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More Clean Vehicles as SUV Sales Slow
A new study from Kelley Blue Book reveals the number of Americans thinking of buying a gas-guzzling sports utility vehicle (SUV) is rapidly declining, mainly thanks to the high price of fuel. Meanwhile, the number of vehicles powered by hybrid electric or clean diesel engines is set to more than double, according to according to a report by J D Power-LMC Automotive Forecasting Services..
Kelley's New-Vehicle Buyer Attitude Study on SUVs found that only 34% of vehicle shoppers are considering an SUV - the lowest level in the three years of the study. Last year, shoppers' main reason for not considering an SUV was that it was not the type of vehicle they were interested in. This year, the main reason (up 8 points to 61%) is the escalation of gas prices, while 37% cite US dependence on foreign oil as a major reason. 'Manufacturers will have to reconcile themselves to the fact that American consumers seem less enamored of big SUVs than at any time in memory,' according to Jack Nerad, Editorial Director for Kelley Blue Book.
So what will Americans drive instead? J D Power predicts that that vehicles with hybrid electric engines, which accounted for just 0.5% of the market in 2004, will increase their share to 3.5% by 2012, while diesels will grow from 3% to 7.5%. 'Higher gas prices are acting as a catalyst for automakers and consumers to find alternatives to the traditional gasoline internal combustion engine,' said Anthony Pratt, Senior Manager of Global Powertrain Forecasting at J D Power. 'Outside of meeting future emissions standards, the biggest challenge for automakers will be convincing consumers that today's diesel engines have increased performance and run cleaner and quieter than previous-generation diesels,' said Pratt. He also stated that manufacturers would have to reduce the price of alternative vehicles in order to attract customers.
The New-Vehicle Buyer Attitude Study on SUVs was administered on Kelley Blue Book's web site, www.kbb.com
J D Power and Associates is online at www.jdpower.com
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