Generation Y continues to flummox automakers
Will the Toyota Yaris, Honda Fit and the upcoming Nissan Versa join the Buick Le Sabre and even the Toyota Camry as "Grandparent's Most Favorite Ride?" That's what analysts think about the new wave of subcompacts arriving in America. According to John Wolkonowicz, automakers are once again making the mistake that younger buyers' primary concern is cost. "This is not a meek generation. They (Generation Y) want you to see them arrive," says the Global Insight analyst. "A car is like clothing."Other analysts agree with Wolkonowicz's statement, saying while some Gen Y buyers will purchase vehicles based on cost, they'll abandon them as soon as they can afford something more "interesting" like a Cadillac Escalade, Lincoln Navigator, or Hummer H2. The analysts are a bit perplexed, since sales of MINIs and Scions illustrate Gen Y's priority: good-looking, "cool" cars that evoke emotions. Of course, those brands have a fair percentage of elderly buyers themselves. Automakers can be forgiven, though, since it takes three to five years for them to bring a new vehicle to production, during which Gen Y likely changes its mind about a dozen times. Damn video game generation.
There is a trend of younger drivers coveting more classic vehicles, and it would be interesting to read analysts' views on that phenomenon, as well. Perhaps there are some readers out there who were born in the '80s that can testify to the allure of a good classic.
Related:
Will the American market's new small cars resonate with young buyers?
Gen Y gets automakers' attention
[Source: Chicago Tribune via South Coast Today]
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Reader Comments (Page 1 of 4)
Sid 4:11PM (5/18/2006)
"Perhaps there are some readers out there who were born in the '80s that can testify to the allure of a good classic."
Tell me about it. I love current sports cars, ofcourse. But everytime I see a Nissan 300ZX Turbo, Lamborghini Countach and the Bimmers and Mazdas of the 80s...I want those! There was something very edgy about their designs.
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Ryan 4:12PM (5/18/2006)
"Perhaps there are some readers out there who were born in the '80s that can testify to the allure of a good classic."
12/04/1981 here, and a classic cars are sweet, not for me but sweet.
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P.L. 4:13PM (5/18/2006)
Give me a fun commute car, something like the Mini or Fiat's Abarth 500 with 100mpg and I'll put a deposit on it right now! I don't care about 0 to 60 in x seconds.
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doug 4:17PM (5/18/2006)
Are there really enough Gen Y buyers to buy new cars? when I was young, a brand new car was not in the cards. Or do guilty mommy and daddy in 2006 have to buy their kids new cars?
It's always funny to see gramps driving around in his xB.
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hj 4:21PM (5/18/2006)
10/30/1979 Gen-Y dosen't want to grow up. Thats why you see so many dorks in their 20's driving 80's classics like the Dodge Aries.
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Jeff the Baptist 4:23PM (5/18/2006)
They could get the youngsters to buy them. They just need to bring the hot hatch versions over from Europe. The stock Yaris/Fit/Versa/Etc are boring. "Wow I'm getting great gas mileage" wears thing when you drive a car that sucks in all other respects. Bring on the 3 door turbocharged hatches with more marginal gas mileage but lots more fun.
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Jim 4:25PM (5/18/2006)
I was born in 1987. It seems to me as the automakers think we want to buy dumb looking "hip" cars. The Honda Element and first two Scion models come to mind. Personally, I've fallen in love with the Mercury Marauder. I think it's a combination of things: The first being that they just have more power (a V8 as opposed to a wimpy four banger) and the style of some of these older cars is just so bold without the intentional "Look at me! I'm different" styling of the cars said automakers think appeal to us. I'd have to say John Wolkonowicz hit it head on.
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Elliott 4:28PM (5/18/2006)
I think classic cars are neat, but I'm all about having the latest technology. I'd rather have an "intel inside" sticker on my car than have a rebuilt V8 under the hood. But then again I prefer to be called "iGeneration" over "Gen Y". Guess I'm a car geek.
-Product of '83
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Noah 4:35PM (5/18/2006)
I'm generation Y and I have to say, it's true. I like old VWs and lots of cars from the 70s and 80s especially late 70s and early 80s BMWs.
--Noah
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Ferguson McSqueege 4:35PM (5/18/2006)
I was born mid-80s!
I also agree with Jeff the Baptist.
Economical cars today are so ugly as well as expensive. The Yaris/Fit/Versa/etc may all get good gas mileage, but they don't get me excited at all. Who is excited by a bland and bloated subcompact? Not me; there are better buys for the money
I currently drive an 1986 MR2, and it offers unique looks, snappy handling, and yet returns 34 mpg. Plus, it only cost me about 17% of the price one of those boring new subcompacts. There are a few rattles, it leaks water onto my seats when it rains, and the speedometer isn't currently working, but at least the car has character!
You're gonna have to pry the keys to my MR2 from my cold, dead hands!
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James Sonne 4:36PM (5/18/2006)
Classic cars represent classiness, fun, and a sense of being carefree. They're a throw-back to the good ole' days of FEELING good instead of LOOKING good, which appeals to me ('84). I dislike driving around in a car that I have to care about how it looks by detailing it and washing it once a week, worrying about where I park and if I'll get a ding from a kicked up pebble. Classic cars, like a '69 Corvette or a nice '64 Mustang convertible. Those are feel-good kind of cars in a world that's selling look-good kind of cars. Other current cars that I would consider Feel-good cars are the Mazda MX5, Subaru WRX, Ford Mustang, Lexus IS350, MINI Cooper, Volvo C70, Saab 9-3, Porsche Boxster. Some cars have distracting LOOK-GOOD aspects, such as the Volvo S40, but most have the FEEL-GOOD quality as being the main factor of design.
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Nat 4:37PM (5/18/2006)
Even Hollywood knows that the sport-compact scene has moved on and now it is all about drifting. That's why you see demand for old RWD Corollas so high.
I say the first automaker that can bring a compact RWD car with good performance to market for under 20k wins this one. Don't mention the muscle-car revival either, that is not the sort of car I am talking about.
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retsel 4:37PM (5/18/2006)
gen y... 9/8/1976 $45,000 a year...
i drive a Ford Taurus 1997... paid 2 grand for it...
my next car wll not be any of that new mini me crap... but one of the following...
Jaguar Stype 2002
Volvo S80 2003
Merc E 320 2001
a car is like a cloths...
u cant live ur life in nikes when u over 25...
but when u are retired u can live ur life in sweat pants and tennis shoes...
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DJ 4:48PM (5/18/2006)
What amazes me is the number of older folks driving Scions. I pulled into the mall yesterday as two women, both easily into thier 70's got out an xB. When you think about it, that's a great car for someone like that. Lots of room, cheap to buy, excellent quality, easy to get in and out of, low maintenance costs and great mileage. Plus it's very somple, not a lot of gadgets to deal with.
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RossL 4:49PM (5/18/2006)
> while some Gen Y buyers will purchase vehicles based on cost, they'll abandon them as soon as they can afford something more "interesting" like a Cadillac Escalade, Lincoln Navigator, or Hummer H2
If that's the case, there are huge differences between American and Canadian Gen Yers. Those three vehicles are probably the last things a young person on this side of the border. They scream crassness, wastefulness and zilch regard for the planet. Who knows - maybe we just have fewer young pimps up here.
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hans 4:50PM (5/18/2006)
well i'm 25 and i suppose reasonably young.
the problem with most of Gen Y is that it IS about money.
why would you buy a brand new like scion XB for $15000 when youc an buy like a 5 year old bmw for that.
thats the whole point.
the car maker's strategy of selling cars that are $15000 like the fit or the xA is a good one. but there is always the used car alternative and it will ALWAYS be there.
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Peter 4:53PM (5/18/2006)
Born in 82. I own an '85 Toyota Celica Supra and an '85 Mercedes 380 SL. I'm also restoring a '72 Saab Sonett and helping maintain a '76 MGB and '67 Volvo 122.
I like to drive unique cars. I like RWD, simple designs and things that I can work on without having to fight a computer system. I like cars with style and soul. And I like the feeling of accomplishment that I get driving an old car.
I like the reaction you get driving a cool old car. My Benz gets compliments all the time from everybody - from the old lady at the gas station to the ricer in a Civic with a fart can and wing cruising on Sat. night. Try that with a new car. Unless it's an exotic, the majority of people won't even notice.
Nostalgia wins.
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Michael Karesh 4:55PM (5/18/2006)
People with a clue have known for decades that it makes little sense to use demographics to predict vehicle selection. Personality isn't much better; an interesting series of studies back in the 1960s tried to link personality to choice of brand, and failed.
It's much more valuable to look at what people want to be like than what they are like. Old people who want to be and/or feel young buy cars intended for young people. In youth-obsessed America, that's a lot of older people.
Some market researchers realized this a half-century ago. An article based on research I performed on some of these researchers can be found here:
http://magazine.uchicago.edu/0108/features/
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josh schuman 4:55PM (5/18/2006)
Chevy...big...rear-drive...v8...80's-early 90's...i don't really care what it is beyod that. oh yeah, they are cheap too.
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PJ 4:57PM (5/18/2006)
"Perhaps there are some readers out there who were born in the '80s that can testify to the allure of a good classic."
In my experience, the kids that had classic cars in high school/college were the ones whose parents were willing to pay for the car, the restoration work, and the frequent repairs. Sure, I'd have loved a '69 Camaro, if someone else was financially responsible for it.
Most of the DIY car guys without rich parents were into Civics and 5.0 Mustangs.
I was born in '82, and although I admire fuel-efficient, practical commuter cars--in theory--I wouldn't buy one. Today's CPO programs allow enthusiasts on a budget to get into a well cared for pre-owned BMW for econobox money. I've bought all my cars used, and don't plan to change that pattern--it lets me drive (far) richer than I am.
I don't think its so surprising that old folks buy cars intended for young people. They share many priorities: low purchase price, low running costs, easy to drive, big interior space. It's always puzzled me how much this trend seems to shock marketers.
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