Lexus reclaimed the top spot in J.D. Power and Associates' annual benchmark study of vehicle quality, while U.S. luxury rival Cadillac continued its rebound and Lincoln plunged.

Toyota's luxury brand overtook Porsche, which slipped to second after holding the title for three years. Cadillac ranked No. 3 in the market research firm's Initial Quality Study, up from 10th in 2008 and 25th in 2007. Lincoln fell to 26th, from 15th last year and third the year before.

Overall industry quality improved for the second straight year. The industry averaged 108 reported problems per 100 vehicles, down from 118 in 2008.

Domestic brands continued to close the gap between their quality and the industry average. Owners of the Detroit 3's traditional brands recorded an average of 112 problems per 100 vehicles, or four more problems than the industry average. That compares with 124 or six more than average a year earlier.

"Even in the face of unprecedented challenges, the Detroit automakers are keeping their focus on designing and building high-quality vehicles, which is a precondition for long-term success," Dave Sargent, J.D. Power's vice president of automotive research, said in a statement.

The study, in its 23rd year, ranked 37 brands based on problems detected in the first 90 days of ownership of 2009 model-year vehicles.

Toyota Motor Corp. took in 10 awards for having the highest-quality vehicles in individual segments. Ford Motor Co. had four, while Honda Motor Co., Nissan Motor Co. and General Motors had two each.

Cadillac's improvement and Chevrolet's second straight above-average ranking may stem from efforts that have reduced dealer warranty claims 45 percent in the past three years, said Jamie Hresko, GM's vice president for global quality.

"We're going to continue to rid ourselves of recall and warranty, and I think the rest of this stuff will take care of itself," Hresko said.

Lexus had 84 problems per 100 vehicles in reclaiming its title. Porsche had 90 and Cadillac, 91.

Hyundai--which through May had seen U.S. light-vehicle sales decline 7.9 percent, compared with the industry's 36.5 percent drop--improved from 13th last year to fourth this year. It was the best showing for the Korean brand since its third-place finish in 2006. Honda completed this year's top five.

The Ford brand ranked eighth in the study for the second straight year and above the industry average for the third straight.

As for Lincoln's fall to No. 26, Ford Motor will "just work the basic processes that we had," said Bennie Fowler, group vice president for global quality. "I think that they've proved reliable."

For the 2009 study, J.D. Power asked more than 80,900 purchasers and lessees 228 questions about their first three months of ownership. Power conducted the study from February through May.