GM's Quality Improvement ? A Nearly Provocative Query


#1

Background:



(1) Ford Motor Company’s Share of Consumer Reports’ Used-Cars-to-Avoid list declined from 23% in 1992 to 10% in 2010. At this rate of reliability improvement at the lower end of the spectrum, Ford’s fleet of vehicles would match that of Honda’s and Toyota’s in about another decade and a half.



(2) General Motors’ share of Consumer Reports’ Used-Cars-to-Avoid list declined from 43% in 1992 to 41% in 2010. At this rate of reliability improvement, GM’s fleet of vehicles would match that of the industry leaders in about 400 years.



Additional complicating factors in assessing Ford and GM reliability improvement are:



(3) Since the late 1980s and early 1990s there has been a dramatic increase in foreign offerings from Europe and East Asia and a dramatic decline in Ford and GM shares of the U.S. new car market. Consequently, Ford’s reliability improvement is likely some less than the reduction in its share of CR’s worst car list suggests and GM’s reliability may have worsened considerably rather than have improved.



(4) GM may have recently found a need to improve quality and may be acting on the felt need.



The Query:



When all factors are considered, when do you think that General Motors’ reliability will match that of the industry’s leaders?