First Car to New Car: "Domestics are just not perceived as cool,"

[Ming]

From first car to first new car: The brand sticks
By DAVID GRAINGER
Globe and Mail

There is a lot of head scratching going on in Detroit these days. It seems no one there understands why they're losing the war for the hearts and minds of the younger generation.

Perhaps this is because they are just too far removed from the street and what is going on there. The introduction of new car models almost exclusively aimed at the youth market is probably a mistake if substantial sales are the object of the exercise.

In most cases, people in their 20s and early 30s can rarely afford new cars. What they can afford are five- to 10-year-old cars that they can then customize.

That makes them no different from their dads and granddads, who as teens and 20-somethings in the 1940s, '50s and '60s were cobbling together cars from parts bins and scrap yards. The only difference now is that young customizers buy their upgrades from catalogues rather than by cruising though yards full of wrecks and derelicts.

In the 1950s, the Model A Ford was the car of choice. Not because it was desirable, but because it was cheap and there were lots of them.

Making them go faster, or at least look like they could go faster, was critical to the ego and social standing of many of their young owners.

In the late 1990s, the Honda Civic had become the modern Model A for the same reasons: They were cheap and had lots of parts available to make them a little faster and become personalized.

The same can be said of quite a few other Japanese and German cars and the Civic has started to see its broad appeal flag as other used imports become cheaper, develop a diverse and relatively inexpensive aftermarket parts supply and become perceived as cool.

This is where the headache for Detroit begins. We all harbour a nostalgic bias for our first car as well as the manufacturer of that car. But today, a young driver's first car is far more likely to be Japanese or German.

That means the manufacturers of those cars have a great advantage over the domestic manufacturers: They are, by default, already embedded in the hearts and minds of what are going to be the buyers of new cars in the next 10 years.

In the natural progression of buying power that occurs, the owner whose first car was a Honda Civic is far more likely to wander into a Honda dealership to buy his or her first new car than into a General Motors dealership.

It really amounts to the fact that domestics are just not perceived as cool. The car companies need to realize that if they were to create programs for supporting their five- to 10-year-old products with affordable custom parts and even event sponsorships, they would have a much better chance of turning things around.

One small proof of this has been with the Pontiac GTO. When they first appeared at drifting events, the GTOs were booed. Now, after staying the course, winning events and attracting top drifters, the GTO is being given a grudging acceptance.

The new Cobalt could profit from that grudging acceptance. While the GTO will likely still be a little too expensive for a young buyer, in five years time the Cobalt will likely be quite affordable.

Programs aimed to support it as a five-year-old platform with whatever custom body and mechanical parts in vogue at the time could plant the seeds for a crop of new-car customers 10 years down the road who would otherwise never dream of buying a General Motors or any other domestic product.



Article Source: http://www.theglobeandmail.com/servl...ialMegawheels/

[LAMRONH]

Roger Dodger. I've been ranting for a while that the decision makers need to get out of the office more often and sample real life. Like most execs, bureaucrats, and decision makers in all bureaucracies, the tendency is to attend meetings, listen to consultants, and make decisions in the office.
Some of the younger guys and gals may be out on the street, but the big boys and girls appear to be shut-ins, as evidenced by many of their sometimes outright bizarre, delusional, and divorced-from-reality decisions.
One positive side-effect, from the consumer's point of view, of GM's idiotic pricing/rebate schedule is their car values plummet like rocks, so some pretty expensive stuff is pretty cheap in 2-4 years. Not exactly a bragging point.

[goblue]

Maybe if they advertised the Cobalt's capabilities - like showing a souped up one in a commercial? Even showing how it can spank a Civic right out of the peverbial box would be good. The Mazda 3 has the same problem, and its been lavished with awards. Usually I disagree with this statement - but this one is all bad marketing.

[Ming]

I agree with a lot of what the article says, except for the following, which does not explain Scion's relative sales success (unless the only people buying them are middle aged, and I've seen some of that).

Perhaps this is because they are just too far removed from the street and what is going on there. The introduction of new car models almost exclusively aimed at the youth market is probably a mistake if substantial sales are the object of the exercise.

In most cases, people in their 20s and early 30s can rarely afford new cars. What they can afford are five- to 10-year-old cars that they can then customize.

[69nova]

I watched Rides the other day. In this viewing, they featured the SEMA show and how some audio mfrs were outfitting various cars for the display. It is all too evident that these mfrs are indirectly pushing the imports by snubbing the domestics. All I saw were Scion boxes and BMW SUV's. With the installation of the sound systems, the cars were also given new paint schemes and interior re-works. Their work is all soo un-original since the van thing was done in the 70's. Painting a Scion box with faces or landscapes was done in the 70's with the large vans.

[New_Mexico_Sunset_on_Rt66]

As far as Scion. I see more people in their 40's, 50's and 60's driving those. It seems the older folks want to "feel" young, instead of the younger generation buying them.

The Solstice is aimed at changing the perceptions listed. A new Zeta based Camaro, with lines and materials like the Velite, could really help turn things around also.

It is about "perceptions".

[IMPALAon20s]

Originally Posted by Ming

I agree with a lot of what the article says, except for the following, which does not explain Scion's relative sales success (unless the only people buying them are middle aged, and I've seen some of that).

scion's success is based on three things only.

1.odd looking cars
2."drives this and your cool" marketing campaign, that works on both young people and old people who desire to be young. just like honda element did. it was suppose to be a youth vehicle,but all i ever saw driving it was 40 somethings.

3.we have all aftermarket stuff you kids already want right here at dealership from neon lights to goofy stickers.

buyers dont care that the a/c is insufficiant, or that scions are underpowered, or that they are just toyota economy rebadge jobs from tokyo.

btw, that cobalt looks nice with those polished wheels.

[tripowergto]

I gotta admit my first car when I was 16 was an old hand me down, mostly used up 66 Pontiac. I had ALOT of fun in that car and continued to buy used Pontiacs until I finally purchased my first new car at 36, a 02 Firebird Formula. At 39 I purchased a new GTO. All these cars new or used have been very good to me and seem to fit my personality(even if by default) so I have no reason to switch as long as GM continues to offer me an alternative that I like.

I can certainly see the same path being taken by todays youth with their used Honda's. Good thing the new Cobalt looks to be a great entry level car but where is Pontiac's new entry vehicle?

[IMPALAon20s]

Originally Posted by tripowergto

Good thing the new Cobalt looks to be a great entry level car but where is Pontiac's new entry vehicle?

pontiacs entry level car = pontiac matrix

otherwise in canada they sell the pursuit.

[New_Mexico_Sunset_on_Rt66]

The American consumer is fickle, and producing cars which consumers want will do the trick.

The Solstice is cool. The SSR is cool. The SS Concept is cool. The HHR is cool. The Nomad is cool. The C6 is cool. The Mustang is cool. The Magnum is cool.

[markusername]

Ming,
While I agree that today's new cars are virtually equal in quality, cars build 10 years ago are not.

I would have no problem recommending to someone who wants a new car to try the cobalt or gto.

BUT for a young person looking to buy an older mid 90's car for cheap I would NEVER recommend anything except a toyota or honda.

I know GM and the other domestics are on par today, but be real, they were not 10 years ago (Even GM management admitted that - Road to Redemption). And I would be doing a disservice to my cousins if I recommended a 10 year old domestic to them.

The other point you made though is very true, a person who starts in a honda (especially if its a good car) will probably stay with a honda. There is nothing wrong with this, this is human nature. If you try something and it serves you well, you are likely to stay with it (if it ain't broke why fix it) mentality.

[Ming]

Originally Posted by markusername

Ming,
While I agree that today's new cars are virtually equal in quality, cars build 10 years ago are not.

The other point you made though is very true, a person who starts in a honda (especially if its a good car) will probably stay with a honda. There is nothing wrong with this, this is human nature. If you try something and it serves you well, you are likely to stay with it (if it ain't broke why fix it) mentality.

mark - thanks for crediting the article to me, but this was written by someone else. I did write a similar article here recently, though it was more GM positive: Hey "New Breed of Speed" - Now GM's Got All You Need

[tgagneguam]

So the article also seems to suggest that with a little tenacity (and the right entries), GM can crack this niche. It just takes time, which is what the foreign firms have already invested. As much as I think GM is capable of building competent vehicles (their designers and engineers are just as able as any others), I wonder if GM's execs' quarterly-performance orientation will allow them to stick to the plan long enough to reap the fruits of success.

[Tico]

When I put my '98 NEON R/T on the street with a for sales sign almost evey 16-18 year old in the nieghbor hood came over to look at it. Maybe it was the factory racing stripes I don't know, but they were swarming over it. It took about 3 days until one of there dads came over and handed me an envolope full of hundreds. Sure it was a NEON, but at 150 HP and 5 on the floor and lots of after market parts, it was a good first car for someone. I can't say that a '98 Cavalier or Focus would have got the same attention.

I think in 5 years used Cobalt SS's will have the same appeal. Now what about Pontiac and Ford? They need to get something out there now. I think Dodge is going to lose this market with the NEON replacement. Shame becuase the NEON did have a following among tuners. Especially the '95 to '99 model year with DOHC.

[Jay]

Originally Posted by Tico

When I put my '98 NEON R/T on the street with a for sales sign almost evey 16-18 year old in the nieghbor hood came over to look at it. Maybe it was the factory racing stripes I don't know, but they were swarming over it. It took about 3 days until one of there dads came over and handed me an envolope full of hundreds. Sure it was a NEON, but at 150 HP and 5 on the floor and lots of after market parts, it was a good first car for someone. I can't say that a '98 Cavalier or Focus would have got the same attention.

I think in 5 years used Cobalt SS's will have the same appeal. Now what about Pontiac and Ford? They need to get something out there now. I think Dodge is going to lose this market with the NEON replacement. Shame becuase the NEON did have a following among tuners. Especially the '95 to '99 model year with DOHC.

Yeah, too bad Dodge turned it into a rental car in 2000 by cutting the coupe and styling it after a (first-gen) Stratus sedan. Even the SRT/4 was kinda goofy looking. I can't see the wagon replacing it doing any better. Looks too much like a PT cruiser.