News | August 3, 2016

Fuel Efficiency Continues To Be Top Criterion For U.S. Car Buyers

Study confirms trend in spite of falling gas prices

Milwaukee, WI /PRNewswire/ - American consumers are strongly influenced by both the price of gas and fuel efficiency when purchasing a vehicle, according to a new survey conducted by the Opinion Research Corporation on behalf of Johnson Controls (NYSE: JCI). Of the 1,006 people surveyed, fuel efficiency (57 percent) is top of mind for consumers when they go to buy any size automobile, followed closely by cost (55 percent) and safety (54 percent).

"Whether someone wants to drive a truck, SUV, or car- increased fuel efficiency remains the number one purchase criterion for American car buyers," said Joe Walicki, president of Johnson Controls Power Solutions, the world's largest automotive battery manufacturer.

That preference is consistent with a similar survey conducted five years ago, despite falling gas prices, which are down more than 37 percent from the national average in 2011.

The new survey also found consumers are sensitive to the price of fuel when considering a new vehicle, with 64 percent saying it directly impacts their purchase. This is up 14 percent from 2011.

"What we're seeing in the market place due to low and stable gas prices is a migration to larger vehicles, but the expectation now is that those vehicles come with increased fuel efficiency," added Walicki.

"Automakers have made significant advances in fuel efficiency and have reduced emissions through implementation of several new technologies, such as turbo charging, engine downsizing and light weighting across their fleets," said MaryAnn Wright, group vice president of Technology and Industry Relations, Johnson Controls Power Solutions. "The next big technology in the U.S. is start-stop, which increases fuel efficiency five percent."

By 2020, Johnson Controls predicts 50 percent of all new vehicles in the U.S. will have start-stop technology. GM plans to make it standard across its fleet by 2020 and Ford announced it will integrate start-stop across all EcoBoost® equipped vehicles.

"In the last year, there were more than twice the number of start-stop vehicles produced in the U.S. versus the total of all types of hybrid, plug-in and electric vehicles combined, and we see that trend continuing," Walicki said.

Start-stop technology enables a vehicle's engine to shut off during stops, such as red lights or traffic jams. Accessories such as lights, air conditioning and other functions continue to operate off of stored battery power. When the driver lifts their foot off the brake, the engine seamlessly restarts and is ready to move the vehicle.

"Johnson Controls start-stop battery technology is now integrated into 35 million vehicles globally, saving an estimated 660 million gallons of fuel and cutting greenhouse gas emissions by 5.9 million metric tons per year," said Petar Oklobdzjia, group VP & GM Original Equipment, Johnson Controls Power Solutions. "Over the next five years, we expect to see adoption numbers go up in all major regions and we have announced our commitment to invest more than $780 million in battery capacity across the globe to support that growth."

The survey also found, that of those consumers open to buying a start-stop vehicle:

  • 82 percent would consider start-stop for fuel savings
  • 72 percent say environmental impact is a key benefit in driving interest in start-stop vehicles
  • 57 percent would consider start-stop for its low incremental cost

*This report presents the findings of a survey conducted among a sample of 1,006 adults comprising 504 men and 502 women, 18 years of age and older. The omnibus telephone study is conducted twice a week among a demographically representative U.S. sample. This survey was live on July 14 – July 17, 2016. The margin of error for this study is +/- 3.1%.

About Johnson Controls 

Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 150,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and seating components and systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful. In 2016, Corporate Responsibility Magazine recognized Johnson Controls as the #17 company in its annual "100 Best Corporate Citizens" list. For additional information, please visit http://www.johnsoncontrols.com. Follow Johnson Controls Investor Relations on Twitter at www.twitter.com/JCI_IR.

About Johnson Controls Power Solutions

Johnson Controls Power Solutions is the world's largest manufacturer of automotive batteries, supplying approximately 146 million every year to automakers and aftermarket retailers. Our full range of lead-acid and lithium-ion battery technology powers nearly every type of vehicle for our customers- including traditional, start-stop, micro-hybrid, hybrid and electric. Johnson Controls' recycling system has helped make automotive batteries the most recycled consumer product in the world. Globally, 15,000 employees develop, manufacture, distribute and recycle batteries at more than 50 locations. For more information, please visit http://www.JohnsonControls.com/PowerSolutions or follow @JCI_BatteryBeat on Twitter.

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