Showing posts with label finds. Show all posts
Showing posts with label finds. Show all posts

Thursday, October 17, 2019

Some Neat Finds..




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Thursday, August 30, 2018

Cox Automotive survey finds more interest in car-sharing

Nearly 40 percent of the 1,250 consumers Cox surveyed said that while access to transportation is necessary, owning a vehicle is not. Photo credit: DAVID PHILLIPS

The private vehicle ownership model continues to erode in the minds of Americans, according to a survey of consumers by Cox Automotive.

Half of the respondents to the survey said that the cost of owning or leasing a vehicle is becoming too high — a sentiment that is driving more interest in on-demand and shared transportation services.

Nearly 40 percent of the 1,250 consumers Cox surveyed said that while access to transportation is necessary, owning a vehicle is not. For urban respondents, 57 percent said private vehicle ownership is not necessary to get from point A to point B.

Such findings continue to sound an alarm to an industry deeply invested in manufacturing, retailing and maintaining privately owned cars and trucks.

The auto industry is experimenting with new models. Mercedes-Benz, BMW and General Motors, for instance, have launched subscription programs and short-term rental services, where commercial owners own the vehicle and charge consumers for use.

These services create "a shift from personally owning a vehicle to consuming one as a service," said Isabelle Helms, vice president of research and market intelligence at Cox Automotive.

"Miles traveled will shift toward fleet-owned vehicles, causing what we believe to be a potential 40 percent reduction in consumer vehicle sales," Helms predicted.

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According to the survey responses, ride-hailing services, such as Uber and Lyft, have the greatest momentum among the new transportation models — in both usage and mindshare. Nearly 40 percent of respondents said they use ride-hailing services. That is a 77 percent increase from a similar survey in 2015.

While ride-hailing is most popular in major metros, its growth is also taking place in the suburbs. Ride-hailing usage in suburbia is up 21 percent from 2015, compared with the 18 percent uptick in urban areas.

Car-sharing is seeing more muted growth and is fueled by millennial and Gen Z consumers. Although this short-term rental model has been around for two decades, it has experienced pocketed growth, with awareness at 54 percent, according to the Cox study. Inadequate access to sharing has put the brakes on mass adoption. In urban areas where car-sharing is most prominent, 44 percent of consumers find it accessible, compared with the 85 percent of consumers who find ride-hailing accessible.

The short-term rental market is fragmented, giving consumers a lot of options and leaving no clear leaders in usage. The top five players account for less than half of the total market. By comparison, the ride-hailing space is more consolidated, with Uber and Lyft controlling 97 percent of that segment.

But a new transportation model — vehicle subscription programs — is being powered by younger and more tech-savvy consumers, Cox reports.

Instead of forcing consumers to buy one vehicle that attempts to meet every driving need, subscription programs give customers access to different vehicles for changing needs — an SUV for when extended family is in town; a convertible for a weekend getaway; and a compact for the downtown commute.

A fourth of the consumers surveyed said they are now aware of vehicle subscription services offered by automakers and dealer groups.

Subscription services are most appealing to young males and new-vehicle buyers. One-tenth of those asked said they would be open to a subscription service, instead of purchasing or leasing a vehicle.


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Study finds most Ford sedan customers say they will leave brand rather than buy crossovers, SUVs or trucks

Many Ford Fusion owners switch brands when they trade in their cars, KBB says.

Ford Motor Co. could have trouble keeping some U.S. sedan customers after discontinuing the Fiesta, Focus, Fusion and Taurus, a Cox Automotive study indicates.

Many Ford owners surveyed said they'll likely buy their next vehicle from one of Ford's rivals. Among Ford sedan owners, half said they would switch to a new or used car from another automaker for their next vehicle. Only 10 percent said they would get a new crossover or SUV from Ford; 5 percent said they'll get a Ford Mustang and 3 percent said they will drive a new Ford pickup.

While the survey's sample size is small — of the 2,697 responders, only 104 owned Ford vehicles — it highlights the problems Ford faces as it repositions its lineup. And it suggests that, although Ford has said it will replace its sedans with new vehicles at similar prices, the public might not yet understand that strategy.

"Ford's got some work to do in terms of clearing up the message to owners of these vehicles if they want any shot of keeping them," said Michelle Krebs, executive analyst with Autotrader, which is part of Cox. "They need to do some educating."

Most of the study's responders said they were surprised by Ford's decision to discontinue U.S. sedan sales, and most said they opposed it.

That stands in stark contrast to consumers' buying habits, as car sales continue to fall. Still, Ford's loss could be another automaker's gain.

For example, 53 percent of owners who trade in a Ford Fusion already go to a different brand, according to Kelley Blue Book data. They're most likely to defect to a Honda Accord, Civic or CR-V or a Toyota Camry or RAV4.

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General Motors — which struggled to keep Pontiac and Saturn customers after killing those brands as part of its bankruptcy restructuring — thinks it can cash in on Ford's decision. "We see a terrific opportunity to forge new and stronger customer relationships with such a broad portfolio," Kurt McNeil, GM's U.S. vice president of sales operations, said this year in a news release.

McNeil said GM views sedans as crucial to its lineup because "they typically offer very good safety, comfort, fuel economy and a lower total cost of ownership than other vehicle choices."

Jim Farley, Ford's president of global markets, this year noted that exiting the car business carries some risk for the company and its dealers, especially among entry-level buyers. But he said Ford would offer vehicles with a different body style at entry prices.

"We think we can tempt some of those customers with an image upgrade," Farley told Automotive Newsin April. "Where Ford does best is where we play to our strength of emotional products."


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Autolist survey finds car buyers still support CAFE rules

The Trump administration's move to roll back U.S. fuel economy standards is getting some pushback from car shoppers.

The administration this month proposed freezing corporate average fuel economy rules at 2020 model-year levels, rather than pushing for incremental improvements through the 2025 model year as required under the Obama-era plan in effect. The new proposal would also rescind California's ability to establish emissions standards stricter than the federal government.

But a study by Autolist.com indicates that fewer than a third of consumers support efforts to scale back CAFE rules. Autolist, which surveyed 1,132 current car shoppers after the administration's proposal was announced, found that 41 percent of respondents disagree with the proposal, while 30 percent are on the fence.

According to the study, half of the respondents said states such as California should be allowed to establish stricter standards, while 29 percent said a state shouldn't have the authority. The rest were neutral.

The study found no relationship between the states where the respondents reside and their opinion about emissions or fuel efficiency standards, Autolist said.

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