Ford has released the fourth annual edition of its publication of micro trends, Looking Further with Ford, in which it analyzes global movements that are shaping the way consumers engage with the world.
Both Business Insider and Ars Technica UK conducted interviews with Sheryl Connelly, Ford’s manager of global consumer trends and futuring, to discuss the company’s findings in this year’s trend report.
Connelly explained that one of the biggest takeaways is today’s consumers don’t won’t more stuff, but instead want better things that are more durable, of higher quality and have greater versatility. She believes this desire is creating a growing interest in utility vehicles.
“There’s lots of talk about millennials not being traditional fans of cars,” Connelly told Business Insider. “That may or may not be certainly true. We’ve seen a shift in buying patterns as many of them get older and start families. We’re really excited about their interest in utility vehicles. I think that has to do with this idea that ‘I’m going to buy this car and I’m going to hold onto it for a long time, not two to four years like my mom and dad did, but for a decade, maybe longer. So this vehicle has to have the ability to grow with me.’ ”
This concept is certainly reflected in Ford’s statistics. The study found the percentage of adults who agree with the statement, “When I buy a car, I intend to keep it at least 10 years,” is 76 percent in the U.S., 68 percent in Spain, 62 percent in China, and 62 percent in India.
For millennials in general, Connelly believes a car is no longer a status symbol in the way that it has been for previous generations, but instead has a different type of importance. “Being in the know is a more significant status symbol to this generation,” she told Ars Technica UK. “Companies like Ford have adapted well to that. We still deliver the performance, the handling, the exterior and interior design, but when we’re talking to millennials, we’re talking to them about what the car can do for them. It can become a lifestyle enabler.” Connelly continued by explaining that when Ford brought out Sync in 2006 that type of technology was only available in luxury or premium cars. The company offered it as a $400 option in the Focus to target young consumers, and she says the initiative was so successful that Ford made it available across the entire portfolio by the end of the year.
A positive perspective on a future that includes autonomous cars is another finding from the study that will be of interest to auto dealers. Across the globe, Ford found that 61 percent of men and 53 percent of women agree with the statement, “I believe the benefits of autonomous machines (drones/artificial intelligence/self-driving cars) will outweigh the risks.” When analyzed by country, the percentage of adults who agreed with this statement was: 73 percent in China, 70 percent in India, 70 percent in Brazil, 60 percent in Spain, 43 percent in the U.K., and 42 percent in the United States.
The auto industry is rapidly moving to develop self-driving cars, and although many obstacles still need to be overcome before they can become commonplace on our roads, such as further developments in technology, regulations and insurance, it appears autonomous vehicles are on their way.
Connelly believes the world has hit an acceleration point when it comes to self-driving cars, but also talked about the reason that the current interest appears to be higher in certain countries.
“Autonomous vehicles make sense in the right context,” Connelly told Business Insider. “And they won’t be universally appealing. I live in Detroit, where traffic is not horrible. But Beijing has an average daily commute of five hours a day, and earlier this year experienced a traffic jam that lasted 12 days. They had this idea of a 50-lane highway. They’re looking for better solutions.”
She believes these challenges are part of the reason consumers in China and India are most eager for autonomous car technology, although clearly there is great interest in the potential benefits of self-driving vehicles throughout the world. Connelly explained to Ars Technica UK that consumers are always drawn to things that make their lives easier and simpler, such as autonomous cars.
When asked “Could you imagine buying a self-driving car in the future?,” respondents from India and China came in the highest at 84 percent and 78 percent respectively saying yes. The U.S. was 40 percent and the U.K. was 30 percent. In addition to the aforementioned reason of extreme traffic conditions in India and China, Connelly also believes that these markets don’t have as deeply embedded an emotional relationship with their vehicles, thereby making it easier to shift to autonomous cars. “I don’t see the entire U.S. going autonomous, but you’ll see pockets,” Connelly told Ars Technica UK. “The first markets you’ll see it will be Asia, places like Singapore.”
As cars become increasingly connected, concerns and questions about data privacy are growing exponentially. Business Insider asked Connelly about Ford’s perspective on consumer data as the company evolves to be a mobility provider.
“Ford as a company has a responsibility to be good stewards of that data,” said Connelly. “Last year, as a trend, we called it the ‘give-and-take of privacy.’ I don’t think customers mind sharing their data, if it’s done openly, transparently, and the benefits are clear and direct.”
Connelly further discussed the fact that while consumers may not currently be aware of the value of their personal data, she believes they will become increasingly aware in the future. For example, if Ford knows that a consumer’s car is sitting idle 95 percent of the time, perhaps the company would advise them they would be better suited to buying a mobility service than owning their own vehicle.
Overall, while the growth of ride-sharing and car-sharing is clear, along with the expected adoption of self-driving cars, Connelly believes there will always continue to be a future for individual vehicle ownership as the consumer landscape evolves in the coming period.
