New-Vehicle Initial Quality Improves Again, J.D.

Power Finds

Genesis, Kia and Hyundai Are Three Highest-Ranked Brands

COSTA MESA, Calif.: 20 June 2018 — New-vehicle quality has improved for the fourth consecutive year—
by 4% from 2017—and has reached its best level ever, according to the J.D. Power 2018 U.S. Initial Quality
Study (IQS),SM released today.

Initial quality is measured by the number of problems experienced per 100 vehicles (PP100) during the
first 90 days of ownership, with a lower score reflecting higher quality. In this year’s study, quality
improves across six of the eight categories measured, with 21 of the 31 brands included in the study
improving their quality from 2017. The industry average of 93 PP100 is 4 PP100 better than in 2017.

“There’s no question that most automakers are doing a great job of listening to consumers and are
producing vehicle quality of the highest caliber,” said Dave Sargent, Vice President of Global Automotive
at J.D. Power. “That said, some vehicle owners are still finding problems. As vehicles become more
complex and automated, it is critical that consumers have complete confidence in automakers’ ability to
deliver fault-free vehicles.”

Following are some key findings of the 2018 study:

• Most vehicle areas improve: Of the eight categories measured, vehicle exterior improves the
most, now at 15.2 PP100, compared with 16.6 PP100 in 2017. Improvements include less wind
noise and fewer paint imperfections. Significant year-over-year improvements also occur in the
seats (8.0 PP100 vs. 8.7 PP100) and vehicle interior (14.3 PP100 vs. 14.7 PP100) categories.

• Porsche 911 posts best score of any model: The Porsche 911 has the lowest overall problem
level (48 PP100) of any model this year. This is also the lowest level recorded in this generation of
the study (2013-2018). The U.S. Initial Quality Study, which was first published in 1987, is currently
in its fourth generation.

• All domestic corporations improve faster than the industry: Fiat Chrysler Automobiles (7
PP100 improvement), Ford Motor Company (5 PP100 improvement) and General Motors (5 PP100
improvement) all outpace the industry average rate of improvement (4 PP100).

• Infotainment problems are decreasing: Audio/Communication/Entertainment/Navigation

• Globalization of auto industry continues: Vehicles in the 2018 study are manufactured in 25
countries, 11 of which weren’t present in the study five years ago. Those 11 countries include
Brazil, China, Finland, India, Italy, Netherlands, Poland, Serbia, Spain, Thailand and Turkey. The
 other 14 countries include Austria, Belgium, Canada, France, Germany, Hungary, Japan, Mexico,
Slovakia, South Africa, South Korea, Sweden, United Kingdom and United States.

• Increasing problems with driver assistance systems: As automakers add more advanced driver
assistance systems to their vehicles, more consumers are experiencing problems. The level is still
low (3.5 PP100 on average) but has been increasing by about 20% a year for the past three years.

“As we look to the future, avoiding problems with safety and driver assistance technology is critical,”
Sargent said. “In an era of increasingly automated vehicles, vehicle owners have to be comfortable using
foundational technologies like lane keep assistance and collision avoidance. Otherwise, automakers will not
easily overcome consumer resistance to fully automated (driverless) cars.”

Highest-Ranked Brands and Models

Genesis ranks highest in overall initial quality with a score of 68 PP100. Kia (72 PP100) ranks second and
Hyundai (74 PP100) ranks third. This is the first time that three Korean brands are at the top of the overall
ranking, and it is the fourth consecutive year that Kia is the highest-ranking Mass Market brand. Porsche
(79 PP100) ranks fourth and Ford (81 PP100) ranks fifth.

Mazda is the most-improved brand, with owners reporting 25 PP100 fewer problems than in 2017. Other
brands with strong improvements include Mitsubishi (20 PP100 improvement), Cadillac (15 PP100
improvement), Infiniti (15 PP100 improvement), Hyundai (14 PP100 improvement) and Lexus (14
PP100 improvement).

The parent company receiving the most model-level awards for its various brands is Ford Motor Company
(five awards), followed by Hyundai Motor Group (four), and BMW, General Motors and Nissan (three each).
• Ford Motor Company models that rank highest in their respective segments are Ford Expedition;
Ford Mustang; Ford Super Duty; Lincoln Continental; and Lincoln MKC.
• Hyundai Motor Group models that rank highest in their segments are Genesis G90; Hyundai
Tucson; Kia Rio; and Kia Sorento.
• General Motors models that rank highest in their segments are Buick Envision; Chevrolet
Silverado; and Chevrolet Silverado HD.
• BMW models that rank highest in their segments are BMW 4 Series; BMW X1; and BMW X6.
• Nissan models that rank highest in their segments are Nissan Altima; Nissan Frontier; and Nissan
Maxima.

Other models that rank highest in their respective segments are Acura ILX, Dodge Grand Caravan,
Mercedes-Benz GLA and Toyota Corolla.

Plant Quality Awards

Toyota Motor Corp.’s Yoshiwara plant (Japan), which produces the Lexus LX and Toyota Land Cruiser,
receives the Platinum Plant Quality Award for producing models with the fewest defects or malfunctions.
Plant quality awards are based solely on defects and malfunctions and exclude design-related problems.

Toyota Motor Corp.’s Cambridge North (Canada) plant, which produces the Toyota Corolla, and
Georgetown 3 (Ky.) plant, which produces the Lexus ES, each receive the Gold Plant Quality Award in a tie
for the Americas region. BMW Group’s Dingolfing 02 (Germany) plant, which produces the BMW 6 Series
and BMW 7 Series, receives the Gold Plant Quality Award for the Europe/Africa region.

The 2018 U.S. Initial Quality Study is based on responses from 75,712 purchasers and lessees of new 2018
model-year vehicles who were surveyed after 90 days of ownership. The study is based on a 233-question
battery organized into eight vehicle categories designed to provide manufacturers with information to
facilitate the identification of problems and drive product improvement. The study was fielded from
February through May 2018.

Find detailed information on vehicle quality, as well as model photos and specs, at jdpower.com/quality

For more information about the 2018 U.S. Initial Quality Study, visit
http://www.jdpower.com/resource/us-initial-quality-study-iqs

See the online press release at http://www.jdpower.com/pr-id/2018086.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These
capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability.
Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South
America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative
investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini,
Murphy Qiao and Carsten Geyer.

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