Unless you've been living under a rock for the past five years, you've likely heard enough about millennials to last a lifetime. We know that this generation isn't getting married and having children or buying homes and cars in the numbers that previous generations have. But what about the next generation? Ford Motor (F) has already shifted its focus to what it's calling "Generation Z," or those born after 1993. There are more than 2 billion global youth who fall into this category and they're just receiving their drivers licenses. Gen Z'ers also came of age during an economic recovery which means they have disposable income.
Ford is even targeting kids before they get their driving permits. "Today, children of all ages are integral in household decision making," says Sheryl Connelly, Futurist at Ford Motor Company. Kids are influencing car purchases today, she says. That might explain a recent trend in car commercials where marketing is targeted towards young children-- take this Kia ad that features toys going for a joy ride, or the Chrysler ad that shows children gaping at a new car as it rolls down the street. There's also the muppets for the Toyota (TM) Highlander.
Get the Latest Market Data and News with the Yahoo Finance App
These commercials could also be a response to the Millennial drop in car sales. The percentage of 16-to-24-year-olds with no driver's license is below 70% for the first time since 1963. Are car companies trying to avoid the same problem with the next generation? "Our forecasts show that the industry is going to grow," says Connelly. "You have emerging markets, China and India, you have this untapped demand." But within "congested, mega-city marketplaces multimodal forms of transportation will become increasingly important."
Connelly says that William Ford, Jr., the executive chairman of Ford Motors, has asked whether it's worth it to sell as many cars as possible if they remain stuck in a global gridlock. Instead, the company wants to focus on adding automated features to cars, like creating vehicles that can park themselves and "continue [their] investment in vehicle to vehicle communication... so if I'm trailing you by five miles, your car can say 'Hey, there's an accident up here, divert your route and take a shortcut.'"
More from Yahoo Finance
Blodget: If You Own An iPhone, You're Partially Responsible For Those Kids Working In Tin Mines
Mattel's toy troubles, BlackBerry beat down & CarMax climbs to fresh record