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CNN Live At Daybreak

Car Manufacturers Targeting Younger Buyers

Aired March 28, 2002 - 05:50   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.
CHAD MYERS, CNN ANCHOR: Car makers, hoping to attract new buyers, showing off some of the sleek designs. And, obviously, their most powerful engines in a long time at the New York Auto Show. Everything from sports cars that will snap your head back to comfortable luxury cars made by Cadillac on display.

Fred Katayama takes a look.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: We need some excitement, we need some pizzazz.

FRED KATAYAMA, CNN CORRESPONDENT (voice-over): From imports to domestics, auto makers are racing to pump out new luxury vehicles like this conceptual Ferrari-ish Cadillac. Sport utilities are getting smaller. Ford's Lincoln division unveiled the mid-sized Aviator, a cheaper version of the Navigator. It's Lincoln's fourth luxury vehicle debuting this year, and it's targeted at younger buyers.

The headlights are clearly shining on youth mobiles. They're tall, offering lots of leg room and headroom, but short on price, with stickers under $20,000.

DOMENIC MARTILOTTI, AUTO ANALYST, BEAR STEARNS: What you have seen really is kind of the push in to really small SUVs, which -- you know, that the youth -- the youth buyer doesn't traditionally want the small four-door sedan, they're looking for a little bit more utility in their vehicle, but the price, they can't afford an Explorer or a Trail Blazer.

KATAYAMA: Take cross-over vehicles, like this Honda Element, a mix of a sedan and SUV (AUDIO GAP) that open from the center, and its seats fold flat, or they can be removed altogether.

TOM ELLIOTT, EXECUTIVE VICE PRESIDENT, AMERICAN HONDA MOTORS: You can actually sleep in it if you want. It's kind of like a mobile dorm room. You can put all your junk in there.

KATAYAMA: Toyota launched the first new brand in the U.S. in a decade, the Scion. These concept vehicles are high on entertainment, with digital, audio and video. And Toyota will use the 20-somethings' favorite communications vehicle, the Internet, to talk to customers. (on camera): New products drive sales. With so many new cars and trucks coming on to the market at once, Wall Street is concerned that all this will put pressure on pricing and profitability. Tough for manufacturers, but great news for consumers.

Fred Katayama, CNN Financial News, New York.

(END VIDEOTAPE)

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