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Auto manufacturers today are scratching their heads, trying to figure out why the millennial generation has little-to-no interest in owning a car. What car makers are failing to see is that this generation's interests and priorities have been redefined in the last two decades, pushing cars to the side while must-have personal technology products take up the fast lane.
It's no secret the percentage of new vehicles sold to 18- to 34-year-olds has significantly dropped over the past few years. Many argue this is the result of a weak economy, that the idea of making a large car investment and getting into more debt on top of college loans is too daunting for them. But that's not the "driving" factor, especially considering that owning a smartphone or other mobile device, with its monthly fees of network access, data plan, insurance, and app services, is almost comparable to the monthly payments required when leasing a Honda Civic.
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With recent studies showing a huge decline in auto sales among the millennial marketplace, it's no wonder auto manufacturers are in a mild state of panic, realizing they're missing out on a generation that wields $200 billion in purchasing power. Numbers don't lie, and over the last few years statistics have shown a significant drop in young people who own cars, as well as those with driver's licenses—and that decline continues among the youngest millennials, meaning this is not a trend that's going away anytime soon. From 2007 to 2011, the number of cars purchased by people aged 18 to 34, fell almost 30%, and according to a study from the AAA Foundation for Traffic Safety, only 44% of teens obtain a driver's license within the first year of becoming eligible and just half, 54% are licensed before turning 18. This is a major break with the past, considering how most teens of the two previous generations would race to the DMV for their license or permit on the day of their 16th birthday.
(Score: 1, Insightful) by Anonymous Coward on Wednesday September 14 2016, @03:12AM
Quality issues, yes - the makers are resting on their laurels. And then its a ton of money for nothing much (trade-in value). I may be in the minority on this, but here is what I think. Cars have become too complicated and jamming them to the gills with electronics is not the way to go. People want a phablet / phone / laptop - they buy that. They carry that everywhere. Why duplicate all this within the car? Millennials are tech-savvy. They won't buy a newer car as they understand better than their parents how hackable they are. Makers must provide affordable, non-boring styling, non-boring colours, fuel efficient motors. 4 USB 3.0 hubs to hook up to - great, but is the cage strong enough in a crash? No popsicle cars like the Fiat 500 or Smartcar. We don't need cars that are 450 HP, v8, top speed of 300 mph. There are speed limits in almost every part of the world, "civilized" or not. Cars need to be realistic, practical, fun to drive - not burdened with tons of unsecured electronic trash nobody asked for. As I said, my 2c, and I am maybe that 1 in 10,000,000 voice of reason.
(Score: 2) by Gaaark on Wednesday September 14 2016, @03:15AM
Yes... more googahs means more money when they fail.
--- Please remind me if I haven't been civil to you: I'm channeling MDC. I have always been here. ---Gaaark 2.0 --