Mike Jackson Chairman and CEO of AutoNation the largest auto retailer in the United States, joined forces with industry leaders Mr. Bob Carter of Toyota America and Wayne Huizenga of Huizenga Holdings on CNBC from Nova Southeastern University’s H. Wayne Huizenga School of Business, at the Rose and Alfred Miniaci Performing Arts Center to highlight new fuel-efficient vehicles for the 21st-century.
Bob Carter Vice President of Toyota North America, joined Mr. Jackson and Mr. Huizenga in highlighting Toyota’s newest step into the fuel-efficient hybrid car market with a more modestly priced vehicle. A new “PRIUS C” hybrid vehicle was introduced by Toyota this week that will cost about $18,900 and achieve 53 miles per gallon. Mr. Carter indicated that consumers are looking for more “fuel efficiency in the market today” and Toyota is introducing this more modestly priced vehicle that achieves 53 miles per gallon rather at the more modest price.
When asked about the current demand for more fuel-efficient vehicles, Mr. Jackson indicated that though the industry has introduced a whole new range of technologies in achieving higher fuel efficiencies, it remains to be seen whether the consumers are going to pay the higher “up front” costs for hybrids and electric vehicles.
Mr. Jackson continues, “I can tell you ‘Andrew”, (speaking to Andrew Sorkin and Becky Quick of CNBC), that the demand for fuel-efficient vehicles will follow the price of gasoline. At $4.00 dollars a gallon, consumers will be stampeding through the doors for more fuel-efficient vehicles. At a price less than that, it is difficult for the customer to realize their return on investment at less than $4.00 dollars a gallon.
'If the auto industry can close the “pricing gap”, and the return on investment becomes “two or three” years, there will be significant acceptance for the vehicles. "But I agree", Mike Jackson continues, 'the industry has made tremendous strides over the past five years and the internal combustion engines are now achieving 40 miles per gallon and are continually competitive with the new fuel efficiency technologies and now we're getting fuel-efficienceis of 53 and 54 miles per gallon, demonstrating that the gap is shrinking and the return on investment should be obtained in a more reasonable amount of time. There is no question that the industry is “all in” for advancing fuel efficiency of the vehicles they produce, though they had fought this in the past. Today it is clear they have committed to "change", but it remains to be seen if the American consumer will buy the new technology.'
Mr. Huizenga weighed in on the conversation and indicated that all avenues of approach need to be realized to solve the fuel efficiency problem, but most importantly; the “price point” for advanced fuel efficient vehicles needs to fall in line for a more acceptable “return on investment” for the consumer.'
Mr. Jackson concluded that there was a clear consensus that major hurdles have been achieved by the auto industry, but believes there is more work to do to achieve the natural balance of the technologies, the pricing, and the ability of the American consumer to buy.
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To see the complete AutoNation Energy Town Hall meeting please click on the link below.
AutoNation Energy Town Hall Meeting - Nova University
