Auto Industry Autopsy
If the average age of a car on the road increases 15% every 10 years, half a century from now the average car would be 23 years old and might have more than 300,000 miles on the odometer—if any cars are still left.
In the ’60s and ’70s, motorists could only dream of a car reaching 100,000 miles before it was replaced or needed to spend two expensive weeks in a repair shop. Back then, the relatively primitive state of automotive technology produced cars that just didn’t last that long.
Now, it’s new world. If a Toyota has 170K on the odometer, it will likely do another 30K. Shopping for a vehicle for their kids, parents see cars with 120K on the clock that still look good and seem mechanically solid. While 100K used to represent...
