---

Gen-X New Car Buyers Display Below-Average Loyalty

18 January 2000

Gen-X New Car Buyers Display Below-Average Loyalty Polk Study Confirms Generation X Worthy of Automotive Manufacturers' Attention

    DETROIT, Jan. 18 -- Generation X new car buyers display
below-average brand loyalty when returning to market, a trend that could
affect their current top preferences for Asian makes, according to a study
released today by The Polk Company.

    The study found that make loyalty displayed by Generation Xers, who
comprise 25 million consumers between the ages of 20 and 35, was more than
five percentage points lower than the industry average.  In addition,
manufacturer loyalty displayed by Generation X new vehicle buyers was more
than seven percentage points lower than the industry average.

    According to Polk data, Generation X make loyalty is nearly
four percentage points lower than Baby Boomers and eight percentage points
lower than the Mature Market.  Results are similar with manufacturer loyalty
where there is a five-percentage point difference between Generation Xers and
Baby Boomers and a thirteen-percentage point difference between Generation
Xers and the Mature Market.


    MAKE & MANUFACTURER LOYALTY RATES*
                                  Make Loyalty      Manufacturer Loyalty

    Generation X (20-34 years old)        38.9%                 48.5%
    Baby Boomers (35-54 years old)        42.6%                 53.6%
    Mature Market (55 years old +)        47.1%                 61.5%
    Total Industry                        44.4%                 56.0%

    *Source:  Polk Manufacturer Loyalty Excelerator(TM) 1999 Model Year

    "Generation X new vehicle buyers thrive in environments where they have
choices," said Karen Piurkowski, Polk's director of loyalty.  "So when it
comes to a market return, they're less loyal to brand names."

    Piurkowski said that Generation Xers are more information hungry than the
other population segments, as evidenced by the higher level of importance they
place on consumer magazines and automotive awards when purchasing new
vehicles.

    "Gen Xers are also more likely to use the Internet while shopping for
their new vehicles," she added.  "Specifically, they are more likely to obtain
financing information, vehicle pricing and incentive and rebate offerings when
shopping on the Web."

    The Polk study found that certain makes are more popular with Generation X
currently than others.  The data indicates that Asian makes have the highest
proportion of young buyers.  Specifically, Isuzu and Mitsubishi are the top
two.  KIA, another Asian make, is number four.  European makes follow, with
Land Rover and Volkswagen capturing the third and fifth positions,
respectively.

    GENERATION X APPEAL - TOP 5 MAKES*
                                Percent of New-Vehicle
                                Buyers Under Age of 35
    1. Isuzu                                26.83%
    2. Mitsubishi                           25.68%
    3. Land Rover                           23.90%
    4. KIA                                  23.88%
    5. Volkswagen                           22.80%

    Source:  Polk   *Based on all new vehicle registrations of heads of
                     households for the first nine months of 1999 model year.

    "Although import makes are currently the most popular with Generation X,
with their lower levels of brand loyalty any vehicle make could be of interest
for future purchases within this generation," Piurkowski said.  "And since
Generation X is the market of the future, low brand loyalty could prove to be
a major concern to automotive manufacturers."

    Polk's Manufacturer Loyalty Excelerator(TM) (MLEX), the basis for these
findings, provides consumer behavior insight and was created to provide
household loyalty information to manufacturers at various levels.  MLEX
determines loyalty percentages for the entire automotive industry, provides
cross-industry comparisons of loyalty behavior, and examines loyalty at
various levels, e.g., from the industry level down to the vehicle-line level.
The study measures loyalty throughout an entire model year to identify trends
as they occur in the industry.

    Polk is a global company delivering multi-dimensional intelligence to the
auto industry to enhance the relationships consumers have with brands.
Through lifetime understanding of individuals, Polk helps clients maintain
current customers, win new ones and build their brand loyalty.  Based in
Southfield, Mich., Polk is a privately held firm currently operating in
Australia, Canada, China, France, Germany, Holland, Spain, the United Kingdom
and the United States.