TPT September 2014

Global Marketplace

It is also aiming to install 100 hydrogen fuel stations by the end of March 2016 in the urban areas where the vehicle will be offered initially.

other steps to promote hydrogen-enabled energy. The clear intent was to bolster Toyota, the world’s biggest car maker, and Honda Motor, another Japanese giant, in their ambitions to start selling fuel cell vehicles next year. Toyota lost no time. The next day, 25 June, it announced plans to start selling its first fuel cell vehicle in the Japanese mass market by the end of March 2015, for about $68,700. It also disclosed that its preparations were under way to start selling a fuel cell vehicle around the summer of 2015 in the US and Europe. With two of Japan’s three leading car companies now committed to fuel cell technology (Nissan is the holdout), and the government in their corner, much is riding on its success. But progress could be slow, given the expense of building up an infrastructure of hydrogen fuel stations and the likely reliance on subsidies until costs come down. “Even after ten years, fuel cell cars are likely to be less than 10% of the Japanese market,” Ryuichiro Inoue, a professor at Tokyo City University and an expert in the auto industry, told Reuters (25 June). “This isn’t a strategy to talk about for the next ten years but for the next 20 to 30 years.” On the other hand, the Japanese car makers of 2014 are getting a significant boost from some powerful friends. The Abe government is pushing to bring down the cost of a fuel cell car to about $20,000 by 2025.

Porsche, Jaguar and Lexus are the top brands for 2014, but General Motors cars rank high despite recalls Even as defective ignition switches in General Motors cars continued to dominate the news in the US, six 2014 GM models were ranked highest in their segment in this year’s JD Power quality survey – the most for any auto maker. The GM Chevrolet led all domestic brands in initial quality despite record waves of recalls, many of which focused on the ignition switches in earlier-model Chevrolets. The survey, published every June, canvasses only consumers’ impressions of new vehicles in the first 90 days of ownership: not longer-term quality and reliability, on which JD Power conducts separate studies. The results this time were based on responses from 86,000 new car buyers who participated in an online survey in May. (”Despite Recalls, Chevrolet Is No 1 Domestic Brand for Initial Quality,” 18 June) Porsche, Jaguar and Lexus finished first, second and third among 32 brands in the study. To Detroit Free Press business writer Brent Snavely, this year’s biggest surprise is Hyundai, with the fourth-best score – just ahead of Toyota. Three Hyundai models were best in their segments. Hyundai’s sister company Kia was seventh overall, and a Kia led the large car segment. For GM and Hyundai to post the most segment leaders marks a change from recent surveys. David Sargent, vice-president of global automotive at JD Power, told Mr Snavely, “A few years ago, Toyota would win the most [segment awards], Honda would win the second most, and others would split up what was left.” Ford recovered to 16 th from its 27 th place in 2013. Lincoln ranked 10 th this year. Fiat, with only two models, came in last among the 32 brands. Jeep was second to last despite strong sales. › Mr Sargent explained to the Free Press what a good showing in the JD Power quality survey can mean to an auto maker. Problems noticed in the early weeks of owning a car quickly impact the likelihood that the buyer would again choose that brand. Power’s research shows that owner loyalty slips from 57% to 53% among buyers who experience a single problem in their first year of ownership. “This is worth literally billions of dollars to the auto makers,” Mr Sargent said. “Every percentage point of loyalty lost is hundreds of millions of dollars.”

Dorothy Fabian, Features Editor (USA)

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S eptember 2014