J.D. Power: Hybrids losing popularity to diesels

It looks like consumers are starting to come to the realization that although hybrid vehicles have the potential to provide big increases in fuel efficiency, that improvement is not universal especially if you're not prepared to modify your driving habits. By their nature parallel hybrids are most useful in applications that involve a lot of starting and stopping. This allows the system to recapture kinetic energy during braking and store it in the battery. Applications that get predominantly constant speed driving get little benefit. While many drivers benefit from hybrids, some, like John True, do not.

J.D. Power has released the results of their second annual Alternative Powertrain Study and the number of people considering a hybrid has dipped from fifty-seven percent last year to only fifty percent. They found that hybrid intenders are willing to pay up to $2,396 extra and expect an extra 18.5mpg with a hybrid. While the price differential is possible with tax credits, that mileage improvement is totally unrealistic. During the same time period the number of drivers willing to consider a diesel jumped from twelve to twenty-three percent. Unfortunately those people are likely to be somewhat disappointed as well with expectations of a price premium of $1,491 and 15mpg improvement. Diesel premiums are likely to be $2,000 or more although the 15mpg may be achievable on some vehicles. Now that ultra-low sulfur diesel is becoming available and clean diesels are coming, people are taking a new look at diesel.

[Source: J.D. Power]

J.D. Power and Associates Reports: Consumer Consideration of Hybrid Vehicles Drops as Fuel Efficiency Expectations Among Shoppers Become More Realistic

Toyota, Honda, Ford and Nissan Have the Most Models in the Top 30 of the Automotive Environmental Index

WESTLAKE VILLAGE, Calif., July 16 /PRNewswire/ -- As consumers become more realistic about the fuel efficiency capabilities of hybrid vehicles, the percentage of new-vehicle shoppers who are considering a hybrid has declined, according to the J.D. Power and Associates 2007 Alternative Powertrain Study(SM) released today.

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Now in its second year, the Alternative Powertrain Study examines the reasons why consumers consider or avoid alternative powertrain vehicles. The study includes the Automotive Environmental Index, which combines U.S. Environmental Protection Agency (EPA) publicly available information data related to fuel economy, air pollution and greenhouse gases for 2007 model-year vehicles and J.D. Power and Associates' voice of the customer data related to stated fuel economy. Voice of the customer data is also used to help determine the relative importance of these environmental factors.

The study finds that 50 percent of new-vehicle shoppers are considering a hybrid -- down from 57 percent in the 2006 study. While a general decline can be observed across all age groups, in particular younger vehicle shoppers, those 16 to 25 years old, appear less interested in the powertrain technology, with 60 percent considering a hybrid in 2007, down from 73 percent in 2006. The average additional price hybrid considerers are willing to pay for this powertrain is $2,396, with the expectation of receiving an improvement of 18.5 miles per gallon (MPG) over a traditional vehicle of similar size.

"In the 2006 study, we found consumers often overestimated the fuel efficiency of hybrid-electric vehicles, and the decrease in consideration of hybrids in 2007 may be a result of their more realistic understanding of the actual fuel economy capabilities," said Mike Marshall, director of automotive emerging technologies at J.D. Power and Associates. "While hybrid sales are steadily increasing, they continue to face competition for market share against an increasing offering of other alternative powertrains and fuels options."

The study also finds that consumer consideration for purchasing clean diesel vehicles, which were newly introduced to the market in 2007, is at 23 percent. In 2006, only 12 percent of shoppers considered purchasing diesel vehicles. On average, considerers of this powertrain are willing to pay an additional $1,491 for the clean diesel option and expect an average additional fuel economy of 15 mpg.

"As the automotive industry steadily offers more alternative powertrain/fuel options to consumers, buyer preferences will continue to shift the market in the coming years," said Marshall. "With high fuel prices, perceived dependency on foreign oil and an increased focus on environmental issues all being top of mind among consumers, manufacturers will not only have to continuously make efforts to produce more fuel efficient vehicles, but also to diversify the range of options."

Toyota is the highest-ranking nameplate in the Automotive Environmental Index, followed by Volkswagen and Honda, respectively. Toyota has improved by six rank positions since the 2006 study and has a strong showing with both hybrid and gasoline-powered models. Honda also performs well, with four models in the top 30. Ford and Nissan follow, each with three models. Similar to 2006 results, there are only two luxury models in the top 30; the Lexus GS 450h and RX 400h.

In 2007, the top 30 Automotive Environmental Index includes 10 hybrid models -- up from eight models in 2006:

 Ford Escape Hybrid   Mercury Mariner Hybrid

 Honda Accord Hybrid   Saturn VUE Green Line

 Honda Civic Hybrid   Toyota Camry Hybrid

 Lexus GS 450h   Toyota Highlander Hybrid

 Lexus RX 400h   Toyota Prius

The remaining models in the Top 30 Automotive Environmental Index are gasoline-powered:

 Chevrolet Aveo Honda Fit  Mazda3  Pontiac Vibe

 Chevrolet Aveo5 Hyundai Accent MINI Cooper Toyota Corolla

      Convertible

 Ford Focus  Hyundai Elantra Nissan Altima Toyota Matrix

 Ford Focus

 Station Wagon  Kia Rio  Nissan Sentra Toyota Yaris

 Honda Civic  Kia Spectra Nissan Versa Volkswagen New

        Beetle

The 2007 Alternative Powertrain Study includes responses from more than 4,000 consumers in May and June 2007 who plan to purchase a new vehicle within the next two years. The voice of the customer components of the Automotive Environmental Index are derived from the 2007 Alternative Powertrain Study and the J.D. Power and Associates 2007 Initial Quality Study(SM). Find more detailed findings on new-vehicle fuel efficiency as well as model photos and specs by reading an article or reviewing the green efficiency ratings at JDPower.com.

 Automotive Environmental Index: Top 30 Models



 Chevrolet     Mercury

 * Aveo     * Mariner Hybrid

 * Aveo5

      MINI

 Ford     * Cooper Convertible

 * Escape Hybrid

 * Focus     Nissan

 * Focus Station Wagon   * Altima

      * Sentra

 Honda     * Versa

 * Accord Hybrid

 * Civic     Pontiac

 * Civic Hybrid    * Vibe

 * Fit

      Saturn

 Hyundai     * VUE Green Line

 * Accent

 * Elantra     Toyota

      * Camry Hybrid

 Kia      * Corolla

 * Rio     * Highlander Hybrid

 * Spectra     * Matrix

      * Prius

 Lexus     * Yaris

 * GS 450h

 * RX 400h     Volkswagen

      * New Beetle

 Mazda

 * Mazda3



 Automotive Environmental Index Nameplate Ranking

 (Based on a 1,000-point scale)



 Toyota    678

 Volkswagen    664

 Honda    644

 Kia     642

 Mazda    636

 Hyundai    622

 Pontiac    605

 Saturn    601

 Suzuki    599

 Subaru    582

 Nissan    572

 Mitsubishi    567

 Audi     552

 Industry Average   549

 Lexus    542

 Buick    528

 BMW     524

 Saab     521

 Mercury    505

 Acura    501

 Volvo    497

 Isuzu    495

 Porsche    487

 Ford     485

 Chrysler    484

 Jaguar    482

 Infiniti    460

 Mercedes-Benz   456

 Dodge    453

 Chevrolet    431

 Lincoln    428

 Jeep     415

 Cadillac    370

 Land Rover    323

 GMC     309

NOTE: HUMMER, MINI and Scion are included in the study but not ranked as their complete model lineup is underrepresented.