New car buyers amazingly wary of diesel
Even though it's a simple fact that diesel-engined cars get more miles per gallon than equilavent gasoline-powered ones, convincing new car buyers in America to make the switch is proving difficult. As a new study conducted this month by Kelley Blue Book has found, more new car buyers rank hybrids (40 percent), hydrogen (20), and flex-fuel (17) systems as " most likely to succeed in becoming a mainstream vehicle powertrain type" than diesels (6). That's an amazingly low number for diesel, in my opinion, considering that diesel fuel is available today pretty much anywhere but E85 and hydrogen are pretty scarce. Still, KB says that, "Interest in diesels is steadily declining among in-market new-vehicle shoppers, while interest in hybrids continues to grow." The old worries that diesel vehicles are smelly and dirty remain lodged in customers' minds, and "shoppers increasingly believe that diesel-powered vehicles get poorer fuel mileage than conventional gasoline engines."
Man, just think of the steep hill that VW and Mercedes and all the other diesel-makers who will be bringing diesel cars to the U.S. in the coming years have to climb. If words like Bluemotion and urea injection and Bluetec don't catch on with U.S. car buyers, what will these companies decide to do?
[Source: Kelley Blue Book]
Jan 28, 2008 05:00 ET RSS
New-Car Shoppers Do Not See Diesel as a Likely Mainstream Fuel Source
KBB Marketing Research Shows Shoppers' Negative View of Diesels, While Hybrids Continue to Gain Acceptance
IRVINE, Calif., Jan. 28 /PRNewswire/ -- According to the latest Kelley Blue Book Marketing Research study (http://www.kbb.com/), the vast majority of in-market new-vehicle shoppers do not see diesel as a likely mainstream fuel source in the future. The January 2008 results reveal that only six percent of shoppers think diesel is most likely to succeed in becoming a mainstream vehicle powertrain type, compared with 40 percent saying hybrids, 20 percent saying hydrogen fuel cell and 17 percent citing flexible-fuel systems.
Interest in diesels is steadily declining among in-market new-vehicle shoppers, while interest in hybrids continues to grow. The gap between shoppers' interest in diesels versus hybrids has greatly widened particularly in the last month, with the nine-point gap in December 2007 jumping to a 17-point gap in January 2008. When asked about their perceptions of diesel engines, nearly half of in-market new-vehicle shoppers say they are dirty and noisy. In addition, the latest study shows that shoppers increasingly believe that diesel-powered vehicles get poorer fuel mileage than conventional gasoline engines, and fewer consumers are seeing diesels as fuel-efficient.
"Many automakers are looking toward diesels as a very workable solution for the future, especially in light of the recently passed energy bill, but the results of this study should give them pause and make them realize they need to do a better, more thorough job of winning over the American consumer," said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. "Clearly many Americans still think of the dirty diesels of the past and are not aware of the benefits of new clean-diesel technology. Some manufacturers, such as Volkswagen with its 'Diesolution Tour,' are doing their part to ensure consumers are educated about today's diesels. However, not enough is being done by the auto industry as a whole to help American consumers understand the benefits of modern-day diesel technology."
While diesel consideration and favorability are declining in the eyes of in-market new-vehicle shoppers, hybrids continue to gain favor. In addition to hybrids being seen as the most viable mainstream powertrain choice, interest in hybrids has steadily increased in recent months, with 61 percent of shoppers saying they are interested in hybrids in the latest study. When asked about the premium they are willing to pay for a gas/electric hybrid over a traditional gasoline-powered version of the same vehicle, this month shoppers are willing to pay an average premium of $3,135, up from an average premium of $2,645 a month ago in December 2007.
When asked about which hybrid vehicles they would consider for their next purchase or lease in the latest study, in-market new-vehicle shoppers cite the Honda Civic as most popular with 35 percent. The next most-popular models are the Ford Escape and Toyota Highlander, each garnering 23 percent. Toward the bottom of the consideration list is the vehicle that arguably put hybrids on the mainstream map -- the Toyota Prius -- which only garnered 12 percent of the consideration.
"As auto manufacturers look toward development of future products and technologies, it's important for them to track, trend and understand current perceptions among in-market new-vehicle shoppers," said Rick Wainschel, vice president of marketing research and brand communications for Kelley Blue Book. "Knowing where shoppers stand on these issues also can help manufacturers devise successful marketing campaigns to ensure proper education about new technologies and ultimately, success in the sales of their future products."
The latest Kelley Blue Book Marketing Research study was conducted on Kelley Blue Book's kbb.com among in-market new-vehicle shoppers during January 2008.
About Kelley Blue Book (http://www.kbb.com/sitemap)
Since 1926, Kelley Blue Book, The Trusted Resource(R), has provided vehicle buyers and sellers with the new and used vehicle information they need to accomplish their goals with confidence. The company's top-rated Web site, kbb.com, provides the most up-to-date pricing and values, including the New Car Blue Book(R) Value, which reveals what people actually are paying for new cars. The company also reports vehicle pricing and values via products and services, including software products and the famous Blue Book(R) Official Guide. Kbb.com is rated the No. 1 automotive information site by Nielsen//NetRatings and the most visited auto site by J.D. Power and Associates eight years in a row. No other medium reaches more in-market vehicle shoppers than kbb.com; nearly one in every three American car buyers performs their research on kbb.com.
Reader Comments (Page 1 of 2)
UH2L 5:33PM (1/28/2008)
The auto manufacturers have a lot of marketing an P.R. work to do. If they can get people to drive a modern diesel and go back-to-back with an equivalent gas powered vehicle and then see the difference in fuel economy, many of them will be convinced, but not the majority. Diesels will remain a niche market, one for which there are enough buyers to justify bringing them over. (I'm just one potential customer of many and I happen to be waiting for a Mercedes C-Class diesel in the U.S.) Once early adopters have more diesel choices and they show their friends and talk about them, then diesel light vehicles will become more popular. Acceptance will accelerate if fuel prices keep going up, but the fact that diesel costs more than gas, (at least here in Michigan), doesn't help matters.
Atul
http://www.thingsivenoticed.com
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Karkus 5:48PM (1/28/2008)
There's three things that need to happen before Americans start to seriously consider and buy diesels.
1) They need to get to see and drive and experience the new diesels to change the consumers' perceptions. But this is really the least of the 3 issues.
2) Availability need to increase: VW has been taking about their new T2B5 diesels for years, but they keep delaying the introduction (now it's Oct 2008). Even the Dieselution marketing effort was weak (too few locations). And then they need to make LOTS of them. The Mercedes E320 Bluetec supposedly became available last year, but apparently only for lease and in limited numbers
Once they show in the showroom or neighbor's driveways, people will start to consider them.
3) Gas/Diesel prices are still too low to make people seriously consider switching. Ideally they'd raise taxes, but at some point peak oil will take care of it.
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Throwback 5:48PM (1/28/2008)
I think the other tough sell is the price of diesel fuel. In my part of the country diesel is 40 cents per gallon more expensive. Add in the higher price of a diesel vs gas and PR hill is steep. I like what I have read about the modern diesels in Europe, but I'm not sure I would spring for the additional cost.
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b33g33 5:52PM (1/28/2008)
I think this is more a reflection on the relative ignorance of the typical American buyer than a condemnation of Diesels. For better or worse, the US automotive public has remained blissfully ignorant of the fact that Diesels offer a viable alternative to the over-hyped hybrids and E85 vehicles and are a far more easier proposition as an interim solution to much of our gasoline and environmental issues till fuel cell or hydrogen burning technologies become commercially realistic. I, for one, am happy to be in the minority of Diesel converts. When the high-performance, relatively gas-thrifty german autos start appearing at the end of the year, I will be thinking about a new set of wheels. I can only hope that the lack of market buzz will cause BMW to price their diesels lower than they do in Europe :)
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snakesausage 6:08PM (1/28/2008)
A. Hybrid does not exclude a diesel hybrid.
B. I am a major “Diesel head” (I own both an 84’ Mercedes and a 02’ Jetta Diesel) and even I do not think that Diesel is the future of automobiles, probably plug in electric or hybrid (possibly Diesel) is the way forward. Direct Diesel power is only a medium term solution to energy independence through less consumption and bio-diesel.
C. When the Diesel power plant is pushed by most of the major automakers instead of just VW and Mercedes people will take notice.
D. When we start getting diesel 4cyl affordable cars that are “clean”, very efficient and quiet the perception will change rapidly.
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CT-Jake 6:19PM (1/28/2008)
I agree with 'snakesausage' that until a capable 4cy diesel is available in the likes of an Accord, Camry, CR-V or the like, diesels aren't likely to be noticed.
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Snowdog 7:19PM (1/28/2008)
Of the terms we want catching on,"Urea Injection" is not likely to be looked upon favorably. I am only interested in the 4cyl diesels that manage this through smart catalytic converters.
I was very much against previous generation diesels as they lacked particle filters in North America and were very polluting. When the T2B5 units show up I will be open to them, but I am probably still more interested in hybrids.
Mileage is similar and cost premium is similar for a new "clean" diesel and a gas HEV.
Once you get past that, gas is cheaper,still cleaner, and more widely available.
So given a choice between a gas HEV and Diesel in the same vehicle, I would likely choose the gas HEV.
But you won't get that choice. There are many more hybrids offered than diesels.
All of this said, I still may get a Jetta TDI wagon as most hybrids only come with CVTs and I like to shift for myself.
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Wildgoosechase 9:38PM (1/28/2008)
Given the sensationalist drive by media's love affair with hybrids I'm amazed if the public even knew that diesels exist with the exception of trucks
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200D 11:34AM (2/06/2008)
For those that know the facts, especially if you've owned a good diesel before, this ignorance by 94% of the American new car buyers might be a blessing. My Toyota is 6 yr/old w/95K miles and my next car will be a diesel, unfortunately Toyota won't be on my list. My first diesel was a Meredes 200D (thanks dad) and I loved the 35 MPH in a 1968 boat that made it to 400K miles.
The silver lining is this, if 94% of the consumers are only interested in less proven, efficient and reliable engines, then the 6% in the know will hopefully be able to bargain a better deal until the masses finally catch on.
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open 11:54PM (1/28/2008)
I had a 2006 VW TDI Golf. I made a huge mistake and sold it because my wife thought it was to low to the ground and would not drive it. I loved it. It was an automatic. It would get over 43 mpg on the highway and 32 in the city, consistently. We were traveling on an interstate in the Ozarks and I raced a Mini Cooper S. I would race him to the top of the steep hills gapping him badly, then I'd slow down going downhill to allow him to pass. Then I'd pass him again going up another steep grade. He was flabbergasted at the difference in performance. I had my wife, my nephew, all our gear for a weeks fishing and sightseeing vacation on board. We pulled over down the road at a restaurant and the guy pulls in wanting to know what was under the hood. He didn't like it when I said a diesel. He claimed he had the supercharged Mini pegged the entire time. The 1.9 liter turbo diesel by VW was, and is, a great performer. I wish they'd bring it back. My wife now likes the looks of the things and wishes I wouldn't have sold it. Maybe I should not listen to her next time. Bring us a Golf diesel please VW!
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GreyFlcn 2:00AM (1/29/2008)
Just wait till the end of 2008, after modern diesels are launched in all 50 states, and this post will end up looking rather silly if you look back at it.
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armmat 3:33AM (1/29/2008)
In a way it's a good thing for the aversion of diesel. More crude oil is wasted for the same barrel of diesel as for regular fuel. Not a good way to try and solve the energy consumption problem.
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Tony 7:27AM (1/29/2008)
the diesel PR has a long way to go, especially that now it appears to have no money saving advantages. looking at EU prices, the "modern diesel" price bump on the vehicle can never be offset by the better mileage, even with $8/gallon gas... I am still waiting to be convinced
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Phil L. 8:05AM (1/29/2008)
Plus there aren't yet any family-friendly affordable diesels in the US that'd I'd consider (sorry; VW has scared me off with decent designs that are far too pricey to maintain).
How about an affordable diesel minivan?
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Jack S. 8:18AM (1/29/2008)
"Interest in diesels is steadily declining among in-market new-vehicle shoppers, while interest in hybrids continues to grow."
that's a ridiculous comment. How can a consumer be interested in diesel vehicles when there are none? Diesel availability has been steadily declining so umm, duh the logical conclusion is... The only real choice is the MB's and who's got $45K to throw down a car?
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john riley 9:05AM (1/29/2008)
The small pickup market is sluggish. I think truck buyers are more open to diesel than car buyers. If you could stick a diesel four into a small pickup (and get impressive mileage - something that didn't happen with the jeep liberty), I think it would go a long way toward bumping up the small truck sector, and help diesels get established in N Am.
A diesel Tacoma would be a great way for Toyota to back into the diesel market without stealing anything from their leadership in hybrids.
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gotsmart 9:55AM (1/29/2008)
In my opinion, the big advantage of diesel over other "clean" fuel options is that there is already a carbon-neutral, viable and sustainable option available in biodiesel. It seems every year new biodiesel plants are coming online, and they don't have to make it from virgin stock like they do with ethanol. A lot of biodiesel can be made by recycling animal byproducts from the meat rendering process, or by using post-consumer waste like used cooking oil. Until cellulosic ethanol becomes a viable reality, ethanol production requires the diversion of grains from food sources, which isn't exactly a good idea.
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Bill 9:59AM (1/29/2008)
Diesel competes with premium gasoline, not regular.
No naturally-aspirated gasoline engine has the performance of a turbodiesel.
And turbo gas engines don't come close to the mileage of a turbodiesel.
>In my part of the country diesel is 40 cents per gallon more expensive
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ty 10:17AM (1/29/2008)
Consumers are not as dumb as carmakers think they are. 1. We don't want to pay more for a diesel engine because it is cheaper to make than a gas engine.
That's a huge secret manufactures have been hiding for YEARS. Yes, compression is higher. Yes, the blocks are heavier. Sure, they DO have more material in them. BUT,,,, not enough to overshadow the fact that a diesel engine needs no spark plugs, wires, distributor, timing chain, carberator. Yes some of these items are being outdated with modern technology. But in the same token they work for diesels as well. ie. computer controled fuel injection.
Just so that you know. Diesel is less expensive to refine than gasoline as well. So why do fuel companies charge more for diesel? Why do OEMs charge more for diesels???? BECAUSE THEY CAN! Where are our choices???? How is it, that the EPA became an arm of US car makers to keep out better made European models?
Ask yourself; what is the best selling European car? answer: The Ford Mondero Estate diesel. Ever heard of it? Why not? After all it's made by an AMERICAN company. Then research it. Then ask yourself why isn't this car, and others like it of course, available here in the good ol' USA?
Read carefully, emissions results can be misleading. The diesel Lupo is actually cleaner than a Prius.
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Jim 11:08AM (1/29/2008)
I am sure that diesel powered vehicles would be very popular in the U.S. if they were readily available at a reasonable cost. Make them an option at a fair price in all models and watch them sell.
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