Canadians willing to pay more for cars that pollute less:
Smog-related emissions cited as number one concern
TORONTO, Oct. 12 /CNW/ - Canadians are willing to pay more for
environmentally friendly cars if it helps reduce pollution levels. The results
are surprising and encouraging according to Ernst & Young and Martiz
Automotive Research, who jointly sponsored the study ''Green at What Cost?''
The survey showed that over 40 per cent of Canadians would ''expect'' to
pay more for greener vehicles and of that number a staggering 42 per cent
would be ''willing'' to pay $2000 dollars more. Some (11 per cent) even said
they would be willing to pay $5000 more. The balance put themselves into
either the $500, $200, $50 or $0 category.
''This is amazing!'' says Charlie Reid, National Director of Ernst &
Young's Auto Industry Practice, ''We honestly expected that this study would
confirm conventional wisdom that people are concerned about the environment
but not enough to actually spend more of their own cash.''
''And we're not talking about small sums here either.'' adds Chris
Travell, Director of Automotive Research for Martiz, ''Canadians who expressed
a willingness to pay more would pay, on average, over $1700 more!''
The study also indicates that when it comes to buying a new car or truck,
Canadians are quite concerned about the environment with over 80 percent of
respondents indicating that it was at least somewhat important with more than
half of those indicating that it was very or extremely important.
The study asked over 2000 people across Canada to indicate whether the
environment was an issue for them in their new vehicle purchase decision, if
so which aspects of the environment, and finally whether Canadians would be
willing to pay more for ''greener'' cars and trucks. They were asked
specifically to rank four key environmental issue pertaining to the automotive
industry
- the amount of emissions that contribute to smog
- the amount of greenhouse gases thought to be connected with global
warming
- the amount of recycled material that is used in making a new vehicle
- the amount of material in a new vehicle that can be used again or
recycled once it is disposed of
When Canadians were asked to cite their top environmental issues as it
relates to purchasing a new car or truck, overall, 75 per cent of respondents
were concerned with what's coming out of the tailpipe with 45 per cent citing
emissions of smog creating exhausts and 30 per cent indicating that the
emission of green house gases thought to be connected with global warming was
most important. In total, 24 per cent cited recycling related issues as their
primary concern. More specifically, 13 per cent were concerned with the amount
of recycled material that is used in making a new vehicle and finally only 11
per cent were concerned with the amount of material in a new vehicle that can
be used again or recycled once it is disposed of.
The study results are good news for both auto makers and parts suppliers
many of whom have already made significant investments in environmentally
friendly vehicles, but it does suggest that the issue of recycling may have to
take a back seat to emissions.
''If I were either a parts producer or a vehicle manufacturer,'' says
Reid, ''I think I'd be steering my discretionary research money more towards
the emission side of things. That's where the consumer concern is. That's
where the money is.''
''Perhaps this apparent willingness of the consumer to pay more will
result in ''greener'' cars getting to market sooner'' he adds.
Other highlights include:
Canadian Youth
Only 34 per cent of Canadians between the ages of 18-29 were concerned
with environmental issues as it relates to a purchase of a new car compared
with 44 per cent of respondents in the 30-49 age group and 47 per cent in the
50 plus age category
''Looking ahead this is a concern since young Canadians are the leaders
of tomorrow. It is likely that for this age group, other purchase reasons take
precedence such as having a car that has distinctive styling,'' says Chris
Travell, Director of Automotive Research.
By Region:
- British Columbia at 53 per cent.
- Ontario at 48 per cent,
- Atlantic Canada, 43 per cent
- Alberta, 41 per cent
- Manitoba at 34 and
- Quebec at 33 per cent.
A total of 2,032 interviews were conducted by telephone between July 22
and July 27th, 1999 among a representative cross section of Canadian adults,
18 years of age or older. The results of a survey this size are accurate
within 2.19 per cent, 19 times out of 20. Please note that the margin of error
will be larger within regions and for other sub-groupings of the population.
Finally, when Canadians were asked ''do you have enough knowledge of
'green issues'?'' Over 51 per cent said they were not sufficiently well
informed.
Reid says ''For those in the automotive industry this study suggests,
that, with pocket books starting to open up, there might just be a business
case for the car makers themselves to begin promoting increased environmental
awareness.''
Ernst & Young's Automotive Practice
- Ernst & Young is the leading provider of integrated professional
services to the automotive sector in the world.
- The Canadian practice focuses principally on the needs of the
automotive parts suppliers.
- The practice comprises over 200 professionals, including financial
practitioners in areas such as tax, audit, and corporate finance, as
well as manufacturing, engineering, human resources, information
technology and other business advisory professionals.
- We are committed to providing thought leadership and innovative,
value-added research to the sector.
-30- |
