Americans Want Fuel Efficiency, Not Smaller Cars
April 19, 2011
Americans Want Fuel Efficiency, Not Smaller Cars
No Wholesale Move to Small Cars, Even With High Gas Prices
TUSTIN, Calif. (April 19, 2011) - AutoPacific, an automotive research and insight company, regularly tracks the impact of fuel prices on the type of vehicles Americans will consider buying. The results for the just completed Fuel Price Impact Survey do not suggest a mass downsizing to smaller vehicles is imminent despite rising and volatile fuel prices.
As fuel prices shot upwards from $2.75 per gallon to $3.62 per gallon from September 2010 to March 2011, American drivers have not shown a wholesale inclination to move from larger, less fuel efficient vehicles to smaller, less powerful vehicles. Even when estimating fuel prices a year from now will be another 60¢ per gallon higher, many will not change the vehicle types they drive.
The only vehicle category that appears at risk is luxury cars. When asked what vehicle class they would acquire if their present car or truck had to be replaced now, about 20% of luxury car owners would buy something else moving to mid-size cars, small cars and sporty cars.
Consideration for sport utility vehicles remains very high as consumers validate the move by the auto industry from traditional sport utility vehicles to more efficient, but not necessarily smaller, crossover SUVs. Ever since the “modern” truck-based SUV was launched in the early 1990s with the debut of the Ford Explorer, SUV buyers have desired better ride, better handling, more efficient use of space, better fuel economy and more creature comforts. Today, crossover SUVs handily outsell traditional SUVs and this AutoPacific research shows that trend will definitely continue.
What the research does not show is an exodus towards smaller cars even though several highly desirable small cars have been launched for the 2011 and 2012 model years including the 2011 Ford Fiesta, 2011 Chevrolet Cruze, 2011 Hyundai Elantra, 2012 Ford Focus and the 2012 Honda Civic. While the industry is launching “new think” small cars with features formerly found only on much more expensive cars, they are doing that in anticipation of looming government fuel economy regulations. To meet those regulations, the industry will have to artificially stimulate demand for smaller, cars. “To be perfectly clear, American drivers want to drive more fuel-efficient, but not smaller, vehicles. This is an important distinction,” said George Peterson, President of AutoPacific.
To offer what the buyers want, carmakers are resorting to technology in the form of advanced powertrain features like gasoline direct injection, variable valve timing, turbocharging, plus more and more advanced electronic engine controls. Carmakers are adding six-speed, seven-speed or more automatic transmissions even to smaller cars. Lightweight materials are being adopted in the quest for better fuel efficiency (but at the concern of some safety advocates who say heavier vehicles are safer in an accident).
About AutoPacific
AutoPacific is a future-oriented automotive marketing and product-consulting firm. Every year AutoPacific publishes a wide variety of syndicated studies on the automotive industry. The firm, founded in 1986, also conducts extensive proprietary research and consulting for auto manufacturers, distributors, marketers and suppliers worldwide. Company headquarters and its state-of-the-art automotive research facility are in Tustin, California, with an affiliate office in the Detroit area. Additional information can be found on AutoPacific's websites: www.autopacific.com and www.vehiclevoice.com.