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Posts Tagged ‘gen-n’

Shift to City Living Threatens Auto Industry

Is momentum shifting to mass transit?

by on Jun.28, 2012

More and more young Americans are moving back to cities and skipping the morning commute.

The growth of the U.S. auto industry closely coincided with another dramatic change in the American landscape, the move by tens of millions of Americans from cities to suburbs.

But newly-released U.S. census data show that, for the first time in a century, cities are growing faster than surrounding suburbs.  And that, tied to other demographic and psychographic trends could pose potentially serious challenges to automakers desperately seeking further growth.

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The shift back to urban living is largely being led by the so-called Millennial generation, and research is finding that members of Gen-Y are also far less interested in owning or driving automobiles than those from previous generations who led the tract home migration.

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That’s Gen-N, as in “Neutral.”

Disinterested young consumers a drag on car sales.

by on Jun.26, 2012

Automakers are struggling to find a way to get Millennials out of neutral with concepts like the Chevrolet Code-130R.

U.S. auto sales are expected to show modest gains for June when the numbers are tallied up, but while the industry may be one of the few bright spots in an otherwise weak recovery, car sales are still lagging almost 3 million units annually below where they were a decade ago.

And a new study suggests that we won’t be seeing those old peaks anytime soon.  But don’t blame the economy, according to AlixPartners, a financial advisory firm based in Detroit. Blame the folks that the firm’s managing partner John Hoffecker calls “Gen-N.” That’s “N,” as in “Neutral about driving.”

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These are “new drivers who are really not even interested in getting a license,” explained Hoffecker.

AlixPartners’ new study echoes other recent research that finds so-called Millennials are far less committed to owning a car than Gen-Xers or, especially Baby Boomers.  They are, in fact, about six times less likely to get a driver’s license during their teens.  And even when they do they are less likely to purchase a vehicle.

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