BUSINESSWEEK ONLINE : APRIL 24, 2000 ISSUE
BUSINESSWEEK LIFESTYLE Awesome Wheels for the Younger Set Courting the echo boomers with quirky styling More than 70 million echo boomers were born between 1978 and 1994, and some 4 million new drivers are expected to come of age each year until 2010. To serve this vast new crop of motorists, auto makers are rushing to introduce sporty, rugged, and downright quirky models to lure younger buyers to dealers' showrooms. ''If we don't have stuff that appeals to people in their 20s and 30s, we're walking away from our future,'' says David Bostwick, DaimlerChrysler's director of corporate market research. These youthful cars are no fuel-sipping econo-boxes. They're stylish, functional vehicles designed to fit into young buyers' active lifestyles. Some, such as the Nissan Xterra SUV, the Toyota Echo, and the European-inspired Ford Focus, are already in showrooms. Others, including Chrysler's head-turning PT Cruiser and GM's flamboyant Pontiac Aztek, will go on sale later this year. Loaded with such extras as CD players and roof racks, this crop of cars and trucks for young drivers represents carmakers' best chance yet to reinvigorate aging brands. In the carmakers' race to reinvent themselves as hip and cool, Volkswagen is ahead by a mile. Nearly extinct in North America less than a decade ago, VW revamped its entire line and in 1998 brought back a new version of the Beetle, one of the most popular youth cars ever made. The New Beetle, priced from $15,900 to $21,075, appealed to both middle-aged nostalgia buffs and younger drivers craving a car with personality. VW's best-selling model, the Jetta, meanwhile, has a median buying age of just 30 years old--the envy of the industry. SLIGHTLY LONGER. Honda's Civic is another popular choice. One reason: Hot-rodders in California and other pockets of the U.S. love to rip it apart and rebuild it as a street racer. Honda says it did nothing to encourage the customization trend, but it's certainly capitalizing on it. Last year, the company introduced the Civic Si, a sporty coupe with 15-inch tires and a 160-hp, 1.6-liter, dual overhead cam engine. This fall, a redesigned Civic goes on sale, and analysts say it will be slightly longer than the existing model, with a larger, 1.8-liter standard engine. Ford's best shot at young buyers is the Focus, which hit U.S. showrooms last fall. Designed in Europe, the spunky, sharp-edged vehicle is far from the banal Escort it replaced. Starting at just over $12,000, the Focus comes as a hatchback, sedan, or wagon. Among the special editions Ford offers, one is equipped with a 460-watt Sony sound system, another with a Kona mountain bike and dirt-colored upholstery. Ford is also selling add-on kits that include such things as a dog harness and a passenger-side workstation for a laptop computer. Although the median age of Focus buyers is 39, Ford officials say that nearly 26% of this year's 71,000 buyers are under 25. DaimlerChrysler expects its PT Cruiser, which will start at $16,000 when it arrives this spring, to be a hit with young buyers, too. But unlike Ford, the German-American carmaker is being careful not to pitch it as a youth car. It thinks its bold, nostalgic design will appeal to all ages. While the PT Cruiser does turn heads, its real selling point may be its flexible interior. With the rear seats folded or removed, the PT Cruiser can accommodate anything from an eight-foot ladder to three bicycles. That's the kind of versatility young buyers want, says Bostwick. ''They said: 'Give me space to the walls and don't tell me how to use it.' '' That's the same philosophy behind GM's Pontiac Aztek, due this summer. It combines the ride and handling of a sports sedan, the traction of an SUV, and the cargo flexibility of a minivan, says GM. Among Aztek's amenities: a portable, insulated cooler that locks into the center console. The Aztek's aggressive exterior styling may raise eyebrows among middle-aged drivers, but Pontiac thinks it will be a magnet for younger drivers eager to be different. ''This vehicle is designed for people who want to stand out and say: 'I don't belong with the rest of the crowd,''' says Butler. Nissan, on the other hand, says its research showed younger buyers want to own SUVs but can't afford the luxury models now on the road. Its answer: the rugged, no-frills Xterra, priced from $17,600 to $25,800. Unlike a new wave of small, car-based SUVs such as the Toyota Rav-4 and Honda CR-V, the Xterra is built on a truck chassis and is made to be driven off-road. While only about 35% of Xterra owners take their vehicles off the highway, that's far more than owners of other truck-based SUVs, Nissan says. What thrills Nissan executives most is that 80% of the 21,000 people who have bought Xterras so far this year have never owned a Nissan before. Now the trick is to keep them. By JOANN MULLER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Awesome Wheels for the Younger Set PHOTO: Pontiac Aztek INTERACT E-Mail to Business Week Online

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