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More Than Four in 10 Car Owners Are Cutting Back Due to High Gas Prices

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Old 05-25-06, 09:48 AM
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Default More Than Four in 10 Car Owners Are Cutting Back Due to High Gas Prices

Large Majority Says Car Companies Not Moving Fast Enough to Build Cars That
Consume Less Gas


ROCHESTER, N.Y., May 25 /PRNewswire/ -- As the summer driving season
kicks off with the Memorial Day weekend exodus, 44 percent of car owners
say they have cut back on products or services in order to compensate for
the rising costs of gasoline. Not surprisingly, those with lower incomes
are more likely than those with higher incomes to say they are cutting
back, but even 37 percent of those car owners who earn $75,000 or more say
they have cut back on products or spending. Specifically, three in 10 of
these car owners say they are dining out less (29%) and reducing their
driving (29%) while about one quarter (24%) say they are cutting back on
groceries in order to pay for gasoline.

These are some of the results of a Harris Poll of 2,085 U.S. adults
ages 18 and older surveyed online by Harris Interactive(R) between May 9
and 16, 2006.

American auto companies get some of the blame for people spending more
on gas. Three-quarters (74%) of adults say that American car companies are
not moving as quickly as they should to build automobiles that consume less
gasoline. Only nine percent say the auto companies are moving as quickly as
they should. Young adults are more likely thank their older counterparts to
have faith in the car companies - 15 percent of Echo Boomers (ages 18 - 29
years) say the companies are moving as quickly as they should as compared
to seven percent of Baby Boomers (ages 42 - 60 years).

Two in five (39%) adults think that the profits of the oil and natural
gas industry have the greatest influence on rising gas prices. Just over
one- quarter (27%) say the greatest influence is from world crude oil
prices; smaller numbers say it is due to instability in oil producing areas
(7%) and federal and state taxes (6%). Lingering refinery outages from last
year's hurricanes is cited by five percent as the greatest influence on
rising prices, while upcoming changes in fuel requirements (2%) and other
refining costs (2%) were also cited as having the greatest influence.
Regionally, those in the West are more likely to say industry profits are
the greatest influence (47%) while those in the South are more likely to be
split between profits (35%) and world crude prices (31%).

When asked who can best stop these rising gas prices, one-third (34%)
of adults think the oil and gas industry can do so while 29 percent believe
the federal government has that ability. One in five (22%) think consumers
can best stop rising gas prices while very small numbers say state and
local governments (3%) or the automotive industry (3%) can stop the rise of
gas prices. Generationally, two in five (40%) Gen Xers (ages 30 - 41 years)
think the oil and gas industry can stop the rising prices, followed by 27
percent who think the federal government can do so. Only 16 percent of Gen
Xers say consumers have the control. Baby Boomers are more split. About
one-third say the federal government (32%) can stop the rise in gasoline
prices followed by the oil and gas industry (31%) and consumers (25%).
Looking ahead, three-quarters of adults think that gas prices will be
higher on Labor Day than they are today. Almost one-third (31%) say that
the prices will be much higher. Few (7%) say prices will be lower on Labor
Day, while 17 percent say gas prices will be the same.

A large majority (81%) of adults also think that heating prices this
winter will be higher when compared to those costs last winter. Over
one-third (35%) say that heating costs will be much higher this winter;
only three percent think costs will be lower and 15 percent say heating
prices will be the same as last winter.
Code:
                                   TABLE 1
                     CUTTING BACK ON PRODUCTS OR SERVICES
 "Have you cut back on any products or services in order to pay the increased
                             price of gasoline?"
    Base: Owns a vehicle

                                                  Income
                               Less    $15K-    $25k-    $35K-   $50K-   $75K
                       Total   than   $24.9K    34.9K   $49.9K   74.9K    and
                               $15K                                      over
                           %      %        %        %        %       %      %
    Yes                   44     49       65       55       45      41     37
    No                    56     51       35       45       55      59     63


                                   TABLE 2
                        PRODUCTS OR SERVICES CUT BACK
              "What products or services have you cut back on?"
    Base: Cut back on products or services


                                                                       Total
                                                                           %
    Dining Out                                                            29
    Reduce driving/stay home more                                         29
    Groceries                                                             24
    Entertainment                                                         18
    Weekend trips/travel                                                  18
    Clothing                                                              11
    Shopping                                                               9
    Reduce extras, leisure or luxury items                                 9
    Movies                                                                 8
    Vacations                                                              4
    Personal grooming (hair cuts, manicures)                               4
    Discontinued services                                                  3
    Gasoline                                                               3
    Fast food/junk food                                                    3
    Auto repairs/upkeep                                                    3
    Utilities                                                              3
    Note: Open-ended question, multiple responses allowed.
    Note: Responses of 3% or higher shown here.
Code:
                                   TABLE 3
                         CAR COMPANIES AND NEW AUTOS
"Do you think that American automobile companies are moving as quickly as they
           should to build automobiles that consume less gasoline?"
    Base: All adults


                             Total      Echo     Gen Xer     Baby      Mature
                                      Boomer               Boomer
                                 %         %           %        %           %
    Yes, they are moving as
    quickly as they should       9        15           9        7           8
    No, they're not moving
     as quickly as they should  74        67          70       77          79
    Not Sure                    17        17          21       16          13
    Decline to answer            1         1           1        1           *
    Note: Percentages may not add up exactly to 100% due to rounding.


                                   TABLE 4
                       INFLUENCES ON RISING GAS PRICES
"Which one of the following has had the greatest influence on rising gasoline
                                   prices?"
    Base: All adults


                                                      Region
                              Total     East     Midwest     South    West
                                  %        %           %         %       %
    U.S. oil and natural gas
     industry profits            39       37          41        35      47
    World crude oil prices       27       27          24        31      25
    Instability in oil
     producing areas such
     as Nigeria                   7        6           7         9       6
    Federal and state taxes       6        7           5         5       5
    Lingering refinery
     outages from last fall's
     hurricanes                   5        6           3         5       4
    Upcoming changes in fuel
    requirements (such as the
     addition of ethanol
     into gasoline)               2        1           1         3       2
    Other refining costs          2        2           3         2       1
    Others                       12       14          15        10       9
    Note: Percentages may not add up exactly to 100% due to rounding.
Code:
                                   TABLE 5
                     WHO/WHAT CAN STOP RISING GAS PRICES
         "In your opinion, who can best stop rising gasoline prices?"
    Base: All adults


                                                  Generation
                           Total    Echo       Gen X      Baby
                                   Boomers              Boomers     Matures
                               %         %         %          %           %
    Oil and gas industry      34        34        40         31          34
    The federal
     government               29        25        27         32          28
    Consumers                 22        21        16         25          24
    State and local
    governments                3         2         6          2           2
    Automotive industry        3         3         2          2           4
    Not sure                   9        14        10          8           7
    Note: Percentages may not add up exactly to 100% due to rounding.


                                   TABLE 6
                           GAS PRICES BY LABOR DAY
"Thinking ahead to the end of summer, how do you think gas prices on Labor Day
               in September will compare with gas prices now?"
    Base: All adults


                                                                           %
    Total Higher                                                          75
    Much Higher                                                           31
    Somewhat Higher                                                       45
    About the same                                                        17
    Somewhat Lower                                                         6
    Much lower                                                             1
    Total Lower                                                            7
    Note: Percentages may not add up exactly to 100% due to rounding.


                                   TABLE 7
                      HEATING PRICES THIS COMING WINTER
 "Thinking ahead to this coming winter, how do you think heating prices will
                       compare to prices last winter?"
    Base: All adults


                                                                           %
    Total Higher                                                          81
    Much Higher                                                           35
    Somewhat Higher                                                       46
    About the same                                                        15
    Somewhat Lower                                                         3
    Much lower                                                             *
    Total Lower                                                            3
    Note: Percentages may not add up exactly to 100% due to rounding.
Methodology
This Harris Poll was conducted online within the United States between
May 9 and 16, 2006 among 2,085 adults (aged 18 and over). Figures for age,
sex, race/ethnicity, education, region and household income were weighted
where necessary to bring them into line with their actual proportions in
the population. Propensity score weighting was also used to adjust for
respondents' propensity to be online.

All surveys are subject to several sources of error. These include:
sampling error (because only a sample of a population is interviewed);
measurement error due to question wording and/or question order,
deliberately or unintentionally inaccurate responses, nonresponse
(including refusals), interviewer effects (when live interviewers are used)
and weighting.

With one exception (sampling error) the magnitude of the errors that
result cannot be estimated. There is, therefore, no way to calculate a
finite "margin of error" for any survey and the use of these words should
be avoided.

With pure probability samples, with 100 percent response rates, it is
possible to calculate the probability that the sampling error (but not
other sources of error) is not greater than some number. With a pure
probability sample of 3,979 adults one could say with a 95 percent
probability that the overall results have a sampling error of +/- 2
percentage points. However that does not take other sources of error into
account. This online survey is not based on a probability sample and
therefore no theoretical sampling error can be calculated.
These statements conform to the principles of disclosure of the
National Council on Public Polls.
J27799
Q905, 915, 917, 920, 925, 930, 935

The Harris Poll(R) #42, May 25, 2006
By Regina Corso, Research Director, Issues and Industry Research,
Harris Interactive(R)

About Harris Interactive(R)

Harris Interactive, the 13th largest and fastest-growing market
research firm in the world, provides clients with research-driven insights
and strategic advice to help them make more confident decisions, leading to
measurable and enduring improvements in performance.
Widely known for The Harris Poll(R) and for pioneering online market
research methods, Harris Interactive serves clients worldwide through its
United States (http://www.harrisinteractive.com), Europe
(http://www.harrisinteractive.com/europe), and Asia offices and is supported by
its a wholly-owned subsidiary Novatris (http://www.novatris.com) in Paris and an
independent global network of affiliate market research companies. Harris
Interactive is headquartered in Rochester, New York, and Europe operations
are based in London.
To become a member of the Harris Poll Online(SM) and be invited to
participate in online surveys, go to http://www.harrispollonline.com.
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Old 05-25-06, 05:39 PM
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RA40
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For us, we have maintained the same level of entertainment-dining, buying...we just don't drive that much. No one shot trips to get a low $$ item. We combine the time out to efficiently get as much done as possible in the area. I think recently, we've driven about 400 miles/month.

As for the blame or who can control this...I don't mind anymore. We've adjusted and the less time dealing with the LA/Oc traffic does wonders for my blood pressure and nerves.
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Old 05-25-06, 11:39 PM
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yeah i agree, i am cutting back on one thing -- racing

gosh i am telling you, our cars (gs400 and sc430), if you don't gun it, i can actually accept their gas consumption. but boy once you rev it high and red line, the gas just burn like no tomorrow. so we still go out as often to everywhere, eat or shop etc... but i just tell myself not to race as much anymore
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Old 05-25-06, 11:42 PM
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I emptied out all the crap that was jam packed in my trunk in an effort to lighten my car.
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