J.D. Powers on the Mercedes

From the NY Times Business section, July 8, 2003:

The most surprising results came from the DaimlerChrysler Corporation. Since
the 1998 acquisition of Chrysler by Daimler-Benz, the question often asked
is whether the company that makes Mercedes could bring respectability to a
struggling American icon.

But in the J.D. Power report, Mercedes-Benz is beaten by the Chrysler
Group's Chrysler and Dodge brands and only narrowly edges out Jeep.
Cumulatively, Mercedes averages 318 problems per 100 vehicles compared with
295 for Chrysler.

Particularly troublesome, according to J.D. Power, was the M-Class sport
utility vehicle and the E-Class sedan, which starts just under $50,000 and
can cost considerably more. The E-Class showed the highest rate of
deterioration over three years, with 215 percent more problems than it had
at three months.

"Look, it has nothing to do with Chrysler," said Donna Boland, a spokeswoman
for Mercedes in the United States. "If we're coming in below industry
average, we're troubled. But this is one measurement and our feeling is that
quality is a more holistic thing that takes into account how owners feel at
the end of the ownership experience. Do they stay with the brand or walk
away?"

Ms. Boland asserts that Mercedes has one of the highest loyalty rates in the
industry, and she added that many of the problems had already been fixed.

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I hope that more than "many of the problems have been fixed" before I decide
to buy my new 2004 Wagon or E320 CDI Sedan!



Jack