GM's surprising drive to automotive quality leader

One secret to the automaker's success in beating the Japanese at their own game is getting the little things right.

By Jonathan Berr Jun 20, 2013 3:35PM
General Motors Corp. headquarters in Detroit (© Paul Sancya/AP Photo)If someone had told me four or five years ago that General Motors (GM) would beat Toyota (TM) in the closely followed J.D. Power Initial Quality Study, I would have told him he was crazy, because "everybody knows" Japanese cars are built better than American ones. Funny how perceptions don't always match reality.

As Bloomberg News, The Wall Street Journal and other sources have noted, GM just achieved its highest ratings from J.D. Power in eight years and overall beat out archrival Toyota. Indeed, Chevrolet and GMC were the only models from U.S. makers to finish in the top 10 of the survey, which ranks vehicles based on problems reported by owners in the first 90 days after their purchase.

GM's cars are better than they used to be because the company has learned to get the details right.

For one thing, it's listening to customers' complaints, such as those about the door locks on the Chevrolet Camaro being in the vehicle's center console. Designers wisely decided to move them, according to Bloomberg.

And the company is willing to experiment. GM has also found the best way to ensure a flawless paint job is to first dust the vehicle with the feathers of a female ostrich.
The automaker also knew when to leave well enough alone with complex features such as its MyLink entertainment system. As The Wall Street Journal noted, Ford (F) fared poorly in the survey "in large part due to consumer dissatisfaction with the difficulty of using its touch-screen multimedia system, called MyFord Touch." Ford, which the paper says had its worst showing in years, is smartly redesigning the system.

Heaps of praise are coming GM's way.

GM is "much better now at thinking about the consumer when they originally design the vehicle," J.D. Power vice president David Sargent told Bloomberg. "There was a time in the past when they figured they knew how to design and build vehicles and the consumers would buy them."

While it's heartening to see the improvements in GM, the automaker hasn't left the old days behind it completely. The U.S. Treasury, which gave it a $50 billion bailout at the height of the Great Recession, probably will lose money on its investment. The government expects to unload its entire stake by the end of next year.

Federal officials have said the purpose of the loan was to protect jobs and not to make money. And if consumers are getting better cars as well, that's pretty good, too.

Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.

More on moneyNOW

Jun 20, 2013 8:31PM
Initial quality means very little.  How a vehicle performs after 25, 50, or 100k miles is where the value is.
Jun 22, 2013 8:13AM
Japanese quality has always been a myth. I know people who will push their Toyota into the garage and say it runs great . LOL
Jun 21, 2013 11:08AM
My 2004 GMC with 180,000+ miles is still rock solid when it comes to engine and power train.  Everything else though is suspect: power windows, rear defrost, rear speakers et cetera.  And, of course, the gas tank cracked at the neck.  As far as getting from Point A to B though it's been very reliable.
Jun 21, 2013 4:07PM

I have little trust in GM's Senior Management to make GM Auto the best in America or anywhere else for that matter.  Although "they" claim this and that, talk is cheap and I don't have the funds to experiment with the GM Brands to find out. I will stick with Auto Companies, foreign or domestic that can cut it.  GM has been ripping off American Consumers for years and in my view has not changed.  I really don't hold the rank and file to blame for it's shoddy products.  It's always managment and the bottom line. 


You also must be careful believing the various auto reviews.  When comparisons are made it certainly appears that some of them are, to be polite, bias in their reviews. 

Jun 21, 2013 9:08AM
I bought a  new  2012 Ford Focus  and it is a great car....everything except the Ford My Touch system.
Jun 20, 2013 11:54PM
Not sure if I can ever trust GM again.  Agree with Q Tip, how does it run after 100K?
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?


[BRIEFING.COM] The stock market finished the Thursday session on a higher note with the S&P 500 climbing 0.5%. The benchmark index registered an early high within the first 90 minutes and inched to a new session best during the final hour of the action.

Equities rallied out of the gate with the financial sector (+1.1%) providing noteworthy support for the second day in a row. The growth-oriented sector extended its September gain to 1.9% versus a more modest uptick of 0.4% for the ... More