Toyota, Honda chase young buyers

Toyota Motor Corp. will finalize plans and launch a third brand to appeal to the youth market in the U.S. within six months.

The youth brand will carry its own separate name — such as Lexus does for the luxury market — and likely will launch with multiple entries. Though a name has not been chosen, it won't be Genesis, which Toyota used internally for its previous youth marketing and design efforts.

Meanwhile, Honda Motor Co. Ltd. may launch a vehicle smaller than the Civic — either a hatchback or a small van — in the U.S. to attract young consumers. Possibilities include a 5-door vehicle similar to the Honda Stream small van or the Fit small car, both available in Japan.

“Whether or not the Fit is the right car for the U.S., I think the U.S. market is ready for that kind of car,” says Tom Elliott, executive vice president of American Honda Motor Co. Inc.'s auto sales operations.