US car fleet shrinks for first time

Pundits are predicting an end to car culture in the US, following the release of statistics showing that the country's vehicle fleet is shrinking for the first time.

The Earth Policy Institute said that the US had scrapped more vehicles than it sold last year, causing the national fleet to shrink by two per cent.

The revelation left commentators divided as to whether the US was facing a temporary contraction in vehicle ownership brought about by the recession, or seeing a more historic shift towards more sustainable means of transport.

The weak economy and increasing urbanisation were both highlighted as potential drivers behind the phenomenon, which saw 14 million cars scrapped in the US last year, compared to just 10 million new models rolling out of showrooms.

However, the report predicted that the trend is likely to continue, arguing that rising petrol prices and increased traffic congestion could mean scrappage exceeds sales until at least 2020. It added that market saturation – there are now nearly five vehicles in the US for every four drivers – also meant that the fleet would struggle to expand further.

The US should look to Japan for an indication of its future, according to the Institute. "Both more densely populated and highly urbanised than the US, Japan apparently reached saturation in 1990," it said in a statement. "Since then its annual car sales have shrunk by 21 per cent. The US appears set to follow suit. "

The research will further fuel calls for the US to invest in more sustainable transport infrastructure, including president Obama's plans for a series of new high-speed rail links.

In related news, Santa Monica-based electric car maker Coda Automotive announced this week that it has completed a new funding round, taking the total amount of funding raised by the secretive startup to $74m (£46m). The fresh funding is expected to finance further development of the company's 120-mile range electric vehicle, which it plans to release this autumn.