Americans Buying Smaller Engines; See Turbocharging as Fuel Efficient Solution
’Cash for Clunkers’ Reveals Preference for Smaller Gas Engines; New Study Shows Awareness of Turbo Benefits Creates Dramatic Shift in Americans’ Buying Behavior
TORRANCE, Calif. -- As American consumers shift their buying behavior towards more fuel efficient vehicles, turbocharging -- already in use by roughly half of new vehicles in Europe -- has emerged as the engine technology U.S. consumers “didn’t know they wanted.”
In a study of U.S. consumers released today by Honeywell (NYSE: HON), more than half of those who plan to purchase a vehicle in the next two years believe fuel efficiency is more important than it was during their last vehicle purchase. The study also found that more than 80% of American consumers were more likely to consider purchasing a turbocharged vehicle after learning that the readily available turbocharger helps to increase the fuel efficiency of a gas engine by up to 20% without sacrificing performance or reliability.
While Americans’ prioritization of fuel efficiency is new, their actual purchase preferences are not. According to the Department of Transportation, nine out of the ten most popular vehicles purchased in the recent ’Cash for Clunkers’ program were equipped with smaller and more fuel-efficient versions of conventional technology engines.
“The success of the ’Cash for Clunkers’ program shows that a consumer appetite exists for fuel efficient options on traditional engine platforms that don’t sacrifice the power, reliability and price that Americans demand,” said David Paja, Vice President, Marketing for Honeywell Turbo Technologies. “For that reason, almost every major automaker has announced plans to broadly introduce turbocharged engines to the U.S. market in the coming years. We anticipate demand for gas and diesel turbocharged engines in the U.S. market may increase from 5% today to 25% by 2014 and could top 85% by 2020.”
The Honeywell study showed that while 90% of Americans had heard of turbochargers, just over half were familiar with the technology and only 36% of those people said they would consider purchasing a turbocharged vehicle. But that number jumped to over 80% when information was shared about the benefits of turbocharging. Specifically:
- Fuel efficiency, reliability and overall cost (compared to hybrid engines) were the top reasons U.S. consumers would consider buying a turbocharged vehicle.
- While 96% of Americans are familiar with hybrid technology, 84% of those same consumers said they would consider buying a turbo vehicle based on cost savings versus hybrids.
- Nine in ten U.S. consumers said they are more likely to consider buying a turbocharged vehicle after learning it increases fuel efficiency of a gas engine by up to 20% without sacrificing performance.
- 84% of Americans said they were more likely to consider a turbocharged engine when told the engines have a proven reliability track record and are now tested to last 150,000 miles or ten years.
Honeywell Turbo Technologies is the leading automotive turbocharger developer in the world, and is a business unit of Honeywell Transportation Systems, which also consists of Consumer Products Group and Friction Materials. As a leading automotive supplier, Honeywell Transportation Systems enhances vehicle performance, efficiency and appearance through state-of-the-art technologies.
Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.
The survey was conducted during a one week period in August 2009. Approximately 1,000 random telephone interviews took place across the United States. Demographic weights were applied to ensure the sample accurately reflected the total population of the of U.S. adults. The survey is available by request for review.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.
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