WILL MODERN youth’s aversion to cars and driving affect the auto industry? Automakers without full lineups, like Subaru, Mazda, Mitsubishi, and Suzuki already are on notice, while companies like Fiat, Peugeot Citroën PSA, and Opel/Vauxhall struggle in their home markets.
In North America, automakers have cut capacity from about 23 million units annually before the 2008 Lehman Brothers collapse, when sales peaked just above 17 million, to a lower, unknown number. No one seems to have a reliable capacity estimate, though it’s certainly still higher than the 13.5-to 14-million cars and trucks Americans will buy this year.
Though automakers doing business in North America and Western Europe are seeking ways to cut capacity without causing excessive labor union pain, they’re continuing to split automotive segments into “micro-niches.”
In October 2006,…