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CNN Live Today

Auto Show Showcases Cars for Youth

Aired March 27, 2002 - 11:52   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: The New York International Auto Show is revving up this week at the Jacob Javits Center. CNN's Fred Katayama is there to show us what the future looks like on the road -- Fred, hello.

FRED KATAYAMA, CNN CORRESPONDENT: Hey, Daryn. Well, this is a motorhead's dream right here. More than 1,000 cars on display here at the New York Auto Show. Now, it is not as glitzy as its Detroit cousin, the Detroit Auto Show, but because it is in Manhattan, there is a focus on smaller cars and luxury cars, the type that Wall Streeters can afford, and cars that are easy to navigate over Manhattan's congested roadways.

Take a look at Ford's division Jaguar. It has put out this concept car called the R-Coupe (ph). This one, you'll notice, compared to ones in years past, features a more rounded look in the rear and the front, giving it a more muscular look, getting away from the retro look. Basically, Jaguar is trying to appeal to a wider audience beyond its traditional male audience.

Now, luxury cars are a really hot segment for the industry. Sales have nearly doubled over the past decade. Take a look -- I don't know if you can see over my right shoulder, but there is the Lincoln showroom over there. Lincoln has just unveiled a new mid- sized sport utility called the Aviator. It is smaller and cheaper than the Navigators. Luxury cars really are hot, and manufacturers just keep pumping them out at more affordable prices. Jaguar has an X-Type that is selling for just $30,000.

The headline grabber today, however, is GM and its Saturn division. Saturn has unveiled the Ion, that is the first small car that Saturn has launched in 12 years. Basically, GM heading (UNINTELLIGIBLE) the Saturn division. This one features removable roof rails, basically the trims above the cars, appealing to a younger buyer, and the youth-mobile is another hot segment.

Later on this afternoon, Toyota will unveil a new brand, it is called Scion. It is the first new brand that any auto maker has launched in the United States in a decade. The Scion, again, is aimed at youth, basically the 20-something market with two models, a hatch back and a micro van.

Overall, the industry has had a really good year sales-wise so far this year. This, despite the recession. Wall Street analysts have raised their estimates on sales for the year to north of 16 million, and the reason for that: cars are affordable. Incentives are still out there, such as rebates, and car makers have basically kept a ceiling over car prices.

Daryn, back to you.

KAGAN: Fred, looks like a fun assignment. Enjoy.

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