In the following video, analyst Brendan Byrnes talks with Fool contributor Andrew Tonner to discuss one problem automakers are currently grappling with: Fewer millennials are buying cars, and fewer are getting their licenses. There are several reasons for this trend, including the poor economy and a population shift toward bigger cities.
How are automakers responding? One way is to reach out more to younger customers. Another is technology. In the video, Brendan and Andrew chat about the different tech strategies at Ford and General Motors, and which they like better.
Ultimately, this is a huge deal for automakers because of the opportunity to lock in young customers for life. The industry average loyalty rate is around 50%, with Ford over 60% and GM's brands running the gambit from high to low (see more here).
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The article How Ford and GM Are Combating This Big Problem originally appeared on Fool.com.
Fool contributor Andrew Tonner owns shares of Ford. Brendan Byrnes owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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