J.D. Power: Cars with APEAL

J.D. Power releases its 12th annual survey of vehicles that rank highest in terms of Automotive Performance, Execution, and Layout

by Christopher Palmeri

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You've read every car review in print and online. Taken the hottest prospects out for test-drives and been dodging calls from eager salespeople for weeks. Boil it down, though, and you really have one choice to make: practical or stylish?

Research firm J.D. Power & Associates has been quizzing car buyers about their purchasing decisions for decades. The company is most famous for its initial quality study, which measures problems with new cars in the first three months of ownership. That study is for the practical folks, who don't want to buy a new car that they're merely going to have to drive back to the dealer every couple of weeks for repairs.

For the past 12 years, however, Power, which like BusinessWeek is a division of the McGraw-Hill Companies (MHP), has also tracked new-car buyers' takes on Automotive Performance, Execution, and Layout, a trio that the company has dubbed "APEAL." The APEAL study is for buyers who connect with their cars on an emotional basis. The 2007 results are in, and the engineers in Stuttgart must be jumping for joy.

Mercedes and Honda Win Big

DaimlerChrysler's (DCX) new Mercedes-Benz S-Class won top honors in the large premium car category. This shows that Mercedes, which has been dinged in years past with quality issues, can still hold its own in the big luxury sedan market. The S-Class cars, which start at $85,000, got high marks for their distinctive front and back styling, as well as for their powerful 380 horsepower engines, roomy trunks, and good response in steering and braking. The S-Class should continue to give its archrival, the BMW 7 Series, a run for its money at the top of the sedan heap. Mercedes also scored high honors for its E-Class and GL-Class in the midsize premium car and large premium sport-utility vehicle categories.

The other big winner is Honda Motor (HMC), which raced away with top honors in four categories. Honda won for its compact SUV, the CR-V, which is taller, roomier, and somewhat more stylish than previous versions. The company also won for its Ridgeline pickup, Odyssey van, and Fit subcompact car. Archrival Toyota Motor (TM) took the highest honor in only one category, subcompact, where its fuel-sipping Yaris tied with Honda's Fit.

General Motors (GM) scored a critical victory with its new GMC Sierra LD in the large pickup category. This is a high-volume, high-margin segment of the car market that GM, struggling with profits like its domestic kin, needed to have a hit in. High scores in the APEAL study tend to indicate consumer satisfaction and excitement with new models.

Chrysler Frozen Out

Ford Motor (F) nabbed top honors for its midsize Edge SUV and Mustang sports car, an unusual victory for a model that's been on the market for a few years. Sad news, however, for Chrysler, which is in the process of being sold to private equity firm Cerberus Capital. Not one of the company's vehicles picked up an award. "There are always big questions, especially with the domestic manufacturers facing their own existential crisis," says Joseph Ivers, executive director of quality at Power. "You can never thrift your way to profitability. You've got to have got-to-have products."

Power's results are based on responses from 91,000 car purchasers, contacted between February and May of this year.

Click here to see the winners of the 12th annual J.D. Powers & Associates APEAL survey.

Palmeri is a senior correspondent in BusinessWeek's Los Angeles bureau.