Innovate or Die

A Wake Up Call for the Automotive Industry

A study just published by the US Public Interest Group confirms what with the automotive industry has quietly feared…that younger people just don’t love cars.

Automakers have been trying to lure younger buyers with more connective technology and Facebook pages with little success.  Perhaps they are missing the point.  Instead, automakers may want to examine the relevance of their 100 year-old business model to the world that younger people know.

Younger people only know a world in which they can consume just about everything ‘on demand’.  When, where, and how much they want. 

They buy music one song at a time.  They download the latest TV show when they want to watch it.  They buy the latest games electronically, and play them within seconds of purchase. They can access their favorite apps from any screen.

When they do invest in something more enduring…like a smartphone or a laptop, they receive updates and upgrades as improvements are added.

Contrast that to making a 5 year commitment to something that they will not use everyday, have to pay to store it while they are not using it, and will be equipped with old technology and design by the time they dispose of it.

So perhaps the answer to reviving younger people’s interest in cars is to make cars fit in their world.

What if one payment allowed you to access different cars for different needs…a sedan for business, and a weekend SUV?

What if you could buy annual usage contracts like you can wireless phones, where you pay a monthly fee based upon how much you use your car?  What if there was a modular product approach that allowed for upgrades to electronics, engines, or safety equipment over the life of the car?

While these may not be the only answers, it seems that it’s time to fundamentally rethink the business.  And the first brand that does this might just be the brand that captures the hearts of the next generation of drivers.