Global Auto Industry Slams On The Brakes

The global financial downturn has driven an auto-industry crisis that saw production and sales of passenger cars and light vehicles decline by 4 and 5 percent respectively in 2008. Projections suggest that both production and sales will drop even more dramatically in 2009, with 10 million fewer vehicles rolling off assembly lines than in 2007.

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A new snapshot of vehicle production trends from Worldwatch Institute includes fuel economy data as well as sales data for the largest producer countries, revealing that:

New cars made in Japan and Europe go farthest on a gallon of gas, achieving more than 40 miles per gallon on average, while Japan is planning to reach 47 mpg by 2015.

As of 2008, only 1.5 percent of light-duty vehicles sold in the United States had a reasonably high fuel efficiency at 35 mpg, but the Obama administration has announced that it will push standards to 39 mpg for cars by 2016 and 35.5 mpg for cars and light trucks combined.

In 2008, slightly more than half a million gasoline-electric hybrids were produced worldwide. The share of gasoline-electric hybrid, diesel hybrid, and electric vehicles production is projected to grow from 0.7 percent today to 3.7 percent by 2015.

U.S. vehicle sales in 2009, at 13.2 million, were down 3 million from 2007—the biggest drop since 1974—and are projected to decline to 10–11 million in 2009. U.S. car companies suffered heavy financial losses after betting heavily on gas-guzzling vehicles, and the fate of Chrysler and GM remains unclear. In contrast, sales in China and India will likely continue to rise.

This in-depth look at the global auto industry includes production data from 1950 to the present as well as projections through 2009.

Read the Vital Signs analysis, “Global Auto Industry in Crisis” Note: You must register to view the full analysis.