Is The Auto Industry Losing Out to Tech ?

Even with decade best sales there has been lots of chatter of the future of the auto industry, in particular in regards to its waning interest from young adults and teens. Many causes have been cited for America's disappearing love affair with the automobile from simple to complex. Unfortunately for the auto industry the biggest reason is also one that can't be changed simply because that's how the game works. This past week has seen the release of two different phones that perfectly illustrate the difference between the auto and phone industry and the excitement each generates. The Porsche design Blackberry retails for almost ten times the iPhone 6 yet features roughly the same hardware specifications as the iPhone. And unlike with cars there is only so much that you can do with the candy bar smartphone shape. The beauty and appeal of the smartphone game is that you can post an iPhone 6 release date selfie on Instagram just like your favorite celebrity. You won't get nearly as many likes but for all intents and purposes you can own the best smartphone on the market just like your favorite millionaire or billionaire. This is certainly something the average person can get excited and feel good about as they certainly aren't driving the same car as their favorite celebrity. It's hard for the auto industry to compete on this level and generate the same buzz.

Should the auto industry be worried of its waning popularity among its future customer base?
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randy3023 - 9/23/2014 1:10:33 PM

+2 Boost

They should be worried. The silly sense of ego and "status" consumers once desired that automakers for years cashed-in as lucrative, premium margins on their overpriced products is VANISHING. Younger generations care less and less about 'showing off' by taking on bloated car payments or blowing a bunch of savings for a down payment on a horribly depreciating asset. It's not about chrome, leather, and power accessories anymore. Or tail fins. Today it's about stylish functionality and sensibility. Today it's not about showing off, it's about blending in.

That doesn't mean we're all going to be driving little hatchbacks like the europeans. It just means the era of trying to pretend you're better than someone else is OVER.

Car4Life - 9/23/2014 2:37:07 PM

+1 Boost

I beg to differ, while yes the current generation cares less about cars than previous, the desire to still appear better THAN is still here, hence the daily battle for Instagram/Twitter followers and likes.

Cars like the CLA also give hope too, selling over 100,000 units in 6 months globally only limited to sons trained inventory, knocking the age of the average Mercedes buyer down by almost 10 years is very encouraging.

The image game is still alive with this generation, however, companies must work harder & more creatively to match them