Is the Camry set to get old and stuffy?

“Toyota is known for reliability and good resale value,” he said. “Toyota is a rational purchase — it’s for people who care about making a smart purchase decision. It doesn’t get the adrenaline flowing.

“So it remains to be seen what they can accomplish here. The car business is like fashion, and like the fashion business, brands carry cachet. They also carry baggage, especially for younger people. It depends on whether they think the new styles are cool.”

Early signs suggest Toyota’s plan to rejuvenate the Camry with a sportier, more aggressive design is working, according to Bill Kwong, a spokesperson for Toyota. He says company data show the median age for the base Camry CE model buyers declined from 55 to 48 from 2005 to 2006.

“Yes, the age of Camry drivers was starting to get older,” Kwong said. “They are very loyal, so every time they come back to buy a new one they get a little older. But we think the new data show our buyers’ ages are decreasing.”

But Toyota faces other challenges, including questions about quality. The automaker last year faced an issue of engine damage caused by oil sludge that nearly resulted in a class-action lawsuit. More recently, Toyota said it will recall 533,000 Tundra pickups and Sequoia sport utility vehicles because of potential steering problems. The quality issues have led some to ask if Toyota is stretching itself thin to capture more U.S. market share.

And the Camry is a tempting target for rivals. At the recent Detroit auto show, General Motors unveiled a drastically restyled 2008 Chevrolet Malibu, aimed directly at the midsize sedan market. 

Honda showcased a concept coupe design for its top-selling Accord, and the company stands to benefit down the road if Toyota falters, according to Wolkonowicz.

Many car consumers see Honda and Toyota the two brands as interchangeable as Coke and Pepsi, he said. But unlike Toyota, Honda enjoys strong appeal among Generation X and Y drivers as well as among baby boomers, he said.

“They have the attention of everyone born after 1954, and that’s a great position to be in,” he said. “So the company could come out of this looking good as the decades pass. But given Toyota’s huge cash position I think they will have the wherewithal to deal with all this.”

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