By on April 16, 2016

JD Power

J.D. Power and Associates is planning to put more of your possessions under the microscope, now that they’ve taken on new ownership in a deal worth $1.1 billion.

Best known for its vehicle quality ratings, J.D. Power, a unit of McGraw Hill Financial Inc., was snapped up yesterday by London-based XIO Group, according to Reuters (via Automotive News).

The investment firm muscled out a competing private equity firm to land the cash deal, which is expected to close in the third quarter of this year. XIO Group has a strong footprint in China, where it is linked to many high-powered investors.

McGraw Hill Financial announced last October that it was hunting for strategic alternatives for J.D. Power.

The deal doesn’t change what J.D. Power has become famous for. The marketing information services firm, founded in 1968 by James David Power III, will continue with its quality and dependability rankings while branching out into other fields.

“We are thrilled that XIO Group recognizes the value of the J.D. Power brand and is committed to maintaining our core brand identity and values while helping us grow and expand,” said Fin O’Neill, president of J.D. Power, in a statement.  “We believe this next chapter will allow us to increase our insights across a broader spectrum of consumer interaction, a more extensive global footprint and an increasingly digital, connected and mobile society.”

J.D. Power launched its automotive customer satisfaction index (CSI) study in 1981, followed by the initial quality study (IQS) in 1987. Besides turning a profit, topping a J.D. Power list has become the achievement that every automaker strives for.

[Image: Moto “Club4AG” Miwa/Flickr (CC BY 2.0)]

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16 Comments on “J.D. Power Bought by XIO Group; Deal Appears to Have High Initial Quality...”

  • avatar

    HANDS UP if you are one of the people who actually buy products for yourself based around what “they” say….

    *my hand isn’t up*

    • 0 avatar

      Welp… there goes their vaunted, so-called product neutrality. They might make good competition for CR though; that brand’s lack of neutrality has become obvious over the last few years.

      • 0 avatar

        There is no such thing as true neutrality. Even opinion comes with a slant, a bias. Whether its political commentary, a movie critic or CR car reviews, we strive to understand the bias of the source so we can discern the information valuable to us.
        For me, a car review should focus on the seat comfort, function of the AC, and how well its screwed together. For most of the TTAC readers its how brown it is, if its a diesel, can I buy it used for $2000 and drive it for 250K miles with only oil changes. Neither viewpoint means the other has no relevance nor that it lacks any valuable insight.

      • 0 avatar

        As both a TTAC B&B member in mediocre standing and a longtime CR subscriber, I’m tired of this fundamental misunderstanding of CR’s auto reliability ratings.

        Yes, CR has opinions. And no, they’re not intellectually “neutral,” although they are the only automotive publication anywhere that is entirely free of accepting money from auto industry sponsors. (The fraudulent and money-grabbing “Consumer Guide,” with its deliberately confusion-inducing plagiarism of CR’s “Best Buy” appellation, has sleazily borrowed against the credibility of this aspect of CR’s auto ratings for decades.)

        But there are two separate ratings CR creates: their own subjective ratings of a car, and the long-term itemized frequency-of-repair scores reported by their readers in the CR Reliability Survey. I have never seen a shred of evidence for all the dark conspiracy theories about how CR supposedly doctors or lies about those survey results.

        I find CR and Michael Karesh’s True Delta the most useful survey results in the industry — eons ahead of J.D. Power, because they provide information beyond the first 3 months or 1 year of ownership. In that regard, J.D. is… sorry… powerless to help me.

        • 0 avatar
          heavy handle

          Tony CD,

          FYI, JD Power also does a 3 year survey which is very informative, and certainly thrashes the dominant TTAC B&B narrative.
          The latest one showed that the overall spread between best and worse is very narrow (2 to 1), and that ‘lemon’ brands such as Fiat can be better than blue chip brands like Nissan.

          • 0 avatar

            heavy, Nissan isn’t a blue chip brand in incidence-of-defects terms, not at all comparable with the makes that are still Japanese-owned, and hasn’t been for a long time.

            This is more an indictment of Nissan for having fallen all the way to the depths of Fiatsler than it is an indication that there isn’t a quality gap anymore. Yeah, the gap is smaller than it used to be, but Nissan is now on the wrong side of it. (Why yes, I am an embittered ex-4DSC owner. Why do you ask?)

        • 0 avatar

          My problem with CR’s “Reliability Survey” is that they tend to get only the bad reports as people who are satisfied with their cars tend to simply not respond. Remember, all such responses are voluntary and not everybody, not even a majority, have the time or the inclination to respond to all the polls they receive in mail or email. On the other hand, people with problems OR people in absolute love of their vehicles tend to be more vocal about their vehicles (and other things.)

          The more honest but admittedly far more difficult and expensive thing would be to track down a sampling of each type of vehicle through registrations and use those to track actual repair reports from dealerships. Those specific cars could be tracked for their first three years pretty reliably for number of visits to the shop and for what purpose with almost no human bias polluting the data.

    • 0 avatar

      I look at multiple sources of durability information as part of the decision making process. I tend to keep vehicles a long time so it pays off to do some research.
      If I was looking for a frivolous toy as opposed to something I actually need then these sort of ratings might not carry as much weight.

      Fortunately for car companies most people don’t look at these ratings.

      OOOhhh………shiny…….. looks fast…….. is about as thorough as it gets.

      • 0 avatar

        “Fortunately for car companies most people don’t look at these ratings.”

        And some of us are as skeptical of this “ratings” company as we are of the product.

        As with Consumers’ Reports. Remember their (politically-based) damning of the Omnirizon? What came of THAT? It was, by today’s standards, a very-mediocre car; but the flaw those goofballs asserted, with stamped feet, that the car had…simply didn’t exist.

        Some ad brings out those silly award, I inwardly nod. “That’s nice.”

  • avatar

    2017 JD Power Rankings
    Dongfend Golden Breaking Wind
    BYD G69
    1984 VW Quantum

    • 0 avatar

      That’s the reality, the proles will not see it, despite it happening before their eyes.

      Because someone told them it wasn’t true, and believing in facts is “raciss”…

  • avatar

    Every dealer I went to had some of those plastic JD Power trophies for us gullible customers to see.

  • avatar

    ChungWongLeeFu Motors will be the highest rated automobile company ever once this takes place. Toyoduh and Honduh will be at the bottom and North Korean Motors, KimJungUnhung, will be given the benefit of the doubt so as not to caue them to go nuclear.

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