Nostalgia’s New Noise

A funny thing happened somewhere between the executive boardroom and retirement.

A new crowd of performance car enthusiasts has begun to make their mark, and it’s being made without much attention to trendy eco-friendliness or even fuel prices. Unlike the teenagers and 20-somethings of the sport compact set, these new aficionados have both money to burn and some serious nostalgia motivating their purchases. So what are they looking to buy? Old-and new-school American muscle.

To listen to the consumer media these days, one would have to assume that we’ll all be driving Volts and hybrids within months, and the age of performance for performance’s sake has gone the way of the dinosaur. For years, even the performance market itself seemed to be heading in that direction, with the face of the performance world being the sport compact. Small, often Japanese vehicles, once tuned and decked out with low-profile tires and 400 hp, were considered wicked cool and scary fast. But that particular market has fallen on tougher times.

“There has definitely been a sharp decline in the sport compact market,” says Kevin Dundas at Karbelt. “I believe a lot has to do with insurance rates on these cars–plus the police targeting them. The sport compact market has been dominated by younger drivers, but we have seen a growth in other segments, within those younger drivers. The sport compact performance market will never disappear, but it definitely has declined in numbers.”

“The popularity of the sport compact market is almost entirely media-driven,” says Ted Keating, with Dart Machinery. “In reality, that market is very flat. It had its spike a few years ago, and has since really fallen off.”

But in contrast to the lacklustre performance of the sport compacts, the modern muscle car segment is alive and well. Perhaps the strongest proof of that comes from the manufacturers themselves, who seem quite keen on capturing the old-school look and feel with new muscle car offerings like the Charger and the Camaro, along with continued success and innovation with classic brands like Mustang and Corvette.

Despite impressive year-over-year sales results, though, many have questioned the sustainability of the muscle car, given the recent upward trend in gas and oil prices. It would seem counterintuitive to get into a market that is almost by definition gas-guzzling, but the experts say that fuel prices actually play a very small role in the success of this market niche, simply by virtue of who is driving it.

“I think that muscle car resurgence is a growth industry, and the aftermarket is really going to benefit from that,” says Peter Hall, vice-president of Export Development Canada. “I don’t think we’ve seen the crest yet. There is a lot of potential expendable income in that segment, and that’s why we have manufacturers playing to that retro market today.”

Dundas echoes Hall’s opinion, but adds his own market-specific insight. “The new modern muscle car segment is still strong even with the price of fuel constantly rising,” he says. “The baby boomers still have expendable income, and they remember the days when they could not afford a Hemi ‘Cuda or a big-block Chevelle. Some of the ‘hands-on’ types want to restore or purchase a vintage muscle car, while others will buy a brand new Mustang, Challenger, or Camaro with a warranty. Whichever way they prefer, just like thirty-plus years ago, most of these muscle cars will be modified and personalized.”

In fact, it appears as though even those within the industry who see rising fuel prices as even a slight problem for this notoriously fuel-inefficient category, see those rising pump prices as an opportunity.

“One new trend we’ve noticed is the demand for greater fuel efficiency among the new muscle car drivers. They all want the horsepower, but now more than ever, people are paying more attention to how they can improve on the torque,” says Scott Worley, a marketing representative for Edelbrock. “An improvement in torque can really reduce your fuel consumption, so by making the right performance upgrades, you can really make a difference to the original muscle car’s fuel efficiency. The real key, though, is that the driver has to use all of that torque judiciously, and not want to experience it at every stoplight.” In short, the grey-haired suits behind many of today’s new-wave muscle cars view skyrocketing fuel prices in much the same way as their Toronto brethren view the Maple Leafs: It would be nice if things were better, but they’re still going to buy the season tickets.

In terms of actual part orders, the kinds of modifications commonly done, and the kinds of budgets being thrown at these vehicles, is as varied as the customer.

“It’s funny–we find that when the economy gets tough, our business does just fine,” says Keating. “People want to make themselves happy, especially in tough times, and so we’re in the business of giving people what they want. Not necessarily what they need, but it’s what they want.”

According to Dundas, those wants are varied, and due to the deep pockets of many clients, the modifications are rarely limited to the cosmetic or the frugal.

“With regard to the modern muscle car upgrades, there are many simple bolt-on upgrades. You can purchase computer programmers, cold air intake kits, throttle bodies, ignition system upgrades, underdrive pulleys, exhaust systems, et cetera,” he says. “There are also many different high-quality suspension upgrades to improve the handling and appearance of your car, and for the hard-core enthusiast, there are camshafts, cylinder heads, or even stroker kits for all the new V8s. Just like thirty-something years ago, the only limitations are how much money will your wife let you spend,” he adds.

While marital bliss may not be an absolute certainty for anyone dealing with the rumble and the cost of a fully outfitted muscle car, manufacturers say that from the jobber perspective, these new vehicles represent a different and unfettered opportunity. Whereas the sport-compact crowd was limited by low entry-level salaries and parental allowances, the 50-somethings nostalgically adding performance upgrades to their memories are not nearly as cash-strapped as their younger counterparts.

“I’m not the only one that hoped and dreamed of having one of those Barracudas,” says Hall. “As we in this generation age, and get a little wealthier, we’re also going to inherit money from our wealthy forbears. This is giving us baby boomers some expendable income from areas other than our jobs. Also, the older generation also has a little more free time to devote to hobbies as well, which means more time to devote to nostalgic restorations,” he says.

Dundas agrees, but adds that jobbers need to start doing a better job of embracing this new opportunity.

“There is a huge potential for jobbers wanting to sell these performance upgrades, because the performance customers are already in your store; they just need to know you sell these products,” he says. “I have seen performance retailers who refuse to embrace the modern muscle car. Yes, there are a lot of classic muscle-car and street-rod customers, but there are also a lot of new Mustangs being produced, and soon the Challenger and Camaro will join them. Let’s have some fun now.”