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By GARY HOFFMAN, AOL
AUTOS
AOL Autos - High gas prices and concerns about the
environment are sending American car and truck buyers toward a consumer
psychology that has never found much traction in the United States:
minimalism. But attitudes could change if new generations of buyers
decide that they can make a social and fashion statement with a
single automotive purchase of a small, cheap car. With all the news
about rising gasoline prices and mounting worries over global warming,
one might get the impression that the country is headed toward the
era of the minimalist car buyer.
That's the kind of consumer who is absolutely thrilled to be able
to get from point A to B in a cheap car at the lowest possible cost
and with the fewest possible emissions, driving to the rescue of
the economy and the environment in the process.
Some consumers say they look for cheap cars that offer reliable
transportation, no more, no less, when looking to purchase a vehicle.
If the feds were to push some form of corporate average fuel economy
standards impracticably high, nearly everyone could end up a minimalist.
Short of that, minimalism could hold its historic ground and even
gain some traction.
Since the industry's very beginnings, automakers have pursued the
minimalist buyer with vehicles as varied as the Model T, the early
Volkswagen Beetle and the short-lived Crosleys and Henry Js of the
1950s. Before offering a broader range of flashier products, GM's
Saturn division successfully tapped into this market for more than
a decade.
"It's hard to define minimalist precisely,
but it has generally meant small and cheap cars."
Less is more, as the saying goes. And now, for a new generation
of environmentally hip consumers, less is green and cool as well.
It's hard to define minimalist precisely, but it has generally
meant small and cheap cars. It's also a way of describing basic,
plain-vanilla transportation. But today minimalism has gone upscale,
and, in the case of the smart car from Mercedes-Benz, it is more
minimal than ever.
The super-small smart car (with a lower-case s to make sure no
one misses the point) is due out in the United States in 2008 and
weighs a third as much as a 4,750-pound Buick Enclave cross-over
SUV and about 1,000 pounds less than the Mini Cooper, the reigning
small car standard-bearer.
Except for their size, neither the Mini Cooper nor the smart car
bears much resemblance to austere, almost primitive cheap cars from
the past like the hapless Yugo or the endearing Volkswagen Beetle.
The Mini Cooper, for example, has standard features like variable
power assisted steering and options like navigation systems and
heated seats. To Yugo drivers, any warmth emanating from the seat
cushions would surely have meant something was seriously amiss.
Those old minimalist, cheap cars often had a tough time of it.
After a strong run in the 1960s, the obsolescent VW Beetle fell
victim to new U.S. and Japanese competitors like the Ford Pinto
and the Toyota Corolla.
Renault made a valiant but ill-fated effort to gain a foothold
in the U.S. market with its altogether respectable but still minimalist
Alliance model in the 1980s.
"Minimalist cars have come and gone," said Bob Casey,
curator of transportation at The Henry Ford, an auto museum in Dearborn,
Mich. "Most of them haven't done all that well." Consumers
are often tempted to buy a cheap used car instead.
In 1987, lowering the prevailing cheap car bar, the Yugo came to
these shores with a $3990 price tag and the then respectable 29
miles per gallon highway. That's not counting the two to three liters
of slivovitz that you had to consume before daring to drive one.
"Most Americans will buy the biggest car
they can afford ... "
A long pull of Yugoslavia's traditional plum brandy would have
been especially welcome to drivers after 1989. That was the year
a strong wind sent a Yugo driven by 24-year-old Leslie Ann Pluhar
flying off Michigan's Mackinac Bridge and into the treacherous straits
below. It was the first time a vehicle had been blown off the then
three-decade-old suspension bridge.
Few events could have better captured the American consumer's long-standing
ambivalence about automobile minimalism. And it's still an open
question as to whether most U.S. consumers are ready for it now.
"Most Americans will buy the biggest car they can afford,"
Casey said. Automakers aren't thrilled with low small car profit
margins either, he said. As a result, their small cars tend to get
larger. "That has tended to happen with all the compact cars,"
he said.
Arlene Brunner, president of Automotive Insight Inc., based in
Bonita Springs, Fla., doubts that many truly minimalist car owners
really exist.
"People say, 'I only want basic transportation, I want the
price to be low, and I want good gas mileage.'" said Brunner,
who did market research for the smart car, "But then you ask
them what they are going to buy, and it's not that kind of car."
Brunner says small cars like the smart car don't typically attract
minimalists. "They are attractive to people who usually have
three cars already in the household. They are looking for a toy,
something that would be cool to take to the train station or drive
around town."
An interest in basic transportation doesn't always translate into
a desire for extremely small cars either. Much of the time, consumers
buy new cars with a specific purpose in mind.
"Essentially, I view a vehicle as a tool," said Larry
Peplin, a commercial photographer and owner of Peplin Photographic
in Grosse Pointe Park, Mich. "It's an important part of my
business since I have to travel so much."
He now hauls his equipment around in a seven-year-old VW Passat
station wagon, but may choose a crossover like a Ford Edge as his
next purchase. A Kia Rio, Hyundai Accent or Chevrolet Aveo wouldn't
meet his needs.
Brunner says the true minimalists typically buy cheap used cars,
although she acknowledges that Saturn buyers, "a small percentage
of the market," may have turned to that model in the past because
"they did not want to buy someone else's problems."
Marketing studies suggest that it's raw economic necessity, not
consumer preference, that drives many people to buy simple, small
cars.
Claritas, the San Diego-based market research firm, has found that
vehicles like the basically minimalist, small car Kia Rio, starting
at about $10,700, are a good fit for "young singles and single
parents" making $22,000 a year. Similarly, small cars like
the Hyundai Accent, starting at $10,415, would suit urban retirees
earning about $26,000 a year.
But the Claritas data also points to signs that the market may
be changing. More upscale minimalist offerings are well suited to
young, environmentally conscious consumers. The Mini Cooper, for
example, is emblematic of what Claritas calls the "Bohemian
Mix." This group consists of "young mobile urbanites"
making a median household income of $51,000 a year and representing
more than 2 million households nationally.
Of course, starting at $18,050, the roughly 2,500-pound Mini is
somewhat more minimalist in size than in price. The smart car starts
at under $12,000, but that figure is still at least $1,000 more
than the base prices for the larger Hyundai Accent and the Kia Rio.
Richard E. Ipsen, CEO of DiversiForm in Beaverton, Ore.,
helps dealerships target their communications to specific buyer
segments and manage customer relationships. He believes many young
consumers want to drive a classy car that's easy on the environment.
"To them, classy means something with a little bit of a 'euro'
trend, something with a Starbucks, gelato and 'green' feel all combined
into one vehicle."
"Starbucks is not the cheapest coffee in the world, and a
minimalist car doesn't need to be the cheapest car," he said.
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