KPMG annual auto industry survey shows fears as SUV growth grinds to a halt

[jpak]

http://www.autoindustry.co.uk/news/04-01-07_9

The Sports Utility Vehicle (SUV) – or 4x4 – sector appears to have become the primary casualty of high oil prices and a hardening consumer desire to purchase more fuel efficient and environmentally friendly cars. According to the annual KPMG survey of the global automotive industry, expectations for growth within the SUV sector have now hit rock bottom amongst North American industry executives, while they have also slid considerably amongst their European and Asian counterparts. Just 3% of American executives expect to see growth in the SUV sector this year, compared to 39% in Europe (down from 50% last year) and 52% in Asia.

It is perhaps no coincidence that this loss of confidence comes at the same time that 79% of the executives surveyed agreed that oil prices have now permanently changed consumers’ purchasing habits – a figure which rises even higher amongst the North American (85%) and European (84%) respondents.

On top of that, 89% of all respondents now feel that fuel efficiency will be an important factor in a consumer’s purchasing decision, ranking it as the single most important factor – ahead of quality, safety, affordability and product design.

Commenting on the findings, Mike Steventon, Head of Automotive at KPMG in the UK, said: “These results highlight the extent to which the industry is having to adapt and realign itself to changing customer preferences. The impact of oil prices and the desire for greater fuel efficiency are clear for all to see. Issues which were once thought of as purely European concerns have now been elevated to a global level with even the US market finally succumbing. The principal casualty of these changing preferences is the SUV, which has experienced substantial year on year growth for the past decade. With sales already falling – and with strident media criticism of the sector appearing to strike a chord with the purchasing public – the days of the sector being a key driver of industry profitability, particularly in North America, may be coming to an end.

<more>

[kestrel91316]

1. I want NEGATIVE growth for the "dinosaur" market, dammit!

[index555]

2. Patience.

It will happen.
Just need to keep gas at $3 a gallon.