Who makes the best cars?

Honda is tops, but Ford and GM have improved

Overall, the best cars sold in the U.S. are made by Honda. That's the conclusion of a recent analysis conducted by Consumer Reports that looks at the reliability, performance, fuel economy, comfort, interior fit and finish, and ergonomics of 262 vehicles we've recently tested.

Honda, with an overall score of 78, is followed closely by Toyota (75) and Subaru (72). BMW, Mazda, Nissan, and Volkswagen are tied at 71, after rounding.Detroit automakers garnered some of the lowest scores, but we have seen some significant signs of improvement in Ford and GM vehicles this past year.Other findings include the following:
Only two automakers, Honda and Subaru, earned the distinction of having all of the models we tested make our Recommended list. Because we have not yet tested the redesigned Subaru Impreza and WRX, Honda is the only automaker whose entire model lineup is currently recommended.

Some vehicles that do well in our testing tend to have a relatively high number of problems reported by owners in our reliability survey. For example, vehicles built by Mercedes-Benz and Volkswagen (including Audi) achieved the best average scores in our tests. But the reliability of Volkswagen vehicles overall is below average, while Mercedes' reliability is well below average. We don't recommend vehicles with below-average reliability, which limits the number of recommended models for those automakers.

UPS AND DOWNS FOR DETROITThe past year has been a mixed bag for domestic automakers. Detroit's share of the North American market dipped to its lowest level ever, just above 51 percent. For the first time in history, Toyota outsold Ford in the U.S. and outsold GM worldwide to become the world's largest automaker. Sales shrank almost 12 percent at Ford, 6 percent at GM, and just over 3 percent at Chrysler. Ford and GM racked up billions in losses. And after a nine-year merger with Daimler, which owns Mercedes-Benz, Chrysler was sold off at a multibillion dollar loss.On the positive side, all three automakers are restructuring, and there are clear signs of improvement from Ford and GM.In recent testing, vehicles such as the Buick Enclave, Cadillac CTS, Chevrolet Malibu and Silverado, GMC Acadia and Sierra, and Saturn Outlook ranked among the best in their categories. GM's older models, however, continue to drag down its average test score. GM also builds some reliable vehicles, but overall it ranks second from the bottom in reliability, above only Mercedes-Benz.Ford has climbed to fifth place in our reliability standings. In our latest survey, 93 percent of Ford models had average or better reliability, up from 63 percent last year. But some of Ford's latest SUVs have not matched their competition in handling, braking, or interior fit and finish.The most recent Chrysler vehicles we've tested have been very disappointing, many with noisy, underpowered engines, poor interior craftsmanship, cramped seating, and limited visibility. Earlier this year, the company announced that it would phase out some of its older products, including the Pacifica, the PT Cruiser convertible, and the Dodge Magnum. Those were some of Chrysler's better vehicles in our testing, although some have been unreliable in our survey.

SETTING THE STANDARDHonda earned the top score in our analysis because it builds very reliable cars that perform very well. Its average test score is only slightly under Volkswagen's and Mercedes-Benz's. And Honda is the only automaker to earn an excellent overall reliability Rating.If the only things that mattered to a car buyer were performance, comfort, and safety, Mercedes-Benz and Volkswagen (including Audi) would make the dean's list. Their cars ride and handle especially well, have comfortable seats, and have relatively good fuel economy and acceleration. But most VW-branded models and nearly all of the Mercedes models for which we have sufficient data are below average in predicted reliability.In the end, the companies that make the best vehicles are those that have found a way to excel in all areas: performance, interior craftsmanship, safety, comfort, and reliability. The best all-around vehicles each year continue to set a higher and higher standard for other companies to match. And that's a competition in which consumers are the ultimate winners.