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Average U.S. Auto Older Than Ever; Buyers Delay Trading In Due to Pandemic

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This 2009 Kia Borrego is the average vehicle on today’s roads in the U.S. in terms of age, give or take a few months.

U.S. motorists are holding onto their vehicles longer than ever, according to a new study, and the COVID-19 pandemic is getting much of the blame.

The typical car, truck and crossover is now a record 11.9 years old, reports IHS Markit, a month older than they were in 2019. The difference might seem slight but, with an estimated 287 million vehicles registered in the U.S., that translates into substantial lost business for the auto industry.

With the U.S. auto market already slowing slightly going into 2020, a modest increase in the age of the average vehicle wouldn’t have been surprising, “However, the COVID-19 pandemic has created the perfect storm to accelerate U.S. light vehicle average age (even more) in coming years,” said Todd Campau, an IHS associate director.

(Auto industry can expect digital sales trends to carry on.)

IHS is by no means the first to identify the trend towards aging the automotive fleet, but the study shows just how quickly the coronavirus is changing things.

Auto repair shops can rejoice as the average age of a vehicle in the U.S. is now a record high 11.9 months — and likely to keep rising.

In terms of new vehicle sales, the industry was expected to see the numbers slip to around 16.8 million this year, down from 17.1 million in 2019, according to most forecasts. Instead, 2020 is widely expected to slip to between 13 million and 14 million – and possibly less if there’s a significant second wave to the pandemic, as now seems increasingly likely.

The possibility of new lockdowns to halt the spread of the disease is one factor. But the surge in unemployment and the broader hit to the economy are likely to have an even more significant factor. Studies show many buyers, worried about their future, holding off on high-ticket purchases, including automobiles.

And research by IHS, J.D. Power and others has shown many customers who traditionally would have bought a new vehicle are instead opting for used – especially the certified pre-owned models that carry like-new warranties.

(Car sales losing momentum as COVID cases rise.)

“Given the latest IHS Markit forecasts for the further slowdown in light of COVID-19, US new vehicle sales in 2020 are expected to account for 5% or less of all vehicles on the road in 2020,” the research firm noted in a summary of its new study.

By comparison, new vehicles accounted for 6.7% of the vehicles on the road as recently as 2016, and 6.1% last year. “Declining new vehicle share in the overall population means fewer younger vehicles to temper average age growth.”

A second wave of COVID-19 could push the average age of vehicles in the U.S. even higher.

All told, there are about 287 million vehicles registered in the U.S. right now, up 1% from 2019. And fewer of them appear headed to the junkyard anytime soon, the scrappage rate steadily declining.

Automakers also have to take some of the blame. They’re simply making higher quality vehicles that last longer and longer, according to industry research.

Though breakdowns are far less frequent than even a decade or two ago, however, used vehicles still need service and repairs, noted IHS’s Campau. So, the fact that cars are lasting longer and longer on the road “should be a positive side effect for the aftermarket, as the majority of repairs for older vehicles come through the aftermarket channel.”

(Pandemic bailout headed off potential auto industry disaster, says retired FCA sales chief.)

Don’t be surprised to see the average vehicle age grow even older, said IHS, again due to the coronavirus. With tens of millions of Americans working from home – some indefinitely – their vehicles are clocking far fewer miles than they would in normal times. And so, with less wear-and-tear, on top of the economic concerns raised by the pandemic, many U.S. motorists are expected to continue pushing back on trading in.

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Source: https://www.thedetroitbureau.com/2020/07/average-u-s-auto-older-than-ever-buyers-delay-trading-in-due-to-pandemic/

Automotive

How Car Tires Are Manufactured

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🚗 Cars are complex machines, each part made in highly specialized and specific ways, car tires included. Here is how car tires are manufactured.

🚕 Car tires are the part of your vehicle that keeps you moving forward. But have you ever wondered about how car tires are manufactured? Read ahead for a quick overview of the process.

❋ Design and Plan 👇

Designing the item you plan to manufacture is the first part of any industrial process. Car tires have been around for a long time now, and the manufacturing process is becoming increasingly digital. The design is usually created through engineering software, and the dimensions and curvature are handled with precision. After that, the tire-making machines receive this digitized format.

❋ Select Materials  👇

Most tires consist largely of rubber, both natural and synthetic. Oils, pigments, antioxidants, and other materials mix with the rubber to create each part of the tire. Tires must be crafted from quality, durable materials, including chemical agents, metallic cables, and fabric reinforcers.

❋ Melt and Mold 👇

Heat and friction work together to produce the final rubber composite that will mold the other parts of the tire. Tires are not one singular piece of rubber—they contain tread rubber, sidewall rubber, fabric-coated plies, and bead wires, among other components. A factory worker or automated apparatus then uses a tire-building machine in the shape of a collapsible drum to glue and set the tires. Finally, the tires cure over time, and subsequent heating and steaming help them fully coalesce

❋ Distribute Widely 👇

Quality control is important with tires—after all, tires must handle transporting drivers for thousands of miles on the road. After rigorous testing, the manufacturer packs the tires and distributes them to various sellers. These include tire stores all across the United States, from Trenton, New Jersey to Anderson, Indiana.

🟥 Knowing how car tires are manufactured can help you better select the parts for your vehicle. Because all cars are different and have specific needs, you should consult with a tire expert before choosing your next set of wheels.

👉↘ Source: Christina Duron is a freelance writer for multiple online publications where she can showcase her affinity for all things digital. She has focused her career around digital marketing and writes to explore topics that spark her interest.

 

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Automotive

Feast your eyes on the all-new, all-electric GMC Hummer EV

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GMC has a new all-electric version of its classic Hummer oversized SUV. This thing is a beast, as you might expect, with an advertised 350-mile range and a 3-second zero to 60 mph time. It’s a bit ridiculous to be honest, which is kind of what the Hummer has always been about so that makes sense.

Alongside a teaser, GMC released a number of press photos of the 1,000 HP bruiser, so take a look below. It definitely looks like a Hummer – which may or may not be your cup of tea.

Source: https://techcrunch.com/2020/10/20/feast-your-eyes-on-the-all-new-all-electric-gmc-hummer-ev/

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Automotive

ALYI Highlights Next Steps

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Dallas, TX – October 20, 2020 – OTC PR WIRE – Alternet Systems, Inc. (OTC PINK: ALYI) today announced plans to publish a comprehensive progress update next week targeting a Wednesday, October 28th release date.

Management indicates a number of major endeavors underway in important stages of development to include RevoltTOKEN financing partner’s efforts to finalize ICO details, next steps after finalizing the multiparty milestone agreement announced last week, and a new design path development for the company’s long-term plans for future electric vehicles in Africa.

Management anticipates wrapping up details on the above-mentioned endeavors by next Wednesday and being ready to release a comprehensive update.

For more information and to stay up to date on ALYI’s latest developments, please visit www.alternetsystemsinc.com.

Disclaimer/Safe Harbor: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company’s current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies’ contracts, the companies’ liquidity position, the companies’ ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur.

Alternet Systems, Inc. Contact:
Randell Torno
info@lithiumip.com
+1-800-713-0297

Source: https://otcprwire.com/alyi-highlights-next-steps/

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