A trend in the automobile industry shows that the younger generation is not as interested in driving as the generation before. Not only are they buying fewer vehicles, but many don’t even have drivers license. Some reasons for this change include:

  • The younger generation are more connected through internet and iPhones making them less reliant on owning transportation.
  • Many live in urban areas where everything is at a walking distance, there is good public transportation or they have access to car sharing programs.
  • Young people are facing soaring tuition costs, and the money they’re earning in their part-time, summer and first jobs is going toward paying for school and rent. Even if they could afford to buy a car, insurance is expensive and gas prices keep rising.
  • They have grown up in an era where they have had much more exposure to environmental concerns.

Automakers have known for a while that they were going to have a problem selling vehicles to this generation but are unwilling to believe that they will not want actual cars. As a result, automakers spend more time talking about how well their cars interact with an iPhone than they do about engine performance, ride, and horsepower. Technology such as voice recognition are important to many of the younger drivers because it allows them to safely drive while still staying connected.

They are trying to attract the younger urban buyer by developing a fashionable small car that is easy to park and uses less fuel. Car makers have begun shrinking the size of engines, subtracting cylinders while adding turbochargers to maintain horsepower and acceleration. Smaller engines have become a selling point even in the United States, which would have been unthinkable a few years ago. The idea of electric vehicles has also become more widely accepted.

As these technologies become more common they will also become more affordable, hopefully attracting more buyers. While today’s young buyer seems more open toward the trend of smaller autos with more features, car makers have not abandoned the hope that as this generation gets older and becomes parents they will graduate towards roomier vehicles.

Tesla Motor’s highly anticipated charging network has finally been unveiled to the public with the revelation of it first six supercharger stations. According to Tesla, the stations will safely deliver up to 4.5 times more electricity to the battery giving approximately half a charge in half an hour. It will do this by using special cables that connect directly to the battery, bypassing any on board charging equipment. The most unique thing about these charging stations is that many will be equipped with solar cells mounted on the weather canopy that will generate more energy over the course of a year than is consumed by Tesla vehicles using the supercharger stations, resulting in a positive transfer of power back to the electricity grid. Current active stations in California can be found in Barstow, Hawthorne, Lebec, Coalinga, Gilroy and Folsom. By 2015, Tesla hopes to expand their supercharger network to over 100 stations.

Coda Automotive is asking owners of certain 2012 Coda vehicles to bring in their vehicles to have the side curtain airbag installation inspected. According to Coda, the airbags may have not been installed correctly during manufacturing which could result in the airbags not deploying as intended. Coda will notify owners, and dealers will inspect and correct the side curtain airbag installations as needed. For more information on the problem, owners may contact Coda Automotive at 1-855-464-2632.

Fisker Automotive is alerting drivers of certain 2012 Fisker Karma vehicles, built between June 15, 2011 to July 9,2012, about an electrical problem in the low temperature cooling fan. According to Fisker, a short in the fan could ignite the fan housing, shroud and surrounding components, causing a vehicle fire. Owners will be asked to bring in their vehicles to the nearest Fisker dealership to replace both low temperature cooling fans with improved fans. Owners wanting more information about the problem can contact Fisker consumer affairs at 1-855-575-7577, option 2.

Ford is working hard to become the leader in hybrid and electric vehicles (EV) as they invest over $130 million to build an advanced electrification center in Dearborn, Michigan. The facility will employ approximately 1,000 engineers and will accelerate the companies EV development capabilities. The company hopes to top the market by launching five new electric or hybrid vehicles this year alone. Ford has just recently started developing their own transmission technology which will be built on the same platform as their mainstream gasoline engines. This has allowed them to cut the costs by 30% and will also allow the company to build vehicles according to consumer demand. Amy Machesney, the C-Max marketing manager said Ford feels it now has a product capable of competing with Toyota, and we are confident our EV and hybrid vehicles are comparable to the Prius.

Mitsubishi is asking owners of certain 2012 i-MEV electric vehicles to bring in their cars to correct a problem that could prevent their airbags from deploying properly. According to Mitsubishi, an incompatibility between the air bag sensor and the self diagnostic software, could deactivate the front and side airbag system. During an accident, the airbags may fail to deploy, increasing the chance of injury. Owners of affected vehicles may notice the Supplemental Restraint System (SRS) warning lamp illuminating to alert the driver of the problem. Owners wanting more information can contact Mitsubishi at 1-800-222-0037.

The potential sale of U.S. automotive battery maker A123 Systems to China’s largest auto components company, Wanxiang Group Corp., is raising security concerns among U.S. lawmakers. The $450 million deal would see Wanxiang taking control of 80% of A123 Systems which supplies lithium-ion batteries to luxury car makers like Fisker Automotive. A123 received funds from the Energy Department in 2009 which was used for battery research advancements and job creation programs for batteries used in hybrid and electric vehicles.

Opposition to the sale reports growing concern about foreign controlled or owned companies gaining a niche in the United States supply chain. According to U.S. Rep. Cliff Stearns, “We need to make sure the Federal government isn’t giving away our own national secrets by providing Chinese automobile manufacturing companies with million dollar government grants and loans.” Under the terms of the grant, the company agreed to use funding to support U.S. manufacturing facilities. Changes to the agreement of the grant would first have to be approved by the Department of Energy (DOE) who does not approve grant money being used for anything other than investment in the manufacturing and job creation here in the United States.

Counties in the San Francisco Bay area are considering getting rid of gas taxes and switching to a vehicle miles traveled (VMT) system instead. The National Surface Transportation Infrastructure Financing Commission (NSTIFC) recommends the switch because revenue from gas taxes have declined over the years as hybrid, electric, and more fuel efficient vehicles become prevalent on roads. They say that it will “balance the costs and benefits of the surface transportation system to those who are using it”, and could also reduce traffic congestion on the roads. The proposal is one idea in long range planning, updated by the agency every four years. If the idea is accepted, it would likely not be fully imposed until 2020.

Randy Rentschler, a spokesman for the regional commission, admits that the idea could be difficult to introduce. Radical changes like this will always be opposed by certain groups, and privacy issues will be questioned as a GPS based systems would be used to log information on when and where drivers are traveling. Transit advocacy groups are encouraging the transition to a VMT system to be tested first in the Bay area where the idea will be more easily accepted and the revenue could be used to support alternative public transportation options.