Going the Extra Mile : Asian Auto Makers Shift Gears Toward Baby Boomers, 2-Income Buyers
In response to the softest domestic auto market since the early 1980s, four Asian car manufacturers with U.S. headquarters in Orange County are gearing up to attract a wider range of consumers.
The car makers--Mazda, Daihatsu, Hyundai and Mitsubishi--are officially rolling out their 1990 models this week and next. All four made names by appealing to the lower end of the car market. But with their latest models, all four hope to boost sales and market share by appealing to new, more affluent groups of buyers with new models or more features.
The marketing shift is related to changing demographics. As baby boomers move into their prime and earn more money, they can spend more on cars. At the same time, the number of two-income households is growing.
So Mazda’s 1990 models, formally unveiled Tuesday, are designed to appeal to those who don’t mind spending a few extra hundred dollars for a few added comforts.
Topping the list is the Protege, Mazda’s new four-door sedan. The pitch is for a subcompact with more interior and trunk space than others in its class, said Fred Aikins, a spokesman for Irvine-based Mazda Motor of America Inc. With a sticker price of $9,339 to $10,549, the Protege is aimed at young, married couples and families with small children who want more than an entry-level car.
“Over the last few years, the price gap has widened between entry-level cars and the next step up”--such as Honda’s Accord and Toyota’s Camry, said George McCabe, group vice president, sales and marketing for Mazda. The Protege will be positioned to fit that gap, he said.
While Mazda’s luxury 929 isn’t new, the latest 1990 model--called a 929-S--is aimed at that segment of the buying public that wants more luxury in bigger automobiles.
The 929-S is more powerful, slightly sportier and comes equipped with more standard equipment including anti-lock brakes, power moon roofs, power drivers’ seats, and AM/FM cassette radio. In fact, Mazda only offers two options--leather interior and CD players.
The 929-S lists for $24,800--compared to $23,300 for the 929.
“A lot of people are motivated by more than price,” Aikins said.
To find those buyers, Mazda also announced Tuesday that it is moving to an upscale marketing strategy to change the public’s perception from a low-priced marketer into a premium-quality car, McCabe said.
Daihatsu, already an upscale, Japanese-built mini-car, also is offering more in 1990.
After 18 months with a single model in the U.S. market--the three-door hatchback Charade--Daihatsu America Inc. in Los Alamitos is trying to pick up speed with a new, four-door sedan.
The four-door model is aimed at families with children or retired people on fixed incomes, said C.R. (Dick) Brown, executive vice president and chief operating officer. That contrasts with the three-door hatchback, which appeals more to singles or someone who wants basic transportation to work.
Although Daihatsu is one of Japan’s oldest vehicle makers, it began selling cars in the United States only last year and has been struggling to build name recognition.
So when the new models are unveiled next week, Daihatsu will also introduce an important second model--the Rocky, a new sports-utility vehicle to appeal to the rugged, outdoor types.
Hyundai Motor America also is taking an aggressive approach and putting its bucks behind a redesigned Excel, with a more powerful, 1.5-liter engine.
Prices on the new Hyundais have not yet been announced.
Meanwhile, in the part of the market where competition is hottest--the compact and subcompact segment--Mitsubishi is offering more standard features on the Precis. At the same time, Mitsubishi is lowering the price of the basic Mirage but offering more standard features on the more expensive Mirage EXE.
