Survey Finds Americans Believe Hybrid Technology Is Strategically Important for US, Too Expensive to Buy
20 May 2009
A new Johnson Controls survey, conducted by Harris Interactive, finds that 88% of US adults believe the United States must become a leader in hybrid vehicles and 84% that the government should support the advancement of battery technology in this country.
While the survey found that 90% of US adults are open to choosing a hybrid if they were in the market for a new vehicle, it also determined that 80% of US adults think financial barriers such as purchase price and/or insufficient cost savings prevent people from buying a hybrid car.
At the same time, 84% see incentives and tax credits as an effective way to encourage consumers to purchase hybrid cars. Among adults who do not already own a hybrid, more than one in three (35%) would buy a comparable hybrid vehicle as long as it was priced the same as the gasoline-powered equivalent, and more than one in five (23%) would be willing to pay more. However, one-third would expect to pay less.
In addition to cost barriers, many consumers may also think hybrid vehicle performance should be equivalent or better than that of a comparable gasoline-powered vehicle. When asked what might prevent people from buying a hybrid car, 49% of adults cite reluctance to sacrifice features such as size and horsepower, and 42% express concerns that hybrids might mean inferior performance, lack of speed, or a poor driving experience. Further, nearly half (47%) believe lack of understanding about hybrids in general prevents people from buying them, and an even greater number (59%) have no idea what the distinctions are between different types of hybrids.
Johnson Controls commissioned the survey, “Powering the United States Hybrid Vehicle Industry,” to understand consumer sentiment regarding hybrid vehicles and to gain insight into the challenges and opportunities for broad market acceptance in the United States.
The online survey of more than 2,000 US adults, conducted in March 2009, finds that the biggest reasons why US adults think it is important that America become a leader in hybrid technology are to reduce the nation’s reliance on foreign oil (81%), create jobs (67%), and reduce the US impact on the environment (64%).
The survey makes one message abundantly clear: despite recognizing the importance of hybrid technology and the role of government support, consumers need costs to come down for the hybrid industry to thrive. The survey also suggests a need for consumer education, because most people admit they don’t really grasp how hybrids work or understand the differences between the types of hybrid applications that are available.
—Kim Metcalf-Kupres, Vice President of Global Sales and Marketing for Johnson Controls
The Johnson Controls survey, “Powering the US Hybrid Vehicle Industry,” was conducted online within the United States by Harris Interactive between March 9 and March 11, 2009 among 2,309 adults ages 18 and older, of whom, 35 (2%) already own a hybrid car.
Results were weighted as needed to reflect the composition of the US population of adults ages 18+ using targets for region, age within gender, education, household income, race/ethnicity, and propensity to be online. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
"..as long as it was priced the same as the gasoline-powered equivalent..."
Let's see, you will have engines and motors, gasoline tanks and batteries, but you want it all for the same money. I would like to have twice the square footage in a house for the same price too, but I know that is not likely.
Posted by: SJC | 20 May 2009 at 07:12 PM
Based on the survey best configuration for Hybrid powertrain today would be:
1.8 kWh battery with 100% SOC. Price/reliability optimization. Could be led acid with modified electrodes.
2. Compact modular 15 kW range extender http://www.greencarcongress.com/2009/05/avl-re-20090517.html
3. Two Michelin in-wheel motors/wheels (120 kW) for front wheel drive. Option 4x4 (240 kW). No transmission required therefore some weight ant cost savings.
I think such configuration can outperform conventional ICE.
Posted by: Darius | 20 May 2009 at 10:57 PM
P.S.
Michelin in-wheel presentation: http://www.gizmag.com/michelin-active-wheel-production-electric-car-by-2010/10489/
Posted by: Darius | 20 May 2009 at 11:27 PM
SJC:
Our collective values are dictated by the repeated brain washing we've received. After hearing 1000+ times that we can get more for less, the majority believes it.
Of course, the initial price of a PHEV will be more than the ICE equivalent, at least until PHEVs are mass produced in many countries and batteries are much cheaper. The price for the new 2010 Honda and Toyota HEVs, (at $20-22 K) is not exagerated. China, India, Korea and a few other countries could produce similar vehicles for less than $15K.
The total 10 year cost for a HEV may be less than the equivalent ICE, if liquid fuel price is above $4/gal. Unfortunately, the majority will not consider total cost, but solely the initial price.
Toyota seems to prefer to progressively increase the performance of their HEVs from 50 mpg to 65+ mpg instead of producing PHEVs. As they use larger batteries, their HEVs are getting closer to PHEVs (without the plug). A 65 mpg HEV may be satisfactory to many and could reduce fuel consumption by up 66% over current ICE.
Going beyond 65 mpg may require a plug to pump energy from the electrical network or domestic e-production.
Posted by: HarveyD | 21 May 2009 at 05:21 AM
Let's see, Prius lowers price on current version while introducing more efficient version. Li batteries are reportedly improving by 50% in 2-3 year cycle with new technologies emerging. So what is the issue.
We seem to be nearing the tipping point, where PHEV's will be the same price as ICE's with the prices dropping. When gas prices go back up, consumer psychology will change. Also, in spite of pronouncements about fuel efficiency raising prices by $1300 per car so people won't buy them, I don't believe it. Manufacturers will find ways to reduce those costs, and consumers will buy what is available. They did not hesitate to spend $50,000 on an SUV or pickup two years ago.
Posted by: JMartin | 21 May 2009 at 06:46 AM
JMartin, you make a good point. A Cadillac Escalade ESV is $60K. While it might cost $1300 or more to make such a vehicle more fuel efficient, replacing it with a Volvo XC70 that costs almost $20K less would accomplish the same thing. A Volvo XC70 with a Diesel engine, which is available in Europe for about the same price as the gas engine version, would be even more fuel efficient. Attempting to break the laws of physics by making an Escalade a fuel sipper is certainly an expensive endeavor, buying a smaller car is often less expensive. For those who feel they "need" an Escalade, it is hard to feel sorry for them that they may indeed pay more for a car. For those of us who have no need to supplement our manhood with a huge vehicle, there are far less expensive ways to achieve the desired fuel economy.
Posted by: Peter9909 | 21 May 2009 at 07:18 AM
Total cost of ownership for the first five years could be something that they put on the EPA stickers in bold print. It can cost half again the money to fuel the vehicle as to buy it the first five years. When they look at a car that gets a few MPG more and gasoline getting to $4 per gallon again, it will mean more to see the real bill for owning the vehicle
Posted by: SJC | 21 May 2009 at 10:40 AM
Sjc it doesnt matter what the cost of ownership is if you cant get the loan. Alot of people are at the point now where they will never ever own a new car again that is anywhere near as spendy as they one they last got. They simply will never be able to.
Posted by: wintermane2000 | 21 May 2009 at 11:23 AM
Darius,
That Michelin wheel is pretty cool, I hadn't realized that it was going into production. I see, though, that the company bringing it into being is GM subsidiary Opel, which will be reorganized or purchased soon, so we'll see how this project survives.
Posted by: Jim Greene | 21 May 2009 at 11:57 AM
We still sell about 10 million units per year in the U.S. It is not like everyone is in soup lines, for crying out loud.
Posted by: SJC | 21 May 2009 at 02:59 PM
Yes but alot of people are worried they will be fired soon. Alot of others are worried they will be have thier work days cut back at the very least. I know a few people already who have had forced days off totaling many weeks a year now and it looks to double next year.
Posted by: wintermane2000 | 21 May 2009 at 04:19 PM
I think the article shows that people select cars for simple, rational reasons.
The majority want to be (and be viewed as) practical with as much class as they can afford.
Do Accords, Camrys and Lexus’ sell because they are cheap? No. Because they imply the buyers apparently have the means and common (economic) sense.
Special vehicles, performance cars, big trucks and outrageously expensive vehicles also lend prestige to their owners - but mostly only from their fellow “enthusiasts”.
OK by me – economics keeps this under control. (What isn't under control is those bailouts)
Of course all groups are also driven by what pleases them personally.
But even personal desires are shaped somewhat by popular opinion; the fear of looking stupid.
When battery prices pass the tipping point, and total cost of ownership makes economic sense, hybrid buyers will be regarded as smart, not a bit peculiar or not-so-distant cousins of the special vehicle group.
When the balance tips, sales will pick up or, if there are no shortages, they will explode.
Let’s hope.
But, for now:
I think the public psyche itself is pushed down, by the economy, significantly in the direction wintermane2000 argues.
It is more than just those who are, or may be directly hit by this severe recession.
Corporate perks are hidden; conspicuous consumption has vanished from commercials, people are careful even if they are secure. It’s in the air.
Posted by: ToppaTom | 21 May 2009 at 07:14 PM
The Insight is supposed to cost less than $20K. It has become the best selling car in Japan. Most Americans also don't believe in the theory of evolution. Although polls showing what Americans choose to believe may be entertaining, it may have little to do with reality.
http://biodiversivist.blogspot.com/2009/04/first-sighting-of-new-honda-insight.html
Posted by: Biodiversivist | 22 May 2009 at 06:53 AM
As soon as credit thaws and people realize that the sky is not falling and there IS a tomorrow, car sales will pick back up. I see gasoline prices rising again, so fuel costs WILL be a major factor in choice. These trends are not hard to spot.
Posted by: SJC | 22 May 2009 at 07:15 AM
Most Americans do believe in the theory of evolution.
What Americans choose to believe, determines what they buy.
That harsh reality is keeping hybrid sales below 3%.
Expecting buyers to choose what we want them to is fantasy.
The economics of hybrid cars should shape public opinion.
When better batteries come from continuous world wide research.
They won't come by dreaming, posturing and whining about US public opinion.
Posted by: ToppaTom | 22 May 2009 at 08:30 PM