Baby Boomers Could Shrug Off Toyota Recalls -- and That Might Save the Company

Baby Boomers who grew up respecting the Toyota (TM) brand are likely to stick with Toyota despite the current Toyota recalls and unintended acceleration complaints -- partly because the "Me Generation" never wants to admit it's wrong.

"Baby Boomers are Toyota loyalists. They really just want this (recall) situation to go away," said John Wolkonowicz of IHS Global Insight. "They need to be right. This is the generation that has been loyal to Toyota for decades."

That's an unflattering picture of Baby Boomers and a left-handed compliment for Toyota, but Baby Boomer support will probably be enough to allow Toyota to put its short-term problems behind it relatively quickly, Wolkonowicz thinks.

"If you think Baby Boomers are on their way out, you're wrong," he said. Americans born between 1946 and 1964, he said, "today account for 45 to 50 percent of all new-car purchases. Don't count them out yet."

Toyota's longer-lasting problem is likely to be with younger generations, Wolkonowicz said in a presentation in New York yesterday. Gen Y, born from 1978 to 1994, regards Toyota as their parents' brand. "They are likely to shop elsewhere," he said.

Gen X, born from 1965 to 1977, is conservative, practical and skeptical, Wolkonowicz said. Members of Gen X who bought Toyotas are now likely to feel cheated, he said.

Wolkonowicz is associate director of North American automotive research for IHS. The research and consulting firm, together with the National Automobile Dealers Association, co-sponsored an auto industry program just before the start of press preview days for the New York International Automobile Show.

Photo: toyota.com