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LOS
ANGELES -- Automakers
have a lot of catching up to do when it comes to the millennial
generation (those who were born between 1980 and 2000). Research
indicates that today's young people are more interested in handheld
devices like the iPod and the iPhone than cars. Panelists at the
first-ever Society of Automotive Analysts' (SAA) Technology Outlook
Conference said that carmakers will have to make it possible for
millennials to update their social media pages from their vehicles.
The challenge is that automakers need to add technology, but do
it in a way that reduces driver distraction.
Fifty-eight
percent of auto executives say the sector's economy will improve
over the next year, according to the U.S. Auto Industry Executive
Survey provided by KPMG. In addition, 73 percent of executives
indicated their companies have experiences an increase in revenue
over the past year. Furthermore, more than half of the auto executives
surveyed said they have added employees since last year. North
America continues to be a primary growth area for companies, according
to 57 percent of survey respondents. The survey also indicated
that executives expect to ramp up their investments in new models/products
and new technologies over the next two years.
Jon
Bucci is the vice president of advanced technology at Toyota Motor
Sales USA. He previously served as the national manager of Toyota's
telematics arm, the Net Car Team. Before that, Bucci created the
planning and development of the Office of the Web, a new division
of Toyota designed to integrate all of the automaker's online
activities.
"Today's
consumers want more than fireside chats," Bucci explained.
"Monet launched in 1997 in Japan. G-Book was a huge success
in Japan. Lexus Link is on four models. In 2009, we launched Safety
Connect. Consumers want more integrated mobile apps. We launched
the Lexus Enform mobile app in October. Entune was one of the
hottest stories at this year's Consumer Electronics Show (CES).
We're supporting this with national advertising and marketing.
We're in the process of upgrading Lexus Enform. The vehicle has
become another node on the social network. We hope to mitigate
driver distraction."
Thilo
Koslowski is the vice president and automotive practice leader
at Gartner, Inc. He is recognized as a global thought leader and
futurist regarding the evolution of the automotive industry. Previously,
Koslowski worked as the lead consultant in Gartner's Consulting
Practice. Before that, he worked in various marketing and strategy
positions for a German automaker.
"We're
moving away from basic transportation to intelligent driving,"
Koslowski said. "It is about redefining the values of automakers
going forward. Governments are getting more and more involved.
The business models are changing. The connected car is about being
able to get content from anywhere and displaying it in the automobile.
Consumers will probably expect them in their cars. The automotive
industry needs to partner and collaborate with a lot of other
companies. I think the fuel cell will come back. Twenty-two percent
of people are willing to pay $2,000 more for an electric vehicle."
Geoff
Wardle is the director of advanced mobility research at the Art
Center College of Design in Pasadena, Calif. Previously, he worked
as a professional designer for British Leyland (UK), Chrysler
(UK and USA), SAAB (Sweden), Ford (Australia) and many other companies.
In addition, Wardle co-authored "H-Point: the Fundamentals
of Car Design and Packaging" with Stuart Macey.
"We
are moving towards a world of integrated transportation systems,"
Wardle explained. "This will include rapid transit buses,
high-speed rail, public bike rental stations and car sharing systems.
Over the next decade, I think we will see new categories of automobiles.
I also think the future is the autonomous vehicle. There will
be huge, new opportunities for designers. They have to be comfortable
working across many discliplines. We are rolling out at the first
of the year our Master's program in transportation design."
David
Graff is the automotive and industrial equipment director of the
industry solutions organization at Microsoft. Previously, he served
as the Global Business Manager for Ford Motor Company. Before
that, Graff worked as general manager for a construction materials
supplier. He spent the majority of his career with Ernst &
Young's manufacturing consulting practice.
"We
took Mark Fields [Ford Motor Co.'s President of the Americas]
out to CES," Graff said. "This was the first time you
saw telematics priced affordably for $400. Now if you go to CES,
you're going to see automotive launches every year. This NexGen
telematics is huge for us. The millennials are hugely frustrated
with the process. Microsoft is deploying a set of retail stores
across the nation. With telematics, we're right in the middle
of it. A huge change in the buying process."
Jeremy
Anwyl is the CEO of Edmunds.com. He was among the creators of
the website's True Market Value pricing tool, True Cost to Own
data and Dealer Ratings and Reviews. Previously, Anwyl led Marketec
Systems Inc., an international firm he founded in 1990 to offer
consulting services to automobile manufacturers, distributors
and major retailers.
"Consumers
are greedy," Anwyl explained. "They want a car that
delivers better fuel economy. We created a tool that is a compatability
match. The car companies are following, not leading. Consumers
are advancing. One of the best tests is to plug in an iPod and
see how long to get your favorite song to play. The 'cup holder
syndrome' is a cultural blindspot. The German point of view was
probably the right one. I think consumers want a seamless experience,
something that just works without reading the manual. Ray LaHood
has made distracted driving his campaign."
Eric
Noble is the president of The CARLAB, Inc. He also serves as an
assistant professor of transportation design at the Art Center
College of Design. In addition, he is the president and founder
of CARLAB Development, LLC. and a moderator for the Motor Press
Guild. Noble is also an affiliate of the Society of Automotive
Engineers (SAE).
"No
one who offers more mileage is rewarded in anyway," Noble
said. "Mass has been climbing much faster than size. The
heavier the car, the heavier the price. Power is premium. It remains
one of the differentials in the mid-size segment. New value considerations
include weight, power and features. Fuel efficiency has only gone
up by 3.5 mpg in 26 years. We don't have a single OEM that can
match 2025 CAFE standards. We will be able to shop for our next
car in our next car. 2025 is completely up for grabs and that's
what's exciting."
SAA
Chairman Laurie Harbour encouraged all attendees to fill out a
survey about the meeting. She said that the organization may hold
yearly or quarterly events on the west coast if she receives positive
feedback.
"The
industry is in some crazy times," Harbour explained. "There's
a lot of buzz here on the west coast for products. We want to
have more events out here."
The
SAA will host its annual Outlook Conference on Sunday, Jan. 8
at Cobo Center in downtown Detroit. It will take place on the
day before the North American International Auto Show opens to
the media.
For
more information on the Society of Automotive Analysts, visit
www.saaautoleaders.org.
