A big part of Scion’s mission is to capture a new buyers and not cannibalize sales from other brands. In this respect, it has been successful. About 75% of Scion’s customers have never owned a Toyota Motor Corporation (ADR) (NYSE:TM) product.
Foolish bottom line
Generation Y is too big to ignore. This demographic is the largest U.S. history accounting for nearly one in four Americans today. Whichever automaker is first to crack the Millennial code will have monopoly-like access to a massive market and earn the highest returns for investors in the decades to come.
Of the large manufacturers Toyota Motor Corporation (ADR) (NYSE:TM) is probably the best positioned to exploit this demographic. It’s Scion brand was recently named the most popular among Gen Y buyers according to J.D. Power and Associates. And while this division may not move the needle in the company’s financial results, Scion sales today translate into Matrix and Camry sales down the road (pun intended).
If General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) can’t convert Millennial customers today, they may lose those buyers forever.
Robert Baillieul has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.
The article Why Are Young People Driving Less? originally appeared on Fool.com.
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