February 2008
Small cars take center stage at NAIASStephen Cavanagh ‘08
Editor-In-Chief
For the most part, new cars haven’t been designed for younger drivers. Either their sticker prices were too high or they lacked the features that would atract younger drivers. All of this is changing.
It just took a trip to this year’s North American International Auto Show (NAIAS) to see how much the car companies have done to impress the younger audience.
Whether that design includes a price which is too expensive, or it lacks the features a younger driver would like, generally car companies look to an older demographic to determine who to sell their cars to.
At this year’s NAIAS, Ford contradicted this standard by introducing a new concept vehicle.
Walking into the Ford display, fans were met by holograms set up to show new ideas from the company. As auto buffs entered, they became surrounded by the iconic “Ford” blue that was splashed onto the walls in the form of LED displays. Giant turntables were spinning new vehicles like the Verve concept. Yes, the new Explorer concept and the 2009 F-150 were displayed, but the Verve seemed to bring a sea of different, yet interested fans toward its smooth, smaller and European design.
In an article released for one of Ford Motor compay’s newest concept vehicles, Verve, Ford’s group vice president for Marketing and Commnications claimed that the key to achieving success in the North American small-car market relies on “Millennials,” those in the 13- to 28-year-old age group.
“Millennials will be the deciding group of customers in the future, driving all types of customer trends,” Farley said.
In addition, Millennials are considered the fastest growing age group of the driving public. Within the past year, Ford’s concept car has emerged with a spotlight on technological capabilities, sophisticated design, eco-friendliness, entry-level pricing and better gas mileage. All of this has been done to appeal to the group that will represent 28 percent of the driving public by the year 2010.
“I know that they [Ford Motor Company] are directing the marketing toward the 18- to 28-year-olds: the majority of new drivers,” Ford representative Rebecka Reeve explains. “Those are the people who are buying these types of cars.”
Several other companies like Scion, Smart Car and Mini Cooper have focused on smaller design and specific features, which appeal to the younger generation. They use customization and other similar features like Ford is planning to include. Technological capablity and premium fuel ecomony are used in order to increase future sales and a substantial following.
According to Ford, however, their approach to attracting millenials hinges on several factors.
“People are looking for better fuel economy now since gasoline is well over $3 a gallon,” Reeve said. “People don’t want to drive a big truck anymore. They want something that is going to get them better fuel economy.”
Fuel ecomony and the American car market don’t always mix. With more and more hybrid cars and cars with overall better fuel economy coming out, however, cars and the markets in which they function are starting to experience a change.
Stefano Levorato, a senior creative designer for General Motors of Brazil, was a spectator at NAIAS. As he viewed the Verve display, he spoke briefly on difference in the American demographic, and how groups view cars in separate ways.
“It [the public] divides a lot,” Levorato said. “In the American public they like very much big stuff, you know ‘heavy duty,’ that’s what they like. But the [people that wanted the] other [smaller] car, they want like the fast, smooth, nice ride.”
While Levorato admires the Verve, he mentions how an “agressive and “unique” look makes the car appear to be very youthful. Levorato added that an inviting interior and intuitive electronic components help convince younger customers to purchase that type of vehicle.
“They [youth] are vey much into technology and comfort,” Levorato said. “Whenever they can use their devices inside the car, and back and forth, you get the younger people with that.”
The change in the North American car market may be coming fairly soon. With so much of an increase in the number of millenials, Ford and many other corporations have to adjust to the new majority in the driving public.
Scion, part of the Toyota Motor Corporation, considers its main focus as teens and the newest generations to the 21st century; both generation “X” and “Y.”
“Scion, I think was one of the first to gear toward the younger market,” Scion product specialist Lizette Santaigo said. “Now I think everyone is going on that bandwagon as well.”
Like Scion, Ford, along with companies like Smart and Mini Cooper, use popular trends of the younger generation to attract new North American drivers.
These trends like iPod capability, and the ability to use mobile phones and other devices with their vehicles, parrallels the demands of European car market. Farley elaborates on this connection in the same interview for the NAIAS press release.
“Ford’s European-based cars are a great fit for this generation of drivers, who have grown up with the Internet and mobile phones as necessities, not luxuries,” Farley said. “Believing that bigger isn’t necessarily better, precision is everything and technology rules.”
The growing youth population reflects the European driving public in several ways. Ford views this connection as its main selling point. Typically, European drivers prefer smaller cars as opposed to larger trucks and suv’s. Ford’s approach for boosting small car sales is a springboard based on Smart’s idea. The popularity of smaller Ford models in Europe have been steady for over three decades. Cars like the Ford Focus, Ka, Fiesta, and European Ford Fusion have become staples as vehicles overseas. In order to match Europe’s car sales’ success, U.S. automakers have no choice but to target younger drivers.
