# More Reasons To Keep Building Our Own Electric Vehicles..J.D. Power and Associates Reports:  Despite Rising Fuel Prices, the Outlook for “Green” Vehicles Remains Limited for the Foreseeable Future

- Link: https://greenlivingguy.com/2011/04/more-reasons-to-keep-building-our-own-electric-vehicles-j-d-power-and-associates-reports-despite-rising-fuel-prices-the-outlook-for-%e2%80%9cgreen%e2%80%9d-vehicles-remains-limited-for-the-forese/
- Published: 2011-04-27T18:41:27-04:00
- Author: greenlivingguy

_**Source: JD Power and Associates**_

_Growth of alternative powertrain vehicles sales will be limited by consumer concerns
about costs as well as functionality, according to the J.D. Power and Associates
2011 U.S. Green Automotive Study^(SM) released today. Despite a rapid increase in
the number of alternative powertrain vehicle models projected for the next several
years, automakers will be fighting over the relatively few consumers who are willing
to drive green. _

_The inaugural study examines attitudes of U.S. consumers toward four primary alternative
powertrain technologies: hybrid electric vehicles; clean diesel engines; plug-in
hybrid electric vehicles; and battery electric vehicles. The study gauges consumer
consideration rates of these powertrain types for their next new vehicle purchase
and explores specific perceived benefits and concerns that factor into the decision-
making process._

**For Most Consumers, Cost Matters More than the Environment**

While consumers often cite saving money on fuel as the primary benefit of owning
an alternative powertrain vehicle, the reality for many is that the initial cost
of these vehicles is too high, even as fuel prices in the United States approach
record levels. Reduced expenditure on fuel is the predominant benefit cited by considerers
for each of the primary alternative powertrain technologies examined in the study.
Although the environmental benefits of these vehicles are recognized, they are mentioned
far less frequently than saving money on fuel. For example, 75 percent of consumers
who indicate they would consider a hybrid electric vehicle cite lower fuel costs
as a main benefit. In contrast only 50 percent cite ‘better for the environment’
as a main benefit of these vehicles.

Consumers who are not considering an alternative powertrain vehicle also recognize
the fuel-cost savings these vehicles can offer. However, they cite significant perceived
or actual impediments to ownership in addition to purchase price, including driving
range, increased maintenance costs and compromised vehicle performance. These consumers
are far more likely to switch into a more fuel-efficient vehicle powered by a traditional
internal combustion engine than an alternative powertrain vehicle.

“Alternative powertrains face an array of challenges as they attempt to gain widespread
acceptance in the market,” said Mike VanNieuwkuyk, executive director of global 
vehicle research at J.D. Power and Associates. “It is the financial issues that 
most often resonate with consumers, whether it is the higher price of the vehicle
itself, the cost to fuel or charge the vehicle, or the fear of higher maintenance
costs. The bottom line is that most consumers want to be green, but not if there
is a significant personal cost to them.”

According to VanNieuwkuyk, concern about the purchase price of alternative powertrain
vehicles—particularly for hybrid electric vehicles—has become even more of an issue
in 2011. At the end of 2010, tax credits from the Energy Policy Act of 2005 were
phased out.

“Hybrid electric vehicles have been available in the automotive market for more 
than 10 years, and consumer awareness and understanding of them has grown during
that time,” said VanNieuwkuyk. “As concerns about the functionality and performance
of hybrid vehicles have abated, vehicle price has become more prevalent as the primary
purchase impediment. Without a tax credit to offset the price premium, consumers
must absorb all of this additional cost. Furthermore, aggressive government subsidies
are unlikely to be sustainable over the long term. Ultimately, the true cost of 
the technology needs to come down substantially.”

Although there are also significant price premiums for battery electric vehicles,
functional concerns are more likely to limit consideration rates for this powertrain.
Driving range and the availability of charging sites away from home are the two 
concerns cited most often by those not considering this powertrain. This “range 
anxiety” contributes to the lowest consideration levels of the primary alternative
powertrain technologies.

For clean diesel engines, fuel prices and availability—factors largely out of the
control of vehicle manufacturers—have long been impediments to acceptance of the
technology. Furthermore, negative perceptions of older diesel-powered vehicles continue
to affect perceptions of clean diesel vehicles, as concerns about emissions and 
exhaust odor are mentioned frequently.

“Advocates of clean diesel engines tend to be some of the most vocal among consumers
who tout the benefits of their chosen technology,” said VanNieuwkuyk. “However, 
this consumer group is relatively small. Clean diesel technology continues to struggle
not only against concerns about cost and perceived fuel availability, but also against
the lingering perception that diesel is ‘dirty.’”

**Implications for Automakers**

Overall, the study reveals interest in alternative powertrain vehicles among a majority
of consumers, with perceptions of green vehicles being largely positive. However,
converting this interest into actual sales will require concerted efforts to improve
the technology and infrastructure and reduce the cost to consumers.

By the end of 2016, J.D. Power and Associates expects there to be 159 hybrid and
electric vehicle models available for purchase in the U.S. market. This is a significant
increase from only 31 hybrid and electric models in 2009. Despite this, according
to VanNieuwkuyk, automakers, along with government entities and others, have considerable
work to do in educating consumers as to the true costs and benefits of these technologies.
Only through promotion and education will significant numbers of U.S. consumers 
become sufficiently comfortable with both the financial investment and, in some 
cases, lifestyle changes required to make the leap from traditional vehicles to 
alternative powertrain vehicles.

The 2011 U.S. Green Automotive Study combines information and insight from J.D. 
Power’s primary consumer research, social media intelligence, forecasting and transactional
sales data. The primary research includes a study of more than 4,000 consumers who
indicate they will be in the market for a new vehicle within the next one to five
years. The study was fielded in February 2011.

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 greenlivingguy

 The Green Living Guy, Seth Leitman is an independent power producer, a green living
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