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UPDATE 1-Ford rises, Chrysler falters in key quality survey

Published: 27 Oct 2009 10:36:24 PST

* Ford competing with Japanese brands on quality -study

* Toyota, Honda dominate top of Consumer Report ranking

* Chrysler lags; only Ram pickup truck recommended

DETROIT, Oct 27 - Ford Motor Co <F.N> has made the most progress in improving vehicle quality among major automakers, while Chrysler ranks at the bottom of the industry for reliability, according to an annual Consumer Reports survey released on Tuesday.

Asian automakers dominated the magazine's influential list of recommended vehicles, with Toyota Motor Corp's <7203.T> Scion ranked the top brand followed by Honda Motor Co's <7267.T> flagship brand. Toyota's flagship brand placed third.

Ford ranks as the only U.S. automaker that is competing with Asian brands with "world-class reliability," Consumer Reports said. About 90 percent of Ford's vehicles achieved average or better reliability, the study showed.

Ford's Mercury brand ranked tenth for reliability -- the only U.S. brand to make the top 10 list. The Ford brand ranked 16th and Ford's luxury Lincoln brand ranked 20th.

In contrast, Chrysler's three brands all slipped further in the ratings. The Jeep SUV brand ranked 30th, with Dodge just behind and the Chrysler brand dead last in the reliability ranking.

Consumer Reports said more than a third of Chrysler models through the 2009 model year were "much worse than average."

Chrysler emerged from bankruptcy on June 10 by completing the sale of most of its assets to a new company led by Italy's Fiat <FIA.MI>. Chief Executive Sergio Marchionne, who also heads Fiat, will announce a five-year business plan for turning around the No. 3 U.S. automaker on Nov. 4.

General Motors Co's [GM.UL] flagship Chevrolet brand, which accounts for more than 60 percent of its U.S. sales, ranked 25th on the list.

The No. 1 U.S. automaker emerged from bankruptcy in July backed by some $50 billion in U.S. taxpayer funding. GM is counting on sales gains at Chevy at a time when it is selling Saab, Hummer and winding down Pontiac and Saturn.