contents of CPQ Indices)

    7 .

    1.

    2.

    3.

    4. TGR

    5. TGW

    6. A/S

    7.

    , ,

    .

    ,

    . .

    [Tab. 1-2] ,

    .

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    18 Chapter 1

    a. : QSI (Quality Stress Index) b. : TGW-i (Things Gone Wrong-initial)c. : TGW-d (Things Gone Wrong-durability) d. A/S : CSI (Customer Service Index)e. : SSI (Sales Satisfaction Index) f. : TGR (Things Gone Right)

    ( ) TGW A/ S TGR

    2009(3MIS) c - c c c c c

    2008(3MIS) c - c c c c c

    2007(1YIS) c c c c c c c

    2006(2YIS) c c c c c - -

    2005(3YIS) c c c c c - -

    2004(4YIS) c c c c c - -

    c c - - c - -

    - c - - - - -

    ( ) TGW A/ S TGR

    2009(3MIS) c - c c c c c

    2008(3MIS) c - c c c c c

    2007(1YIS) c c c c c c c

    2006(2YIS) c c c c c - -

    2005(3YIS) c c c c c - -

    2004(4YIS) c c c c c - -

    c c - - c - -

    - c - - - - -

    a

    b

    c

    d e f

    [Tab. 1-2] /

    Respondents and Study Contents of CPQ Indices :

    The annual syndicated research conducted by Marketing Insight comprises

    seven areas excluding elementary explanatory variables such as demographic

    traits.

    1. Vehicle ownership and usage

    2. Evaluation on vehicle purchasing process

    3. Vehicle purchase plan

    4. TGR evaluation

    5. TGW experience

    6. A/S experience

    7. Vehicle quality stress

    Suggesting these seven categories are dependent on the type of vehicle a

    respondent drive, and how he or she had purchased and maintained it. For

    example, it would be meaningless to ask a respondent who purchased a used car'what problems or defects the vehicle had so far' or another who was not involved

    in the purchasing process 'whether the salesperson was friendly'. Some questions,

    however, may apply to all respondents.

    [Table. 1-2] shows which questions were asked to consumers depending on the

    type of vehicles they purchased, and the time frame of major indices for CPQ.

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    Chapter 1 Introduction 19

    a. QSI: Quality Stress Index b. TGW-i: Things Gone Wrong-initialc. TGW-d: Thi ngs Gone Wrong-durability d. A/S satisfaction: CSI (Customer Service Index)

    e. SSI: Sales Satisfaction Index f. TGR: Things Gone Right

    Target

    Purchaset iming

    (Ownershipperiod)

    Major st udy conten t

    OwnershipU & A

    Purchaseplan

    Qualitystress

    TGWexperience

    A/ SPurchaseprocess

    evaluation

    TGREvaluation

    New carbuyer

    2009 (3MIS) c - c c c c c

    2008 (3MIS) c - c c c c c

    2007 (1YIS) c c c c c c c

    2006 (2YIS) c c c c c - -

    2005 (3YIS) c c c c c - -

    2004 (4YIS) c c c c c - -

    Used carbuyer

    Total c c - - c - -

    Non-owner Total - c - - - - -

    Target

    Purchaset iming

    (Ownershipperiod)

    Major st udy conten t

    OwnershipU & A

    Purchaseplan

    Qualitystress

    TGWexperience

    A/ SPurchaseprocess

    evaluation

    TGREvaluation

    New carbuyer

    2009 (3MIS) c - c c c c c

    2008 (3MIS) c - c c c c c

    2007 (1YIS) c c c c c c c

    2006 (2YIS) c c c c c - -

    2005 (3YIS) c c c c c - -

    2004 (4YIS) c c c c c - -

    Used carbuyer

    Total c c - - c - -

    Non-owner Total - c - - - - -

    a

    b

    c

    d e f

    [Tab. 1-2] Ownership Time Frame of Major Indices

    7. CPQ (Types and Definition of CPQ Indices)

    CPQ . %

    , .

    , .

    7, .

    Types and Definition of CPQ Indices :

    As there are various kinds of CPQ, there also exist many types of measurement

    such as percentage (%) or points. The number of problems or defects per hundred

    vehicles can be counted using PPH (Problems Per Hundred Vehicles), and so can

    be the number of stressful incidents experienced using SPH (Stressful incidents

    Per Hundred Vehicles). The figures can be suggested in % or point. This paper

    deals with seven quality indices, and their characteristics and units are all

    different.

    1) (Overall Satisfaction): 6

    (2009 12009 6 )

    10(110)

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    20 Chapter 1

    .

    1,000 (OSS: Overall

    Satisfaction Score), 10 8, 9, 10

    (%), Top 3 Box % (OSP: Overall Satisfied Percent)

    .

    . ,

    , /

    .

    Overall Satisfaction: This measures overall satisfaction of vehicle quality

    and service on a 10-point scale by new car buyers within 6 months of ownership

    (purchased between January and June, 2009).

    The average of the above results is converted to a maximum of 1,000 points,

    which is called OSS (Overall Satisfaction Score). OSP (Overall Satisfied Percent)

    refers to what is commonly called the 'Top 3 Box %', which records a percentage

    of respondents who gave the ratings of 8, 9, or 10 on a 10-point scale. This score

    reflects consumer satisfaction of their purchased vehicle and the maker that

    manufactured it and provided service for it. Thus, the overall satisfaction score

    evaluates an automaker's corporate activities in terms of its corporate and brand

    image, advertising, publicity as well as its product and service quality.

    2) (SSI: Sales Satisfaction Index): 1

    (2008 7~2009 6 )

    , ,

    3

    , 27

    . SSI

    1,000 (derived score)

    , 27 (dichotomy items)

    (Service Standard Fulfillment Rate) .

    SSI: Sales Satisfaction Index: New car buyers within one year of

    ownership (July 2008 - June 2009) evaluate sales outlets and salespersons they

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    Chapter 1 Introduction 21

    encountered during their car buying process. SSI comprises three categories of the

    purchase process: sales outlet, salesperson, and delivery process, and 27 items of

    consumer experienced quality. The maximum score of SSI is 1,000 points derived

    from the responses to 27 CEQ items. The responses from 27 dichotomy items are

    presented as the Service Standard Fulfillment Rate.

    3) A/S (CSI: Customer Service Index): 1(2008 7

    ~2009 6)

    21

    . CSI

    1,000 , 21

    .

    .

    CSI: Customer Service Index: CSI indicates the aftersales service

    satisfaction score of service users who have visited direct, authorized, or affiliated

    service centers within the past one year (between July 2008 and June 2009)

    measured by 21 CEQ items. The maximum score of CSI is 1,000 points derived

    from responses to the CEQ items. The responses based on 21 dichotomy items are

    presented as Service Standard Fulfillment Rate. Basically, the measurement

    method is the same as that of SSI.

    4) (TGR: Things Gone Right): 1

    (2008 72009 6 ) , 7

    5 . 1,000

    . TGR 7 56

    , 56 5

    .

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    22 Chapter 1

    TGR: Things Gone Right: New car buyers within one year of ownership

    (purchased between July 2008 and June 2009) were asked on a 5-point scale how

    satisfied they were with their vehicle in 7 categories such as design, driving

    performance, etc., which was weighted according to category importance, then

    finally combined into maximum 1,000 points. The TGR scale consists of 7

    categories and 56 items and overall satisfaction. Respondents were asked to

    evaluate each of the 56 items on a 5-point scale.

    5) (TGW-i: Things Gone Wrong - initial):

    6 (2009 12009 6 )

    13 170 , 344

    (L&O: Location and Occasion) 100 .

    PPH (Problems Per Hundred Vehicles) .

    TGW-i: Things Gone Wrong - initial: TGW-i measures the number of

    defects and problems experienced by new car buyers within six months of

    ownership (purchased between January and June 2009) through 13 categories, 170

    items and 344 L&Os (Location and Occasion of problems occurred), which is

    converted to the average number of PPH (Problems Per Hundred Vehicles.)

    6) (TGW-d: Things Gone Wrong - durability):

    3 (2006 )

    . PPH

    .

    TGW-d: Things Gone Wrong - durability: TGW-d measures defects andproblems experienced by new car buyers after three years of ownership

    (purchased in 2006) using the same measurement frame and process as TGW-i.

    This is also shown in PPH.

    7) (QSI: Quality Stress Index): 1(2008 1

    2008 12 )

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    Chapter 1 Introduction 23

    . 18

    , SPH (Stressful incidents Per Hundred

    Vehicles) TGW PPH .

    QSI: Quality Stress Index: QSI measures psychological tensions and

    conflicts experienced by new car buyers at an average of one year of ownership

    (purchased between January and December 2008). Quality Stress is measured by

    18 items that encompass quality experiences of both product and service. The

    measurement unit uses SPH (Stressful incidents Per Hundred Vehicles) in the

    same method as PPH is calculated.

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    24 Chapter 1

    [2009 9 ]

    Index (2009 )

    1.

    : 6 (2009 1 6) : 10 ?

    (, Top3Box%)

    2.

    : 1 (2008 7 2009 6) : 10 ? (, Top3Box%)

    3. A/S A/S

    : 1 : 10 ?

    (, Top3Box%)

    4. : 1 (2008 7 2009 6) : 7 5 ? ()

    5. : 6 (2009 1 6) : 13 170 100 (PPH)

    6. : 3 (2006) : 13 170 100 (PPH)

    7. : 2008 ( 1 ) : , 18 100

    (SPH)

    Index (2009 )

    1.

    : 6 (2009 1 6) : 10 ?

    (, Top3Box%)

    2.

    : 1 (2008 7 2009 6) : 10 ? (, Top3Box%)

    3. A/S A/S

    : 1 : 10 ?

    (, Top3Box%)

    4. : 1 (2008 7 2009 6) : 7 5 ? ()

    5. : 6 (2009 1 6) : 13 170 100 (PPH)

    6. : 3 (2006) : 13 170 100 (PPH)

    7. : 2008 ( 1 ) : , 18 100

    (SPH)

    [Based on 2009 the 9th Syndicated Research]

    I ndex Cont ent (Based on 2009)

    1. OS Score, %

    Who: New car buyers within 6 months of ownership (Jan.-June '09)Items: On a scale of 1 to 10, how would you rate the company when

    considering sales, service, and quality all together?(Average score per 1,000 points, Top3Box%)

    2. SSI Score, %Who: New car buyers within 1 year of ownership (July '08-June '09)Items: How would you rate the sales outlet sales person on a 10-point

    scale? (Average score per 1,000 points, Top3Box%)

    3. CSI Score, %

    Who: Direct/Authorized/Affiliated service center users within last 1 year(Affiliated service center added in '06)

    Items: How would you rate the service center you visited? (10-point scale)(Average score per 1,000 points, Top3Box%)

    4. TGRWho: New car buyers within 1 year of ownership (July '08-June '09)Items: When considering all 7 aspects of the vehicle, how would you rate it

    on a scale from 1 to 5? (Average score per 1,000 points)

    5. TGW-i

    Who: New car buyers within 6 months of ownership (Jan-June '09)

    Items: Problems per hundred vehicles experienced in 13 categories and 170items (PPH)

    6. TGW-dWho: New car buyers after 3 years of ownership (after '06)Items: Problems per hundred vehicles experienced in 13 categories and 170

    items (PPH)

    7. QSIWho: New car buyers in '08 (average 1 year of ownership)Items: Stress per hundred vehicles experienced in 18 Items related to

    vehicle problems & service (SPH)

    I ndex Cont ent (Based on 2009)

    1. OS Score, %

    Who: New car buyers within 6 months of ownership (Jan.-June '09)Items: On a scale of 1 to 10, how would you rate the company when

    considering sales, service, and quality all together?(Average score per 1,000 points, Top3Box%)

    2. SSI Score, %Who: New car buyers within 1 year of ownership (July '08-June '09)Items: How would you rate the sales outlet sales person on a 10-point

    scale? (Average score per 1,000 points, Top3Box%)

    3. CSI Score, %

    Who: Direct/Authorized/Affiliated service center users within last 1 year(Affiliated service center added in '06)

    Items: How would you rate the service center you visited? (10-point scale)(Average score per 1,000 points, Top3Box%)

    4. TGRWho: New car buyers within 1 year of ownership (July '08-June '09)Items: When considering all 7 aspects of the vehicle, how would you rate it

    on a scale from 1 to 5? (Average score per 1,000 points)

    5. TGW-i

    Who: New car buyers within 6 months of ownership (Jan-June '09)

    Items: Problems per hundred vehicles experienced in 13 categories and 170items (PPH)

    6. TGW-dWho: New car buyers after 3 years of ownership (after '06)Items: Problems per hundred vehicles experienced in 13 categories and 170

    items (PPH)

    7. QSIWho: New car buyers in '08 (average 1 year of ownership)Items: Stress per hundred vehicles experienced in 18 Items related to

    vehicle problems & service (SPH)

    [Tab. 1-3] 7

    [Tab. 1-3] 7 CPQ Indices: Target and Item

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    Chapter 1 Introduction 25

    8. (Cautions in data interpretation)

    .

    ,

    .

    , 7

    1 6

    . 2009 4 Sorento R

    .

    3MIS (Month In Service) Sorento R 2MIS

    .

    .

    .

    Cautions in data interpretation:

    Vehicle research produces more complex results than other types of research.

    Thus, poor understanding of the samples and the target models from which the

    data is drawn can elicit misinterpretation.

    An example of the TGW-i score from the paper illustrates such a case. The

    TGW-i score is drawn from those who purchased a new vehicle between January

    and June of the same year the study is conducted. It means that, in the case of

    2009 study, no other model could beat the TGW-i score of Sorento R that was

    launched in April 2009. While the average ownership period of other models is 3

    MIS (Month in Service), that of Sorento R is less than 2 MIS on average. Without

    understanding such limitation, a direct comparison of scores will only lead to

    erroneous conclusions.

    In this paper, additional explanations are provided where needed to minimize

    possibilities of misinterpretation.

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    Chapter 22009 (Summary)

    1. (2005 -2009).....30(Trends in Major Quality Indices 2005 - 2009)

    2. 2009 .....32(2009 Major Quality Indices by Maker)

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    Chapter 2 Summary 27

    Chapter 22009 (Summary)

    1. (20052009)

    (Trends in Major Quality Indices 20052009)

    5 . 7

    5

    .

    08 - 09

    . (OSP) 2.0%p

    (QSI) 09 08 .

    08 - 09

    .

    (OSP) 05 62.4% 08

    5%p 08 50%

    46.3% . 09 2.0%p 48.3% , 50% . 80%

    .

    .

    .

    [Tab. 2-1].

    Trends in Major Quality Indices 20052009:The White Paper has been presenting the past five years data only. The

    industrial average scores of the seven indices across the past five years

    indicate the trends in product and service qualities of automobile evaluated

    by domestic consumers.

    In the comparison of '08 - '09 quality changes, most of the indices had

    improved. All the '09 quality indices except 'Quality Stress Index' (QSI)

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    28 Chapter 2 2009

    had improved from those of '08 including 'Overall Satisfaction Percent'

    (OSP) with 2.0%p improvement. This shows that the product and service

    quality of automotive industry had somewhat improved between '08 and '09.

    When taking a look at each index, OSP recorded 62.4% in 2005 and

    declined 5%p annually on an average. In 2008, it could not meet 50% with

    46.3%. It rose 2%p in 2009 to 48.3% but still could not meet 50%. When

    considering over 80% rates in developed countries in automobiles, the current

    number is very low. However, it is problematic to analyze this difference as a

    difference in objective standard. Instead, it is more reasonable to state that the

    consumers tendency in response had a greater effect. It seems to be because of the

    ungenerous tendency of Korean consumers when they evaluate [Tab. 2-1].

    , .

    08 - 09 (SSI) A/S(CSI) 4 - 5(1,000

    ) , (TGR)

    (TGW) . (TGW-i)

    (TGW-d) 167 PPH 439 PPH

    . ,

    , .

    (QSI) .

    5 08 - 09 7

    6 ,

    .

    , .

    Although the satisfaction rates for product quality and service quality provided

    by the auto makers have increased, there was more improvement in product than

    service. During the years 2008 and 2009, SSI and CSI satisfaction rates have

    increased slightly by 4 to 5 points (1,000 point scale), but TGR and TGW indices,

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    Chapter 2 Summary 29

    149155117123141QSI **

    756773762781786CSI*790797762761765SSI *

    757768731541***558TGR*

    496506494457439TGW-d**

    180193174180167TGW-i**

    2009(9 th) 2008(8 t h) 2007(7 th) 2006(6 t h) 2005(5 t h)

    OSP* 48.3 46.3 52.7 58.9 62.4

    149155117123141QSI **

    756773762781786CSI*790797762761765SSI *

    757768731541***558TGR*

    496506494457439TGW-d**

    180193174180167TGW-i**

    2009(9 th) 2008(8 t h) 2007(7 th) 2006(6 t h) 2005(5 t h)

    OSP* 48.3 46.3 52.7 58.9 62.4

    * A high score represents better quality.** A low score represents better quality.***

    which are related to the product, have increased greatly. Especially, TGW-i and

    TGW-d with the scores of 167 PPH and 439 PPH respectively, showed the best

    results since the measurement had started. These are good signs showing that

    problems, defects and break downs of automobile experienced by Korean

    consumers are decreasing.

    The QSI, which measures the overall psychological responses for product and

    service quality of vehicle, had increased somewhat compared to last year.

    When considering the trends of the past 5 years generally, during 2008 and

    2009, there has been improvements in 6 out of 7 quality indices which are more

    than any other year.

    Although many of the auto makers suffered from the economic crisis, it can besaid this year was a satisfactory year for consumers of car.

    [Tab. 2-1] (2005-2009)

    (Trends in Major Quality Indices 2005-2009)

    2. 2009

    (2009 Major Quality Indices by Maker)

    : 113 PPH

    5 , 133 PPH,

    201 PPH, 248 PPH, 298 PPH . 05

    , ,

    2 . 106

    PPH 1 .

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    30 Chapter 2 2009

    2009 Major Quality Indices by Maker:

    TGW-i: The consumers of Renault Samsung reported the fewest problems

    among the 5 auto makers with an average of 113 PPH followed by Hyundai (133

    PPH), Kia (201 PPH), GM Daewoo (248 PPH) and Ssangyong (298 PPH).

    Although the tables had been turned around and around between Hyundai and

    Renault Samsung since 2005, Hyundai had remained in the 2nd place this year

    following last year. Although it is difficult to categorize imported cars together

    with domestic cars, imports (106 PPH) surpassed the 1st place Renault Samsung

    by a slight difference.

    : 404 PPH 417 PPH 1 . 05

    . 3 444 PPH ,

    480 PPH , 558 PPH .

    93 PPH

    4 . 385 PPH 1 .

    TGW-d: Hyundai (404 PPH) surpassed Renault Samsung (417 PPH) for the

    first time coming in 1st place. This change was first expected when Hyundai had

    surpassed Renault Samsung in TGW-i for the first time in 2005. The 3rd place was

    Kia (444 PPH) and the next was Ssangyong (480 PPH), and GM Daewoo (558

    PPH) in order. Ssangyong, which had been in the last place for the past few years,

    improved by 93 PPH, surpassing GM Daewoo with a large gap to take the 4th

    place. Imported cars with an average 385 PPH were ahead of 1st place Hyundai.

    : , ,

    . 558(1,000 )

    08 541 . 611

    1 , 568, 543, 537,

    512 . . 719

    1 100

    .

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    Chapter 2 Summary 31

    TGR: Different from the number of problems, new cars are evaluated by the

    attractiveness of their function, performance and design. The industry average for

    TGR was 558 points (1,000 point scale) improved from 541 points in 2008. By

    maker, Renault Samsung maintained its 1st place position from last year with 611

    points, followed by Hyundai (568 points), GM Daewoo (537 points) and Kia (512

    points). The strongest point of imported cars was the TGR. The fact that imported

    cars surpassed domestic number one ranked Renault Samsung by more than 100

    points (719 points) shows there is still much improvement needed for TGR of

    domestic makers.

    : 765, 811

    1. 770, 761, 749, 745

    . 8 1

    800. 798 .

    Sales Satisfaction: Industry average was 765 points while Renault Samsung

    came in first with 811 points amongst domestic makers. Next was Hyundai with

    770 points, followed by Ssangyong (761 points), GM Daewoo (749 points), andKia (745 points). Renault Samsung, which had been the 1st for the past 8 years,

    was the only domestic maker to be in the 800 point range. Imported cars (798

    points) could not match Renault Samsung.

    A/S: 786, 825

    8 1 . (786), (782), (780

    ), (777) . 2

    39 , 2 5 9

    4 . 806

    .

    A/S Satisfaction: Industry average was 786 points while Renault Samsung

    came in first with 825 points maintaining its top spot for 8 consecutive years.

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    32 Chapter 2 2009

    Following was GM Daewoo (786 points), Hyundai (782 points), Ssangyong (780

    points), and Kia (777 points) in order. Renault Samsung led the 2nd place GM

    Daewoo by 39 points, while there was only a mere 9 point difference within the

    makers from 2nd to 5th place. Although imported cars scored 806 points

    surpassing most domestic makers, it could not match Renault Samsung.

    : 141 SPH(Stress Per Hundred),

    121 SPH , (122 SPH)

    2 . 155 SPH, 159 SPH, 200

    SPH . 141 SPH .

    QSI: Industry average was 141 SPH (Stress Per Hundred). The consumers of

    Renault Samsung had the least number of problems (121 SPH) and Hyundai came

    in 2nd with a slight difference (122 SPH). Next was Kia (155 SPH), GM Daewoo

    (159 SPH), and Ssangyong (200 SPH) in order. Imported cars with a score of 141

    SPH same as the industry average showed poor performance comparatively.

    : 6

    (10 8 - 10 ) 48.3% . 63.1% 1 ,

    (50.0%), (43.3%), (37.7%), (34.9%) . 8

    1 60% , 50%

    . 67.2% 1 4.1%p

    [Tab. 2-2].

    OSP: Amongst consumers who have purchased new cars within 6 months, the

    Satisfied in Overall' (8 to 10 on 10 point scale) rate was 48.3%. Amongst

    domestic makers, Renault Samsung came in 1st with 63.1%, followed by with

    great difference Hyundai (50.0%), Kia (43.3%), GM Daewoo (37.7%), and

    Ssangyong (34.9%). Renault Samsung which came in 1st for 8 consecutive years

    was the only one in the 60% range, while it's competitors had remained below

    50%. Imported cars (67.2%) scored higher than Renault Samsung by 4.1%p which

    is not a small difference[Tab. 2-2].

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    Chapter 2 Summary 33

    141200121155122159141QSI **

    806780825777782786786CSI *

    798761811745770749765SSI *719543611512568537558TGR*

    106298113201133248167TGW-i**

    385480417444404558439TGW-d**

    Total GMDAT HMC KMC RSM SYM I mpor t

    OSP* 48.3 37.7 50.0 43.3 63.1 34.9 67.2

    141200121155122159141QSI **

    806780825777782786786CSI *

    798761811745770749765SSI *719543611512568537558TGR*

    106298113201133248167TGW-i**

    385480417444404558439TGW-d**

    Total GMDAT HMC KMC RSM SYM I mpor t

    OSP* 48.3 37.7 50.0 43.3 63.1 34.9 67.2

    : BIC (Best in Class), : WIC (Worst in Class): BIC (Best in Class), : WIC (Worst in Class)* A high score represents better quality.** A low score represents better quality.

    7

    , .

    1, A/S

    .

    , ,

    . ,

    1 .

    , 1

    .

    When summarizing the results of the 7 Quality indices of car makers, the

    situation which stands out the most is Renault Samsung's walkover. Renault

    Samsung came in 1st in most of the indices, advanced far ahead in sales and A/S

    service categories without any competitor near by including imports.

    Although there is limitation in categorizing into one, service provided by

    imported cars, especially TGR quality was on a much higher level. Imported cars

    surpassed number 1 ranked domestic maker lightly in the aspects of product

    quality including TGW-i, TGR and TGW-d. With exceptionally high scores inTGR, it surpassed the 1st place domestic brand in OSP.

    [Tab. 2-2] 2009

    (2009 Major Quality Indices by Maker)

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    Chapter 3 (TGW-i)

    1. (TGW-i Scores by Maker).....38

    2. (TGW-i Scores by Vehicle Class).....41

    3. (TGW-i Model Ranking).....43

    4. (TGW-i Scores by Category).....46

    5. Worst 10 (TGW-i Worst 10 Items).....47

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    Chapter 3 TGW-i 35

    Chapter 3 (TGW-i)

    1. (TGW-i Scores by Maker)

    6

    (TGW-i: Things Gone Wrong - initial) 1 100

    PPH(Problems Per Hundred Vehicles) .

    TGW-i 05 5 13 170 .

    (L&O: Location and Occasion)

    , 344 L&O .

    09 167 PPH

    . 02 310 PPH 1/2

    .

    113 PPH

    5 , 133 PPH, 201PPH,

    248 PPH, 298 PPH . 106 PPH 1

    [Fig. 3-1].

    TGW-i Scores by Maker:

    TGW-i designates the number of quality problems encountered by new car

    buyers within the six months of ownership, measured in PPH (Problems Per

    Hundred Vehicles).Measurement of TGW-i was based on 13 categories and 170 items since 2005.

    Some items include sub-items to verify the location or occasions (L&O) of defects

    and malfunctions and when taking into consideration the number of L&O counts

    344.

    The 2009 industry average of TGW-i recorded 167 PPH, a history low. Being

    1/2 of the industry average 310 PHH in year 2002, it shows a remarkable growth

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    36 Chapter 3

    in the automobile TGW-i over the past few years.

    Amongst this year's domestic companies, Renault Samsung's consumers

    reported on average 113 PPH as the lowest out of the 5 companies. Hyundai

    following with 133 PPH, Kia 201 PPH, GM Daewoo 248 PPH, and Ssangyong

    298 PPH. Despite some difficulty with categorizing, imported cars had 106 PPH

    showing less problems than Renault Samsung, domestic's number one, with a

    small difference [Fig. 3-1].

    05 1

    . 04 1

    05 . , , 08 09

    . .

    05 56 PPH, 31 PPH

    . , 50 PPH

    .

    , , 09

    106 PPH 08 . 06

    100

    PPH .

    Renault Samsung and Hyundai have competed for the number one spot after

    2005 in the TGW-i section while leading the improvements. Renault Samsung's

    stronghold of the number one spot had fallen to Hyundai for the first time in 2005,

    after holding onto the top spot with great difference until 2004. Despite continuous

    placement changes between the two companies, in 2008 and also in 2009, Renault

    Samsung took over the top spot. Through the intense competition amongst each

    other, the two companies were both able to exceed other companies greatly in

    quality improvement. Compared to 2005, Renault Samsung and Hyundai were

    able to decrease their number of problem experience by 56 PPH and 31 PPH,

    respectively. On the other hand, Kia was standing still, but GM Daewoo and

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    Chapter 3 TGW-i 37

    Ssangyong stepped backwards with increases of 50 PPH each.

    Imported cars, always ranked amongst the top with Renault Samsung and

    Hyundai, outperformed all domestic makers in 2009 with 106 PPH following the

    year 2008. Imports have been consistently decreasing the amount of problems and

    showing great possibility in approaching the below 100 PPH mark this following

    year.

    . ,

    ,

    .

    .

    ,

    , A/S .

    . 1

    , . , ,

    .

    Currently, domestic cars are competing with overseas companies globally. It is

    shown that domestic cars have been lower in the product quality, which is

    composed of TGW-i, TGW-d, and TGR, compared to imported cars. When the

    industrial average of domestic cars become of similar level with imports, that is

    when we can say it has the quality for global competitiveness.

    TGW-i is being accepted as the most important quality index that is related with

    all the processes from product conception, design layout to A/S. This study had

    revealed the close relationship between the company's overall management status

    and TGW-i. During the past one year, Ssangyong and GM Daewoo's TGW-i have

    worsened greatly without prior example and that has a connection with their

    financial difficulties. It can be said that slow sales, financial difficulties and

    quality deterioration are all linked to each other like a chain.

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    38 Chapter 3

    16 718 017419 318 0

    113

    15 915 715 4

    169

    133

    16 1

    14 8

    19 1

    164

    201

    217

    17 119 3

    20 1

    24824 1

    22 4

    198195

    24 425 2 257

    20 8

    298

    10610 1 11 6

    15 816 3

    0

    50

    10 0

    15 0

    20 0

    25 0

    30 0

    35 0

    40 0

    45 0

    2005(5th )

    '05(3)

    2006(6th )

    '06(3)

    2007(7 th )

    '07(3)

    2008(8th )

    '08(3)

    2009(9th )

    '09(3)

    2005(5th )

    '05(3)

    2006(6th )

    '06(3)

    2007(7 th )

    '07(3)

    2008(8th )

    '08(3)

    2009(9th )

    '09(3)

    RSM

    HMC

    KMC

    SYM

    GMDAT

    Year (Wave)

    MY (MIS)

    (PPH)

    I nd. Avg.

    Import

    RSMHMC KMC SYMGMDAT IMPORTRSMRSMHMCHMC KMCKMC SYMSYMGMDATGMDAT IMPORTIMPORT

    Better

    [Fig. 3-1]

    (Things Gone Wrong - initial by Maker)

    2. (TGW-i Scores by Vehicle Class)

    SUV , 9

    . 08 SUV

    SUV SUV / SUV .

    09 (107 PPH)

    1 . (135 PPH), (154 PPH) .

    SUV / SUV 155 PPH 4 ,

    SUV 220 PPH . SUV 08

    09

    (226 PPH)

    [Tab. 3-1].

    08 (-39 PPH) SUV(-32

    PPH) . ( 34 PPH).

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    Chapter 3 TGW-i 39

    252

    155Small/Mid SUV*

    4,170

    211

    220

    135

    107

    154

    183

    178

    226

    167

    MY09 (3MIS)

    2009(9 t h) 2008(8 t h) 2007(7 t h) 2006(6 t h) 2005(5 t h)

    MY08 (3MIS) MY'07 (3MIS) MY'06 (3MIS) MY'05 (3MIS)

    I nd. Avg. 180 174 193 180

    Mini 241 249 169 210

    Small 190 176 188 154

    Sub-mid. 149 161 200 179

    Midsize 193 150 187 172

    Large 119 145 177 173

    Luxury 130 154 120 202

    Large SUV*

    183200 209 179

    MPV 217 193 246 254

    Base 5,793 6,666 6,823 6,754

    252

    155Small/Mid SUV*

    4,170

    211

    220

    135

    107

    154

    183

    178

    226

    167

    MY09 (3MIS)

    2009(9 t h) 2008(8 t h) 2007(7 t h) 2006(6 t h) 2005(5 t h)

    MY08 (3MIS) MY'07 (3MIS) MY'06 (3MIS) MY'05 (3MIS)

    I nd. Avg. 180 174 193 180

    Mini 241 249 169 210

    Small 190 176 188 154

    Sub-mid. 149 161 200 179

    Midsize 193 150 187 172

    Large 119 145 177 173

    Luxury 130 154 120 202

    Large SUV*

    183200 209 179

    MPV 217 193 246 254

    Base 5,793 6,666 6,823 6,754

    * Due to the increased number and sales volume of large SUV models, the SUV segment is divided from the 2008 study.- Large SUV: Rexton II, Veracruz, Mohave- Small/Mid SUV: All other SUV models

    * SUV 2008 SUV 2 - SUV: Rexton II, Veracruz, Mohave- / SUV: SUV

    TGW-i Scores by Vehicle Class:

    Vehicles were classified into a total of nine segments from mini to luxury,

    including SUV and MPV. In 2008, the SUV segment is shown in two

    sub-segments of large SUV and small/mid SUV due to an increase in the number

    of large SUV models and in their sales volume.

    The best performing segment of 2009 was 'Large' (107 PPH) for the second

    consecutive year. Following in the rankings are 'Luxury' (135 PPH) and 'Midsize'

    (154 PPH). In the case of SUV, 'Small/mid SUV' scored 155 PPH, ranking fourth,

    while 'Large SUV' belongs to one of the lowest in rank. Last year's worst player,

    'Large SUV', scored the second most problems after 'Mini' (226 PPH) [Tab. 3-1].

    Compared to 2008, the vehicle class with the largest reduction in problems were

    'Midsize' (-39 PPH) and 'Large SUV' (-32 PPH), respectively. On the other hand,

    'Sub-mid' recorded the largest increase in problems by (34 PPH).

    [Tab. 3-1]

    (Things Gone Wrong - initial by Vehicle Class)

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    40 Chapter 3

    3. (TGW-i Model Ranking)

    2009 60 20

    .

    (: Genesis Coupe, Click) [Tab. 3-2].

    09 SM3 60 PPH. Opirus

    76 PPH 2, Grandeur(TG) 91 PPH 3, Genesis 101 PPH 4,

    Santa Fe(CM) 109 PPH 5 [Tab. 3-2].

    TGW-i Model Ranking:

    TGW-i is based on the responses of consumers whose vehicles were purchased

    in the first half of 2009. The list includes 20 passenger cars with more than 60

    cases per model. Thus, those having an insufficient number of cases, such as

    Genesis Coupe and Click were excluded from the ranking [Tab. 3-2].

    SM3 ranked first with the least amount of problems in the 2009 TGW-i ranking

    with a score of 60 PPH. Ranked number two was Opirus (76 PPH), with

    Grandeur(TG) (91 PPH) 3rd, Genisis (101 PPH) 4th, and Santa Fe(CM) (109

    PPH) ranked 5th [Tab. 3-2].

    Top 10 6

    . 3, 4, 5 Grandeur(TG), Genesis, Santa Fe(CM) Sonata(NF),

    Avante(HD), Tucson 8 - 10 .

    1 SM3 New SM5 6 2 10

    .

    QM5 65 PPH 1 .

    Opirus(76 PPH), Sportage(125 PPH) 2 2, 7

    Top 10 . Soul(198 PPH), Forte(213 PPH) 14, 16

    .

    All New Matiz(207 PPH) 15, Winstorm(222 PPH) 17

    .

    .

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    Chapter 3 TGW-i 41

    3 (SM3, Opirus, Grandeur(TG)) 100

    PPH . 100 PPH

    08 Genesis (91 PPH) .

    .

    By manufacturer, Hyundai dominated the rankings by placing six models in the

    top ten list. Grandeur(TG), Genesis and Santa Fe(CM) ranked from 3rd to 5th,

    while Sonata(NF), Avante(HD) and Tucson ranked 8th to 10th, boasting superior

    competitiveness against competitors.

    Renault Samsung placed two models in the top ten list, with SM3 ranked 1st

    and New SM5 ranked 6th. Due to the insufficient cases, QM5 was not ranked but

    received an outstanding score of 65 PPH which showed the potential of the

    ranking 1st maker in TGW-i.

    Opirus (76 PPH) and Sportage (125 PPH) were ranked 2nd and 7th being the

    only 2 models from KIA to rank within Top 10. Soul (198 PPH) and Forte (213

    PPH) each 14th and 16th ranked in the mid-to-low range.

    GM Daewoo had the all New Matiz (207 PPH) on 15th, and Winstorm (222

    PPH) on 17th, both also ranking in the lower middle range.

    Ssangyong, due to lack of sales, not even a model was able to be compared.

    The distinctive feature of this study was that the 3 models (SM3, Opirus,

    Grandeur(TG)) were all under 100 PPH obtaining excellent grades. The only

    model with less than 100 PPH in the past was 2008 Genesis (91 PPH). Through

    this stimulating cases, we anticipate many more models to render in the future.

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    42 Chapter 3

    a. , 2009 30 (Genesis Coupe, Click)

    b. , *

    ---309a272aMohave-

    ----306Lacetti Premiere20

    --269(24)208(19)222Winstorm17

    ----213Forte16

    -308(23)201(17)245a130aGrand Carnival-

    278(23)211(*)183(14)214(20)242aNew Carens-

    Rank Model2009(9 t h) 2008( 8t h) 2007( 7t h) 2006( 6t h) 2005( 5t h)

    MY'09 (3MIS) MY'08 (3MIS) MY'07 (3MIS) MY'06 (3MIS) MY'05 (3MIS)

    I nd. Avg. 167 180 174 193 180

    1 SM3 60 120(4) 143(5) 135(1) 144(3)

    - QM5 65a 259(23) - - -

    2 Opirus 76 128(6) 155(8) 100(*) 224(17)

    3 Grandeur(TG) 91 115(3) 132(2) 177(8) 174b

    4 Genesis 101 91(1) - - -

    5 Santa Fe(CM) 109 148(10) 157(9) 255(20) 142(2)

    - Verna(MC) 113a - - - -

    6 New SM5 116 159(11) 149(7) 155(3) 162(6)

    7 Sportage 125 137(8) 141(4) 164(5) 178(8)

    8 Sonata(NF) 135 201(18) 124(1) 181(10) 178(8)

    - Sorento R 141b - - - -

    9 Avante(HD) 146 126(5) 163(10) 207(*) 162(6)

    10 Tucson 160 114(2) 139(3) 154(2) 155(4)

    - Tosca 164a 215(21) 217(19) 270(22) 190(12)

    11 i30 166 197(16) - - -

    12 SM7 171 135(7) 213(18) 179(9) 226(19)

    13 New Pride 178 144(9) 170(12) 184(11) 125b

    - Veracruz 187a 300a 193(15) - -

    14 Soul 198 - - - -

    15 All New Matiz 207 196(15) 249(23) 169(6) 210b

    - Equus 208a - - - -

    18 Morning 229 266(25) 181(13) 159(4) 196(13)

    19 Lotze Innovation 231 200(17) 168(11) 173(7) 185(11)

    ---309a272aMohave-

    ----306Lacetti Premiere20

    --269(24)208(19)222Winstorm17

    ----213Forte16

    -308(23)201(17)245a130aGrand Carnival-

    278(23)211(*)183(14)214(20)242aNew Carens-

    Rank Model2009(9 t h) 2008( 8t h) 2007( 7t h) 2006( 6t h) 2005( 5t h)

    MY'09 (3MIS) MY'08 (3MIS) MY'07 (3MIS) MY'06 (3MIS) MY'05 (3MIS)

    I nd. Avg. 167 180 174 193 180

    1 SM3 60 120(4) 143(5) 135(1) 144(3)

    - QM5 65a 259(23) - - -

    2 Opirus 76 128(6) 155(8) 100(*) 224(17)

    3 Grandeur(TG) 91 115(3) 132(2) 177(8) 174b

    4 Genesis 101 91(1) - - -

    5 Santa Fe(CM) 109 148(10) 157(9) 255(20) 142(2)

    - Verna(MC) 113a - - - -

    6 New SM5 116 159(11) 149(7) 155(3) 162(6)

    7 Sportage 125 137(8) 141(4) 164(5) 178(8)

    8 Sonata(NF) 135 201(18) 124(1) 181(10) 178(8)

    - Sorento R 141b - - - -

    9 Avante(HD) 146 126(5) 163(10) 207(*) 162(6)

    10 Tucson 160 114(2) 139(3) 154(2) 155(4)

    - Tosca 164a 215(21) 217(19) 270(22) 190(12)

    11 i30 166 197(16) - - -

    12 SM7 171 135(7) 213(18) 179(9) 226(19)

    13 New Pride 178 144(9) 170(12) 184(11) 125b

    - Veracruz 187a 300a 193(15) - -

    14 Soul 198 - - - -

    15 All New Matiz 207 196(15) 249(23) 169(6) 210b

    - Equus 208a - - - -

    18 Morning 229 266(25) 181(13) 159(4) 196(13)

    19 Lotze Innovation 231 200(17) 168(11) 173(7) 185(11)

    a. Insufficient number of samples(30~59), excluded from the rankingsModels with less than 30 samples are not presented in the list. (eg. Genesis Coupe, Click, etc.)

    b. Launched during the study period, excluded from the rankings* Data including both existing and new models are excluded from the rankings.

    [Tab. 3-2] 2005~2009

    (Thing Gone Wrong - initial Model Ranking 2005~2009)

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    Chapter 3 TGW-i 43

    4. (TGW-i Scores by Category)

    13 /

    35.6 PPH , (25.7 PPH), /

    (15.3 PPH), /(15.0 PPH) .

    05 3, 4 / /

    09 4, 3 . /

    06 .

    . 1 PPH

    [Tab. 3-3].

    08 5.8 PPH

    . /, /,

    1 - 2 PPH , 10 .

    TGW-i Scores by Category:

    When comparing the number of problems of 13 respective categories that

    comprise of TGW-i, 'Noise/Unusual sound' turned out to be the most problematic

    with 35.6 PPH, followed by 'Engine' (25.7 PPH), 'A/V system' (15.3 PPH) and

    'Handling/Steering wheel' (15.0 PPH). The ranking order of 'Handling/Steering

    wheel' and 'A/V system' as the 3rd and the 4th had not been changed since 2005,

    however in 2009 they have switched the ranking with each other as the 4th and the

    3rd which is the result of constant decrease of the problems related to

    'Handling/Steering wheel' since 2006. This category has shown much

    improvement than any other. The 'Battery' problem, shown lower than 1 PPH,

    became too difficult to maintain as a category [Tab. 3-3].

    The 'Engine' category had decreased the most by 5.8 PPH in the number of

    problems by category against '08. While HVAC', Interior and Transmission

    categories had slightly increased by 1 to 2 PPH, the rest 10 categories all had

    decreased.

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    44 Chapter 3

    10.89.89.310.09.6Body/Paint/Molding/Water leak

    13.011.49.38.99.9Interior

    10.510.09.911.112.0Transmission

    13.417.013.411.313.0HVAC

    16.117.714.616.215.3AV system

    4,170

    0.9

    3.27.3

    8.6

    10.4

    15.0

    25.7

    35.6

    16 7

    MY'09(3MIS)

    2009(9 t h) 2 00 8( 8th) 2 00 7( 7t h) 2 00 6( 6 th) 2 00 5( 5t h)

    MY'08(3MIS) MY'07(3MIS) MY'06(3MIS) MY'05(3MIS)

    TGW- i Scores [ PPH] 180 174 193 180

    Noise/Unusual sound 36.6 36.0 39.5 31.5

    Engine 31.5 24.7 25.9 27.1

    Handling/Steering wheel 18.6 20.7 23.5 18.3

    Brakes 11.7 11.7 10.5 11.1

    Electrical/Accessory 10.7 10.8 11.4 12.1

    Seats/Seatbelt 8.3 9.1 9.9 7.8Tires 3.6 3.7 4.7 2.2

    Battery 1.1 1.1 1.7 6.5

    Base 5,793 6,666 6,823 6,754

    10.89.89.310.09.6Body/Paint/Molding/Water leak

    13.011.49.38.99.9Interior

    10.510.09.911.112.0Transmission

    13.417.013.411.313.0HVAC

    16.117.714.616.215.3AV system

    4,170

    0.9

    3.27.3

    8.6

    10.4

    15.0

    25.7

    35.6

    16 7

    MY'09(3MIS)

    2009(9 t h) 2 00 8( 8th) 2 00 7( 7t h) 2 00 6( 6 th) 2 00 5( 5t h)

    MY'08(3MIS) MY'07(3MIS) MY'06(3MIS) MY'05(3MIS)

    TGW- i Scores [ PPH] 180 174 193 180

    Noise/Unusual sound 36.6 36.0 39.5 31.5

    Engine 31.5 24.7 25.9 27.1

    Handling/Steering wheel 18.6 20.7 23.5 18.3

    Brakes 11.7 11.7 10.5 11.1

    Electrical/Accessory 10.7 10.8 11.4 12.1

    Seats/Seatbelt 8.3 9.1 9.9 7.8Tires 3.6 3.7 4.7 2.2

    Battery 1.1 1.1 1.7 6.5

    Base 5,793 6,666 6,823 6,754

    [Tab. 3-3] 2005~2009

    (Things Gone Wrong - initial Score by Category 2005-2009)

    5. Worst 10 (TGW-i Worst 10 Items)

    170 10

    [Tab. 3-4] . 9.84 PPH

    , / /(5.88 PPH),

    /(5.72 PPH), (5.68 PPH)

    .

    Worst 10 /( 1, 2, 3, 8) 4

    , ( 4, 7), /( 5, 9)

    2 .

    Worst 10 9 08 Worst 10 .

    .

    .

    TGW-i Worst 10 Items:

    As shown in [Tab. 3-4], the worst ten items (in order of having most problems)

    were counted from a total of 170 items that comprise of TGW-i. 'Excessive wind

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    3.96(6)3.84 /

    (T/M Shifts roughly)6

    4.12(5)5.13

    (Air from vents smells moldy/stale)5

    3.78(8)5.88/ /

    (Other Noise/Unusual sound problems)2

    3.34

    3.38

    3.52

    3.56

    5.68

    5.72

    9.84

    MY'09 (3MIS)

    2009(9 t h) 2008(8 th)

    MY'08 (3MIS)

    1

    (Excessive wind noise)10.91(1)

    3 /(Noise/Unusual noise from the lower part of body)

    6.42(2)

    4 [](Engine lacks power)

    4.98(3)

    7 / (Engine noise/unusual sound while driving)

    4.81(4)

    8 /

    (Front tires noise/unusual sound when driving)3.88(7)

    9 (Loud sound when heaterA/C working)

    2.78(17)

    10 / (Radio has poor or no reception-AM/FM)

    3.53(10)

    3.96(6)3.84 /

    (T/M Shifts roughly)6

    4.12(5)5.13

    (Air from vents smells moldy/stale)5

    3.78(8)5.88/ /

    (Other Noise/Unusual sound problems)2

    3.34

    3.38

    3.52

    3.56

    5.68

    5.72

    9.84

    MY'09 (3MIS)

    2009(9 t h) 2008(8 th)

    MY'08 (3MIS)

    1

    (Excessive wind noise)10.91(1)

    3 /(Noise/Unusual noise from the lower part of body)

    6.42(2)

    4 [](Engine lacks power)

    4.98(3)

    7 / (Engine noise/unusual sound while driving)

    4.81(4)

    8 /

    (Front tires noise/unusual sound when driving)3.88(7)

    9 (Loud sound when heaterA/C working)

    2.78(17)

    10 / (Radio has poor or no reception-AM/FM)

    3.53(10)

    * 08

    noise' (9.84 PPH) was the most frequently reported, followed by 'Noise/Unusual

    sound from defect/problem' (5.88 PPH), 'Noise/Unusual sound from the lower part

    of body' (5.72 PPH), and 'Engine lacks power' (5.68 PPH).

    Four items from the 'Noise/Unusual sound' category belonged to the worst ten

    (ranked 1st, 2nd, 7th and 8th) being the most problematic category. The 'Engine'

    (ranked 4th and 7th) and 'Temperature/Ventilation' (ranked 5th and 9th) categories

    also included two items each in the worst ten list.

    The 9 out of the Worst 10 were already included in 2008 Worst 10. It shows that

    the most frequent problems generated from new cars are mostly diehard. Different

    from the consumer's expectation, the manufacturers regard them not able to fix or

    not such a serious problem.

    [Tab. 3-4] 2008~2009 Worst 10 Items

    (Things Gone Wrong - initial Worst 10 Items 2008-2009)

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    46 Chapter 3

    Chapter 4 (TGW-d)

    1. (TGW-d Scores by Maker).....50

    2. (TGW-d Scores by Vehicle Class).....53

    3. (TGW-d Model Ranking).....54

    4. (TGW-d Scores by Category).....57

    5. Worst 10 (TGW-d Worst 10 Items).....58

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    Chapter 4 TGW-d 47

    Chapter 4 (TGW-d)

    1. (TGW-d Scores by Maker)

    3 ,

    06 (TGW-d:

    Things Gone Wrong - durability).

    . , 3MIS 3YIS

    .

    09 439 PPH

    02 710 PPH, 05 496 PPH .

    [Fig.

    4-1].

    TGW-d Scores by Maker:

    TGW-d measures the number of quality problems experienced by consumers

    after an average of three years of ownership, in this study, those who purchased

    their car in 2006. The measurement method and score calculation are the same as

    those of TGW-i. The only difference between the two lies in the period of

    ownership, that being 3 MIS versus 3 YIS.

    The 2009 industry average of durability recorded 439 PPH, which is gradually

    decreasing from 710 PPH in 2003 and 496 PPH in 2005. Albeit not as much as the

    initial quality, there has been continuous quality improvement [Fig. 4-1].

    09 404 PPH 417

    PPH 1 . 05

    . 3

    444 PPH , 480 PPH , 558 PPH

    . 93 PPH

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    48 Chapter 4

    4 .

    In the 2009 study of TGW-d, Renault Samsung averaged 417 PPH while

    Hyundai Motors recorded 404 PPH surpassing Renault Samsung for the top spot.

    This was expected when Hyundai first surpassed Renault Samsung in TGW-i in

    2005. Ranked 3rd was Kia with 444 PPH followed by Ssangyong with 480 PPH,

    and GM Daewoo with 558 PPH. Ssangyong, which had been ranked as the lowest

    for past few years, has improved by 93 PPH and surpassed GM Daewoo, which

    has shown poor progress, for the 4th spot.

    385 PPH 1 .

    . 02

    710 PPH, 700 PPH

    . , 98 - 99 SM5

    270 PPH . 8

    SM5

    .

    417 PPH , 404

    PPH 2 .

    400 PPH

    .

    .

    .

    Imported cars on average scored 385 PPH surpassing domestic rank #1

    Hyundai.

    By taking a look at the trend of TGW-d, the history of Korean automobile

    quality can be guessed. The industry average of TGW-d was 710 PPH when the

    syndicated study for automobile quality first started in 2002. All the companies

    showed over 700 PPH except Renault Samsung. On the contrary, the SM5

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    Chapter 4 TGW-d 49

    manufactured by Samsung Motors in 1998 - 99, which became the object of

    TGW-d for Renault Samsung, only had 270 PPH. SM5 shows how excellent the

    car was during that time because until now for 8 years, no other company has

    developed a car with TGW-d score this low.

    Renault Samsung was pushed down to the 2nd spot with 417 PPH by

    Hyundai(404PPH) this year while it has kept increasing the number of problems.

    Kia and Ssangyong have gradually improved entering the 400 PPH mark and in

    reality, Renault Samsung's durability which once appeared to be unshakable is

    coming to an end and new rivalries are forming. It is clear Renault Samsung has

    drawn competition in the domestic car durability field. Through this multilateral

    competition, it is projected to draw improvement in TGW-d.

    05

    . 385 PPH 1

    , 300 PPH .

    .

    .

    .

    , .

    .

    The TGW-d score of imported cars have always been in the high rank but could

    not surpass Renault Samsung with an exception in 2005. However, in this year,

    imported cars scored 300 PPH which surpassed all the domestic auto makers

    including Hyundai ranked 1st with 385 PPH. The rapid progress of imported cars

    in TGW-i and TGW-d scores does not seem to be just a one time deal. It is

    noticeable because they seem to be a result of possessing strong competitive

    power.

    The improvement in TGW-d is the greatest gift for consumers. They can use the

    car longer, go further and don't need to take care of problems. And customers

    won't forget and appreciate the company that offers the gift.

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    50 Chapter 4

    43 945 749450 649 6

    55 8

    41 742 1

    341

    34 1

    30 3

    40 442 9

    49 045 2

    46 744 4

    45 850 4

    54 9576 572

    64 2

    52 256 4

    59 9

    66 8

    60 657 3

    48 0

    38 5

    25 7

    45 7

    41 144 6

    0

    10 0

    20 0

    30 0

    40 0

    50 0

    60 0

    70 0

    80 0

    RSMHMC

    KMC

    SYM

    GMDAT

    Year ( Wave)

    MY (YIS)2005(5 th )

    '02(3)

    2006(6 th )

    '03(3)

    2007(7 th )

    '04(3)

    2008(8 th )

    '05(3)

    2009(9 th )

    '06(3)

    2005(5 th )

    '02(3)

    2006(6 th )

    '03(3)

    2007(7 th )

    '04(3)

    2008(8 th )

    '05(3)

    2009(9 th )

    '06(3)

    (PPH)

    I nd. Avg.

    Import

    RSMHMC KMC SYMGMDAT IMPORTRSMRSMHMCHMC KMCKMC SYMSYMGMDATGMDAT IMPORTIMPORT

    Better

    [Fig. 4-1]

    (Things Gone Wrong - durability by Maker)

    2. (TGW-d Scores by Vehicle Class)

    394 PPH ,

    (419 PPH), (424 PPH), (431 PPH) . (533 PPH) (496 PPH) 05

    [Tab. 4-1]. 400 PPH ,

    500 PPH , 420 -

    440 PPH .

    , 06 713 PPH

    (06 180 PPH). 06

    640 PPH . 05 388 PPH

    08

    .

    TGW-d Scores by Vehicle Class:

    The best performing vehicle segment for TGW-d was large with 394 PPH,

    followed by midsize (419 PPH), sub-midsize (424 PPH), and luxury (431 PPH).

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    Chapter 4 TGW-d 51

    5,387

    496

    439

    431

    394

    419

    424

    439

    533

    43 9

    MY'06(3YIS)

    2009(9 t h) 2008(8 t h) 2007(7 th) 2006(6 t h) 2005(5 t h)

    MY'05(3YIS) MY'04(3YIS) MY'03(3YIS) MY'02(3YIS)

    I nd. Avg. 457 494 506 496

    Mini 540 657 713 586

    Small 498 483 522 538

    Sub-mid. 461 502 480 456

    Midsize 433 408 396 388

    Large 366 409 343 413

    Luxury 420 545 434 475

    SUV 462 518 541 550

    MPV 581 586 640 592

    Base 5,374 5,790 6,454 10,9735,387

    496

    439

    431

    394

    419

    424

    439

    533

    43 9

    MY'06(3YIS)

    2009(9 t h) 2008(8 t h) 2007(7 th) 2006(6 t h) 2005(5 t h)

    MY'05(3YIS) MY'04(3YIS) MY'03(3YIS) MY'02(3YIS)

    I nd. Avg. 457 494 506 496

    Mini 540 657 713 586

    Small 498 483 522 538

    Sub-mid. 461 502 480 456

    Midsize 433 408 396 388

    Large 366 409 343 413

    Luxury 420 545 434 475

    SUV 462 518 541 550

    MPV 581 586 640 592

    Base 5,374 5,790 6,454 10,973

    On the other hand, mini (533 PPH) and MPV (496 PPH) have continued to remain

    in the bottom ranking since 2005 [Tab. 4-1].

    In overall aspects, Large led the way with less than 400 PPH, mini and MPV

    which had 500 PPH or higher showed poor progress, and the rest can be put it the

    420-440 PPH range.

    When seeing the change in TGW-d by vehicle class, mini had continuously

    decreased its problems by 180 PPH from 713 PPH in 2006. The MPV had also

    steadily decreased its problems from 640 PPH in 2006. After scoring 388 PPH in

    2005, the Midsize had increased problems continuously until 2008 and then turned

    to show some decrease this year.

    [Tab. 4-1]

    (Things Gone Wrong - durability by Vehicle Class)

    3. (TGW-d Model Ranking)

    09 (, 06 ) 60

    22 .

    09 1 SM3(362 PPH),

    Opirus(363 PPH), Avante XD(375 PPH), Trajet XG(378 PPH), Grandeur

    (TG)(381 PPH) . 5 1 - 2 3

    , 10 6

    . , Avante XD 08 12

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    52 Chapter 4

    [Tab. 4-2].

    Opirus Sportage(392 PPH) 7, New Pride(411 PPH) 9

    3 Top 10 . 3

    Cerato(498 PPH) 16 .

    SM3(362 PPH) 1 10

    . 02 - 07 1 SM5

    New SM5 13 , 09 2 10

    . 8 SM7 6

    10 . 05 - 07

    .

    Kyron(471 PPH) 18, Chairman(513 PPH) 20 . All New Matiz(565 PPH) Lacetti(581 PPH)

    .

    TGW-d Model Ranking:

    The 2009 TGW-d ranking was based on 22 models purchased in 2006,

    excluding models having less than 60 cases.

    SM3 topped the TGW-d ranking this year with 362 PPH followed by

    Opirus(363 PPH), Avante XD(375 PPH), Trajet XG(378 PPH), and Grandeur

    (TG)(381 PPH). Out of the top five, except for the 1st and 2nd spot, three models

    were from Hyundai and 6 out of the top 10 were from Hyundai as well.

    Avante XD, in particular, improved its rank by 12 positions, the greatest rank

    increase from 2008 [Tab. 4-2].

    Beside Opirus, with Sportage (392 PPH) on 7th and New Pride (411 PPH) on

    9th, Kia placed total 3 models in the top ten. Cerato (498 PPH) which ranked 3rd

    last year had dropped 16 spots being placed in the low rank.

    SM3 (362 PPH) recorded ranking 1st and the only model from Renault

    Samsung to be placed in the top 10. Although the SM5, which was ranked 1st

    from 2002 to 2007, fell to the 13th spot after the model change to New SM5, it

    moved up 2 spots ranking close to top 10 in 2009. SM7 which was ranked 8th last

    year, fell 6 spots ranking outside of top 10. These results have a relationship with

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    Chapter 4 TGW-d 53

    a. , 2009 30 (Actyon(SUT), Carens )

    b. ,

    581(25)743(25)649(20)539(18)565All New Matiz21

    ---545b471Kyron18

    --419b417(6)470Tucson17

    ----604bWinstorm-

    524(17)541(14)538(16)531(17)581Lacetti22

    ---509b395Santa Fe(CM)8

    ---340b381Grandeur(TG)5

    471(9)491(12)518(13)492(15)375Avante XD3

    -370b400a403(4)363Opirus2

    312(2)372(3)367(2)375(2)362SM31

    Rank Model

    2009(9 t h) 2008(8 t h) 2007( 7t h) 2006( 6t h) 2005(5 t h)

    MY'06(3YIS)

    MY'05(3YIS)

    MY'04(3YIS)

    MY'03(3YIS)

    MY'02(3YIS)

    I nd. Avg. 439 457 494 506 496

    4 Trajet XG 378 436(12) 577(18) 521(13) 555(21)

    6 Sonata(NF) 390 431(11) 469(7) 398(4) 383(4)

    7 Sportage 392 421(9) 499b - -

    - Avante(HD) 407b - - - -

    9 New Pride 411 517b - - -

    10 Equus 418 247a 503a 434(6) 399(5)

    11 New SM5 431 439(13) 339(1) 330(1) 302(1)

    12 Lotze Innovation 432 352b - - -

    13 Sorento 436 440(14) 517(12) 480(10) 531(19)

    14 SM7 451 420(8) 238b - -

    - New Carens 460b - - - -

    15 Verna(MC) 465 - - - -

    16 Morning 466 543(19) 423b - -

    - Click 467a 374a 495(8) 544(15) 435(7)

    - New Carnival 472a 582a 505(10) 598(17) 626(30)

    - Tosca 475b - - - -

    19 Cerato 498 393(3) 525(14) 509a -

    - Actyon 499a - - - -

    20 Chairman 513 568(20) 529a 577a 476(10)

    - Grand Carnival 631a - - - -

    581(25)743(25)649(20)539(18)565All New Matiz21

    ---545b471Kyron18

    --419b417(6)470Tucson17

    ----604bWinstorm-

    524(17)541(14)538(16)531(17)581Lacetti22

    ---509b395Santa Fe(CM)8

    ---340b381Grandeur(TG)5

    471(9)491(12)518(13)492(15)375Avante XD3

    -370b400a403(4)363Opirus2

    312(2)372(3)367(2)375(2)362SM31

    Rank Model

    2009(9 t h) 2008(8 t h) 2007( 7t h) 2006( 6t h) 2005(5 t h)

    MY'06(3YIS)

    MY'05(3YIS)

    MY'04(3YIS)

    MY'03(3YIS)

    MY'02(3YIS)

    I nd. Avg. 439 457 494 506 496

    4 Trajet XG 378 436(12) 577(18) 521(13) 555(21)

    6 Sonata(NF) 390 431(11) 469(7) 398(4) 383(4)

    7 Sportage 392 421(9) 499b - -

    - Avante(HD) 407b - - - -

    9 New Pride 411 517b - - -

    10 Equus 418 247a 503a 434(6) 399(5)

    11 New SM5 431 439(13) 339(1) 330(1) 302(1)

    12 Lotze Innovation 432 352b - - -

    13 Sorento 436 440(14) 517(12) 480(10) 531(19)

    14 SM7 451 420(8) 238b - -

    - New Carens 460b - - - -

    15 Verna(MC) 465 - - - -

    16 Morning 466 543(19) 423b - -

    - Click 467a 374a 495(8) 544(15) 435(7)

    - New Carnival 472a 582a 505(10) 598(17) 626(30)

    - Tosca 475b - - - -

    19 Cerato 498 393(3) 525(14) 509a -

    - Actyon 499a - - - -

    20 Chairman 513 568(20) 529a 577a 476(10)

    - Grand Carnival 631a - - - -

    a. Insufficient number of samples(30~59), excluded from the rankingsModels with less than 30 samples are not presented in the list. (eg. Actyon(SUT), Carense, etc.)

    b. Launched during the study period, excluded from the rankings

    TGW-i instability from 2005 to 2007.

    With Kyron (471 PPH) ranked 18th and Chairman (513 PPH) ranked 20th,

    Ssangyong remained in the low rank. All New Matiz (565 PPH) and Lacetti (581

    PPH) were ranked the lowest.

    [Tab. 4-2] 2005~2009

    (Things Gone Wrong - durability Model Ranking 2005-2009)

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    54 Chapter 4

    4. (TGW-d Scores by Category)

    /(66.2 PPH)

    (66.5 PPH) . (58.3 PPH), /(49.4 PPH)

    . /, , /

    -

    [Tab. 4-3].

    08 09 , ,

    , '/(4.6 PPH)'

    . 05

    .

    TGW-d Scores by Category:

    The most problematic category in TGW-d was 'Noise/Unusual sound' (66.2

    PPH) same as in 2008 (66.5 PPH). 'Engine' (58.3 PPH) and 'Handling/Steering

    wheel' (49.4 PPH) followed after. These categories were also the most problematic

    in TGW-i, indicating that there is a close correlation between initial quality and

    durable quality [Tab. 4-3].

    When comparing the results of 2008 and 2009, all the categories with the

    exception of 'Brakes,' 'Tires,' and 'Battery' have shown improvements. The

    'Electrical/Accessory' category made the largest reduction in the number of

    problems (4.6 PPH). 'Tire' and 'Battery' categories had continuously shown minor

    decreases since 2005 but in this year, the amount of problems have slightly

    increased.

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    Chapter 4 TGW-d 55

    31.924.724.521.021.2Tires

    34.830.130.327.127.0Body/Paint/Molding/Water leak

    35.337.039.736.936.0AV system

    5,387

    8.3

    16.8

    20.5

    25.0

    33.7

    34.9

    42.1

    49.4

    58.3

    66.2

    439

    MY'06(3YIS)

    2009(9 th) 2 00 8( 8th) 2 00 7( 7th) 2 00 6( 6 th) 2 00 5( 5 th)

    MY'05(3YIS)

    MY'04(3YIS)

    MY'03(3YIS)

    MY'02(3YIS)

    TGW-d Scores [ PPH] 457 494 506 496

    Noise/Unusual sound 66.5 71.2 71.0 62.2

    Engine 59.9 65.6 72.4 67.2

    Handling/Steering wheel 53.4 58.4 58.0 49.9

    HVAC 43.6 46.7 48.8 46.2

    Electrical/Accessory 39.5 42.1 44.1 45.8

    Brakes 32.8 31.7 32.9 32.1

    Interior 28.5 29.4 31.8 33.9

    Seats/Seatbelt 21.3 22.5 23.8 20.0

    Transmission 19.0 22.4 21.9 21.3

    Battery 8.0 8.8 10.0 15.6

    Base 5,374 5,790 6,454 10,973

    31.924.724.521.021.2Tires

    34.830.130.327.127.0Body/Paint/Molding/Water leak

    35.337.039.736.936.0AV system

    5,387

    8.3

    16.8

    20.5

    25.0

    33.7

    34.9

    42.1

    49.4

    58.3

    66.2

    439

    MY'06(3YIS)

    2009(9 th) 2 00 8( 8th) 2 00 7( 7th) 2 00 6( 6 th) 2 00 5( 5 th)

    MY'05(3YIS)

    MY'04(3YIS)

    MY'03(3YIS)

    MY'02(3YIS)

    TGW-d Scores [ PPH] 457 494 506 496

    Noise/Unusual sound 66.5 71.2 71.0 62.2

    Engine 59.9 65.6 72.4 67.2

    Handling/Steering wheel 53.4 58.4 58.0 49.9

    HVAC 43.6 46.7 48.8 46.2

    Electrical/Accessory 39.5 42.1 44.1 45.8

    Brakes 32.8 31.7 32.9 32.1

    Interior 28.5 29.4 31.8 33.9

    Seats/Seatbelt 21.3 22.5 23.8 20.0

    Transmission 19.0 22.4 21.9 21.3

    Battery 8.0 8.8 10.0 15.6

    Base 5,374 5,790 6,454 10,973

    [Tab. 4-3] 2005~2009

    (Things Gone Wrong - durability Score by Category 2005-2009)

    5. Worst 10 (TGW-d Worst 10 Items)

    170 10 [Tab. 4-4] .

    09 23.03 PPH, 08 1

    .

    Worst 10 /( 2, 6, 7) 3, /( 8,

    9) 2 . 5

    54.40 PPH 10 (47.07%) .

    Worst 10 9 08 Worst 10 .

    .

    . ,

    .

    /

    .

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    56 Chapter 4

    TGW-d Worst 10 Items:

    [Tab. 4-4] demonstrates the worst ten items (in order of having most problems)

    of TGW-d from a total of 170 items. The worst item was 'Air from vents smells

    moldy/stale' (23.03 PPH) in 2009 and for two consecutive years with almost the

    same score.

    Three items from the 'Noise/Unusual sound' category belonged to the worst ten

    (ranked 2nd, 6th, and 7th). Two items from the 'Handling/Steering wheel' were

    also included in the worst ten (ranked 8th and 9th). The sum of these five items

    totaled 54.40 PPH, accounting for about the half (47.07%) of the worst ten items.

    Nine out of the worst ten items in 2008 remained in this year's worst ten. This

    same condition happened in TGW-i. The stable TGW-i score and TGW-d score

    mean that the problems are prone to be diehard afterward. In other words, they are

    chronic problems which mean that they are hard to fix presently. This suggests the

    importance of quality control in the planning and developing stages rather than in

    the later stage.

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    Chapter 4 TGW-d 57

    8.36(10)8.67

    (Steering wheel vibrates while driving)8

    8.95(6)8.96/ /(Other Noise/Unusual sound problems)

    7

    8.55(8)9.41 /(Noise/Unusual noise from the lower part of body)

    6

    9.19(5)10.04

    (Unequal tire wear out)5

    8.63(7)10.17 // (Radio has poor or no reception-AM/FM)

    3

    7.48(12)7.86 [](Engine lacks power)

    10

    9.55(4)8.42

    (Vehicle pulls while driving)9

    10.18(3)10.07

    (Grinding sound(squeak) when braking)4

    2009(9 t h) 2008(8 t h)

    MY'06(3YIS) MY'05(3YIS)

    1 (Air from vents smells moldy/stale)

    23.03 22.69(1)

    2

    (Excessive wind noise)18.94 17.92(2)

    8.36(10)8.67

    (Steering wheel vibrates while driving)8

    8.95(6)8.96/ /(Other Noise/Unusual sound problems)

    7

    8.55(8)9.41 /(Noise/Unusual noise from the lower part of body)

    6

    9.19(5)10.04

    (Unequal tire wear out)5

    8.63(7)10.17 // (Radio has poor or no reception-AM/FM)

    3

    7.48(12)7.86 [](Engine lacks power)

    10

    9.55(4)8.42

    (Vehicle pulls while driving)9

    10.18(3)10.07

    (Grinding sound(squeak) when braking)4

    2009(9 t h) 2008(8 t h)

    MY'06(3YIS) MY'05(3YIS)

    1 (Air from vents smells moldy/stale)

    23.03 22.69(1)