Fed: Opportunities emerging despite financial crisis: Roy Morgan

AAP General News (Australia)
12-17-2008
Fed: Opportunities emerging despite financial crisis: Roy Morgan

By Caroline Berdon

SYDNEY, Dec 17 AAP - There are opportunities for car makers, despite the worsening
financial crisis, financial data company Roy Morgan says.

Roy Morgan CEO Michele (Michele) Levine says new data shows Australian drivers are
opting for smaller and newer cars that are kinder to the environment.

"We're actually seeing people actively trying to take actions that will make a difference
and I think this is a really important point," Ms Levine said on Wednesday in launching
the company's third State of the Nation Report.

While 87 per cent of Australians now drove cars, the real environmental problem was
coming from just 20 per cent of drivers, who accounted for almost half of all carbon emissions
from cars, she said.

They included people in industries such as agriculture, transport and storage, and
those living in outer suburban areas with inadequate transport links.

Ms Levine said the problem emerged from "very practical, real constraints ... based
on a need issue".

"If we start to map carbon emissions, we see a really simple and interesting picture
- it's like a doughnut," she said.

"We basically see the inner city - it's low - and then we see that outer regional area,
whether it's Melbourne, it's Queensland, whether it's Perth or anywhere else."

But while Australians were not prepared to give up their cars, they were preferring
smaller and newer cars.

"The car park is changing," Ms Levine said.

"People intending to buy large passenger cars is decreasing like crazy - and sports
utility vehicles (four-wheel drives)," she said.

"This is all telling us that it's not all need-driven. These are choices that people
are making so people's choices are extremely powerful."

Ms Levine said the trend was providing real opportunities for innovation in the automotive
industry, which has the potential to not only boost the economy but also reduce greenhouse
gas emissions.

"In turbulent times, there are opportunities. So perhaps the automotive industry is
ready for an environmental revolution, but powered by the people and the choices they
make, not one that is dictated," she said.

"People are saying they want to do the right thing, but particularly they are saying
that innovation they see as a crucial thing for the future."

Ms Levine added that after a sharp dip, consumer confidence in Australia was gradually
increasing.

This was largely thanks to interest rates coming down and increased government activity,
she said.

AAP cjb/wjf/maur/mn

KEYWORD: CRISIS MORGAN

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