GM Expects Strong US Auto Demand for the Next 4-5 Years image

GM CEO Dan Akerson said he expects the US auto industry to see a strong demand in the following four or five years, as customers continue to replace their aging vehicles.

“There’s this underlying strength that may go for the next four or five years until we get it back to eight, nine (year) range of average age of the car …” in the United States, Akerson said on the CNBC cable news channel.

The average age for vehicles in the US have reached an all-time high of 11 years and industry executives in the region expect sales to increase as customers are forced to replace their old cars.

On another matter, Akerson said that GM will pay attention to the tensions between South and North Korea, making contingency plans for the workers’ safety and being prepared to transfer production from the region if necessary. GM has five facilities in South Korea, from where it exports thousands of vehicles to other markets.

“Anything that goes on in Korea is critically important to our global production,” said Akerson. “You’ve got to start to think about where you have the continuity of supply and safety of your assets and your employees. It’s a concern to everybody.”