Historically High Fuel Prices Drive Consumers Away From SUVs, V-8s

TUSTIN, CA ? As the price of gasoline in the United States approaches the highest levels seen since the last gas crisis more than two decades ago, the September 2005 Fuel Price Impact Survey conducted by AutoPacific shows that many consumers intend to shift the type of vehicle they drive from gas guzzling SUVs and V-8s to smaller, fuel efficient cars.

The looming change spells trouble for Ford Motor Co., General Motors Corp. and Damiler-Chrysler since all three automakers rely heavily on SUVs, and V-8-powered trucks to make the lion?s share of their profits. In stark contrast, Japanese transplants, such as Honda and Nissan, make the types of fuel-efficient and hybrid-powered cars and trucks coming into favor by American consumers.

The survey showed 28 percent of SUV owners will shift to another type of vehicle next time they buy. The vehicle class most likely to benefit from this migration is Small Cars – up 44 percent. While the data do not show a direct relationship of drivers moving from SUVs to Small Cars, there is a tendency to move from less fuel-efficient classes to vehicle types that get better gas mileage.

Similarly, about 25 percent of drivers having vehicles powered by V8 engines say they will shift to more fuel-efficient engines. Vehicles with hybrid power plants will be considered by 14 percent of the respondents. This is a reaction to the continuing positive media attention surrounding hybrid-powered vehicles and the public’s perception that hybrids are an answer to the higher price of fuel. There is also somewhat more interest in diesel engines.

The culprits identified by the respondents as contributing to high fuel prices are Big Oil, OPEC and Hurricane Katrina. When asked whether high fuel prices are good or bad for America, 80 percent say that high fuel prices are “bad for America.?

The Fuel Price Impact Survey also showed more than half ? 56 percent ? of the respondents said they will not change the type of vehicle they drive when they buy a new car or truck.

The Fuel Price Impact Survey is based on the results of a Vehicle Voice Internet survey with 1,313 respondents who completed the survey between September 16 and 26.