USA - Five Chevrolet vehicles led their segments in the J.D. Power 2016 Initial Quality Study.

Five Chevrolet vehicles led their segments in the J.D. Power 2016 Initial Quality Study. No other brand has more J.D. Power Initial Quality awards than Chevrolet — for the fourth consecutive year.

This follows the brand’s strong showing in the 2016 J.D. Power Vehicle Dependability Study, where Chevrolet also had more models ranked highest in its segments than any other brand.

“These results play two critical roles in our strategy to bring new retail buyers to the brand,” said Alan Batey, Global Chevrolet president. 

“First, the study results will help attract new buyers to Chevrolet, as J.D. Power data shows ‘expected reliability’ is customers’ top purchase consideration for a new vehicle. 

Second, the improved ownership experience of our new vehicles will help convert first-time Chevrolet buyers into repeat customers, as J.D. Power indicates customers who have a positive experience in the first 90 days of ownership are more likely to become repeat buyers for the brand.”

Chevrolet’s focus on the customer has fueled a 3 percent gain in retail sales for the first five months of 2016. In the same period, Chevrolet’s share of the retail sales grew 0.6 percentage points, making Chevrolet the fastest growing full-line brand in the industry.

Chevrolet segment awards in the 2016 J.D. Power Initial Quality Study include:

• Silverado swept the full-size truck categories, with the Silverado 1500 receiving the top marks for light-duty trucks and the Silverado HD receiving the top marks for heavy-duty trucks.
• Equinox led the compact SUV segment (in a tie), with study results that were 15 points better than the segment average.
• Tahoe lead the large SUV segment, with study results that were 19 points above the segment average.
• Finally, the Spark dominated the city car segment, with study results that were 48 points higher than the segment average.

The study, now in its 30^th year, examines problems experienced by vehicle owners during the first 90 days of ownership. Initial quality is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

The 2016 U.S. Initial Quality Study is based on responses from more than 80,000 purchasers and lessees of new 2016 model-year vehicles surveyed after 90 days of ownership. 

The study is based on a 233-question battery organized into eight problem 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 2016.

CHINA - Volvo buys 45% of Dongfeng Commecial Vehicles, on its way to become the biggest truck maker.

AB Volvo has completed the acquisition of 45% of the Chinese automotive manufacturer, Dongfeng Commercial Vehicles Co., Ltd. The purchase consideration amounted to RMB 5.5 billion.

As announced earlier, AB Volvo signed an agreement in January 2013 with the Chinese automotive manufacturer, Dongfeng Motor Group Company Limited (DFG), to acquire 45% of a subsidiary of DFG, Dongfeng Commercial Vehicles Co., Ltd (DFCV). DFCV includes most of Dongfeng’s operations in heavy-duty and medium-duty commercial vehicles.

To implement the transaction, a number of conditions had to be fulfilled, including approval from the Chinese competition authority and other relevant authorities. All approvals have been received.

This transaction will significantly strengthen the Volvo Group’s position in medium-duty trucks while the Group will become one of the world’s largest manufacturers of both medium-duty and heavy-duty trucks.

“This strategic alliance is a real milestone and entails a fundamental change in the Volvo Group’s opportunities in the Chinese truck market, which is the largest in the world,” says Volvo’s President and CEO, Olof Persson. “At the same time, it will provide us with the opportunity to become involved in growing DFCV’s international business in a manner that will benefit us and our Chinese partner.”

In 2013, DFCV’s pro-forma sales amounted to RMB 35 billion (SEK 37 billion) and the pro-forma operating income to RMB 950 million (SEK 1 billion). The total Chinese market for heavy-duty trucks amounted to about 774,000 vehicles in 2013, while the corresponding figure for the medium-duty truck market was 286,000 vehicles. DFCV had a leading position in both the heavy-duty and medium-duty segments, with sales of 120,600 heavy-duty trucks and 51,000 medium-duty trucks, corresponding to market shares of 15.6 and 17.8%, respectively.

During the first three quarters of 2014, DFCV’s sales amounted to RMB 26 billion (SEK 28 billion) and the operating profit to RMB 1.1 billion (SEK 1.2 billion). During the same period, DFCV sold 85,000 heavy-duty and 31,000 medium-duty trucks. On September 30, 2014, DFCV had a net financial asset of RMB 3 billion (SEK 3.6 billion). (2014 un-audited)

AB Volvo’s ownership in DFCV is expected to be recognized as an associated company and will be consolidated as of January 2015 according to the equity method and reported in the trucks segment. 

The payment of the purchase consideration will impact the Group’s cash flow and net financial debt in the first quarter of 2015 by approximately SEK 7 billion. However, as the purchase consideration has been hedged, the nett amount paid for the ownership in DFCV is approximately SEK 5.6 billion.

RECALL - Chrysler issues yet another recall on Ram trucks

Chrysler Group LLC will recall 91 medium-duty trucks to correct a condition that could cause power loss.

The trucks were assembled with transmissions that do not conform to design specifications. Chrysler Group will replace them at no cost to customers.

Chrysler Group is unaware of any related injuries, accidents or outstanding complaints. Notices will be sent to affected customers next month.

The anomaly, which is limited to the recall population, was discovered following consultation with a supplier.

Affected are 2012 model-year Ram 3500, 4500 and 5500 chassis cabs equipped with heavy-duty automatic transmissions. Eighty-five are in the U.S. and six are in Canada.

Customer questions or concerns can be addressed by calling 1-800-853-1403.

THREE recalls by Chrysler, on the same vehicles, is there an issue at Chrysler ?

Chrysler Group will recall approximately 6,900 heavy-duty trucks in the U.S. and Canada to prevent front axle damage.

Following reports that two trucks had sustained such damage, Chrysler Group engineers launched an investigation and discovered some trucks were subject to a condition that may cause the front prop shaft to bind or fracture, resulting in power loss.

Chrysler Group is unaware of any related accidents or injuries.

Dealers will replace or repair the front axles at no cost to customers, who will be notified directly.

The recall affects approximately 5,600 model-year 2012 Ram 4500 and 5500 trucks in the U.S., and an additional 1,300 in Canada.

Customers with questions or concerns can call 1-800-853-1403.
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 Chrysler Group will recall approximately 30,000 trucks to restore tail-lamp warning function.

If a tail-lamp is not functioning properly, the trucks are designed to alert drivers with an instrument-panel warning light. Chrysler Group dealers will perform a software upgrade, at no cost to customers, to reactivate the warning light, which is a mandated safety feature. Tail-lamp function is unaffected.

“Chrysler Group is unaware of any accidents, injuries or complaints associated with this recall,” said Kristin Kolodge, Senior Manager-Product Investigations and Campaigns. “This proactive response reflects our ongoing commitment to regulatory compliance and customer satisfaction.”

The issue was discovered by Chrysler Group engineers performing routine testing.

The campaign involves approximately 17,400 model-year 2013 Ram 1500, 2500 and 3500 pickups in the U.S.; 11,500 in Canada; 470 in Mexico and 775 in markets outside NAFTA. Affected customers will be contacted directly.

Customers with questions or concerns can call 1-800-853-1403.
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Chrysler Group will recall approximately 1,200 heavy-duty pickup trucks to ensure their headlamps comply with regulations when in high-beam mode.

An internal investigation by Chrysler Group engineers discovered some vehicles were assembled with headlamps whose high beams may not comply with standards governing aim and intensity. Chrysler Group will update the software that controls headlamp function, at no cost to customers.

Chrysler Group is unaware of any associated accidents injuries or complaints.

The recall is limited to certain 2013 Ram 2500 and 3500 models equipped with premium headlamps. Approximately 1,100 are in the U.S., 170 are in Canada and 15 are outside the NAFTA region.

Affected customers will be contacted directly. Questions or concerns can be addressed by calling 1-800-853-1403.