How carmakers are luring young buyers

Published Jan 16, 2013

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From navigation systems serving as game consoles to sound systems doubling as amplifiers and nail polish matching a paint job, automakers are trying new tricks to lure fickle young buyers.

Connected consoles that sync with smartphones to stream music and even read incoming text messages aloud seem to be almost standard features on most of the cars on display at the this year’s Detroit auto show.

Joe Vitale, a motor industry analyst with Deloitte, said: “It's difficult to capture this group because they're not brand loyal at this stage in their life.”

Young buyers also have higher expectations than their parents.

They take reliability, quality and safety as a given, want good fuel economy and access to “infotainment” such as satellite radio and social media, and - perhaps like their parents - want a car that makes a statement.

Aggressive styling, a renewed focus on design, souped-up interiors and zippy small cars are becoming more common on the showroom floor as automakers jostle for position with a group that is expected to soon be buying one in every four cars sold in the US.

Jim Lentz, head of Toyota US, said in an interview on the sidelines of the show: “When you build more emotional cars, you get more young people to buy your product.”

Toyota developed an entirely separate brand - Scion - in the US to help it connect with young buyers and get them to develop the kind of brand loyalty their parents have.

One way it connects is through a focus on personalisation - something young buyers care a lot about and for which they are often willing to pay a premium.

Scion offers enthusiasts more than 250 ways to accessorise their cars.

They include sporty mufflers, lowering springs, graphics to highlight the trim and an interior lighting kit that illuminates the lower level of the interior in green, red, purple and white.

BMW’s Mini brand also focuses on personalisation and has got to be the hippest car at the show.

The choices of colors and patterns for the exterior seem endless - including the classic Union Jack rooftop - while the interior offers surprises such as a hidden glove compartment and a circular key fob to match the console design.

The joystick-operated sound system shifts the volume on the speakers to match your drive (say, shifting to the right on a turn) and a little goldfish turns good driving into a game by falling out of its bowl if a corner is taken too fast.

MATCHING NAIL POLISH

Ford certainly doesn't expect that a bottle of nail polish in “Ford Fiesta Storm” alone will bring new buyers to its zippy small car lineup.

It gets them in the door by offering a lot of luxury features such as heated side mirrors and a voice-activated entertainment system that will read incoming tweets aloud, in a fuel efficient, funky and low-price little car.

The matching polish perk is part of a broader strategy to get new buyers to make an emotional connection to their cars that will lead them to think of Ford again when it's time to replace their vehicle.

Ditto for Volkswagen's Fender Beetle. It's not a huge seller, but the advanced sound system - that you can plug your guitar into - and the stylish interior add to the already distinctive car's appeal.

John Mendel, head of sales for American Honda, said: “Young buyers also want their cars to be more than just a way to get somewhere.

“They're looking for the flexibility of being the Swiss Army knife of cars.”

Honda is reaching out with an expansion of its small car offerings, such as the “urban SUV” concept unveiled on Monday that combines the function of a sport utility with the handling of a small car.

GM has targeted young buyers with its Chevy Spark and Sonic cars, which offer bold design in a small package, bright colors echoed in the interior through stitching and trim, and text-message reading sound systems that link up with smartphones.

But its Equinox SUV and Silverado pickup are also big sellers among millennials looking for more utility.

Hyundai tries to tempt young buyers with power and aggressive styling, but offers a great perk for anxious parents worried about teen drivers: a navigation system that will alert them if the car leaves a pre-set “safety” zone. - AFP

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