Demographic changes could hurt auto sales
The aging of the baby boomer generation and their children, the millennials drive less, meaning there are five million fewer potential car buyers today than five years ago, according to a recent report by AlixPartners. The group predicts 14.3 million new units this year and says sales in the U.S. and Canada are not likely to exceed 16 million through at least 2015.
As boomers age, they will need to drive less. Of the millennials, Americans born after 1980, AlixPartners says they are simply less interested in driving. This cohort, which is as big as the baby boomer cohort, and which grew up on the Internet and not so much on cars, could well present the industry with an even greater challenge in the area of reduced demand, says Mark Wakefield, a director in AlixPartners Automotive Practice Section.
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