Hybrid Car Review

There are two reasons for that. Half the index is weighted by fuel economy. The other is that hybrids just tend to be greener, anyways.

The eight hybrids getting a high index are the Ford Escape Hybrid, Honda Accord Hybrid, Honda Civic Hybrid, Honda Insight, Lexus RX 400h, Mercury Mariner Hybrid, Toyota Highlander Hybrid and Toyota Prius.

Hybrid SUVs (the Ford Escape Hybrid, Toyota Highlander Hybrid and Mercury Mariner Hybrid) are the only 'trucks' ranking among the top 30.

There are no diesels in the top 30.

Source: Automotive Environmental Index (AEI)

J.D. Power and Associates Reports:
Honda, Toyota, Ford and Volkswagen Land the Most Vehicles at the Top of the
Inaugural Automotive Environmental Index

While More than One-Half of Consumers are Considering a Hybrid Vehicle, Many Traditional Vehicles Provide Consumers with Similar Environmental Performance

WESTLAKE VILLAGE, Calif.: 31 August 2006 —Fifteen out of 37 automotive brands are represented in the top 30 list of environmentally friendly vehicles, according to the J.D. Power and Associates 2006 Alternative Powertrain StudySM released today.

All new for 2006, the Alternative Powertrain Study (APS) includes the Automotive Environmental Index (AEI), which combines U.S. Environmental Protection Agency (EPA) publicly available information with voice-of-the-customer data related to fuel economy, air pollution and greenhouse gases for 2006 model-year vehicles. Voice-of-the-customer data is also used to help determine the relative importance of these environmental factors. The fuel economy factor represents approximately 50 percent of the index, while air pollution and greenhouse gases contribute to the remainder.

Among the top 30 AEI vehicles, eight are hybrids:
Ford Escape Hybrid Lexus RX 400H
Honda Accord Hybrid Mercury Mariner Hybrid
Honda Civic Hybrid Toyota Highlander Hybrid
Honda Insight Toyota Prius

Traditional gasoline-powered models in the top 30 are:
Acura RSX Hyundai Elantra Suzuki Reno
Chevrolet Aveo Kia Rio Toyota Camry
Chevrolet Cobalt Kia Spectra Toyota Corolla
Ford Focus Mazda3 Volkswagen Golf
Ford Focus Station Wagon Mazda MX-5 Volkswagen Jetta
Honda Accord Nissan Sentra Volkswagen New Beetle
Honda Civic Saturn Ion
Hyundai Accent Scion xA

Hybrid SUVs are the only truck models among the top 30. Only two luxury models—the Lexus RX400H and Acura RSX—are included among the top environmentally friendly vehicles.

Volkswagen ranks highest among nameplates in the Automotive Environmental Index, with three models in the top 30. While there are no diesels within the top 30, several diesel models from Volkswagen also perform well, which is reflected in VW’s strong overall nameplate performance. VW is followed in the nameplate rankings by Honda and Mazda, respectively.

“High gas prices, coupled with consumers becoming more familiar with alternative powertrain technology, are definitely increasing consumer interest in hybrids and flexible fuels,” said Mike Marshall, director of automotive emerging technologies at J.D. Power and Associates. “However, the additional price premiums associated with hybrid vehicles, which can run from $3,000 to $10,000 more than a comparable non-hybrid vehicle, remain the biggest concern among consumers considering a hybrid. The AEI highlights several non-hybrid models available that help consumers reduce fuel use and emissions.”

Consumers Interested in Hybrids and Flexible Fuel Vehicles
The study, which examines consumer perceptions regarding hybrids, diesel and flexible fuel vehicles, finds that fewer than one-fourth (23%) of consumers say they will only consider a gasoline-powered model for their next new vehicle. Among consumers who expect to acquire a new vehicle within the next two years, 57 percent indicate that they are considering a hybrid vehicle, while 49 percent are considering a flexible fuel (E85 ethanol-based fuel blend) vehicle and 12 percent a diesel.

On average, consumers considering a hybrid expect to pay approximately $5,250 more for the powertrain option. Acknowledging the increased vehicle price, these consumers expect an average fuel economy improvement of 28 miles per gallon compared to a similar vehicle powered by a gasoline internal combustion engine, when in reality, hybrid owners report getting an average improvement of just 9 mpg. Consumers considering a diesel expect to pay approximately $2,800 more for the option and expect an average fuel economy improvement of 21 mpg, while diesel owners report getting a 12 mpg improvement on average. Those considering an E85 vehicle are unsure whether to expect to pay more for the option or see an improvement in fuel economy, but instead hope the use of the ethanol-based fuel blend will help reduce U.S. dependency on foreign fuels. The availability of fuel or fueling stations is the largest concern among consumers considering a flexible fuel or diesel-powered vehicle.

“One of the biggest challenges for alternative powertrains is that consumers often have unrealistic expectations for the fuel-saving abilities of these vehicles,” Marshall said. “And particularly with hybrids, actual fuel performance often doesn’t live up to the vehicle’s EPA estimate. There is a real need to educate consumers about the technology and its benefits. Managing consumer expectations and lowering the cost premium will be instrumental in accelerating acceptance.”

Younger buyers are much more likely to consider an alternative powertrain in their next vehicle. Nearly three-quarters of consumers ages 16 to 25—who purchase fewer than 10 percent of all new vehicles—are interested in a hybrid vehicle, 52 percent are considering a flexible fuel vehicle and 15 percent a diesel vehicle. In contrast, fewer than one-half of consumers over 57 years old—one-quarter of new-vehicle buyers—would consider a hybrid or flexible fuel vehicle, and only 8 percent would consider a diesel. Consumers in the West (63%) and Northeast (61%) express the most interest in hybrid vehicles, while consumers in the Midwest (59%) are most interested in flexible fuel vehicles. Interest in diesel vehicles ranges between 11 percent and 13 percent across the country.

While actual hybrid vehicle owners tend to be older (55) than the average new-vehicle buyer and more affluent, with an average annual household income of $113,400, the study finds that consumers who indicate that they are considering a hybrid tend to be younger (averaging 43 years old), with an average annual household income of $88,000.

Despite often providing lower-than-expected gas mileage performance, hybrid and diesel U.S. market share continue to grow. J.D. Power and Associates forecasts that hybrid vehicles, which represented 1.2 percent of the U.S. new light-vehicle market in 2005, are expected to increase to 1.6 percent in 2006 and 5 percent by 2013.
Diesel vehicles, which represented 3.2 percent of the U.S. new light-vehicle market in 2005, are expected to increase to 3.6 percent in 2006 and 9 percent by 2013.

The 2006 Alternative Powertrain Study includes responses from more than 4,000 consumers who plan to purchase a new vehicle within the next two years. Respondents were surveyed in July 2006. The voice-of-the-customer components of the Automotive Environmental Index are derived from both the 2006 Alternative Powertrain Study and the 2006 Automotive Performance, Execution and Layout (APEAL) Study. The more than 63,000 respondents to the 2006 APEAL Study were surveyed between February and May 2006.

Comprehensive environmental ratings for 2006 models can be found on the J.D. Power Consumer Center at www.jdpower.com.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 290 offices in 38 countries. Sales in 2005 were $6.0 billion. Additional information is available at http://www.mcgraw-hill.com.
Media Relations Contacts:
John Tews
Director, Media Relations
J.D. Power and Associates
5435 Corporate Drive, Suite 300
Troy, MI, 48098
(248) 312-4119, or cell (248) 321-5109
john.tews@jdpa.com
Syvetril Perryman
Media Relations
J.D. Power and Associates
2625 Townsgate Road, Suite 100
Westlake Village, CA 91361
(805) 418-8103
syvetril.perryman@jdpa.com

Kim Milman
JMPR Public Relations
Woodland Hills, Calif.
(818) 992-4353/cell: (818) 618-7163
kmilman@jmprpublicrelations.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate