Generation Why

Younger drivers have reportedly had it with the dealership experience, with Gen Z even more disenfranchised than Millennials. Though it’s difficult to imagine anybody visiting a showroom within the last 12 months having any other reaction. Incentives are down, prices are up, and there’s a good chance whatever you wanted to buy isn’t going to be on the lot anyway. Someone saying they had an exemplary dealer experience is becoming about as common as people claiming they enjoy going to the DMV.

However, CDK Global Inc. still opted to conduct a survey in the hopes of determining just how much less tolerant younger shoppers might be compared to older generations. The takeaway probably isn’t going to shock you, even if the sheer volume of first-time buyers that don’t care for dealerships might.

Matchbox is headed towards 100 percent recycled, recyclable, or bio-based materials by 2030. Is this the end of die-cast cars as we know them?

Automakers are turning up the wick on drive-sharing investments and slowly transitioning from car manufacturing to providing mobility. That’s likely a good bet, too, considering a recent report from McKinsey Global Institute.

The report, titled “ Poorer than their parents? A new perspective on income inequality,” is a stark reminder that the economic situation isn’t as good as it was 10 years ago, let alone compared to the highs of the postwar West.

For starters, 65 or 70 percent of households in the advanced nations studied were “in income segments whose incomes in 2014 were flat or down compared with 2005,” states the report. The United States is one of the countries pulling up that average with 80-percent of households in income segments either flat or falling.

Last Wednesday morning, I received an email about an upcoming event in Portland, Ore. held by classic car insurer Hagerty. Fifty teens and young adults between the ages of 15 and 25 would get to drive a handful of classic and vintage cars and trucks around a marked course. All of the vehicles available would have one thing in common: a manual transmission.

Furthermore, I, too, could participate in learning the art of the manual transmission, having acquired my permit the day before the press release entered my inbox.

All I had to do was head down to Portland Meadows — where thoroughbreds are the dominant form of horsepower between October and February — on Saturday.

We tend to armchair quarterback what’s wrong with specific automotive brands quite a bit in the TTAC comments. Meanwhile, there are people in the real world who get caught up in what’s actually wrong with some of these brands’ products by buying them — for example: the Buick Regal GS.

Jeremy writes:

I owned a 2013 Regal GS manual, bought brand new in Jan 2014 and sold (at a loss) on December 31 2014.

This should be good.

Ladies and gentlemen, it’s time to bring an end to an automotive segment that simply needs to die: the non-sporty coupe.

For those of you who aren’t sure what I mean when I say “non sporty coupe,” allow me to describe the two types of coupes that currently exist today. One is the sporty coupe. This is a car with sleek styling, and a cool interior, and a lot of power, and some modicum of performance suspension, or performance brakes, or something performancey, like a faux carbon fiber door panel.

Examples of the sporty coupe include the Porsche 911, the Ford Mustang, the Subaru BRZ, and – if you ask the Germans – the BMW 6 Series Gran Coupe, though the rest of us just consider that to be an overpriced sedan.

And then you have the other type of coupe. The non-sporty coupe. This is a car that was a sedan, until some auto industry geniuses got ahold of it and decided they could create an entirely new segment by just throwing on a new, two-door body and marketing it as “sporty.” Examples include the Honda Civic, the Honda Accord, and, well, that’s about it.

Driving a rear-drive, turbocharged car in the winter is usually an exercise in gentle throttle control coupled with self-restraint. And it’s tough when you lack both of those traits.

Past experiences with this kind of car tend to follow a typical pattern. Enter a turn, lift the throttle to unsettle the rear of the car, get back on the gas. Wait, wait, wait for the turbo to spool up (if you’re in something like a Volvo 700 or 900-Series wagon) and then *BAM*, get hit with a fist-full of boost. No wonder Gordon Murray always championed the naturally aspirated engine.

But it looks like things have changed.

Try as they might, auto makers aren’t reaching Generation Y with their online social media properties. A new study by AutoTrader shows that just 5 percent of Millennials used social media to shop for vehicles.

Generation Y has just edged out Generation X in the new car market. A study by J.D. Power shows that, year-to-date, Gen Y buyers (defined as being born in 1977-1994) are buying 26 percent of new vehicles, versus Gen X (1965-1976), which bought 24 percent of new vehicles in the same period.

Mercedes and Audi all have a sub-$30,000 entry in their American model ranges. BMW’s cheapest model is just a few hundred dollars above that price point. Infiniti will likely have their own model in that space. So why not Lexus?

The new Citroen C4 Cactus is delivering on its promise to offer a C-Segment car for a B-Segment prices, with base versions starting at just under 14,000 euros – by comparison, its sibling, the C4 hatchback (which is more like a Volkswagen Golf, as opposed to the quirky, pseudo-crossover Cactus) starts at 18,850 euros. But the low price of the Cactus isn’t even the big story here. Instead, Citroen appears to be aping the mobile phone industry with two new innovative pricing plans for the Cactus.

News of Audi’s marketing efforts for the upcoming A3 has been making the rounds on the auto blogosphere for all the wrong reasons. As Automotive News reports, the 60-odd page launch guide given to dealers is supposed to be a codex for appealing to Millenial buyers with “farm-to-table” food, craft beer and Spotify playlists. Since the goodwill towards my angry-young-millennial shtick has evaporated over the past two years, I’ll say that this whole thing sounds like Audi trying to copy GM’s ham-handed youth marketing efforts. For now, let’s bring it back to the product.

The A3, as we know, is a front-drive Audi 4-door that only comes with a two-pedal transmission and is based on the same MQB platform as the Golf. And I’m really looking forward to it.

Back in September, I wrote a piece lamenting the death of Honda’s high-perofrmance hallmark, the twin-cam VTEC 4-cylinder engine. It was just the sort of article many of you are fed up with: a lengthy piece filled with flowery prose and Honda fanboy-ism sprinkled with a condescending explanation of the auto industry’s inner workings. Miraculously, it was fairly well-received. But I’ve had a change of heart.

One of the main criticisms of Generation Why is the lack of hard data to support this column’s ongoing thesis: that the lack of interest in car ownership among millenials is related to economics, rather than any sort of anti-car/pro-environment/pro-urban ideological shift among young people. Now, a key study from Deloitte confirms our initial hunch: young people want cars, but cannot afford them, and the notion of a car-free future, with walking, cycling and transit replacing the automobile (whether privately owned or shared via a service like Zipcar) is an unrealistic fantasy that somehow continues to have currency.

Rivaling Jack’s tales of his harem in the “Most Unpopular Subject Matter on TTAC” Sweepstakes is my constant references to rap music. What I perceived to be a wink-and-a-nod to younger readers who enjoy hip-hop was succinctly summed up by one commenter who wrote “It wouldn’t be a Kreindler piece without a [deleted perjorative for white wannabe rappers] reference”. Although I resolved to tone down the “shout-outs”, an recent piece by Bloomberg demonstrates that there is a time and a place for a knowledge of hip-hop music.

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.

“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.

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.

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.

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:

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.

As a first-rate cynic and an enthusiast of the English language, I reflexively cringe when I hear the latest “CBC buzzwords” (CBC is Canada’s version of NPR) that get thrown around by the sort of people who think that bicycles will eventually replace cars as our main mode of transportation in our future communitarian-utopia of urban living.

You may have heard them before; words like “vibrant”, “sustainable” or “diverse” inevitably always used as a positive adjective regarding one’s proximity to a farmer’s market or yoga studio. Describing oneself as a “storyteller” when one’s employment situation is murky at best. Describing any commodity good as “artisinal”. This is what I call “word torture”, and if George Carlin were still alive, he’d have a field day.

Imagine my horror when I logged on to the website for the latest installment of Ford’s Fiesta movement and saw it was chock-full of these nebulous descriptors. I nearly had to go back and read one of TTAC’s “Volts on Fire” stories just to calm my rapidly rising blood pressure.

One of the most enduring narratives in the past few years has been the idea that somehow, Honda has lost it’s way. The maker of affordable, high-quality and fun to drive cars had suddenly become a purveyor of bland appliances that were the furthest thing from what they built their name on.

After a long slog through NAIAS and getting TTAC’s house in order for the new year, I was delighted to see the response to my first big endeavor of the year, my Generation Why piece. But with 174 comments and multiple tangents, I wanted to open up the floor to clarify a few things.

BMW’s debut of the American-spec 320i at this year’s NAIAS may have been big news for the American auto press, but up here in frigid Canuckistan, the 320i is old hat. Roughly a decade ago, BMW launched the $33,900 320i, along with an ad campaign touting its price, which was comparable to a well equipped Honda Accord.

With the TWATs under way and awards season about to gear up, I would like to take a moment to highlight the one car I’ve found that ticks all the boxes for me personally. It’s the Fiat 500 Abarth.

Confession time: the motorized vehicle photograph that adorned my high school locker didn’t have four wheels. It had two. I have always had an interest in bikes, one which has slowly grown from drooling over the 2002 Yamaha R6 (which stayed in my locker through all four years of high school) to buying motorcycle magazines to spending more time reading about bikes than cars. But I’ve yet to buy one for the same reason that kept me from buying a car for so long; insurance.

It’s been a little while since we checked in on GM’s A-Car experiment, the Chevrolet Spark. After some cringe-worthy initial attempts at marketing the Spark, we are now getting some early data, and the takeaway is this; sales aren’t so bad, but the demographics of Spark owners aren’t quite what GM wanted.

Coming straight out of the “I can’t believe people get paid for this nonsense” department is Scion’s new marketing initiative; picking heavy metal-listeners as its next target demographic.

This episode of Generation Why is brought to you by some numbers, not essays on product or marketing efforts. The chart above shows the mean earnings of college graduates with a Bachelor’s degree and full-time employment ages 25-34.

A hot tip from a few friends in my generational cohort, the ones who don’t drive or have any interest in motoring. They all love this ad for the Dodge Dart and encouraged me to check it out.

According to Toyota, if you don’t drive, you won’t get the girl. But at least a yarmulke-clad Jean Reno will help you out. No wonder so many young Japanese men are staying shut in their rooms.

Chevrolet is slowly launching the Spark subcompact in select markets across the United States, with more MTV/Viacom-derived “millenial focused” ad campaigns. But Chevrolet is being cagey, if not evasive, regarding projected sales.

Just when we thought that Chevrolet couldn’t do enough to alienate their coveted “millennials”, the press release for the Chevrolet Spark just provides further evidence that the brand is trying way too hard to the point where it’s embarassing.

Video NSFW for language

Automotive News features one of the better breakdowns of automaker Facebook campaigns, minus the breathless masturbatory social media buzzwords that so frequently surround any discussion of “engagement” or “conversations” . The consensus seems to be shifting in one direction; it’s worthless, even if Mark Rechtin and David Barkholz are too polite to say so.

Previous editions of Generation Why have explored one of the last glimmers of automotive affection that the “carless generation” still holds on to- the love of classic cars.

My iPhone has no less than 7 social apps on it (Facebook, Facebook Messenger, Twitter, Tumblr, Tradyo and Instagram), not to mention Google Maps, which like the aforementioned programs, can utilize my phone’s built in GPS beacon to share my location with others (including Apple). My recently departed 1997 Miata was the anti-iPhone. No GPS, no traction control, a barely there ABS system, no electronic throttle. Everything mechanical. My next car will be similar. Simple, robust, resilient. What if we no longer have that option anymore?

Even as GM abandons Facebook advertising because of a poor ROI, Ford is going full steam ahead with Facebook spending and including more “sponsored stories” – i.e. cheesy advertorial content – as part of their “accelerated” spending. The problem is that it doesn’t work.

Happy 28th birthday, Mark Zuckerberg. Your baby is about to go public, but GM still had to rain on your parade by pulling their advertising from Facebook because GM ad men didn’t think it was effective.

“There’s only one word that’s banned in our company: brand,” Mr. Dyson said, speaking at “Disruption By Design,” a conference put on by Wired on Tuesday. “We’re only as good as our latest product. I don’t believe in brand at all.”

I agree with Dyson. Brand is an utterly obnoxious word. Brand really just means “reputation”. As we’ve seen before, “building your brand” without any substance behind it will be immediately exposed as fraudulent. But brands still matter.

Here’s a quick example of Gen Y marketing done right, but this isn’t so much to do with the product.

With the release of the SciBaru FRZ just weeks away, everyone’s been caught up in the sticker price, available options and aftermarket support for the car, but nobody has asked a crucial question; what about insurance?

General Motors has often been the focus of criticism at Generation Why – despite what some of the B&B suggest, it’s merely a function of the fact that they put themselves out there the most when it comes to publicizing their youth marketing efforts. But it’s time to reward their efforts with some free, unsolicited advice from a know-it-all keyboard jockey.

If it weren’t for a Manhattan nightclub shooting in 1999, there’s a very good chance that it would be Cadillac, not Lincoln, that would be undertaking a costly showroom upgrade program, a brand “reboot” to shed a mushy identity and a hail-mary attempt at saving the ailing luxury division.

Go online to Pinterest, the newest social network for sharing photos and other content and you’ll see. The automobile is far from dead – even on a site supposedly dominated by females. Economy cars are largely absent. Exotics, luxury cars and most importantly, classic cars make up the majority of the posts, or “pins”. BMW 2002s, vintage Ford Broncos, Porsche 356s, muscle cars of all types and stripes and of course, the ineffable coach-built Ferraris of the 1950s and 1960s comprise a substantial portion of the automotive photos being shared on Pinterest as well as Tumblr, another content sharing service.

“We tried to teach dealers how to calibrate conversations,” Mr. Martin said. “Stop trying to be cool and give them the fist pump. They can tell you don’t get it.

Journalism profs would admonish us for “burying the lede”, or hiding the most important information way down in the story, rather than putting it at the front where it’s easily accessible. Amy Chozick of the New York Times put that gem at the very end of her article on how General Motors is hiring consultants from MTV, including Ross Martin, quoted above, to help their brand connect with young people. Mr. Martin, take your own advice.

A 19 year old student in Halifax, Nova Scotia put up a classified ad looking for a vintage car. The make, model, year and body style are all irrelevant. What Spencer, the ad’s creator, is looking for is “…a classic car with a past that I can keep alive, and continue to keep alive through future generations, continuously adding to the history of a special car.” And he doesn’t want to pay a cent for it.

Since many of you old-timers see us young folks as self-absorbed brats, I decided I wouldn’t spam TTAC with my “angry young man” rants too often – but today is a special case, with the results of a Deloitte study on Gen Y being released. As you’d guess, they are about as accurate as Toyota’s notion that consumers aged 18-30 would want to buy boxy subcompacts that they can customize.

Last time on Generation Why, we discussed Chevrolet’s youth-oriented concepts, and how the big problem related to marketing to young people was their poor economic prospects. But what about those that can afford a car? Are “connectivity features” like Toyota’s Entune, really the way forward? What about the good old-fashioned notion of just building a car that people will want?

Are in-car CD players the mark of a vehicle aimed at geezers? According to an Automotive News report, the CD may be going the way of the cassette or 8-track player in certain cars – namely those aimed at younger, “Gen Y” buyers, who use smart phones as music devices.