Gas guzzlers gone for good? Yes, says OC ‘branding’ expert
December 15th, 2008, 5:24 pm · 41 Comments · posted by Pat Brennan, science, environment editor
The days of monster SUVs prowling the nation, drinking from a seemingly endless pool of cheap gasoline, won’t be coming back — even though gas prices have dropped to surprisingly low levels.
So says Alan Brew, an Orange County expert who specializes in business branding: teaching companies, such as utilities, car makers and airlines, how to respond to a new era of energy use.
Now, he says, it’s all about green.
“There’s been a tipping point in terms of people’s consciousness,” said Brew, 59, senior vice president of RiechesBaird in Irvine. “Detroit’s in trouble. They’ve finally gotten the message. They have not been producing the vehicles people want.”
Brew began his 20 years of advising businesses in his native Great Britain, then was sent by one company to San Francisco. He moved to Orange County a decade ago because “it seemed to be a great place to raise children.” Now he has two of them; he, his wife and the children live in Coto de Caza.
What exactly does your company do?
“Branding and branding strategy. Helping companies differentiate and flourish. Now we have a focus on the energy sector. It’s a question of how to help them capitalize on trends in the energy world, to grow. Part of this is developing a presence in the marketplace.”
Is the drive toward ‘green’ becoming a bigger factor?
“It’s all being driven by that. A lot of people talk about how the price of oil dropped, so what happens to the environment and green energy now? The answer is, this time, nothing. Traditionally, when the price of that oil dropped, people went back to their SUVs and forgot about the price of energy. They went back to their old habits.
“This time it is different, for several reasons. One reason is the state mandates on carbon emissions. That is all energy producers – utilities and producers. So a utility like Southern California Edison has to now find suppliers and ways of getting renewables to minimize carbon emissions by a certain date. So that is putting great pressure on them and there’s also a greater focus on providers of alternative energy, like solar and wind.”
The incoming Obama administration has talked about more alternative energy, green jobs. Do you think that will happen?
“There is that drive, and that will be supported by the incoming Obama government. This morning I read about the European Union (that) passed new carbon emissions controls, which they were proclaiming were leading the world in clean energy and climate change protection.”
What else is pushing the businesses you work with toward this trend?
“The other issue you have in the United States is one of energy security. I think Obama has proclaimed a 10-year campaign to rid the U.S. of oil imports from the Middle East completely. The alternative is domestically produced energy. Now we have coal and natural gas, the fossil fuels. But he’s already said the coal industry will have very, very tough carbon emission controls placed on them. So coal is going to decline as a fuel source. It’s now a major source of electricity production, but it will decline, and natural gas for a period will take its place.
“You’re probabaly familiar with the T. Boone Pickens plan. He sees a natural gas bridge between oil and the renewable future. It’s the cleanest burning fossil fuel and there are oceans of it in the United States, and in North America. That will be a major part of the picture going forward.
“Within 10 years one fully expects to see a whole portfolio of renewable energy sources, such as solar, wind and nuclear, taking up the slack and making us largely independent. So that’s the other drive.
“So you’ve got two, really. You’ve got a political climate, with popular concepts about climate change, and you’ve got national security coming into play. All that really sets the scene for the rise of the renewable energy industry.”
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Alan Brew has been tipping the algor koolaid.
Solar is a wet dream, not in our lifetime will it ever produce anything more than govt. subsidies.
Wind is a boondoggle, a total waste of steel, copper & concrete that could be used to build a real nuk plant.
Nuk is both clean & doable, but good luck w/ the envirowakos on that one, they wont let you bury the waste.(but it does have GREAT weapons potential)
What are your credentials as a “business brander” anyway?
Surly you have launched & run many successful businesses with proven, long term success, that are still going strong despite the slow down for you to be advising about how to steer major businesses in the future? Please, list them all w/ some proof (profit statements from a C.P.A.)of your advice leading to long term business success.
As an owner of a Suburban I can say I will NEVER own anything other then a 4 wheel drive SUV again. I use it constantly to go camping, tow toys and haul around neighborhood kids. Come to Yorba Linda and you will see a HUGE percentage of us here do own SUV’s and trucks and most wouldn’t have it any other way. I think both business and private SUV owners have a love/hate relationship that will be ongoing for years to come.
Where has Alan Brew been living? The consumer has not been “forced” to buy SUVs. We bought them because they served a need. With higher fuel prices we could afford to keep the SUV by just driving less, it was our choice, and I will continue to own one.
Now that the auto company’s prices are weakened and gas prices have fallen to very low levels look for a reemergence of interest in the large vehicle. The auto industry has say before that they were only producing what the public wanted, I don’t see millions of unsold 2005 SUVs having to be recycled into new smaller cars!
Don’t know where Alan Brew got his numbers for stats of SUV and gas guzzlers. All we need to know is to be on the freeways around OC during the commuting hours early in morning and late in evening, one can see tons of 4×4 – GMC, Chevrolet, Ford F-150, Vans all kinds roamming on the road and pushing the driver on sedans or high occupancies vehicle off the roads. Specially are those who live in Riverside and work in or around OC.
People will still have SUVs, but perhaps hybrids. Ford has a hybrid SUV that I have been thinking about for myself. There is nothing wrong with a larger vehicle. It just needs to be designed to be more fuel efficient.
Sounds Alan Brew is another one on the dole trying to push this “green” alternative energy nonsense. I hope Obama’s plan includes reducing onerous restrictions (Free Enterprise is what got us off whale oil and dirty coal for household heating and lighting) and increase nuclear production. With nuclear power even hydrogen vehicles may become practical. I drive a full size truck because I am very tall. I don’t expect Obama to do anything aside from the usual socialist “solutions” that have been used by every other president.
Each time I see such a proclamation I have the same thought/response..Coal now produces over 50% of the electricity we use in the US..more in other parts of the world. It is an illusion to think that we can use solar/wind/etc to replace this abundant resource. If electric autos become a reality (pipe dream as of now)…and I pray they do, where does the electricty come from..thin air? The wacko environmentalists do not want nuclear which is totally clean (and is actually a viable technology NOW)..Get real…Look around at all the SUVs etc and tell us how in the world you can write a pie in the sky article such as this..delusions abound.
I don’t agree with the thoughts of this branding expert. I tow a boat and require a large, powerful vehicle to do that. While MOST commuters don’t have that need, there are many who boat or require large vehicles to move heavy or large items. also, many Farmers require large vehicles for their daily routine.
This expert is only taking a portion of the total group of drivers.
How does a “branding expert” qualify to make relevant predictions about domestic automobile purchases?
Also, Mr. Brew, how much energy is being consumed for you to provide power and heating to your home there in Coto? That neighborhood isn’t known for small, energy-efficient homes, so I’m assuming that your little family of four are living in a 4000+ sq ft spread. Kinda hard to preach green when you’re using the same energy as 3-4 apartments Mr. Brew…
I am getting myself a 2009 tahoe. My company pays for my gas!
I have to agree that it would be impossible to stop selling these types of vehicles. While I might opt to have a second “green” car in my family to use whenever possible, it’s just not always possible. Some of us have small children or we carpool for small children. Ever tried to put three car seats in the back of a small car while trying to keep all children under 10 out of the front seat? Our safety and car seat rules really prohibit many families from buying smaller cars. The only way my family, even with only two children, can take one passenger in our car is to have a minivan or an SUV. An adult just doesn’t fit between two car seats in the back of a sedan. Would it be better to drive two cars or continue to drive my minivan? It’s probably a wash, I guess.
Please write an article grounded in reality. Where is any proof that what Pickens states will come to pass. Coal is abundant can be made to be cleaner despite the environmentalists hues and cries..accounts for over 50% of electricity in the US…Nuclear is the only proven technology that we have that could help in our sorry state of energy requirements…Obama could turn to it if he will listen to reason. Alan Brew what are you drinking?
I am sorry but full size trucks and SUV’s will still continue to sell because there people that need them. Yes, sales of these vehicles will fall because people who don’t need them but bought them anyway will no longer buy them. I have a truck because I need a truck. Mind you it is a small one (Ranger). Since I do not have anything to tow, it all that I need. As far as the American automakers not building what the people want, I am not really buy that as most top ten vehicle (not just car) sales lists have vehicles from the American automakers. Some of them are even trucks.
Another tree hugger trying to force his agenda. The day that I see a Home Depot or an IKEA parking lot filled with Prius sedans is the day I eat my own words. The day that I see camping sites filled with tents pitched along side Smart Cars or soccer moms all taking their single kids to a sports event, clogging the roads and parking lots instead of one single Suburban or Expedition bringing the whole team at once is the day that I know hell has frozen over.
Nobody has been forced to own a large vehicle. It has been our choice. Let me ask this – what does Alan Brew drive? Me, I drive an F-250 XLT, with an 8-foot bed powered by a gas gulping V-10 and enjoy every 8 miles I get per gallon driving to my office job.
Ever since the Detroit automakers publicly asked for loans, all you ever read by these ‘instant experts’ is that Detroit is finally making cars American’s want.
Umm, what’s been the best selling vehicle for the last 20 years in the US? A Ford F150 pickup truck. Trucks and SUV’s have been selling like hotcakes.
Bigger and flashier was the motto for Joe next door. After all, you have to impress the stranger sitting in traffic next to you.
The only reason people are now demanding something economical is due to the price of gas. It has nothing to do with what they really want.
This has nothing to due with the quality of yesterday’s GM/Ford/Chrysler cars that competed against the Camry’s and Accord’s either. When people were spending $35K and up for an SUV when they could have been spending low to mid $20′s on a Toyota or Honda, it doesn’t take a genius to figure out what they want.
As far as utility and the need for an SUV.., a minivan holds more, seats the same, drives better and gets better gas mileage then the SUV’s did.
Now tell me what have American’s really wanted to buy for the past 5 years.
I am tired of Monday morning/ armchair quarterbacks going after SUVs pointing to them as a cause of the problems we and Detroit are in. Not to defend the Big 3, but to say that their production of larger vehicles has put them where they are is absolutely wrong. They were simply following what the demand side requested as the previous replys have shown. SUVs have just become the latest targets of witch hunts and scapegoats for our current situation. All of the auto companies from Japan and Germany saw their products get larger in the last decade not just the US.
Please keep to the news and make sure you put any opinions in their own section.
First of all, you people were kind of “forced” to purchase those things by a tax break given on those SUVs during the Bush administration. The best thing Obama could do is place a yearly federal tax on vehicle weight. I wonder how many of you would give up a SUV once they were taxed. As a person born and raised in Yorba Linda, I am fully aware you all think you need those things and you couldn’t care less about the environment. Another point, those that think nuclear power is so clean, what about the waste? What about how much diesel is required to mine the uranium? Deisel to transport? Power to enrich the uranium? Come on, think this stuff through. I’m just wondering why someone hasn’t written “Drill baby, drill!”.
Where can I get a Degree in “Branding” so that I can make dogmatic utterances and be quoted in the newspaper?
I am sick and tired of selfish, egotistical, and ignorant people.
Every single comment falls into one of those categories.
wsj
“OPEC Eyes Cut
Of 2 Million Barrels
Saudi Arabia opened the door for OPEC’s most drastic output reduction in decades by calling for the group to slash supplies to keep abreast of faltering world demand.
“
ethanol anyone?
I am enjoying the fact that some of the responders are so actively supporting the case for SUV’s, trucks, etc. while the senate chose to NOT pass the bailout.
The fact is (and you’ll have to swallow the pill sooner or later) that if you dont protect the environment, you’ll soon be asking for more landslides, wild-fires, hurricanes, floods, and other natural calamities. Thats proven. Fact is that if you dont avoid buying those gas guzzlers, you’ll be the only lone one in your neighborhood paying $100 to fill your tank. Thats coming again. Fact is that if you dont start thinking about how your actions might influence the generations to come, you are asking for trouble. And thats a given.
Automobiles are just at the tip of the iceberg. A simple proof of how short-sighted some of us are is demonstrated by the car companies that are about to go bankrupt. When the dust from from the insanity caused by this recession settles, gas prices are bound to rise and companies like Tesla will take shape and give way to a newer, smarter, and more considerate generation of drivers.
For the rest of you who want to keep bickering while running around your truck like little kids, maybe its time to open your eyes to the rest of the world and see the direction in which its heading.
Hey Alan-
Take a walk…back to SF. I drive a Hummer because I tow a boat, I snowboard in the mountains, and I travel with people and dogs and luggage and I need the space…Not only the space is appreciated, but it’s much safer than those ridiculous “smart cars”. Gas is at 1.64 and I don’t mind filling it up now. As for NObama…are you aware the car he drove before his run for the president was a Chrysler 300? A super gas guzzler! He thought probably not a good idea to drive that around while preaching about “green”. Now he bought a Ford Escape Hybrid. An SUV……
My sister lives in Coto…almost every car there is an SUV…I suggest you head back to SF…
A Proud Hummer Owner!
WHICH CAR MANUFACTURER IS ALAN CONSULTING WITH? I WONDER WHERE PEOPLE BELIEVE THEY WILL BE ABLE TO BUY FULL SIZE SUV’S AND PICKUPS WHEN THE MEDIA AND FOR THAT CASE THE SENATE GET DONE BASHING FORD,GM AND CHRYSLER OUT OF BUSINESS. IT’S TIME FOR THIS COUNTRY TO STAND UP AND SUPPORT THE AMERICAN CAR INDUSTRY. I’M SURE PLENTY OF PEOPLE ENJOY THEIR TOYOTAS AND HONDAS BUT THE LAST TIME I LOADED UP 3 KIDS-THE DOGS-THE BOAT-AND THE REST OF THE CRAP AND HEADED TO HAVASU-THEY WOULDN’T ALL FIT IN A TOYOTA CAMRY OR A HONDA ACCORD-LONG LIVE THE FULL SIZE SUV!
To funny, the same folks screaming “NO BAILOUT FOR DETROIT” have no problem driving gas hog SUV’(station wagon). I grew up in the midwest and the ONLY reason a farmer bought a Suburban was so when the wife went to town she could pick up horse feed, otherwise a pickup(not 4 doors) was what they used to tow or haul. Most of us are not farmers so there is no real need for a vehicle that gets 10mpg in the city just so you can haul home a gallon of milk from Albertsons all by youself. The SUV is truly dead, I recently saw an article in an automotive trade magazine that GM has shelved the designs for the redesign of the Sububan(Escalade and Denali) and Ford has decided to continue on with retooling to build European designed autos here in the US in plants that used to produce trucks and SUV’s.
Mr. Brew lost me when he used the term “tipping point” in his first sentence. This is a middle-aged guy living in the suburbs who tells companies what the “trends” are? Please. He’s already about two years behind the times with his greeny psycho-babble.
People will buy what they want to buy with their own money, regardless of what some suburban “branding expert” says is going to happen in ten years. You won’t see leftists in Berkley buying Suburbans in 2015, but you will still see regular families in OC buying Suburbans in 2015. I should be a Branding Consultant!
ToxicNut (“green” Farmer)-
Although we don’t haul horse feed home in Orange County we DO haul kids, the neighbors kids, the dogs, athletic equipment, etc around town so that’s why we drive an SUV. Then on road trips we pull a boat, fill up the car with people, dogs and luggage. There was the “Brady Bunch” station wagon in the 70′s and the 90′s and 2000′s it’s the SUV and Minivans. There is a reason why we drive these around town and it’s to haul other things than horse feed. The SUV is not dead. Do you live in Orange County?? Next time you hop in your green prius by youorself look in front of you, behind you, to your left and to your right. What do you see? Chances are you see SUV’S!
Nothing against a Prius but if we want an SUV let us drive one around!
Proud HUMMER Owner!
Government should never be allowed to tell people what they can and can not drive! I am happy with my 4runner and will forever drive an SUV because it does tow my toys around and my kids and their friends.
I HOPE EVERYONE WHO SUBMITTED A COMMENT TO THIS ARTICLE SAVES IT AND READS IT AGAIN FIVE YEARS FROM NOW. SOME OF YOU MAY WONDER WHAT YOU WERE THINKING AND SAYING. ENJOY YOUR GIANT CARS TODAY. PLEASE DON’T EXPECT ANY RESALE VALUE.
Anybody who starts out displaying such ignorance and arrogance as to suggest that Detroit was not producing the vehicles people wanted is not worth listening to. Until the recent oil and credit shocks, big vehicles were what people wanted and Detroit (plus Toyota and Nissan) were supplying them. I expect people will continue to prefer them, perhaps not to the degree before, as fuel prices decline.
Small cars, alternative fuels, etc are nice social policy goals but historically, Americans have strongly preferred larger vehicles. This continues to be the case.
Just traded our 1999 Tahoe in for a 2007, but still brand-new, Tahoe. We have a 12-year-old Nissan that I still love and will drive until it’s dead. Some people have a need for a larger vehicle – for hauling kids, tools, neighbors. I do a lot of volunteer work and my husband uses it for handyman work. It’s far more economical doing it this way than making two or three trips to accomplish the same goal. We still use the Nissan for the most part getting around as a small family and use the bigger car when we need to. You can still be conscientious and own an SUV.
CanyonNative-
FYI, we buy the BIG SUV’S because we need them. We don’t buy them for resale value in 5 years. I hope you save your comment because in 5 years the SUV’S will still be on the road…sure they may run on different fuels but they will still be on the road. Enjoy your little car.
P.S I have a little old conv’t sports two seater I like to take out on the weekend for fun…
FEEL THAT? That was OPEC giving your chain a little yank today, cut production by 200,000,000 barrels a day. HEAR THAT? Thats the sound of $5.00 a gallon gas coming down the pipe. Gas is cheap today but soon you will cry as you stand next to your SUV at the gas pump again. Conservation by economic dowturn has lowered the price of fuel but the Saudi’s and the rest have our huevos in their hand and they will squeeze until we choke up lots of our cash so they can build more in Dubai and buy more Rolls Royces. Do the country a favor,,,buy a economy car to drive around town and use your beloved SUV for your vacations.
Toxicnut-
What’s your problem? Obviously you are a nut by your name. I think you need to read most of the posts here that people need these SUV’s because we drive children, neighbors children, groceys, the dog around town. I can’t fit 6 children in a Prius, Honda, Toyota etc. Does that make any sense to you? Or maybe you are suggesting instead of carpooling with the neighbors all 4 of us should drive our Honda’s seperately to school, soccer, Karate etc…You think that is better for the Country? Maybe you should ban School Buses, and all the Big RIgs that carry all the food we eat, and products we buy. How about you do everyone a favor and let us CHOOSE whatever automobile we want. This is America, correct? “FEEL THAT?” That’s my HUMMER right behind you. “HEAR THAT?” That’s the tires on my HUMMER.
Hey Toxicnut-
Did you read ALL of the news today? “Despite OPEC cut Oil tumbles below $40.”
Here is more from the article…
The last time oil prices dipped below $40 a barrel was July 21, 2004. Prices settled that day at $40.09, according to Peter Beutel, an oil analyst at Cameron Hanover.
Many analysts believe oil prices will continue falling next year with agencies ranging from the U.S. Department of Energy to the International Energy Agency forecasting weak demand.
IHS Global Insight Chief Economist Nariman Behravesh was among the industry experts forecasting lower prices for oil.
“Oil prices will (easily) fall below $40 per barrel in the next year, and could tumble all the way to $30,” Behravesh said in a research note. “With the economic outlook deteriorating by the day, futures markets for commodities have not priced in the full extent of the ‘demand destruction’ taking place.”
Looks like you should do all your homework before you open your mouth.
The only thing you need to worry about hummer owner is getting parts for you dinosaur, GM cant even sell hummer to the Chinese and AM General dosnt even want it back. When GM goes bk in the very near future the only noise noise we will hear from hummers,escalades and suburbans is the crusher at the wrecking yard. If there was any more money to be made building suv’s the Germans would have kept Jeep when they sold Chrysler and the Chinese or Indians would have snapped up hummer when GM put it up for sale. LMAO
From today’s report:
Oil prices continue sliding, reflecting weak demand. Crude futures for January delivery are currently down 1.6% to around $39.42 per barrel. They were down below $38 per barrel earlier, taking out a new multiyear low. January contracts expire at the end of the session.
As soon as its economical we will buy a hybrid or whatever SUV. In fact I will even put solar panels on my house too when it pays to do so and SCE pulls its head out and lets me sell my excess to them.
We need an SUV for the space, the family, sports, trips and vacations. Just bought a new Honda Pilot which ended up being much cheaper than any hybrid with the premium they put on them. The price was right in this slow sales market and what we saved will more than make up for a gas price increase for years to come. The Honda Pilot is made in North America and is reliable….no way I would buy most of the crap the Big 3 make. We will likely drive it until it is close to dying just like our last 14 year old SUV.
Energy independence is a great goal but it has to be economical…..many of the environmentalists are out to lunch. If you want to talk about ‘man made global warming’ then consider the case of the country of GREENland…..why was it called GREENland when it is mostly white with ice and snow now? Because it used to be much warmer on earth long before there was any mass industrialization. So you know what you can do with your carbon taxes and algore crapola.
We need more nuclear power. Coal is getting greener. Ethanol is a joke and costs and its production pollutes way more than it helps as well as adding to food shortages. Drill for more natural gas. The envirowhackos stopped a local LNG port facility….they will stop at nothing until we are all on bikes, using a barter system, and limited to one kid per family…sound familiar? Study Mao.
Couldn’t agree w/ you more
Unless you live alone & have a 20,000 sq.ft. roof & $500,000 to spend on solar panels there will be no “excess” to “sell back”,
“as soon” is at leased 150 yrs. off
Unless of course you don’t use any electricity, then you could get a whopping $1,600 a rear return on your half mil investment!
There is a place wind & solar are viable, on the continent of nither, in a place called la la land.
“As for NObama…are you aware the car he drove before his run for the president was a Chrysler 300? ”
and a slightly older Jeep Cherokee