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Porsche tops J.D. Power quality index as Korean brands soar

While complaints about infotainment systems remain a thorn in the side of automakers for J.D. Power's annual Initial Quality Study, there's a lot to celebrate this year. The average number of problems reported per 100 vehicles fell to 112 in 2015 – a three-percent improvement compared to 116 in 2014. The results of this year's survey are based on the responses of over 84,000 people about problems within the first 90 days of buying or leasing a 2015 model-year vehicle. For the third consecutive year, Porsche tops the rankings with an average of 80 problems per 100 vehicles. Although, that's slightly more than the 74 the German sportscar maker scored in 2014. "While the Japanese automakers continue to make improvements, we're seeing other brands, most notably Korean makes, really accelerating the rate of improvement," Renee Stephens, vice president of US automotive quality at J.D. Power, said in the study's release. In fact, Kia ranks as one of the biggest movers in this year's list. The Korean brand jumped to second place from seventh last year. The company had an average of 86 problems per 100 vehicles, a 20-point improvement. Third place went to Jaguar with an average of 93 problems reported, versus last year's second-place finish with 87 of them. Fourth place was Hyundai, and fifth-place Infiniti also earned a gold star for improvement with 97 issues per 100 vehicles – 31-points better than last year. Fiat still anchored the bottom of the list. However, its 161 problems this year is a lot better than the 206 in 2014. Ranked by nationality, Korean brands (Hyundai and Kia) are now leading the industry in initial quality with an average of 90 problems reported per 100 vehicles. According to J.D. Power, this is the first time Europe's figure beat Japan with 113 and 114 issues, respectively. The American brands also averaged 114. Whereas General Motors dominated last year, the segment awards are spread out in 2015. GM, Hyundai, Nissan, and Volkswagen Group are all tied with four models each earning prizes. For more information, you can also see all of the graphs, here. J.D.

2017 Kia Sportage First Drive

It's hard to get excited about most mainstream crossovers, but the truth is this is one of the hottest segments of the market right now. The automotive space is saturated with a glut of these profit-making, two-box, semi-practical, soft-roading vehicles, and the tide isn't likely to abate soon. At first blush, Kia's redesigned 2017 Sportage isn't the most eye-catching of new products, but it's poised to do very well in the ongoing CUV wars. Progress in this kind of battle is often measured in inches of space, and the 2017 Sportage grows both inside and out. The new Kia measures the same 73 inches wide as its predecessor, but it gains 1.2 inches on the wheelbase, and 1.6 inches in overall length. There's more room overall for passengers, and there's 18-percent greater cargo space in back. Plus, the luggage floor can be moved down into a lower position to make more vertical space when needed. The Sportage was penned by renowned designer Peter Schreyer (he of first-gen Audi TT fame), but the end result is a bulbous-looking crossover, especially when viewed from the front – it's like a chipmunk with too many acorns in its cheeks. The "tiger-nose" grille – a hallmark of Schreyer – was moved up to accommodate the "ice-cube" fog lamps, while the headlights sweep back along the sides of the car. The A and C pillars are thinner, allowing occupants better visibility from inside the car, but from the outside, the rear three-quarter view looks blocky and cut up. The rear doesn't seem to match the rest of the car, either – it's more svelte and understated. Looking past its exterior design, the new Sportage is marginally, uh, sportier, thanks to a new, lighter, stiffer body, a redesigned suspension, and new engine tuning. Kia is mostly chasing improved fuel efficiency with its latest powertrain updates, as both engines have slightly lower outputs than their predecessors but have marginal improvements in fuel economy. The entry-level 2.4-liter inline-four (same as the Optima and Sorento) puts out 181 horsepower and 175 pound-feet of torque – decreases of only 1 hp and 2 lb-ft – and can be had with front- or all-wheel drive. Step up to the top-of-the-line SX Turbo and you get a 2.0-liter turbo-four that puts out 240 hp and 260 lb-ft of torque (that's 20 hp and 9 lb-ft less than before). Kia estimates the 2.4/FWD combination will return 23 miles per gallon city, 30 mpg highway, and 26 mpg combined, while the 2.0T/AWD will score 20/23/21.

Goes Both Ways: Free-trade pact sees South Korean brands losing share at home

France has been vocal, but not alone, in noting the rise of the South Korean automakers in Europe. The signing of a free-trade pact in 2011 between South Korea and the EU, along with the especially value-conscious buyers in a crisis-stricken Europe, has seen market share increases measuring in the double digits for Hyundai and Kia - analysts expect 14-percent growth for the two in 2012.
A report in Bloomberg has found that there's pain at the other end, too: The pact more than halved import tariffs on European cars headed to South Korea to 3.2 percent, and prices are now close enough to domestic offerings for more South Koreans to pay the premium for foreign luxury nameplates and the cachet they confer. Products sold by the five domestic automakers hogged 92 percent of the market last year, and sales have dropped 5.2 percent this year whereas import sales have risen by 24 percent. This will mark the first year that imports claimed ten percent of the market; compare that to 2002, when domestic market share in the world's 11th largest auto market was 99 percent.
The Germans are at the head of the arrow, counting for 65 percent of imported car sales, but every foreign maker has seen double-digit gains. Analysts think foreign makes could ultimately grab 15 percent of the market.