Today: Buyers are reporting problems with all the technology automakers are including in new-car models, according to a report today. Plus:Oracle(ORCL) earnings. And:Yahoo(YHOO),Facebook, EA, real estate update, Silicon Valley tech stocks.
In new cars, too much tech?
The initial quality of all-new car modelsdropped in 2011,auto industry researcher J.D. Powers and Associates reported today, with an average of 122 problems for each 100 vehicles sold.
That's up from 111 problems for newly redesigned or launched models the year before.
The culprit, J.D. Powers contends, is the new technology automakers are including in their vehicles, both to improve fuel economy and to entertain and inform drivers and passengers while they're on the road.
"Exciting models with the latest features are crucial for winning over today's demanding consumers," David Sargent, J.D. Power's vice president of global vehicle research, noted in a news release. "However, automakers must
not lose their focus on the importance of these models also achieving exceptional quality levels."
According to J.D. Power, automakers are redesigning engines and transmissions to improve fuel economy. However, that's leading to more reports of cars "hesitating" when changing gears.
Manufacturers also are including hands-free and voice-activated multimedia systems in their vehicles, but consumers say the technology isn't always intuitive -- and doesn't always work properly.
"Clearly, consumers are interested in having new technology in their vehicles, but automakers must ensure that the technology is ready for prime time," Sargent said.
Including all models, initial quality improved in 2011, with consumers reporting 107 problems per 100 vehicles, down from 109 the year before.
Lexus was the best-performing auto brand, followed by Honda, Acura, Mercedes-Benz and Mazda.
Redwood City software and hardware giant Oracle this afternoon reported a$3.2 billion profitfor its recent quarter, up 36 percent from a year earlier. Revenue climbed 13 percent to $10.8 billion.
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