Three-dollar-a-gallon gas and interminable headlines about global warming have finally shaken American car buyers from their wasteful ways, right? After all, sales of trucks and SUVs have tanked.
Not so, according to Mike J. Jackson, CEO of AutoNation, in a recent interview in "Forbes." Truck sales are sliding because of the slumping housing market, he says. Many consumers are migrating from SUVs to crossover vehicles because the ride is more comfortable. Sixty percent of car buyers consider a hybrid. Only two percent buy one. Fuel economy has improved by only half a mile per gallon in the last 12 months.
Jackson might be overstating the case, but there's no question that car-buyer preferences are quite stubborn. A study from Writhlin Worldwide showed that a vehicle's interior has enormous sway over purchase decisions. Likewise, CNW Marketing Research found that conveniences like heated seats and cup holders still have a higher priority than gas mileage.
These preferences aren't likely to change--at least not very quickly. The new CAFE standard will add costs to a vehicle. Many consumers will simply buy a used car. As much as consumers love the idea of hybrids, the added costs have kept them away. Until the dollar savings in gas mileage offsets these costs, Americans are likely to continue driving their gas guzzlers.
