Almost every month during the last couple of years has set a record of some sort. Two questions come to mind when looking back at our industry’s recent history: First, what caused this? Secondly and perhaps more importantly, can it continue?
In this month’s Observations we will look at the current phenomenon of record new light vehicle sales, discuss the reasons behind it and look towards the future. Topics of discussion include replacement demand, the environment surrounding the industry and the “churn” rate of vehicles (the percentage of vehicles on the road that are replaced each year).