Part 7/11:
Emerging Trends and the Shift Towards Luxury
To maximize profits, automakers have shifted toward producing more upscale vehicles, leading to the disappearance of affordable new cars across many brands. This trend isn't limited to the automotive world; across industries, companies are either moving downmarket to appeal to more cost-conscious consumers or upgrading their products to align with higher-income households.
The wealthiest 10% of American households now account for an astonishing 50% of all consumer spending, raising further questions about the sustainability of this market. Data shows that the average age of vehicles on the road has also increased in recent years, indicating that consumers are opting to hold onto their cars longer, which has disrupted new car sales trends.