As Gas Prices Recede, Fuel-Efficiency Concerns May, Too

SANTA MONICA, California - Car buyers' massive shift toward high-mileage little cars during the second quarter shook the auto industry, but new research by Edmunds.com suggests that American consumers already are rethinking their new obsession with fuel efficiency.

When gas prices began dropping in July, truck shoppers dramatically reduced the extent to which they cross-shopped in the other major vehicle segments - cars, crossovers and hybrids - compared with June. People considering SUVs did the same thing but to a lesser extent, Edmunds.com research has indicated.

At the same time, in July, consumers' consideration of presumably out-of-favor segments including large crossovers, minivans and sports cars began a significant recovery, while consideration of small cars and hybrids actually began declining from levels in June.

'It's human nature,' said Jeremy Anwyl, CEO of Edmunds.com. 'There's been a rush to small cars, but that doesn't necessarily mean it's permanent in its extent. There's already been an abatement of a pattern that many people, in June, were announcing was permanent.'

Edmunds.com's data is based on measurement of activity on Edmunds.com, one of the leading consumer-research sites in the auto business.

In July, 45 percent fewer truck browsers cross-shopped in the car segment than had in June, 46 percent fewer shopped crossovers and 47 percent fewer shopped hybrids — while 37 percent more of them considered only a new pickup, compared with the previous month, according to Edmunds.com calculations.

Meanwhile, there was the same trend, though less pronounced, among SUV shoppers. In July, 11 percent fewer SUV lookers considered cars, 13 percent fewer pondered crossovers and 27 percent fewer took a gander at hybrids, compared with June shoppers. Meanwhile, 13 percent more SUV considerers in July, compared with June, decided to shop only for new SUVs.

'These consumers appear to be feeling less pressure to cross-shop more fuel-efficient segments and are shifting slowly back to previous shopping patterns,' noted David Tompkins, executive director of industry analysis for Edmunds.com.

Even more recent data, for overall new-vehicle consideration by Edmunds.com visitors, supports even more broadly the possibility that plunging gasoline prices already are causing Americans to reconsider their preoccupation with fuel economy.

Consideration of hybrids on Edmunds.com was down 34 percent for the week ended August 3 compared with its peak in June. Similarly, midsize-car consideration was down 13 percent in the same comparison, compact-car consideration declined 18 percent and subcompact-car consideration declined 7 percent. However, during the week ended August 3, consideration of those segments was still up 24 percent, 35 percent, 33 percent and 84 percent, respectively, compared with December of last year.

Meanwhile, most of the segments that had been hit hard during the second quarter, in terms of consideration by Edmunds.com visitors, had bounced back at least somewhat by the week ended August 3.

Large traditional SUVs drew 3 percent more consideration in that week compared with June, while consideration was still down by 19 percent compared with December. For large crossovers, consideration rose 24 percent the week ended August 3, compared with June, while still dropping 24 percent compared with December. For midsize SUVs, the numbers were a 15 percent increase compared with June and a 38 percent decline compared with December.

Large cars enjoyed 5 percent more consideration against June, but 20 percent less versus December 2007, the Edmunds.com data shows. For minivans, the numbers for the week ended August 3 were a 15 percent increase, and an 11 percent decline; for midrange luxury SUVs, a 16 percent increase and 13 percent decline; for premium luxury SUVs, a 14 percent increase and a 33 percent decline; for premium luxury cars, a 20 percent increase and a 40 percent decline.