Survey Shows Consumers Eye 60 MPG Models
Dealers might need to keep a deep pool of fuel-efficient models in inventory no matter how much gas prices climb or fall.
The Consumer Federation of America said Monday that its recent survey reinforced the belief that consumers are growing more aware that higher fuel economy offsets higher vehicle costs.
CFA’s assertions showed that based on the most recent analysis of costs by both the Environmental Protection Agency and the National Highway Traffic Safety Administration, a 60-mile-per-gallon standard pays for itself in less than five years and reduces consumer costs by $6,400 on average over the life of the unit.
And the federation’s survey indicated these measures are what consumers want.
By roughly two-to-one margins, the nationwide survey found that Americans support:
—The federal government requiring automakers to meet a 60 mpg standard by 2025 (62 percent versus 32 percent).
—A federally-set 60 mpg standard with a five-year payback period (64 percent versus 30 percent).
—State governments being permitted to continue setting vehicle emissions standards (65 percent versus 31 percent).
In presenting its survey findings, CFA acknowledged the goal of a 60 mpg was considered by many to be unrealistic several years ago. But Jack Gillis, CFA’s director of public affairs, noted Toyota and General Motors have said they could comply with a 60 mpg standard by 2025.
Gillis also pointed out other OEMs are making available an increasing number of fuel-efficient models including 30 electric units.
In CFA’s analysis of changes in the vehicle mix from 2008 to 2011, the number models getting more than 30 mpg increased from 14 among the 2008 models to 60 in 2011.
Even more significantly, the federation believes consumers are buying these vehicles.
In 2008, CFA calculated 6 percent of the top 100 selling models could get 30 mpg. This year, the federation noted the penetration jumped to 15 percent.
“Actual sales data is very clear: Consumers are willing to pay for more fuel-efficient vehicles,” Gillis declared.
“In addition, significant fuel economy improvements are well within the reach of the car companies, even though they profess the near impossibility of attaining the fuel efficiency demanded by today’s beleaguered car buyer,” Gillis continued.
Gas Prices Weigh Heavily on Consumers
In calling potential vehicle buyers, “beleaguered,” the rest of CFA’s recent survey measured the depth of how soaring gas prices are pinching consumers’ wallets.
The federation’s survey of 2,000 Americans found:
—85 percent are concerned about gas prices.
—87 percent think it’s important to reduce oil consumption.
—75 percent believe it’s important to increase fuel economy standards.
“Concern about volatile gasoline prices and support for higher standards is driven by the huge and rising bite gas expenditures are taking from household budgets — from less than $2,000 in 2009 to more than $3,000 this year,” explained Mark Cooper, CFA’s research director and energy expert.
Cooper’s assertions came from a belief gas prices will stay at about $3.70 per gallon for the remainder of 2011.
“Pain at the pump, along with the country’s oil import dependence, has produced a growing consensus that the federal government should substantially increase fuel economy standards,” Cooper continued.
“And among independent technical experts, there is a growing consensus that committed car companies could meet these higher standards,” he added.
As the survey revealed, the issue of increased fuel economy does not sharply divide Republicans and Democrats.
CFA contends more than three-fifths of both Republicans and Democrats think it important to reduce oil consumption, support the federal government requiring automakers to increase fuel economy and favor an average 60 mpg standard with a five-year payback period by 2025.
“Thus, any anti-government fervor that is presumed to exist in the United States today apparently does not extend to fuel economy standards,” Cooper emphasized.
“We now have a unique opportunity to make these improvements,” he added.
Desire for Fuel Efficiency Spreads Nationwide
CFA recapped that under authority provided by the Clean Air Act, California can set its own vehicle emissions standards, and other states can choose to follow California’s or the federal standard.
“Cleaning up vehicle emissions often provides the additional benefit of reducing fuel consumption,” federation officials insisted, adding that to date 14 jurisdictions have elected to follow California’s standards that until recently have been more stringent than the federal standards.
So CFA wanted to know: Are residents of states with a heavy OEM presence such as Michigan, Ohio and Indiana less likely to support higher fuel economy standards than those in California and others?
The survey, which the federation emphasized had a large enough sample to test this question, found that 70 percent of respondents in these automaker-heavy states support a 60 mpg standard with a five-year payback period — similar to residents of other states.
Also, the federation mentioned that more than three-fifths of each group favor state governments being permitted to continue setting vehicle emissions standards.
“Historically, auto manufacturers have lagged behind consumer demand when it comes to providing the advanced clean cars that consumers want to buy. California’s standards have forced car companies to make cleaner cars, which tend to run on less gas — good for the consumer and good for the economy, overall,” said Ken McEldowney, executive director of Consumer Action, a national group based in California.
“California is working closely with the federal government to ensure our state and our nation benefit from better standards in the future,” McEldowney added.