Vehicle Scrappage Rates Reach Highest Level Since Cash for Clunkers, According to Experian Automotive's Q4 2010 Market Analysis Additional research showed nearly 29 million vehicles were either introduced, changed owners or were scrapped from July 1 to December 31, 2010
SCHAUMBURG, Ill., March 10, 2011 /PRNewswire/ -- Experian Automotive today announced findings from its Q4 2010 Vehicles in Operation (VIO) market analysis. Findings from the report showed that the rate of vehicles removed from operation significantly increased in Q4 2010 when compared to Q3 2010 for both cars and light trucks.
"The past quarter saw the biggest jump in vehicle scrappage rates since 'Cash for Clunkers' in 2009," said Marty Miller, senior product manager for Experian Automotive. "With the high number of vehicles coming out of operation and the overall number of VIO going down, it is more important than ever for automotive aftermarket organizations to ensure they have the most up-to-date market data available to help them make better inventory decisions, manage the supply chain and drive profitability."
Findings from the quarterly report showed the scrappage rate in Q4 2010 for cars increased by 28.3 percent, compared with Q3 2010, while the rate for light trucks in Q4 2010 more than doubled, rising by 58.2 percent over the previous quarter. For all of 2010, the annual scrappage rate was 5.3 percent for cars and 3.5 percent for light trucks.
Other Q4 2010 findings:
- Year end results for the U.S. Q4 2010 VIO data (as of December 31, 2010) show a total of 239,811,984 passenger cars and light trucks currently registered on the road, which is up from last year at the same time (239,061,943), but down from last quarter (240,282,742).
- Light trucks encompass 50.4 percent of vehicles on the road which is up from 50.1 percent at the same period last year.
- The average age of the vehicle market is up 3.3 percent, from 9.6 years in Q4 2009 to 9.9 years in Q4 2010.
- The "Detroit 3" (GM, Ford, Chrysler) vehicle share stands at 61.3 percent of the total market which is down 1.6 percent from the same period last year (loss of 2.4 million vehicles). By manufacturer, GM is down 1.9 percent, Chrysler is down 1.5 percent and Ford is down 1.4 percent overall from last year at the same period.
In addition to findings from the quarterly report, Experian Automotive also conducted a market trend analysis, highlighting changes that have taken place in the number and types of vehicles on the road during the six month period ranging from July 1 to December 31, 2010.
Results of this analysis show significant changes within VIO, including:
- More than 5.7 million new vehicles were introduced to the market of which 539 new model/series did not exist as of July 1.
- Nearly 17.5 million used vehicles changed owners in the last six months.
- Over 5.7 million vehicles were removed (scrapped) from operation.
- Overall car volumes decreased by nearly 790,000 vehicles while light truck volumes compensated for the loss by adding 800,000 vehicles.
- Import vehicles increased by 1.9 percent over the six-month period, with Hyundai growing the largest at 5.4 percent, followed by Subaru at 4.2 percent.
- Vehicles within the 1983-1992 model year range saw an average decrease in VIO of 8.2 percent in the time period.
Additional Q4 data insights and further results of the six- month market analysis will be presented in Experian Automotive's quarterly webinar slated for mid-April. For more information, visit http://www.experian.com/automotive/auto-resources.html.
Experian's U.S. and Canadian Vehicles in Operation (VIO) data, which is coded to Automotive Aftermarket Industry Association (AAIA) standards, includes more than 25 detailed vehicle attributes for 1967 and newer vehicles and includes quarterly deliveries for both Canada and the U.S. For more information, visit www.autocount.com.
About Experian Automotive
Experian Automotive is a leader in providing information services and market intelligence to manufacturers, dealers, finance, insurance and aftermarket companies, helping them increase customer loyalty; target and win new business; and make better lending, purchasing and production decisions. Experian's AutoCheck® reports provide customers with in-depth vehicle history information to confidently understand, compare and select the right vehicle. Its North American Vehicle Database(SM) houses more than 650 million vehicles and, when combined with Experian's credit, consumer and business information assets, meets the industry's growing demand for an integrated information source. Experian technology supports top automotive businesses, including eBay Motors, O'Reilly Auto Parts, Affinia, CarMax and NADAguides.com. For more information on Experian Automotive and its suite of services, visit our Website at http://www.experianautomotive.com.
Experian® is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2010, was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and Sao Paulo, Brazil.
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SOURCE Experian Automotive