"Millennial" drivers crave iPods over horsepower

By Bob Burgdorfer

CHICAGO (Reuters) - Tech-savvy teenagers and 20-somethings may have more control over the future of the U.S. auto industry than they realize.

Detroit's automakers, for all their woes, recognize a big potential audience when they see one. Some estimates show that the 16-to-31 age group will constitute the largest class of drivers in the United States by next year.

By loading their vehicles with electronic plug-ins and ports, automakers have started to aim their marketing and design efforts at the younger types whom they hope will improve the long-term viability of the struggling industry.

At this week's Chicago Auto Show, carmakers said that to appeal to these consumers, their new entry-level or small-car models are emphasizing such features as email capabilities, hookups for iPods (AAPL.O), laptop computers and other gizmos, many with easy-to-use controls.

"A 19-year-old is going to look for all of that. If you don't offer that technology, you are off the list," said Scott Settlemire, Chevrolet's exhibit manager at the show.

That is a drastic change from aging Baby Boomers, who although increasingly graying still hold considerable sway in terms of automobile buying power.

When the Boomers, now in their 50s and 60s, bought their first cars in the 1960s and '70s, the features that mattered to them were horsepower, wide tires and dual exhausts.

In the Age of Obama, however, electronics rule.

THE MILLENNIAL GENERATION: READY TO ROLL?

Ford Motor Co (F.N) estimates that by 2010 the 16-to-31 demographic will make up the largest chunk of the car-buying public with a 28 percent share.

Many of those drivers fall into the so-called Millennial Generation, a term some commentators use to describe people born roughly between 1982 and 2000.

In 2010, Ford will launch Fiesta, an entry-level subcompact loaded with the technical features that young drivers crave.

"With the new Fiesta launch next year, we're targeting the Millennial Generation because there is an urgency to reach out to them due to the potential size of the market, plus the fact that they are not brand-loyal yet," said Ford spokesman Alan Hall at the Chicago show.

According to Ford, about 11,000 Millennials reach legal driving age every day, and by next year about 70 million of them could be driving.

To pull these youthful drivers to Ford, the company sponsors television's "American Idol" and uses online social networking sites to push products. It also designs cars to accommodate the electronic devices.