Showing posts with label cost competitiveness. Show all posts
Showing posts with label cost competitiveness. Show all posts

America's New Car Ratings: Consumer Concerns and Marketing

Whether the Environmental Protection Agency (EPA) uses a rating system that is based on letters or numbers, for the American consumer, environmental concerns are trumped by concerns about price and concerns about US dependence on foreign oil.

Jack Gillis, director of public affairs for the Consumer Federation of America, said both of EPA's proposed labels are an improvement over the current label, for the American consumer, he concedes that money is still an important concern.

Sticker price is not the only economic concern, annual fuel costs are also important to consumers and therefore important in the marketing of new vehicles.

Concerns about dependence on foreign oil is another priority for American consumers. Gillis said that the CFA's research shows that "concern about our dependence on foreign oil seem to have a greater impact on consumer attitudes than environmental concerns."

According to David Champion, the head of automotive testing for the influential Consumer Reports magazine, credibility will be a critical factor in marketing the new electric cars and building a market for the next generation of electric vehicles.

While some consumers may opt for the new car technology for emotional reasons, the mainstream market has more practical concerns. “It’s going to be a very difficult numbers game for consumers” to decide if the economics justify turning to electric propulsion, Champion said.


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Competition in the Green Vehicle Market

Competition for domination in the green car market is intense as automakers around the world are racing to come to market with greener vehicle technologies. New partnerships are being formed and new business models are driving the growth of low and zero emission transportation.

Hybrids and fully electric cars are already on the market around the world. Toyota has the Prius, but it also has a fully electric subcompact car. Honda has the Insight and the carmaker has also announced its intention to launch a hybrid version of its Civic and an all-electric car by 2012. Nissan is now selling its affordable all-electric Leaf compact. The Koreans and the Chinese are also getting in on the greener car action.

In North America, General Motors has the Chevrolet Volt and Ford has the Fusion. In Europe, Volkswagen has launched a fleet of award winning hybrid and electric cars in its bid to become a world leader. Volkswagen subsidiaries, Porsche and Audi are also contributing greener cars. Fiat, Citroen, Peugeot, BMW, Mercedes are amongst a number of European carmakers producing hybrid and fully electric cars. Even Jaguar is producing a very efficient luxury. There are also a host of less well known entrants into the greener vehicle market, including one from South Africa's Joule.

From commercial transports, family cars and subcompacts, to supercars and SUVs, virtually every niche of the vehicle market now offers greener choices.
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Next: The Winners of the UK's What Car? Green Awards 2010

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