UPDATE 1-Asian brands dominate Consumer Reports rankings

(Adds comments from Consumer Reports, reaction from automakers, background, bylines)

DETROIT, Oct 23 - Asian auto brands dominated Consumer Reports' influential study of the most reliable new vehicles with Ford Motor Co's Lincoln and Mercury ranking as the only U.S. brands in the top 15.

Toyota Motor Corp's Scion was the top-ranked brand followed by fellow Japanese Honda Motor Co's Acura and Honda nameplates. Toyota's flagship brand placed fourth, followed by the Toyota luxury brand Lexus in fifth place.

The annual study is influential with American car shoppers and watched by major automakers as an indicator of their performance in improving and maintaining vehicle quality.

Japanese vehicles were the most reliable overall, leading 15 of 16 categories in its ratings, the study said.

The Scion xD had the best score of all new cars, with about 80 percent fewer problems than the average model, according to the nonprofit magazine, which does not accept advertising.

Other Asian carmakers that finished above the U.S. companies were South Korea's Hyndai Motor and Kia Motors Corp.

Among the U.S.-based automakers, Ford's three nameplates -- Lincoln, Mercury and Ford -- led the pack in 11th, 15th and 17th place, respectively.

General Motors Corp brands ranged from an 18th place ranking for Buick to No. 33 for Saturn, second from last. Chrysler LLC ratings slipped further under the ownership of Cerberus Capital Management.

GM has been in talks to acquire Chrysler from Cerberus, people familiar with those talks have said. Analysts have viewed the possibility of that combination with skepticism since both automakers are struggling with many of the same problems, including weak brand images.

The Consumer Reports study showed a combined GM/Chrysler would own 7 of the 10 lowest-rated auto brands for reliability, including Saturn, Chrysler and Cadillac.

Excluding some truck-based models, Ford's reliability is on a par with good Japanese automakers, Consumer Reports said.

"The last five years, we have seen Ford generally get better and better incrementally," said David Champion, senior director of Consumer Reports' auto test center. "The systematic structural changes we have seen within Ford produces very reliable vehicles."

CHRYSLER RELIABILITY DECLINES

"We feel good about the results, but we know we still have work to do so we are continuing to do that," Ford vice president of quality Bennie Fowler said.

Champion said the result for GM was mixed.

"I think General Motors has a very good model portfolio at the moment," Champion said. "They have a lot of good products there, they just need to get the reliability right."

GM spokeswoman Janine Fruehan said the results were somewhat disappointing, but not a surprise. "We know what areas we have to improve in and the areas where our strengths lie and we are working to close the gap," Fruehan said.

Chrysler's Jeep brand ranked 28th, Dodge 30th and the Chrysler namesake brand 32nd on the list -- with interiors, electrical systems and other issues of concern.

"Their biggest issue is trying to hold the vehicle together inside -- squeaks, rattles, pieces of trim dropping off, just annoying features for the customer," Champion said.

Chrysler had sought to address interiors shortcomings early in 2008 by investing $150 million on upgrades to over 260 vehicle features.

"We are not satisfied with our performance, with the report that came out," Chrysler spokeswoman Beverly Thacker said. "We do continue to work aggressively to improve every aspect of customer satisfaction with our vehicles."

British luxury brand Land Rover, owned by Tata Motors, was the least reliable brand, according to the survey.

Consumer Reports is published by the nonprofit Consumers Union. The publication's "predicted reliability" study for new model vehicles is based on an average of consumer ratings of the same model in the recent years.

The magazine surveys readers and visitors to its web site about their experience with the cars and trucks they own.