Business 10th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell

Exercise 23

Millennial Rejection of Car Culture Causes Automakers to Adapt
Millennials include consumers who were born between the early 1980s and the early 2000s. As Millennials grow to adulthood, they represent an important market for automakers. However, automakers are finding that Millennial car buying habits are differing from their predecessors. Namely, Millennials are beginning to reject the car culture in favor of public transportation, bicycling, and alternative services such as the car-sharing service Zipcar. Part of this may be attributed to lower incomes, as younger people often have less discretionary income to spend. Yet another concern is sustainability. Millennials are voicing their concerns for the environment and want more sustainable vehicles. As many customers find less need for vehicles in their everyday lives, the auto industry must adapt to the changing preferences of this demographic.
By 2025, automakers will be forced to implement fuel efficiency standards of 54.5 miles per gallon (MPG). However, automakers are finding that Millennials do not want to wait that long. They are holding automakers accountable, hoping to be provided with vehicles powered by alternative fuels to help diminish concerns over fuel emissions. With fewer Americans bothering to receive driver's licenses and even dubbing it "not cool" to purchase a car, automakers have to rethink their approach when developing vehicles. Time will tell whether they will be able to attract these reluctant car consumers with more sustainable, reasonably priced vehicles. 27
Describe some of the differences between Millennials and previous generations regarding vehicle ownership.