Hipster-Targeted Imports One More Threat to Detroit

The Kia Soul, which we’ve been seeing prominently in ads during the Kia-sponsored NBA playoffs, is another in the small boxy car sweepstakes,  joining the Nissan Cube and Toyota’s Scion xB, the latter of which launched the so-called “hip to be square” movement in 2004.

This triumvirate is aimed directly and efficiently at the Gen Y demographic, a group that the Detroit Three has tried to court for years with little luck. It’s a consumer base that some say is a gold mine in terms of brand awareness and potential purchasing power. There are even projections that state that within a decade, those born between 1980 and 1990 will compose 40 percent of the car buying market.

Perhaps. Nissan, Toyota, and Kia are making these cute, cheap little cars in part to attract younger buyers to their respective brands in hopes those buyers will grow up with the brand.

And these little vehicles are selling even today. Even in last year’s disastrous market, Honda’s “cool car” entry, the Fit, increased sales 41 percent, and the xB held steady.

The Cube and the Soul, which both hit the U.S. market this year, should do fine as well, bringing attention from future family-car buyers. Both come with customizing options, cultish appeal and marketing campaigns that position them as whimsical and cool to own.

Meanwhile, the Detroit Three have fumbled around for years trying to connect with younger buyers. Now, with fuel economy mandates requiring more small car production, there should be new concern over Detroit’s ability to compete on that front despite promises to reform.

I look at the Ford Focus, the Chevy Cobalt and the Chrysler… well, wait, Chrysler hasn’t even tried to enter the young buyer segment via a small, economical car, opting instead for things like the Dodge Caliber, a crossover with features such as a flip-down back gate with stereo speakers and iPod-ready sound system. Caliber sales are down 74 percent through May. Detroit has simply not been able to come up with cars that create a stir like its Asian counterparts.

Unless there is a quirky little car among the Detroit Three targeting these young buyers that we haven’t seen, they’ll have lots of catching up to do in the future.