All you Millennials, Beware!! They're out to get you!

[catherine]

Our parent site, New Road Map Foundation, posted an interesting Atlantic article on FB today.

Here is the article (http://www.theatlantic.com/magazine/archive/2012/09/the-cheapest-generation/309060/?single_page=true), but here is the gist--apparently Ford's Fiesta didn't hit its target audience nearly as much as they expected--young drivers simply aren't buying cars like their parents did.


In a bid to reverse these trends, General Motors has enlisted the youth-brand consultants at MTV Scratch—a corporate cousin of the TV network responsible for Jersey Shore—to give its vehicles some 20-something edge. “I don’t believe that young buyers don’t care about owning a car,” says John McFarland, GM’s 31-year-old manager of global strategic marketing. “We just think nobody truly understands them yet.” Subaru, meanwhile, is betting that it can appeal to the quirky eco-*conscious individualism that supposedly characterizes this generation. “We’re trying to get the emotional connection correct,” says Doug O’Reilly, a publicist for Subaru. Ford, for its part, continues to push heavily into social media, hoping to more closely match its marketing efforts to the channels that Millennials use and trust the most.

All of these strategies share a few key assumptions: that demand for cars within the Millennial generation is just waiting to be unlocked; that as the economy slowly recovers, today’s young people will eventually want to buy cars as much as their parents and grandparents did; that a finer-tuned appeal to Millennial values can coax them into dealerships.

I think it's really interesting that Millennials are not into cars and driving. I know in my own family, one son has a second-hand Honda Fit, my other son has a second-hand motorcycle, and my two other kids have no vehicles at all. Three live in Burlington VT where they can zipcar when they want to get out of town--otherwise they walk.

For all you guys who don't believe in the vast conspiracies to create desire born of corporate marketing departments, here's one example of trying to manipulate an entire generation for profit. Certainly not for the young folks' good in this case. Hopefully they'll remain wise enough to ignore that new car smell desire and stay free of car debt.

[kib]

“I don’t believe that young buyers don’t care about owning a car,” says John McFarland, GM’s 31-year-old manager of global strategic marketing. “We just think nobody truly understands them yet.”


Hey John, maybe it's that $25K+ "new debt and no job to pay it off" smell interfering with the 20-something's ability to fully embrace the new car smell. Don't worry, I'm sure there's a pill for that.

[gimmethesimplelife]

Being car free for a number of years myself and making it work in the relentlessly sprawling city that is Phoenix, AZ, I am glad to hear of this generation not being so into cars. I think of all the pollution they cause, the accidents and deaths that can happen, gas at $3 a gallon and more, insurance, registration, maintenance, and I think - Why on earth would I want any of this on what I am going to realistically make?

I often think though of buying some kind of scooter when I finish school for web design - I could quite likely need transportation beyond public transit to meet potential business. A scooter will create some of the above but at least I can take comfort in - yes, but not as much.

Something else that strikes me about car ownership - the fact that so many of our cities sprawl and are auto dependent makes for some really lonely people in my book. Certainly cars are not the only reason for this but I believe urban sprawl and being car dependent add to this.

Rob

[SteveinMN]

Something else that strikes me about car ownership - the fact that so many of our cities sprawl and are auto dependent makes for some really lonely people in my book. Certainly cars are not the only reason for this but I believe urban sprawl and being car dependent add to this.
Being a bit of a gearhead myself, I've read several articles and seen a few news reports on why millenials seem disinterested in cars.

One facet of the story that I've seen/heard in more than one place is that millenials no longer need cars to meet their friends, because their friends are texting them and are on Facebook/twitter/SnapChat/whatever. It's no longer necessary to get to the club or the burger joint to get together with one's buddies -- and I think this fits in well with the ongoing fractionalization of leisure time. We don't all do the same things for entertainment and leisure anymore; no need to go with a crowd.

I think an important facet that McFarland and the others are missing is that it's getting harder to encourage millenials to lust after a particular model of car. Point A to Point B with a minimum of expense and fuss is what they want, and signing on for a $25K loan does not fit into that scenario. Car companies had mixed success with trying to sell cars to millenials even before The Great Recession, though. Ford and Honda and Scion (Toyota) all tried to market cars specifically to young people buying their first cars and all of the models they geared to that audience sold far better to us Boomers. Oops. I really think they don't have a good handle at all on what young adults want.

[ToomuchStuff]

I agree with steve, social media, cell phones, internet and instant access have curbed some of the social aspects of vehicles. Lack of inexpensive smaller vehicles is another issue. Even the lower priced vehicles today, well good luck finding them on the lot. They want to include all the expensive bells and whistles.

[Stella]

I'm on the border of the millennialist and gen x, supposedly, and I see this with most of my friends. I don't know a single person in my peer group that gives a fig what they or anyone else drives. Not even a little. I think Steve's assessment is dead on. Point A to point b with as little hassle as possible. Thats what we are looking for.

[gimmethesimplelife]

I'm on the border of the millennialist and gen x, supposedly, and I see this with most of my friends. I don't know a single person in my peer group that gives a fig what they or anyone else drives. Not even a little. I think Steve's assessment is dead on. Point A to point b with as little hassle as possible. Thats what we are looking for.Somewhere I can see a panel of marketing experts frustrated and pulling their hair out as the messages of the past - luxury is available and you deserve it or the commercials that show cars whizzing around corners are not going to work with this generation. I'm glad to hear it/see it. The longer I have been without a car the more I'm glad I'm doing without.....Rob

[iris lilies]

I am glad that when I win the lottery I wont' have to compete with Gen Xers for those cool old cars. More Triumphs and XKEs for me.

They also do not like Victorian antiques, and I say again: great! just more for me.

[mm1970]

I agree with steve, social media, cell phones, internet and instant access have curbed some of the social aspects of vehicles. Lack of inexpensive smaller vehicles is another issue. Even the lower priced vehicles today, well good luck finding them on the lot. They want to include all the expensive bells and whistles.

I had an interesting conversation with a coworker a couple of weeks ago. I'm firmly Gen X, he's 32 right now so...? I think he's still in Gen X. He said "it's not because they are environmental or anything like that. They are just too effing lazy to get a job and work for a car." I couldn't believe he actually said that.

[Gregg]

I'm surrounded by Gen M. Most use a car to get around just like the rest of us, but the only ones with new cars tend to be the ones whose parents provided it. My eavesdropping also indicates they generally don't plan to take on large student debts, buy houses or really buy much of anything beyond super tricked out phones and tablets. DD2 and friends are amazed by the consumer porn that arrives with the mail every day. "Who buys all that crap?" is the general theme. Maybe, just maybe the pendulum is swinging back the other way, away from the debt laden gold collar workers that proceeded them. That would be a nice change.

ETA: The kids have all been really interested in our new, very much downsized house. Almost without fail that group is geared toward smaller and simpler. Its very refreshing.

[ToomuchStuff]

Something else that came to mind (after dealing with 16-18 year old kids) is lack of sub $1000 cars that were out when we kids, as well as now, under 18 cannot own cars. (parents have to be on the title at least in my state) When I was a kid, getting your first car was a motivation. Now at 18 you have other things going on and your used to (loosely) provided transportation, getting a car seems down on the list.

[SteveinMN]

My eavesdropping also indicates they generally don't plan to take on large student debts, buy houses or really buy much of anything beyond super tricked out phones and tablets. DD2 and friends are amazed by the consumer porn that arrives with the mail every day. "Who buys all that crap" is the general theme.
Super tricked out phones and tablets, which half of us on this forum see as "Who buys all that crap". :D


Maybe, just maybe the pendulum is swinging back the other way, away from the debt laden gold collar workers that proceeded them. That would be a nice change.
I'd like to see that. I think it's also a more pragmatic approach to a world of work in which outsourcing is a constant drumbeat in the background, businesses come and go at the whim of people who aren't dependent on those companies for their livelihoods, and the markets can plunge into panic if/when some banana republic somewhere detonates a big bomb. Better not to encumber oneself if a quick getaway may be called for.

[Gregg]

Something else that came to mind (after dealing with 16-18 year old kids) is lack of sub $1000 cars that were out when we kids, as well as now, under 18 cannot own cars. (parents have to be on the title at least in my state) When I was a kid, getting your first car was a motivation. Now at 18 you have other things going on and your used to (loosely) provided transportation, getting a car seems down on the list.


DD2 bought a POS used car, at 16 and against my better judgment, for $500. A kid backed into her in the HS parking lot a week later and his parent's insurance adjuster wrote her a check for $1200. Two months after that she sold the car for $750. Shows what I know.

[Gregg]

Super tricked out phones and tablets, which half of us on this forum see as "Who buys all that crap". :D

Lol, so true. I've been on a two year long purge cycle, slowly and steadily getting rid of superfluous goods. My single indiscretion has involved crossing over to the dark side of tech to get a phone that allows me to keep pace in their world. It really doesn't take up much space...



I'd like to see that. I think it's also a more pragmatic approach to a world of work in which outsourcing is a constant drumbeat in the background, businesses come and go at the whim of people who aren't dependent on those companies for their livelihoods, and the markets can plunge into panic if/when some banana republic somewhere detonates a big bomb. Better not to encumber oneself if a quick getaway may be called for.

I think that's spot on Steve. The 'kids' are smart enough to realize that there are lots of benefits to being mobile. The ability to chase new jobs/opportunities, schools, lifestyle choices or just good old, down home freedom to change your mind seems to rank a lot higher for this group than it did for mine. I say good for them!

[gimmethesimplelife]

I'm surrounded by Gen M. Most use a car to get around just like the rest of us, but the only ones with new cars tend to be the ones whose parents provided it. My eavesdropping also indicates they generally don't plan to take on large student debts, buy houses or really buy much of anything beyond super tricked out phones and tablets. DD2 and friends are amazed by the consumer porn that arrives with the mail every day. "Who buys all that crap?" is the general theme. Maybe, just maybe the pendulum is swinging back the other way, away from the debt laden gold collar workers that proceeded them. That would be a nice change.

ETA: The kids have all been really interested in our new, very much downsized house. Almost without fail that group is geared toward smaller and simpler. Its very refreshing.Thank You for posting this Gregg. I see so much hope in this for the future. Rob

[mschrisgo2]

This is so interesting! I just had a long conversation with my DGS1 on Thanksgiving about the whole "buying a car" situation. He just turned 21, is still living with his mom (pays half of the rent) and younger brothers. He has a pretty good day job, and a side job in software that makes him a small fortune. But he has no interest in owning a car. In fact, if mom's not around and no buddy is going his way, he calls Uber for a ride to work!

"They pick me up at the door and drop me off at the door. I don't have to worry about parking, maintenance, paying for insurance, wondering if it will start on a cold morning, hoping nobody hits me... It's just the best deal all the way around. I can use Uber to get to work and back, 80 trips a month, for way less than half of what I'd have to pay for insurance alone. But I don't even have to do that, usually only about 6 or 7 trips a month. See, if a guy is connected, nobody goes alone. The guy with the Prius loves to get a buck here and there, pays for his gas. Share a little, save a lot."

Every time I get to feeling pessimistic about the future of the world, I talk to this kid and his friends. They give me great hope!

[jp1]

I was going to mention uber as well. Most of the millennials I know are coworkers. Since we're in San Francisco a car is definitely not,a necessity. Uber and transit work just great for them. And as you mentioned, no payment, no insurance, no hassle, no,dealing with parking.

And I agree about the changing structure of social life thanks to phones. When I was a 20 something gay guy the main way to meet other guys (for friendship or potential dates) was to go out to a bar. I'm online friends with a number of guys who are now in that 20-something gay demographic. They mostly apps like Grindr for that. They stil go to bars, but that is mainly for socializing with existing friends, not so much for meeting new people.

I suspect the car marketers are going to have trouble figuring out the millennials just as the music marketers did. A number of years ago I read an article about their struggles. One of the big music manufacturers held a focus group of late teenagers to assess their music consumption habits. As it was winding up the execs didn't really feel like it had been useful. As a thank you they had piled a table outside the conference room of the focus group with stacks and stacks of cd's of the latest music and told the participants to take as many as they wanted. Not a single kid even stopped to glance at the table as they left. That was when the execs learned what they needed to know about millennials.

[LDAHL]

Is this a cultural shift or simply underemployed people making a virtue of necessity?

[Ultralight]

Is this a cultural shift or simply underemployed people making a virtue of necessity?

Good question. I think perhaps it could be both.

[rodeosweetheart]

I loved living carfree in the city when I was young, in grad school, working. I even walk to work in the Loop each day.

Then I had three kids, and my carfree days ended for a while.

Not sure if some of this is not dependent on one's stage in life.

[catherine]

Is this a cultural shift or simply underemployed people making a virtue of necessity?

I think it's cultural shift. I know that Baby Boomers and their parents and even grandparents coveted cars as a status symbol. Not sure if cars are reading "status" to the Millennials. If they were, Millennials would find a way to get them, the same way you used to find Cadillacs in poorer neighborhoods.

[Ultralight]

I think it's cultural shift. I know that Baby Boomers and their parents and even grandparents coveted cars as a status symbol. Not sure if cars are reading "status" to the Millennials. If they were, Millennials would find a way to get them, the same way you used to find Cadillacs in poorer neighborhoods.

Smart phones are a status symbol though. I also think that Pinstagramblr-type things are also the status symbol of the Millennial -- with all the pics from doing cool stuff like traveling or eating some meal at a trendy place.

[SteveinMN]

Is this a cultural shift or simply underemployed people making a virtue of necessity?
I vote for "cultural shift". Even the teenaged children of family friends and college-age people I know have not been champing at the bit to get cars. And many of our friends (55-60 years old) are starting to plan for retirement residences within walking or mass-transit distance from core shopping (groceries, drug store, etc.). Some of these people have lived in outer-ring suburbs (near nothing but other houses and farmland) for decades. That says cultural shift to me.

[ApatheticNoMore]

I think it's a cultural shift. The car as status symbol meh who cares, who ever has, but the car as *convenience* see that I get. But the millennials seem more able to forgo this convenience. True public transportation is slowly improving, but that is very slowly, millenials are moving much faster than the geological time speed of improvements in public transit :)

[Ultralight]

I think it's a cultural shift. The car as status symbol meh who cares, who ever has, but the car as *convenience* see that I get. But the millennials seem more able to forgo this convenience. True public transportation is slowly improving, but that is very slowly, millenials are moving much faster than the geological time speed of improvements in public transit :)

Millennials also Uber, Car2Go, cycle, scooter, etc.

[LDAHL]

We'll know if it's a cultural shift as they transition to child-rearing and middle age. Enough hippies went into yuppie mode to make me doubtful about a generational rejection of materialism. I suspect self-driving cars at some point may be embraced by this particular cohort.

[Ultralight]

We'll know if it's a cultural shift as they transition to child-rearing and middle age. Enough hippies went into yuppie mode to make me doubtful about a generational rejection of materialism. I suspect self-driving cars at some point may be embraced by this particular cohort.

I was thinking the same thing. Jerry Rubin!

[LDAHL]

I was thinking the same thing. Jerry Rubin!

Yippie to Yuppie?

[Ultralight]

Yippie to Yuppie?

Yeah, I think that is what will happen to the Millennials if there is a sudden growth in jobs and income. Call me cynical, but I think they'll get a quick fondness for stuff.