Is this the “new normal” whereby only people who really need a new vehicle actually buy one?
As the U.S. auto industry slowly recovers from the Great Recession, new vehicle sales as a percent of the growing population remain weak by historical standards.
New data from consultancy CNW Research show that at the current selling rate of just over 14 million units for 2012, sales would represent 4.5% percent of the U.S. population.
This compares with More than 7.5% in 1986 and 6.2% in 2000. In the year just before the reckless practices of deregulated banks and Wall Street destroyed the global economy, 2007 vehicle sales were 5.4 % of the population. Conversely, for the industry to hit the calendar year 2000 share would require selling 19.5 million new units, which would be an all time record.
CNW also notes that combined new and used vehicle sales from 1997 through 2004 held steady in the 21% range. At the height of the recession in 2009-2010, it dropped to under 16% and remains under 18% this year even with a strong used-car market.
CNW concludes that the industry is “far from the healthy, robust athlete it was just a few years ago. The key hold back among consumers remains having well-paying jobs and solid confidence in the economy.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
