New Survey Shows Concern Over Fuel Prices and Environment Drive Consideration of...

New Survey Shows Concern Over Fuel Prices and Environment Drive Consideration
of Hybrid Electric Vehicles to Highest Level Ever

DETROIT, June 19 /PRNewswire/ -- According to a new survey by global
market research firm Synovate, US consumers are more familiar with advanced
propulsion systems compared to a year ago, with turbo gasoline direct
injection, direct injection diesel and hybrid electric vehicles the best known
systems.
"We are fast approaching the 'perfect storm' facing our advanced
technologies," says Tim Englehart, vice president for Synovate Motoresearch,
the automotive research division of Synovate, and head of the study. "The
combination of rational and emotional purchase behaviors is not as aligned as
in the past," continues Englehart.
Synovate surveyed 4,084 owners and prospective buyers in the US for an
annual tracking study of consumer attitudes toward advanced propulsion and
alternative fuel technologies. Despite the fact consumers want better fuel
economy with their next vehicle purchase they are still looking for the value
proposition with any of these new technologies.
"While fuel economy is climbing in terms of purchase reasons, it still has
not penetrated the top 10 reasons for purchasing a new vehicle," says Scott
Miller, CEO of Synovate Motoresearch. "Consumers are not willing to sacrifice
safety, reliability and value for the money," adds Miller.
High fuel prices and concerns about the environment influence consumers'
consideration of hybrid-electric vehicles, while these same concerns flatten
direct injection diesel consideration. Consumers cite battery concerns as a
leading reason for not considering battery-electric and plug-in hybrid
vehicles although many look past this issue for hybrids in general, driving it
to its highest consideration ever.
Interestingly, Synovate found that after respondents had an opportunity to
read about the pros and cons of each of these technologies, attitudes shifted
-- particularly in favor of plug-in hybrids and away from the traditional
gasoline engine.
What type of vehicle would you prefer to buy?
(Photo: http://www.newscom.com/cgi-bin/prnh/20080619/AQTH521)
"This shows that consumers are still confused by the choices of
alternative propulsion technologies and their relative advantages," says
Miller. "Manufacturers need to do a better job of communicating the benefits
to potential buyers. For example, our survey shows that purchase
consideration of plug-in hybrids almost doubles when respondents learn what it
actually is, while consideration for flex-fuel vehicles drops significantly
after respondents learn about their benefits and liabilities."
A key barrier to purchasing a vehicle that uses an alternative engine
technology is the availability of fuel. Consumers remain convinced that
filling stations need to carry the alternative fuel before they will consider
buying a vehicle that runs on it. This perception has not changed in the past
several years.
"Consumers also need to believe there is a long-term plan for sustaining
these new technologies," adds Miller. "They don't want to invest in an
alternative fuel vehicle unless they have peace of mind that the refueling
infrastructure as well as parts and service will be available for many years
to come."
Consumers also consider Toyota and Honda the top two manufacturers in
bringing these new technologies and alternatively fueled vehicles to market,
with both rated significantly better than all other brands. Among energy
companies, BP and Shell are perceived to be making the best effort at
marketing alternative fuels, followed closely by ExxonMobil and Chevron.
"Unfortunately, there seems to be a direct link to the price of fuel and
satisfaction with the efforts of manufacturers in bringing new technologies
and alternative fueled vehicles to market," says Englehart. "When the price of
fuel increases slightly, satisfaction continues to increase for manufacturers
but when the increase is significant, then satisfaction for manufacturers is
negatively impacted."
Nearly two-thirds of American consumers will look for a vehicle that
reduces their monthly fuel expense when considering their next purchase of a
vehicle, according to the survey. What's more, nearly three-fourths of
respondents said they will consider paying $1,500 more for a vehicle that
achieves 30% better fuel economy than a comparable model. The survey also
revealed that consumers are willing to pay an extra $2,000 for a vehicle that
is significantly better for the environment.
Additionally, consumers feel that both state and federal governments
should be highly involved in the development or sponsorship of technologies
that use alternative fuels but most feel both government levels are failing to
do so.
"While California residents are less likely to blame their state
government in comparison to other states, respondents across the nation feel
the federal government's performance is subpar when it comes to developing
alternative fuels," says Englehart.
About Synovate
Synovate, the market research arm of Aegis Group plc, generates consumer
insights that drive competitive marketing solutions. The network provides
clients with cohesive global support and a comprehensive suite of research
solutions. Synovate employs over 5,800 staff in 121 cities across 57
countries.
For more information on Synovate visit http://www.synovate.com.
SOURCE Synovate

Jennifer Chhatlani of Synovate, +1-312-526-4359,
jennifer.chhatlani@synovate.com