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The annual car evaluations Consumer Reports publishes in its April issue have just arrived—and the news for Detroit is not good.
This year the magazine has devised what it calls a “Report Card” on the world’s 15 largest car companies. We show some of the results in the table below. (The "overall score" here is calculated by combining the average test scores for a given company's models and their predicted reliability based on the last three years' data.) | Consumer Reports' 2009 “Automaker Report Cards” | | Company | Overall score | Percent of tested vehicles recommended | 1. Honda
| 78 | 95 | | 2. Subaru | 75 | 100 | 3. Toyota
| 74
| 89 | | 4. Mazda | 73 | 86 | | 5. Mercedes-Benz | 72
| 67 | | 6. Nissan | 72 | 77 | | 7. Volkswagen | 72 | 42 | | 8. BMW | 72 | 83 | | 9. Hyundai | 70 | 55
| | 10. Volvo | 65 | 50 | | 11. Mitsubishi | 64 | 22 | | 12. Ford | 63 | 70 | | 13. Suzuki | 60 | 50 | 14. General Motors
| 57 | 17 | | 15. Chrysler | 48 | 0 |
Source: Consumer Reports, April 2009, p. 15.Among the highlights: The top four companies are Japanese. The middle range includes three German companies, Korea’s Hyundai, and Volvo. Detroit accounts for three of the four bottom slots (along with Suzuki).
The ratings also feature a second indicator, the percentage of a company’s models tested by the magazine that it sees fit to recommend to buyers. What this figure boils down to, you might say, is the reliability of the company name. Some points: Subaru, Honda, Toyota, and Mazda all do well, with percentages of 86 or higher (including 100 percent for Subaru). But Germany’s BMW also fares well, at 83 percent recommended. On this measure, Detroit’s Ford does much better at 70 percent than GM or Chrysler. Not one Chrysler model earned a recommendation from the magazine. Not a minivan, not a Jeep.
None of this is good news for American taxpayers. As government bailout plans for Detroit unfold and GM’s auditor warns of its imminent bankruptcy, one question stands out. How will throwing more taxpayer money at the Big Three persuade Americans to buy Detroit’s inferior cars? What about a “Buy American” campaign? Considering that Honda Accords are made in Ohio and Toyota Camrys in Kentucky, you can buy American without compromising on quality. Buying Detroit, however, is a riskier proposition. The exception, perhaps, is “go-it-alone” Ford, which still says it can pretty much do without bailout money. On this count, as well as on quality, Ford seems to be separating itself from GM and Chrysler. The conclusion? Bailouts for Detroit are looking ever more unlikely to succeed. Is there a plan B? Probably, and its name is Bankruptcy.
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