FRANKFURT — Mercedes-Benz, famed for its engineering prowess, is suddenly facing tough questions about the quality of its cars, with several surveys showing that the stately German brand may now trail some decidedly down-market competition.
A surprise blow to Mercedes's quality reputation came recently when a normally secretive study of car quality in Europe was leaked to a German trade publication. The report, conducted for the automakers themselves, showed Mercedes quality and customer satisfaction falling since 1999 to levels below Opel, the German unit of General Motors Corp. and a brand with one of the worst images in Europe. A separate German survey ranked the German-built Ford Focus compact car No. 1 in a study of durability during the first three years of a car's life. The survey, conducted by TUV, a German auto-inspection and research association, put half a dozen Toyota models ahead of the first Mercedes model — the SLK, which came in 12th.
Mercedes's quality rankings in the United States have also slipped, according to J.D. Power & Associates, an influential arbiter of automotive-quality ratings. In a fall study of vehicle dependability, the brand fell to 10th place in 2001 from 6th place the year earlier. It now ranks behind such brands as Lincoln, Cadillac and Jaguar.
"My personal opinion is that a brand such as Mercedes should be at the top. That's what people's expectations of the brand are," said Tom Libby, director of industry analysis for J.D. Power, who lowered Power's rating for Mercedes's overall product quality to "fair" from "good."
The J.D. Power study, which surveyed some 156,000 car owners, found that 5-year-old Mercedes vehicles had 296 problems per 100 vehicles, compared with an average of 285 for autos of the same age by other luxury makers and an overall industry average of 382. Drivers were questioned about 137 potential problem areas in nine overall categories: interior, exterior, transmission, engine, features/controls, ride/handling/braking, seats, sound system and heating/ventilation/cooling. Mercedes showed the biggest declines in transmission and features/controls.
The surveys are a blow for Mercedes and its parent DaimlerChrysler AG. With its Chrysler Group unit in deep financial trouble, DaimlerChrysler has relied on Mercedes as a cash cow. At the same time, Chrysler is counting on Mercedes to help lift its own quality by supplying key components like engines.
Donna Boland, Mercedes's U.S. spokeswoman, said the company has been dealing with volume increases and more complex technology. Since 1997, it has gone from four model lines to nine. Still, she said, the company is committed to improving its quality rankings.
"Being Mercedes, quality is absolutely the highest priority," Boland said. "It's what our brand is based on. We will use every resource at our disposal to bring those numbers up."
Al Bedwell, research manager at J.D. Power-LMC in Oxford, England, said Mercedes's quality issues are a byproduct of a decision in the early 1990s to focus more on what consumers want, rather than engineers, and to round out the company's product lineup with smaller — and cheaper — cars such as the A-Class. The moves served their purpose: Worldwide sales of Mercedes cars have doubled to more than 1 million a year since 1993, and the company has turned in repeated record profits. But it's also hurt the brand's overall quality ratings, which take into account all of its models together.
The A-class, known as "baby Benz," for example, had to be temporarily pulled from the market in 1998 when it flipped over during crash avoidance tests. Mercedes's sport-utility vehicle, the M-Class, was also criticized for its interior (later revamped) and, in a Consumer Reports used-car guide, for its reliability.
"It's becoming more evident that Mercedes-build quality isn't as bulletproof as it used to be," Bedwell said. "At the same time, the average-build quality across the industry is increasing, closing the gap they once enjoyed."