Saturday, May 31, 2014

3 Million Cars

Some 3.27 million new cars are now sitting on lots across the U.S., more than there have been in almost five years, according to Automotive News. That’s a lot of cars—just enough to equip every man, woman, and child in the state of Iowa with a new vehicle, and just slightly less than the number of iPhones added to Verizon’s network last quarter. A year ago at this time, by contrast, there were 2.7 million vehicles lying in wait across the country; summer 2011 saw an inventory of about 1 million fewer cars.

Roughly 100 million cars in the U.S. are between seven and 12 years old, the “sweet spot” for high-maintenance repairs, according to Bloomberg analyst Kevin Tynan. At the pace Americans were buying cars last month, dealers can sell the current backlog in 61 days, which Tynan calls a “manageable” number. In January, supply was at 75 days.

This is dated and nearly a year old but you get the picture.  Our infatuation for the automobile, which includes a huge amount of pickup trucks, can get out of hand.  "The United States is home to the largest passenger vehicle market of any country in the world.[1] Overall, there were an estimated 254.4 million registered passenger vehicles in the United States according to a 2007 DOT study.[2] This number, along with the average age of vehicles, has increased steadily since 1960, indicating a growing number of vehicles per capita. The Chinese car market, however, is poised to soon exceed the United States; by the end of 2012, there were over 240 million cars on the road in China.[3]

The United States is also home to three large vehicle manufacturers: General Motors, Ford Motor Company and Chrysler, which have historically been referred to as the "Big Three." Chrysler however is no longer among the top three; but is number five, behind Toyota and Honda. The motor car has clearly become an integral part of American life, with vehicles outnumbering licensed drivers."

There are days I wished life was simpler but this isn't one of them.  Getting my own car keys at age 16 changed my life forever, though it almost killed me, too.

I can't imagine life without my wheels but 3 million of them available is a lot to choose from!

Ed Winkle

2 comments:

  1. China's car market is growing fast, but they are having second thoughts too: They are retiring 5.33 million cars this year and a few more millions next year, limiting the sales to 5.6 millions this year to 6 millions by 2017.
    http://www.reuters.com/article/2014/05/26/us-china-pollution-idINKBN0E60AZ20140526

    That won't do much for industrial air and soil pollution, but they are also now investing in solar like crazy, and expect photovoltaics to be as cheap as coal electricity by 2016:
    http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100027336/solar-to-match-coal-in-china-by-2016-threatening-fossil-dominance/
    http://seekingalpha.com/article/2244193-chinas-solar-target-increased-once-again?source=google_news

    Talking of Toyota which has been in Cali for 5 decades, the young EV company Tesla passed them and is now the biggest auto industry employer in Cali, with 6,000 jobs (and 500 more by the end of the year) and another 6,500 jobs when their "gigafactory" is up to scale (probably not in Cali though):
    http://cleantechnica.com/2014/05/26/tesla-motors-now-californias-biggest-auto-industry-employer/
    They should hurry getting that gigafactory out of the ground, with the Nissan Leaf and Chevy Volt planning to increase or double mileage range by next year. Competition is starting to beat them on the cheaper car segment...

    I like that the Brits and Americans are "infatuated" with cars, it makes for a great used car market, that's how I got mine fairly recent and with high specs for cheap. ;)
    No more $500 clonkers for sale, but that's probably a good thing for the environment. I can still see quite a few cheap limos in the weekly ads, Could be fun to own one if you have lots of prom or wedding age kids...

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