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Young People Are Losing Interest in Cars, But That Doesn't Mean the End of the Road for Automakers

Posted: 07/01/11 06:29 PM ET

As expected Cars 2 has hit movie theaters and legions of 7-year-olds have put it on top of the box office. But the world has changed in the 10 years since the first Cars movie, and automotive culture -- the adrenalin rush of horsepower, the thrill of speed and gas-fueled adventure -- is looking more and more like the preoccupation of a bygone era. Lightning McQueen may as well take his place next to Thomas the Tank Engine: The reign of the car as the central fetish of American life is drawing to a close.

Increasingly, young people don't care about cars, according to surveys and forward-looking market analysis. Roland Berger Strategy Consultants recently published a study of the 2025 auto market that documented the car's decline.

For example, among current Japanese students and graduates in their 20s and 30s, cars rank well below fashion, music, and video games in terms of interest. Young Germans are expressing a declining enthusiasm for driving, but an increasing desire to ride a bike or take public transportation. Even In China, where car sales are surging, youths are expected to begin losing their interest in automobiles by 2015.

The U.S. is leading this wave. In 2008, only a third of American 16-year-olds had a driver's license in 2008. Last year, a study revealed that the percentage of new cars sold to 21-34 year-olds had fallen to 27 percent, down from 38 percent in the mid-1980s.

The trend is being called "demotorizing," and it's all about the idea that, while getting around is great, owning a vehicle is not all that exciting. For people under 30, in fact, it's an encumbrance. Their lives are increasingly organized around updating their electronic gadgets, communicating with each other in small, ongoing text-bites, curating their various online identities and migrating to complex virtual experiences. Transportation means just getting to where they need to go, period. Cars are fine, but even better in the minds of young people is choosing a place to live that offers abundant transportation options.

Ironically, as this is occurring, cars themselves are morphing from mechanical contraptions into rolling pieces of computerized technology. But they can't morph fast enough, even as ever more gadget-ized rides, such as the hybrid-electric Chevy Volt and the all-electric Nissan Leaf, arrive in the marketplace. Automakers are currently engaged in something of an arms race to bring more communications and GPS-driven technology to cars. Over the next decade, a vehicle that can't seamlessly integrate with an iPhone or a tablet computer will struggle to sell.

They are all ultimately waging a losing battle, however. For almost its entire history, the automobile has relied on the excitement it embodies. For Boomers and even members of Gen X, cars represented many things, chiefly freedom. If you can remember who Fonzie was, you probably share this collective emotional attachment to convertibles, leather seats, car stereos, spoilers, and acceleration. Automakers have had to introduce new models every four years because consumers have always yearned for the next model, the next ride.

But that charge has been replaced by a cell phone upgrade every two years (and, fairly soon, a new tablet computer on roughly the same schedule). Meanwhile, there's a move afoot to make transportation into a commodity that can be accessed on demand, without any of the responsibilities associated with ownership.

Car sharing is rapidly gaining in popularity -- and investor appeal. Big coastal cities are under increasing pressure to expand their mass-transit offerings, particularly when it comes to connecting urban centers to airports. The overall U.S. auto market may be recovering from the depths of its 2009 collapse, but it's anyone's guess whether it will return to its 2005 pinnacle of 17 million vehicles sold.

There are still rumblings of the car cult in the developing world, where more than 80 percent of automotive production and sales growth is predicted to occur. But as China and Brazil modernize, their economies are leapfrogging whole swaths of the industrial playbook. If it's not necessary to lay telephone cables because people have mobile phones rather than land lines, then why construct a 20th-century-style highway system when the population is migrating to cities and has little use for the open road?

If the youth of China have high-speed rail lines and an abundance of domestically produced, electric "city cars" that can be rented for a few hours or a few days, how can the familiar Western rite of passage of getting a drivers license compete with the average Shanghai teenager's lust for the latest mobile gaming platform? A passport is infinitely more valuable.

The demotorizing trend is already strong in Asia. Over the next 15 years, it will begin to take hold in the U.S. It will be part of a larger movement away from ownership, and it will introduce problems -- not least that in advanced capitalist economies, somebody has to own stuff, and it's generally not good when most of that stuff is in the hands of a select few.

But demotorizing doesn't have to spell economic doom for the auto industry. General Motors and Toyota can just as easily build vehicles that are designed to be collectively owned and shared as they can the personal vehicles of today. A larger problem may be the loss of the financing of personal mobility, something that has generated huge profits for automakers in the past and, not incidentally, helped create a thriving middle class by providing both jobs building cars and the credit to purchase a crucial component of middle-class life that would formerly have been completely out of reach. For many living in poverty today, a computer is.

But not being able to enable the masses to access a middle-class lifestyle is preferable to going out of business. The automakers will adjust -- or be replaced. Perhaps we'll lose something from our psyches as we create a world in which an emotional engagement with what we drive is no longer part of being a mainstream American. But that will be progress, even if it's hard for many people to say goodbye to Radiator Springs and the way of life it symbolizes.

 
 
 

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As expected Cars 2 has hit movie theaters and legions of 7-year-olds have put it on top of the box office. But the world has changed in the 10 years since the first Cars movie, and automotive culture...
As expected Cars 2 has hit movie theaters and legions of 7-year-olds have put it on top of the box office. But the world has changed in the 10 years since the first Cars movie, and automotive culture...
 
 
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HUFFPOST SUPER USER
sporty1
being me
02:35 PM on 07/05/2011
I wish you were right but out here in middle America they use cars as tools of expression of hostility, weapons of aggression with loud, sick noise produced from altered exhaust systems.
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conservativewhitemale
Silence is the language of God. Zip it.
07:52 AM on 07/05/2011
I haven't owned a car in over a decade now. An incredible lifestyle adjustment in midlife, but the benefits, not just financial, but physical and spiritual as well, are spectacular. It slowed my life down like nothing else could. I lost wieght, my blood pressure dropped, savings increased, energy increased, and as a single parent for those ten years, I had more "slow" time with my son, walking and biking, then any father could ever hope to. I still get flack from family and co-workers, but from this side now, that their lives are dependent on an armored personel carrier, seems suffocating to me. That, and they appear in the second half of life to have been robbed of their health and "creaturliness".
08:31 AM on 07/04/2011
One more reason we need high speed rail.
thebigbike
ran away to be a cowboy
05:20 PM on 07/04/2011
high speed rail is not going to be very useful without an investment in LOCAL public transportation at each node of the highspeed rail. That investment would, in cash terms dwarf any investment in the highspeed rail itself, because so very few cities in the US,at least in the Western US have any transit that is remotely acceptable to the broad segment of the middle class that does rely on cars for flexibility in employment and activities.
oilfield
small manufacturing business owner
11:13 PM on 07/04/2011
i agree....high speed rail is useless without light rail in the cities it services first....tampa to orlando....useless with buses on both ends.
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HUFFPOST SUPER USER
frank day
Republican = FAIL
11:11 PM on 07/03/2011
I have 3 boys and I noticed that they are just not much into cars.

They drive out of necessity but it isn't a big deal to them.

They'd much rather spend their money on other hobbies.

Also, wages have been suppressed and driving is more expensive.

I bought my first car in 1976 and paid $400 an 8 yr.old vehicle. I worked about 5 weeks to earn the

money at min. wage. My insurance was $10 a month and gas was .45 cents a gallon.

Today an 8 year old vehicle with under 100k miles might cost you $5000 or about 5 month of min.

wage work. Insurance will add another $75 a month and gas at nearly $4 a gallon.

I wouldn't have been driving at age 16 in the current economy.
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HUFFPOST BLOGGER
Matthew DeBord
01:40 PM on 07/04/2011
Good points. One thing that does concern me is the loss of financing of vehicles by young people, for the reasons you've outlined. Admittedly not easy to get a load for a cheap used car, but possible. But if youth turns off cars, that instrument, which is good for banks, dealers, etc. goes away.
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HUFFPOST SUPER USER
ignacio sanabria
Mirror synapses at work
03:09 PM on 07/03/2011
Who wants to spend countless hours behind of a wheel going from one place to another and spending money in the process? At the end of the day, everything hurts, including the back.
HUFFPOST SUPER USER
Robert SF
03:40 PM on 07/03/2011
No one wants to, but many people have to.
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MajorKong
If the pilot's good, see, I mean if he's reeeally
09:35 PM on 07/04/2011
True, but that's largely because a lot of our development was based around the automobile. Doesn't mean we couldn't go the other way if we wanted to.
10:52 AM on 07/03/2011
model d

as in de-motorization
the latest automotive trend
gripping the nation
generation when

the cost of gas and car and danger
from the enraged psychos on the road
or staying home gaming with strangers
when wear and tear on planet showed

the problem/solution so simple to see
when it comes to cars kids ok with me
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HUFFPOST SUPER USER
Carl Caroli
Give peace a chance
09:47 AM on 07/03/2011
Young people can't afford new cars, let alone high performance ones. Back in the 60's and 70's a sporty car cost less than a years salary for the average young person. No more.
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HUFFPOST SUPER USER
MGLLC
Truth is stranger than fiction
01:32 PM on 07/04/2011
Yes, you are right. As a child of the 1960s, many of us had nice cars. Our cars were freedom, alter ego.....gas & insurance was cheap, and a powerful car made us feel so good. We had no computers, microwave ovens, cell phones, no caller ID, no DVRs & our hightways were not as crowded, .the world has changed completely in the last 50 years.
But, 1965 showed equally dramatic changes compared with 1915.
Times change. In life, change is the only constant.
06:23 AM on 07/03/2011
I wonder how many of these "young" people are still living at home? I had a car when I was 19 because I needed one to work when I moved out from under my parents feet who by the way couldn't afford a car and had to borrow my services which I glady met. At 30 I was still sending money home to my parents to suplimemt their meager income and help support my siblings. Young people seem to have detached from the automobile for environmental reasons but some how can't seem to see the massive environmental damage jet planes cause when they ferry the same people across the globe to "oh" and "aw" at other peoples culture and misfortune or to dump toxic carrying iphones for a newer and bettter one 1 or two years after the previous was bought. Some how I don't think the reasons given in the article for dumping the car are the real ones.
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HMDMSR
Workers of the world, unite!
08:37 AM on 07/03/2011
That consumer choice is what decides how the economy develops, is a naive idea.

Two points:

1) It seems likely that the number of extended families in the US will increase, simply as an outcome of economics.

2) An increased use of urban planning would make mass transportation even more efficient than it already could be--if folks used it more, that is.
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HUFFPOST BLOGGER
Matthew DeBord
12:13 PM on 07/05/2011
Definitely far more college grads living at home in this recession than in previous years. Young folks may be detaching partly for green reasons, but money surely plays a role, too.
This user has chosen to opt out of the Badges program
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03:29 PM on 07/02/2011
Who wants to be a slave to a car payment these days? Not having a big car payment = freedom. I travel globally at least once a year, and I can easily afford it by not driving a brand new car. Young people don't care about materialism as much as the boomers did. We don't feel the need to impress superficial strangers with a fancy logo on a new car. That's so 20th century.
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Jack Daniels Esq
Hold the ice
10:56 AM on 07/02/2011
Today's youth cant walk & chew gum at the same time - can handle three
quarts of hair mousse, a pregnant girlfriend, four stolen ATM cards and
several phishing scripts, whilst uploading multiple Twitter & FB accounts
nothingchanges
too soon old, too late smart
10:38 AM on 07/02/2011
Maybe the problem isn't with "young people"

Maybe the problem is with the automobile manufacturers.

What is a car really for? transportation, or status? Why does a two seat sports car need 430 HP and get 26 MPG?

In 1984, a Honda Civic Coupe with manual transmission got an EPA rating of 67 MPG on the highway. http://www.mpgomatic.com/2007/10/16/honda-civic-gas-mileage-1978-2007/

Why is that car not offered today?

Profit...............pure and simple.

Not nearly as much profit in a Honda Civic and there is in a Chevrolet Corvette.

Maybe there's hope for the new generation. Maybe they're smarter then us, and refuse to buy the hype.

If you build it (a car Americans need)..........they will come.
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Jack Daniels Esq
Hold the ice
01:38 PM on 07/02/2011
600 HP more better
oilfield
small manufacturing business owner
12:23 AM on 07/03/2011
i think that the epa requirements are counterproductive to the 67 mpg rating. honda crx was a really cool car that they quit building . but i still appreciate that in america i have the choice to drive my 493 hp 4 door sedan. you still have to wonder how many twenty somethings have good credit to buy a new car.
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MajorKong
If the pilot's good, see, I mean if he's reeeally
09:37 PM on 07/04/2011
I was just in Munich. They have really good mass transportation, and guess what, you can still own a 493 hp 4-door sedan there if you want. The Germans seem to know a thing or two about building fast cars.
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HUFFPOST SUPER USER
J T K
Quis custodiet ipsos custodes?
09:49 PM on 07/01/2011
I think it would be more accurate to say that young people know that investing in and making use of public transportation is the better choice in the long run and that if it's possible to live in an area where you can do so, it makes better financial sense to not drive and cut out the cost of a car, gas, repairs, insurance, tolls.
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HUFFPOST BLOGGER
Matthew DeBord
01:14 PM on 07/02/2011
Thanks for your comment. Some of the research suggests that young people are doing exactly these kinds of calculations. Obviously, for previous generations, a car represented freedom. But now, people are beginning to calibrate freedom differently. And they're taking their own personal financing of life into account.
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HUFFPOST SUPER USER
Reno Fickler
Head Lifeguard/Dead Sea Marina
07:47 PM on 07/01/2011
I know they sell cars with computers, but do they sell computers with back-seats?