Banner Graphic, Volume 15, Number 183, Greencastle, Putnam County, 2 April 1985 — Page 15

Target market: Auto manufacturers realize sales rely on women, baby boomers and Yuppies

Earnings Revival at the Big Three

Net Income In billions ol dollars ChrytitrCorp. Ford Motor Co. Qononl Motors Corp. O } 11111111111 I I I I I 1 I 1 I I 78 '79 ‘•0 ’*l *B2 *3 '64 76 79 '6O '6l '62 83 '64 78 78 ’BO 'Bl 'B2 'B3 ’64

AUTO GRAPH: Cars sales are definitely on the rise

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c. 1985 N.Y. Times News Service CHICAGO She is about 34 years old and single, most likely a college graduate, and she earns between $30,000 and $35,000 a year. This is the customer who is the primary target of the General Motors Corp.’s Chevrolet division as it prepares to bring the Nova, the product of its joint venture with the Toyota Motor Corp., to market this summer. Research shows that 57 percent of the auto buyers are female. The marketing strategy behind the Nova model is a reflection of Detroit’s urgent search for ways to sell cars to younger buyers, who have largely shunned domestic models in favor of imports. “We’re aiming at the strongest part of the import market” with the Nova, said

Thomas Staudt, Chevrolet’s marketing manager. “We’re trying for upscale women, and we are going to be emphasizing the quality, size, fuel economy and easy handling of the car in our advertising.” Since the Nova is powered by a Toyota engine, with the car being produced in a plant managed by Japanese executives, Staudt may find the task a bit easier than some of his counterparts elsewhere in the American auto industry. But, as interviews and presentations by domestic car makers in advance of the annual auto show in Chicago have made clear, the U.S. auto industry is more than a little concerned about its weak record with younger buyers, and it is determined to find ways to lower the average age of its

customers. The industry also is paying attention to the smaller specialized markets it once ignored in favor of trying to turn out models that would sell in the millions. Detroit’s salesmen are trying a variety of tactics to increase the appeal of domestic cars to the members of the postWorld War II baby boom who have became known as “yuppies” young, upwardly mobile professionals. The new Mercury Sable and Ford Taurus midsize cars, which the Ford Motor Co. will begin selling next fall, were planned with that segment of the population in mind. They have features the designers hope will appeal to young and affluent motorists. Such features range from firm handling and aerodynamic styling to a

April 2,1985, The Putnam County Banner-Graphic

lighted, drop-down mirror in the front sun visors, so women can apply cosmetics conveniently, and foldout picnic table in the station wagon model for tailgate parties. “We decided to add something to our higher-line models other than more expensive carpeting,” a Ford executive said. Surveys by J. David Power & Associates, a market research firm, have shown that reliability is a car’s most desired attribute, particularly among younger women. One result is that all of GM’s car divisions are installing toll-free telephone service to hear consumer complaints, as pioneered by the Buick division. A driver who is having trouble getting a car repaired at a dealership can call the factory direct and ask for help. Buick s general manager, Donald Hackworth, said his division receives about 1.000 calls a week from frustrated car owners. Ninety percent of the problems, he added, get solved the same day. Ford also seeks to stay in touch with owners’ attitudes. Robert Rewey, manager of the Ford division, said he personally handles about a dozen consumer complaint calls every week. Hackworth said the Buick division’s main goal (next to selling cars) is to reduce the average age of Buick buyers from the present 51 to 45 or so by the end of the decade. “Since the population as a whole is aging, this isn’t going to be easy,” he said. “We’re working against the tide. ” Among the tactics used in wooing younger buyers, Buick is producing sporty “T-type” versions of its regular models. In airports and other busy areas, Buick is placing touch-sensitive computer screens that invite queries. And it backs racing teams that use Buick engines. By mid-1987 Hackworth plans to offer a $25,000 two-seat sports car of European design as an “image” vehicle for the division. These days Detroit is devoting much thought to four-wheel-drive cars as a developing segment of the market. Ford executives said last week that their company would start selling a four-wheel-drive version of the Topaz compact in northern “snow belt” states within two years. Auto executives say they are impressed by the success of the Subaru four-wheel-drive models. “Four-wheel-drive is going to be the technical story of the next few years,” said Robert Stempel, the head of GM’s Buick-Oldsmobile-Cadillac group. The Chrysler Corp. has been working for years to develop a four-wheel-drive version of its “K” cars, and executives of most of GM’s divisions acknowledge they have four-wheel-drive prototypes under consideration. “Any time you are not looking at that kind of thing, you are in trouble,” said Robert D. Burger, manager of Chevrolet. The growing interest in four-wheel drive is a challenge to the smallest domestic auto producer, the American Motors Corp., which manufactures Jeeps. Jose J. Dedeurwaerder, AMC’s chief executive officer, said four-wheel drive cannot simply be added to all existing models.

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