Costly Powertrains Deserve Unique Vehicle Appearance
Successes, Failures and Opportunities
A major issue confronting the world's automakers considering introducing vehicles powered by alternative powertrains - E85 ethanol, diesels, hybrids, fuel cells - is whether these vehicles should look substantially different from gasoline-powered vehicles? In other words, should a Honda Civic Hybrid look dramatically different from a run-of-the-mill Civic? Should Honda's Hybrid Accord V6 look dramatically different from a conventional Accord V6? Should a Ford Escape Hybrid look different from a mainstream Ford Escape?
Research conducted via the VehicleVoice Internet automotive research panel and by AutoPacific shows that consumers generally do not care if a vehicle with a unique powerplant looks uniquely different. Even though this goes against the objective results of our own research, we do believe that people want their Hybrid or diesel or fuel cell vehicle to be identified at-a-glance compared with a typical gasoline powered car or truck.
Toyota Prius A Spectacular Success
Everyone agrees that Toyota's Prius Hybrid has been a marketing success. In part it is because of the fuel economy and emissions characteristics of the vehicle. But, I would submit that few buy it to save money (the fuel cost savings is offset by higher initial cost and uncertain resale value) or know its exhaust emissions specifications. But the car looks modern inside and out, contemporary, futuristic - it makes a statement, a statement that the owner is into ecology and hi-tech.
Some "Also-rans"
The Honda Civic Hybrid is also exemplary with respect to fuel consumption and exhaust emissions. But it is less of a marketing success, perhaps because it looks just like a low end Honda Civic. Anecdotes have the premium-priced, lightly differentiated Accord V6 Hybrid piling up on dealer lots. The same goes for the Ford Escape Hybrid: it probably saves even more fuel than a Prius and is also environmentally clean...but, even with incentives, it has had little market impact, again, perhaps because no visible, overt, environmental or technology statement is made. Recent reports suggest that while there is a waiting list for the uniquely styled Prius, the undifferentiated Escape Hybrid is a tough sell.
Powertrain History
Years ago the industry sold some cars with really powerful (and costly) engines. But part of the package was some sort of distinctive visual cue that "this car is special". Maybe it was big, dual exhausts, a prominent GT badge, hood scoops, upgraded wheels and tires, maybe some crossed flags with a 427 insignia. No doubt about it, actual performance was important - but so was that visual "at a glance" cue that provided so much pride and prestige.
The Diesel Challenge
The Diesel-powered heavy duty pickup market will also present a huge challenge. It used to be relatively easy to sell a high cost Diesel engine in a Heavy Duty pickup. The performance (usually in the form of towing capability and durability) was there, but so was a significant fuel economy advantage and the prospect of the use of lower cost Diesel fuel. But those days have changed! Diesel is now 25 cents to as much as 50 cents per gallon more than regular grade gasoline. Now that $6,000 Turbo Diesel engine option isn't quite so easy to sell! Perhaps something that might help would be real visual distinction between the gas and the Diesel model. Not just a discrete badge, maybe the full GLO (grille, lights, ornamentation) treatment.
Looking Forward
The 2007 model year will feature more costly, low-surfur Diesel fuel, and also more costly, low emissions Diesel engines. That Diesel could go from a $6,000 option over a gas engine to a $10,000 option! And at that point a powerful visual statement becomes even more desirable, maybe essential, to maintain or increase share of segment. Perhaps those costly Diesel versions should look more like a miniature Peterbilt with a dramatic grille, hood, and fender appearance clearly differentiated from lower cost gas powered models.
Eventually, fuel cell and hyrogen powered vehicles will be available. They will be clean, fuel efficient... and costly. The market reception of the various hybrid models suggests that new technology vehicles had better offer a visual statement as well, to enhance their probability of market acceptance. Pride and prestige are important to new vehicle buyers, and a high-tech, environmentally responsible image may be an essential ingredient in the marketing of costly new technology vehicles.
When all is said and done, you actually sell the steak - but it sure helps to have some sizzle!
