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Number of cars on U.S. roads set to fall for the first time since WWII

 
2 2,066 views Mar 14, 2009

More cars are likely to end up in junk yards than being purchased this year for the first time since 1945

More cars are likely to end up in junk yards than being purchased this year for the first time since 1945

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As a sign of how bad things are really getting for the U.S. auto industry, the number of cars on the roads are expected to drop for the first time in more than fifty years. We're not just talking several thousand cars either - the fall is expected to top several million vehicles.

Last year, the number of vehicles on U.S. roads rose by about 1.3 million units due to new car sales of 15.3 million units outpacing 14 million junked vehicles. This year, analysts are predicting the number of new vehicle registrations to hover around the 10 million mark, which means if another 14 million cars are junked there will be roughly four million less vehicles on the roads. The last time there was a decline was in 1945, the end of World War II.

Speaking with CNNMoney, General Motors' head of sales analysis, Mike DiGiovanni, said the news may not be all bad for the American auto industry, as it will create a "pressure point that will lift the industry" as older cars on the road eventually need to be replaced. However, this theory doesn't quite have a universal consensus, with other experts claiming that car sales will continue to decline or remain steady as unemployment keeps rising and people make do with fewer cars.

Likening the auto industry to the housing industry, CSM auto consultant Joe Barker said the bubble has truly burst for the auto industry and that sales figures of around 10 million cars a year are to be expected in the coming years due to lower demand and structural changes.



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Comments (2)

  1. ma_SuperSkyline89 avatar SuperSkyline89 Posted: 3/15/2009 11:06am PDT

    So that's assuming that just as many cars will be scrapped, that's quite any assumption there. I'd say that number would also drop. The only reason I see to scrap a car is because you're getting a new one. And if times are hard as they are and you can't put down the money then you'd keep your current car. Sure, if a car was in bad enough condition you'd scrap it but I've seen too many pieces of utter shit driving around to believe 14 million people are going to scrap cars just because their old.
     
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  2. ma_tsport100 avatar tsport100 Posted: 3/15/2009 3:39pm PDT

    Who invents these imaginary stories, CNN? Unless all 14 million supposedly scrapped cars are all in write-off accidents then there is absolutley no reason why they would be pulled off the road. Cars are only scrapped when no-one wants them, not because they don't drive anymore - they can always be repaired. There is no 'use by' date on a car.

    With less new car sales coming in to replace older cars, unless 4 million drivers can suddenly 100% live without their cars, they will just keep driving what they've got.

    Come on, you guys should know that even if the bodyshell is a write-off it can be repaired. This might in fact be good news for the auto repair industry who have been slowly going out of business as ever more and more new cars were being sold. And manufacturers, who already have a total scam going with spare parts prices, stand to benefit too.
     
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