Today, it’s hard to buy a lemon

DETROIT – Car shoppers today are less likely to end up with a lemon.

In the past five years, global competition has forced automakers to improve the quality and reliability of their vehicles – everything from inexpensive mini-cars to decked-out luxury SUVs.

The newfound emphasis on quality means fewer problems for owners. It also means more options for buyers, who can buy a car from Detroit or South Korea and know it will hold up like a vehicle from Japan.

With few exceptions, cars are so close on reliability that it’s getting harder for companies to charge a premium. So automakers are trying to set themselves apart with sleek, cutting-edge exterior designs and more features such as luxurious interiors, multiple air bags, dashboard computers and touch-screen controls.

“It’s a great time to be a consumer,” said Jesse Toprak, vice president of industry trends for TrueCar.com, an auto pricing website. “You can’t really screw up too badly in terms of your vehicle choice.”

The emphasis on quality has closed the gap between best and worst in the industry. In 1998, J.D. Power and Associates, which surveys owners about trouble with their cars after three years, found an industry average of 278 problems per 100 vehicles. By this year, the number had fallen to 132.

In 1998, the most reliable car had 92 problems per 100 vehicles, while the least reliable had 517, a gap of 425. This year the gap closed to 284 problems.

“We don’t have total clunkers like we used to,” said Dave Sargent, automotive vice president with J.D. Power. Nearly all automakers are improving in quality, but manufacturers that are at the bottom of the rankings are improving more quickly than those at the top, Sargent said.

Detroit’s three automakers have narrowed the quality gap considerably against brands from other countries. In 1998, J.D. Power found 42 more problems per 100 vehicles with GM, Ford and Chrysler cars and trucks. This year the gap had narrowed to 13. While car prices are still rising, the narrow gap keeps Japanese automakers from charging a premium over rivals with similar models.

The competition helps consumers by giving them more choices and more car for their money.

“It’s very hard to find products that aren’t good anymore,” said Jeremy Anwyl, CEO of the Edmunds.com automotive website. “In safety, performance and quality, the differences just don’t have material impact.”

With quality, fuel economy and price close to equal across the U.S. market, companies also are pushing the edge on exterior design to differentiate their cars. Honda, for instance, unveiled a daring new Accord coupe in Detroit that looks like a far more expensive car, while Ford did the same with its new Fusion.

“It’s got to be beautiful,” said Mary Barra, GM’s product development chief who led work on a new Cadillac small luxury sports sedan.

Another way to stand apart is to lower a car’s base price, sacrificing profits to gain market share, at least initially.

That’s what Chrysler is hoping for with the new Dodge Dart compact, which starts around $16,000, about $700 less than a Cruze and $500 less than the Ford Focus, the Dart’s two main competitors.

CEO Sergio Marchionne said the company won’t make much money on a basic Dart. But the lower price will get the car on shopping lists, and Marchionne is hoping people will add features and pay more.

Chrysler in the past spent little on compact-car development and hasn’t offered a competitive one for years. But being late has its benefits. Chrysler learned by avoiding mistakes made by other companies, said Ralph Gilles, the company’s chief designer.