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Transition Of The Auto Industry Into A New Era

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					The year 2009 saw more used cars being scrapped than the number of new cars sold.
The American car fleet decreased from 250 million to 246 million the year ended
2009. American teens are viewing owning a car differently for the first time. In the
past getting a driver's license and owning some type of car was seen as a rite of
passage in the community. But today more youths growing up in cities learn to live
without a car as they are socializing more over the internet and ‘smart' phones. A
mushrooming of online websites of auto companies like Auto Driver fulfill their needs
of keeping up-to-date with what's happening in the tech world of autos and the teens
are more patient and willing to make the right choice at the right time.

Recession and pollution may have also been important contributors to decreased
attraction to own a car. The current U.S. recession saw consumers across all age
groups disinclined to buy high priced possessions like cars and sales of the cheapest
new car dragged along. Additional factors playing an important part in this decision
are urbanization, congestion and environmental effects. That is why there are fewer
cars on American roads today.

A culture shift may also be in progress among the car consumers as well as car
manufacturers for cheap new cars. While consumers are being more thoughtful of
spending money and reconsidering the number of vehicles in one family, car makers
are reluctant to spend as much money as they have been spending to attract a purchase.
They are looking for ways to sell cars more cheaply and even used car deals market
suffered a setback due to the cash for clunkers scheme.

In the next ten years it is predicted that there would probably be ten per cent fewer
cars on the streets and highways than there are now. Car manufacturers may close
down more plants to streamline production with demand. Less incentives, rebates and
subsidies on new cars may decrease car sales on used car sites. Pre-recession
production levels of 17 million vehicles per year may not be expected but on the
whole the American car market is expected to improve due to population growth and
immigration. Japan had saturated car market in 1990 and saw a decrease of 21 per
cent since then. But then Japan has a good transport system available to drivers as an
alternative the same not being available to most Americans. More significant to note
is that American cities are at greater distances than most other countries and car
drivers have no other option to turn to.

The personal car was the most favored mode of conveyance and assured mobility as
evidenced by new cars online sales. Today traffic jams, congestion and pollution has
become a global problem. A shrinking U.S. car fleet could help deal with the crisis of
climate change. Decreased reliance on foreign oil and reducing carbon emissions from
the transportation could help improve the immediate living environment.

				
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