Honda’s attempt to tap into the youthful buyer market with the funky-looking Element SUV doesn’t seemed to have worked so far, according to The Car Connection (TCC) website. TCC said the Element went on sale in December and sales to March 31 showed that the average age of buyers was 41 – twice that aimed for by Honda and only two years below the estimated average age of all new Honda buyers.
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Toyota is also after youth buyers with its new Scion line, not on sale until June and then only in California, but Toyota executives remain confident that their long-crafted strategy to rake in primarily those aged 25 or less will work, TCC said.
The Car Connection said the Scion launch will be distinguished from that of the Element by copying BMW’s tactic of separating its downmarket product – in BMW’s case, the Mini – into separate dealerships or showrooms.
In addition, TCC said, seeking to lower an average buyer age of 47, Toyota has crafted a special Scion marketing programme focusing on Gen Y trendy discos, boutiques, media and even salespersons, the latter drawn from clothing stores GenYers tend to favour.
TCC said that Toyota dealers are enthused. The number-one volume dealer in the US, United Auto Group’s Longo Toyota in El Monte, California, believes the Scion is a “no-brainer,” according to its general manager, Tom Rudnai.
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By GlobalDataToyota kept the Scion on a California-focused wave length, The Car Connection report said, introducing it at trendy boutiques on San Francisco’s Haight Avenue and Los Angeles’ Melrose Avenue with caps, backpacks, and T-shirts emblazoned with the Scion logo.
TCC noted that a separate division for Scion is headed by veteran Toyota and Lexus marketing executive Jim Farley, 41, who takes issue with a remark by GM vice-chairman and product czar Robert Lutz to the effect that “cars targeted primarily at youth can’t be done.” Lutz indicated that Toyota believes that young people like goofy-looking stuff.
TCC said that Farley replies that “Detroit got its ass kicked trying to market to kids. My prediction is that they will follow us.”
According to TCC, Scion customers will be allowed to choose multi-coloured accessories in buildings looking more like disco clubs than traditional showrooms. Toyota is serious enough about Scion that it has committed nearly $US500 million to the new division, which won’t be selling nationwide until June, 2004, TCC added.
The website noted that demographics are getting younger each month on the Element as well, according to Honda’s corporate planning VP, Dan Bonawitz, who says 54% of buyers are first-time Honda owners. TCC added that one difference between the Element and Scion could be key to who’s buying what: the Element is priced from $US16,560 for the base model and $19,130 for the EX. The Scion will be priced from a more affordable $12,500.
The Car Connection said Toyota is looking at about 100,000 sales a year when a third model, the xC, is added to the xA and xB Scions going on sale this summer.
To see what just-auto thought of the Element, click here.
