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Environmental Concerns Not Affecting Growth in SUV Segment, Says New Study; Consumer Demand for Sport Utility Vehicles Shows Healthy Increase

1 February 1998

Environmental Concerns Not Affecting Growth in SUV Segment, Says New Study; Consumer Demand for Sport Utility Vehicles Shows Healthy Increase

    NEW ORLEANS, Feb. 1 -- A growing number of Americans intend
to purchase a sport utility vehicle, even as the controversy over global
warming and vehicle fuel-efficiency standards continues to rage.  This is
according to a national consumer study released today by The Dohring Company,
Inc.
    The study, released here at the annual convention of the National
Automobile Dealers Association, showed that consumer demand for passenger cars
has fallen seven percent over the past three years, while intent to purchase a
sport utility vehicle (SUV) has almost doubled.  The research indicated that
consumer intent to purchase an SUV has increased more than any other vehicle
segment.
    "These results could bode very well for automaker profits," commented
Rik Kinney, senior vice president of The Dohring Company.  "It looks as though
the strong sales of profitable light trucks, which helped make 1997 such a
good year, are likely to continue through '98."
    According to the study, spacious interior, all-wheel drive, overall
vehicle size, vehicle sturdiness/safety, styling/looks and reliability are the
major factors that attract consumers to sport utility vehicles.
    The study also found that, while government regulators may hope for a more
environmentally conscious car-buying public, consumer attitudes would need to
change.
    "It is interesting to note that consumers did not mention vehicle
emissions/environmental concerns as a reason not to purchase an SUV," said
Kinney.  "While America's love affair with higher emission vehicles is not
about to end, the study also found that there is a strong potential market for
electric vehicles.  Twenty-three percent of consumers did say they would be
willing to consider the purchase of an electric vehicle."
    The study was completed in January 1998, with a random sample of
1,253 qualified consumers from all 50 states.  The poll's margin of error is
+/- 2.8 percent.
    The Dohring Company, Inc. is North America's largest provider of custom
market research to the retail automotive industry.  The Glendale,
California-based firm has conducted over 4,000 studies for automobile dealers,
automotive dealer advertising associations, automakers and suppliers, and more
than one million vehicle buyer interviews.

SOURCE  The Dohring Company, Inc.