A study by Edmunds on the buying habits of millennials shows that 2013 was not a particularly good year for young car buyers. Despite making good headway in 2012, 2013 saw those gains practically eroded, as a weak job market and rising home prices helped stymie any growth in market share for automotive consumers aged 18-34.
Category: Generation Why
“Too Poor To Drive”. This is the gut level conclusion that’s been propagated in “Generation Why” since January, 2012, long before the theory gained currency in the broader automotive world. In the nearly two years since, the “kids aren’t interested in cars because of technology/the environment/urbanization” meme has held up tenaciously – and it’s not entirely false.
It’s not just oil, water and other precious resources that we’re running out of here on planet earth. Apparently, we’re a little short on automotive nameplates too. If you believe the reports in industry trade pubs, we’ll eventually be overrun by obscure alphanumerics as the number of trademark-ready monikers gradually thins out. Scarcity isn’t the only factor behind it either. Frequently, nameplates get retired, and an all-new version of the previous car is re-introduced with another combination of numbers and letters – just like Nissan is planning to do with the Skyline after 56 years of production.
It is a sound that is familiar to anyone of my generation, the manic buzzsaw howl of a Honda 4-cylinder. Unfairly tarnished in the minds of the public by legions of single-cam D-Series breathing through a potmetal Pep Boys muffler, the Honda 4-cylinder produced a truly moving tune in its highest iterations, the twin cam VTEC B-Series models, as they growled their way to stratospheric redlines. That era is officially over.
The very first Generation Why column began after GM unveiled two concept cars aimed at millennial buyers, with the subsequent 18 months spent debunking numerous articles claiming that young people have abandoned the automobile in favor of electronic gadgets.
This author has long maintained that such talk was, in its most extreme form, the wishful thinking of people with a not-so-hidden desire to see cars disappear from the urban landscape. At its most benign, it’s simply foolish. Finally, the rest of the world appears to be catching on to the notion that when it comes to falling rates of car ownership, “it’s the economy, stupid.” General Motors just happens to be one of the first to say it publicly.
This is the Honda Grom. In the rest of the world, it’s called the MSX125. Squint really hard, and it almost looks like a Ducati Monster. I say almost because this thing is tiny – those are 12 inch wheels, you know. It packs a whopping 125 cc, much like a scooter, but it has a real 4-speed gearbox. It also gets 130 mpg.
My reference point for “old cars” is an old MGB, owned by my friend Paul. Passed down from his father, Paul’s MGB has less than 70,000 original miles and every conceivable part that needed replacing had been swapped out for new during its relatively easy lifetime. When Paul offered me a chance to drive it, it took me all of two seconds to agree on waking up at 6 AM on a weekend just to do so.
If the first half of my automotive life was informed by Honda products, the second half was largely colored by “Sport Compact Car” magazine, which I still consider to be America’s finest automotive print magazine. From the age of 13 onward, I faithfully purchased SCC every month, enthralled by the idea of low-budget import car builds and sweeping California canyon roads. I liked that they took a different tack than most of the other tuner magazines; they weren’t as dogmatic as the other rags were with respect to the “Japan rules, America sux” dichotomy that seemed to pervade the lesser publications. There were no photo spreads of Asian women in flourescent bikinis. Unlike the editorials in Grassroots Motorsports, the budgets for their projects seemed realistic.
One shot that has stuck with me is this shot of an ancient 323 GTX sliding through the dirt; I can’t remember if it was an SCC project car or not, but it encapsulates what I always pictured Southern California to be; an automotive playground free of rust and full of roads that are appropriate for whatever driving conditions you could want. The 323 GTX’s near me are either terminally oxidized or going for absurd amounts of money ($6,000 for a barely running 26 year old Mazda that would amputate my legs in a crash? No thanks) but Mazda was kind enough to lend me a Mazdaspeed3 for my first trip to Los Angeles so I could live out my canyon run fantasies on the Angeles Crest Highway, albeit in front-drive form only. If that wasn’t enough, TTAC contributor Jeff Jablansky brought along his own Volkswagen GTI MKVI for comparison.
Something I’ve long maintained (and that has been backed up by many of the B&B) is that young people still like cars and do care about them. The issue of falling car ownership among young people is largely an economic one. The cost of living is going up while wages are stagnating. Gasoline is expensive. Student debt, smartphones and rent are more important obligations than car payments, insurance and fuel. All of that can be quantified with data.
What hasn’t been so easily demonstrable was that young people still like cars, despite the wishful thinking of many who cheer for the end to the automobile era. Now we finally have some good research that backs up my gut feeling.
Confession time: I used to be really into Import Cars and the tuning scene. My high school years coincided with the rise of The Fast and the Furious franchise, and having already been pre-disposed to loving Japanese cars, it was natural that I’d gravitate towards this niche.
Yet another bit of bleak data from Europe relating to new car sales. A popular school of thought holds that young people’s aversion to cars is largely rooted in economic factors. When everyone under 30 is broke, living at home and wallowing in student debt, the last thing on their mind is a car. But the hope is that once things turn around, it will be time for Generation Y to get motoring again. At least in North America. Over in Europe (or certain parts of it, at least) things are much more bleak.
As Mercedes-Benz, BMW and Audi rush to prepare new entry-level product to attract a younger crowd, Jaguar Land Rover is proudly calling “bollocks” on their efforts to attract younger buyers. Although much of the growth in the “near-luxury” segment is expected to come from vehicles with a transaction price in the $30,000-$40,000 range, JLR’s sole offering in that segment is the low-volume LR2. It’s the $50,000 Evoque that’s driving sales for the brand. This interview from Automotive News with JLR’s North American CEO, Andy Goss, explains why: Read More >
18 months after the first ever Generation Why column debuted on TTAC, one of the buff books has finally latched onto the whole “kids don’t drive anymore” meme. Road & Track’s feature on today’s youth and their lack of enthusiasm for the automobile is much grander than anything I’ve ever done. In an ideal world, I suppose I would fly a friend of mine to California on an all expenses paid trip where we’d sample a Rolls-Royce Ghost, a Lamborghini Gallardo, a Porsche 911, a Ford F-150 SVT Raptor and the talents of two race car drivers. In the real world, the best I can do is initiate a low-speed four-wheel drift in my Miata while asking them if they still think it’s a girl’s car. Such is the life of a blogger.
For anyone like myself – that is, a car fan who grew up in the 1990s and watched Japan’s sports cars disappear from the American market in one sudden swoop, news that Japan’s once mighty auto industry is being “hollowed out” might come as a shock. The cars that defined my youth – the RX-7s, Supras even the VTEC Honda compacts, are a distant memory. Most of what Japan offers on our shores are aimed at the mainstream, while at home, kei-cars and hybrids dominate the market.
A lot of the criticism leveled at Japan is that their focus on the mainstream market and alternative powertrains is what sparked their auto industry’s current malaise. But this is a superficial and fallacious assumption that supposes that the glut of superb Japanese cars in the 1990s is a baseline for our expectations of what a Japanese auto maker should be building and selling. In fact, it is an aberration that will never occur again.
Until the research arm of TTAC gets more funding, we’ll have to rely on data from third-parties like J.D. Power. The venerable outfit recently compiled a list of the Top 10 cars with the highest percentage of Gen Y buyers. The results aren’t entirely surprising.