 | Hi, I am Francois Gravigny, Senior PolkInsight Advisor at R. L. Polk & Co. My job is to make sure my clients best utilize Polk’s ultimate vehicle registration analysis tool, PolkInsight. I joined Polk in 1998. Prior to Polk, I worked for an automotive market research company in Germany. I am passionate about the industry, especially from the product point of view. I enjoy keeping abreast of upcoming models to arrive in the U.S. market. I am excited to be able to share industry insights and look forward to this opportunity for product-oriented dialogue. |
Automotive OEMs Think "Green" This Fall!
Thursday, August 6, 2009 by
Francois Gravigny
The much talked about U.S. automotive industry trend towards smaller and cleaner engines is picking up speed this fall. A look at the next three months' product launches shows that customers looking for fuel-efficient vehicles will have a greater choice.
Smaller engines are being introduced in vehicles typically powered by six or eight cylinders. The Audi A5, Buick LaCrosse and Chevrolet Equinox/GMC Terrain will for the first time use 4-cylinder powerplants. Given the current market conditions, those trims should quickly grab a significant share of their respective product mix. So does it mean that the U.S. automotive market is headed towards a more "European-like" engine mix type? It is likely. As of calendar year to-date May 2009, 4 cylinder engines still make up only 41% of the U.S. car and light truck industry. That share is bound to increase.
Much has already been said about Ford’s new 6-cylinder Turbo 'Ecoboost' engine. It is Ford’s way of replacing thirsty V8s without compromising performance. The Ecoboost is now available in the Ford Flex, Lincoln MKS and MKT vehicle lines. Interesting from a technology point of view, the V6 Ecoboost should only account for a small part of those model mixes. Next in line will be Ford’s higher volume 4-cylinder 'Ecoboost'.
One other way for manufacturers to improve on gas mileage is to "de-content". Mazda and Volvo will both launch non-turbo versions of their already-on-sale CX-7 and XC60 compact turbo SUVs. This is a smart and inexpensive way to offer customers a greener and cheaper alternative.
Acura will go a slightly different route to improve on its crossover's fuel efficiency. The RDX, on sale since 2006, will for the first time be available as a two-wheel drive and consequently get an additional two miles per gallon. It should be a success especially in the Sun Belt region where many luxury crossover customers do not need four-wheel drive vehicles.
Finally, a European manufacturer (a first!) is entering the hybrid vehicle market. Mercedes-Benz is adding new electric-gasoline powertrains to its S and M luxury vehicle lines. The ML450 will compete head-to-head with Lexus' new RX450h. If properly priced, and if the RX is any indication, we can expect the ML hybrid rate to quickly reach 20%. As for the S400 hybrid, it will be a unique proposition for customers looking for an environmental Über-Sedan; getting close to 30 mpg in a full-size luxury car is a first in the U.S.
As manufacturers venture into new niches, as more diversified powertrains become available and as customers ask for more trims, model launch frequency will keep rising. Who's next to the party?
Posted by Francois Gravigny, Senior PolkInsight Advisor, Polk (08.06.2009)
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