Drivers steer clear of green concerns
Study shows buying an environmentally friendly vehicle ranked just 23rd among 26 reasons for purchase
GREG KEENAN
From Thursday's Globe and Mail
TORONTO The notion that fretful Canadians concerned about global warming are racing out to buy more environmentally friendly vehicles is overblown, according to a survey of new vehicle buyers by Maritz Research.
Buying an environmentally friendly vehicle ranked just 23rd among 26 reasons for purchase, the Maritz New Vehicle Customer Study of 38,500 buyers showed.
Protecting the environment ranked well behind value for money, fuel economy and reliability the top three reasons for buying a certain vehicle and was also less important to those surveyed than towing capability and interior styling. Even buyers of subcompact cars were more interested in storage and cargo capacity than environmental friendliness.
"In actual buying behaviour, it's not manifesting itself in the purchase-decision process," said Chris Travell, vice-president of Maritz's automotive research group. "It doesn't hold a candle to these other issues."
While the issue of fuel economy ranked near the top of the survey list, Canadian buyers appeared to shrug off that concern last year.
They bought more luxury and large sport utility vehicles, the lightning rod for environmentalists who criticize the auto industry.
Sales of large SUVs jumped 17 per cent last year from 2005 levels, while luxury SUV sales jumped 6 per cent, according to data compiled by DesRosiers Automotive Consultants of Richmond Hill, Ont.
The large SUV segment includes some of the largest gas-guzzlers on the road, such as the Dodge Durango, Ford Expedition, Chevrolet Suburban and Toyota Sequoia. Luxury SUVs include such Canadian-built vehicles as the Lexus RX 330, Chrysler Pacifica and Acura MDX.
Increases in sales of those vehicles came in a year when the average price of regular gasoline topped out at $1.13 a litre in August.
The price of gas has fallen substantially since then, to less than 80 cents a litre on occasion, at some locations in Canada. But the weekly average did not drop below 86.2 cents a litre at any point last year, according to Calgary-based M.J. Ervin & Associates.
Dennis DesRosiers, president of DesRosiers Automotive Consultants, pointed out that sales of subcompact cars surged 20 per cent, one sign that gas prices did have an impact. But sales of compact cars fell, as did deliveries of minivans and mid-size SUVs.
Canadians bought 21 per cent more crossover utility vehicles, which combine the ride of a car with the space and functionality of an SUV.
"You can see very clearly in those numbers how the middle of the market is collapsing," Mr. DesRosiers said.
The market is becoming more fragmented and typical family vehicles such as minivans are feeling the impact, he said.
Minivan sales fell to just 152,000 last year, the lowest point in more than a decade.
Ford Motor has stopped making minivans entirely and General Motors is also on the verge of abandoning that market.
When asked point blank, buyers maintain that the environment is important, Maritz's Mr. Travell said, but that concern gets overwhelmed by the other factors.
He pointed out, however, that hybrid vehicles, which combine the traditional internal combustion engine with battery power, are coming down in price, although they haven't reached the levels yet of non-hybrids.
If consumers had a choice of a traditional sedan or a hybrid model that is the same in all other ways, they would probably choose the hybrid, he said.
"Manufacturers know this and have priced vehicles that have a hybrid option with only a slight premium over the non-hybrid model," he said.
