Ken’s Take: I’m still betting under on this one …
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According to the WEJ …
Ssome analysts are predicting that new car sales could hit 15 million in 2012 because …
- American motorists are scrapping 10 million to 12 million vehicles each year.
- There are nearly 6million buyers who have been kept out of the market because they owe more on their vehicles than they’re worth.
- There are millions of consumers who bought the “near new” cars that the daily rental fleets quickly turned over at auction. Now, daily rental companies are holding their inventory much longer (30,000 miles plus), so the “near new” customer will be back in the new car market.
Conceivably, streamlined car manufacturers are positioned to make serious money when the market turns up.
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Excerpted from: WSJ, The Auto Industry’s Comeback, July 29, 2009
http://online.wsj.com/article/SB10001424052970204886304574308202570479912.html
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The Homa Files 
August 7, 2009 at 12:56 am |
I agree – I think it is premature to assume that vehicle sales will rise above the levels that auto manufacturers enjoyed earlier in the decade.
First, rising oil prices may force Americans toward a European living style where we live closer together and we have fewer vehicles per family. Second, I can imagine Americans taking the public transportation more frequently.
If you have a chance, check out Jeff Rubin’s book about how peak oil production will impact our gasoline fueled lifestyles.
http://www.youtube.com/watch?v=fNUGCu1hx88
August 7, 2009 at 12:58 am |
Watch this video:
http://www.youtube.com/watch?v=fNUGCu1hx88