Ford Fusion easily beats the Honda Accord and Toyota Camry, according to the new Consumer Reports study.

Detroit’s top two makers have scored significant gains in reliability and customer satisfaction, according to the latest annual automotive reliability survey by the influential Consumer Reports magazine.

But while Ford and General Motors are starting to reach world-class levels, the annual study found that Honda is still the benchmark to beat in the American market.  And while it has suffered some hits from the last year’s quality and safety problems, Toyota still ranks near the top, stressed CR’s director of auto testing, David Champion.

“The big news out of the survey, this year, is how well GM has done,” said Champion, during a presentation to the Detroit Automotive Press Association.

In recent years, he noted, the number of GM vehicles scoring Average or better on Consumer Reports’ widely-quoted study has surged from 43% to 69%, and among the models sold by the maker’s big Chevrolet division, the figure has grown from 50% to 83%.

Champion noted that some of GM’s weaker products were eliminated when the company emerged from bankruptcy, in July 2010, and dropped four of its eight North American brands.  Meanwhile, its newer models, such as the Buick LaCross sedan and Chevrolet Equinox crossover, have come in with unexpectedly solid scores on Consumer Reports’ various tests, as well as in the survey of 1.3 million American car buyers.

What’s particularly curious, Champion acknowledged, is the fact that while Equinox was one of the highest-ranked models in the 2010 auto reliability study, the nearly-identical GMC Terrain scored near the bottom of the charts. The CR director said he could not explain the discrepancy but said it is backed by the survey data.

“We’ve got clear focus, and we spend less time debating…and make decisions faster,” responded GM Vice President of Global Quality Dan Nicholson.  But despite the good report card, he admitted, “we’re nowhere near done.  Our goal is to be the leader in quality in every segment where we compete.”

Jaguar's XF ranked dead last in the latest CR survey, plagued by electronic glitches and a variety of other problems.

Though GM is fast gaining ground, “Ford still dominates in terms of domestic brands,” said Champion, adding that, “It’s getting up there now to where Toyota is.”

In fact, “When you think about the most reliable vehicle,” said Champion, you usually think Toyota Camry, but it’s now the Ford Fusion, followed by the Honda Accord.  The Toyota Camry is a distant third.”

Toyota, however, emerged better than many might have expected in lights of having recalled more than 10 million vehicles, worldwide, the majority of those in the U.S., over the last year.  With the exception of the Prius hybrid, those callbacks had relatively little impact on Toyota’s standing.  Prius, which has normally earned an Excellent rating in the annual CR survey, fell to just an Average score with the launch of the third-generation hybrid for the 2010 model-year.

Honda once again topped the survey, with all models scoring Average or better.

Hyundai and its sibling Korean brand, Kia, meanwhile, posted gains closely resembling those of General Motors, said Champion.  Once known for a variety of reliability issues, the Asian marques, he said, “continue to make tremendous progress.”

Not everyone fared so well.  “Chrysler,” noted Champion, “is the one area of the domestic that hasn’t improved.”  A full half of the maker’s products scored Below Average or worse, and only one, the Dodge Ram 1500 pickup, made it onto CR’s Recommended Buy list.

Chrysler didn’t do much better than the European makers, however, which Champion said, “are struggling at the moment,” with only a few key exceptions.

Jaguar, for one, has had a variety of issues with its more recent products.  The XF, for example, was the worst car CR rated for 2010.

BMW was pummeled for a variety of issues, including problems with its turbocharged models, such as the Z4 sDrive35i roadster.  (BMW recalls 150,000 cars sold in the U.S. for faulty fuel pumps. Click Here for more.)

Mercedes-Benz fared only slightly better; after watching its quality improve for several years it saw half its models fall below average according to Consumer Reports.

Audi also had problems with some of its own turbo models, according to the CR survey.

The two exceptions among the European brands were Volvo, the Swedish brand recently sold off by Ford, and German sports car maker Porsche, both placing all of their models in the Average category or better.  In fact the Porsche Boxster roadster was “the most reliable car of the year,” noted Champion.

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