Are Folks Getting Used To Driving Less?

Are Folks Getting Used To Driving Less?

By Bill Visnic January 4, 2010

Latest behavioral trend for automakers to fret about: For the second consecutive year, Americans are driving less.

Miles traveled in 2009 by passenger and commercial vehicles on U.S. roads dropped to 2.93 trillion from 2.94 trillion in the same period in 2008, the Federal Highway Administration said. The measured period for 2009 was the 12 months that ended in October, and travel through the rest of calendar 2009 was unlikely to reverse the trend.

Ballooning fuel prices in 2008 and the national economic meltdown in the fourth quarter of that year led to an expected decrease in U.S. driving, the first in a quarter century.

But when the bottom dropped out of fuel prices in 2009, it was expected driving would exceed the 2008 figure -- but rising unemployment and continued pressure on household budgets and commercial activity led to a second consecutive cutback in miles driven.

The nation's high unemployment rate markedly affected Americans' driving because work commuting accounts for the bulk of driving activity. Unemployment currently is recorded as more than twice the 4.9 percent of late 2007, reported a story in the Wall Street Journal.

Automakers, Refiners Worried

The worry is that the recession and gyrating fuel prices may be accelerating a consumer shift toward getting by with less driving.

A high-level marketing executive for a major automaker recently told AutoObserver that recent trends in telecommuting, job-sharing and other forms of part-time work are creating an environment in which personal vehicles are less crucial to being on the job. And the newly elevated unemployment level also is exacerbating the situation as individuals are forced to find alternatives to the conventional American routine of driving to work everyday.

"We may not exactly be worried about it [Americans getting used to spending less time in their vehicles]," said the executive. "But it's a potentially burgeoning macro-trend we're watching closely."

In addition to increasing amounts of telecommuting, those who are employed also are able to stay more in "remote" touch with coworkers and clients via ever more sophisticated mobile devices and communication tools, mitigating the need for driving, the executive noted.

Less driving also means less fuel being used, and industry figures indicate motor-vehicle fuel demand dropped significantly in 2009. Less demand also has driven consistently lower fuel prices for the year, further cutting into revenue for oil companies and refiners.

Bill Visnic:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter