The cost barrier facing alternative power
“It is the financial issues that most often resonate with consumers, whether it is the higher price of the vehicle itself, the cost to fuel or charge the vehicle, or the fear of higher maintenance costs. The bottom line is that most consumers want to be green, but not if there is a significant personal cost to them.” –Mike VanNieuwkuyk, executive director of global vehicle research, J.D. Power and Associates
Here’s a shocker: when push comes to shove, cost outweighs environmental worries in the minds of most consumers when it comes time to buy a vehicle. That means most consumers will pick a vehicle with a gasoline-powered internal combustion engine over a hybrid electric, all-electric, or even diesel-powered model solely because the sticker price for the gasoline-powered option is the lowest.
The end result of these cost-concerns, according to the 2011 U.S. Green Automotive Study from J.D. Power and Associates, is that the share of hybrid and all-electric vehicles is expected to remain below 10% of the U.S. market through 2016.
The study – based on a poll of 4,000 consumers that were in the market for a new vehicle this past February – nicely sums up the conundrum facing vehicle manufacturers when it comes to selling more so-called “green” vehicles: While consumers often cite saving money on fuel as the primary benefit of owning an alternative powertrain vehicle, the reality for many is that the initial cost of these vehicles is too high – even as fuel prices in the U.S. approach record levels. more






