That Big Truck Blog

An American Car Hauler's Blog

AMERICA’S LOVE AFFAIR WITH THEIR CARS OVER?

Declining interest in cars or financial squeeze?

Car haulers and brokers might be wise to prepare for a lessening national motor pool, according to a study released in January by the Earth Policy Institute (EPI). The number of cars scrapped exceeded new car sales in 2009 for the first time since World War II, reducing the United States vehicle fleet from the all-time high of 250 million to 246 million. “It now appears that this new trend of scrappage exceeding sales could continue through at least 2020,” says EPI President Lester R. Brown. “America’s century-old love affair with the automobile may be coming to an end,” he observes. “The U.S. fleet has apparently peaked and started to decline.” Last year the 14 million cars scrapped rose above the 10 million new cars sold, reducing the fleet by 4 million, or nearly 2 percent, since 2008’s levels. “While this is widely associated with the recession, it is in fact caused by several converging forces,” Brown reports.

Among the trends keeping sales well below the annual figure of 15 million to 17 million that prevailed from 1994 through 2007 are market saturation, ongoing urbanization, economic uncertainty, oil insecurity, rising gasoline prices, frustration with traffic congestion, mounting concerns about climate change, and a declining interest in cars among young people, according to the study.

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February 15, 2010 Posted by | General Auto Transport | 2 Comments