Trends in the U.S. automotive industry are linked to societal changes. The number of people riding public transportation has declined by nearly two-thirds in New York City, more than half in Los Angeles, and less than a third in Indianapolis. In many cities, such as Detroit, the number of transit users is declining. In the past few years, these shifts have led to fewer automobiles being sold. In the coming years, automakers will be focusing more on light truck manufacturing and electrification.
The U.S. auto industry is truly global. Companies will continue to sell cars in Europe and China, while also producing models for the U.S. market. However, the EU and China will push the industry toward stricter fuel economy standards and electric cars. While the federal government can slow these trends, they cannot reverse them. The future of the automotive industry is uncertain. There is a significant need to invest in the future of the industry.
The U.S. automotive industry is experiencing a decline in sales. Last year, US vehicle sales were down 14%. In 2020, there are projected to be only 8.8 million cars on American roads. This is the lowest level of vehicle production since 1980. This means that foreign automakers are the biggest competition in the United States. The United States auto industry represents 3% of the GDP and is the largest exporter and the largest investor in research and development.
Although it is hard to determine whether a decline in the U.S. auto industry will happen, it is a realistic possibility. The decline in new car sales this year could be the fourth largest since the Great Recession. The loss was 22.2% in 1980 and 18.5% in the Great Recession. The auto industry faced incredible challenges in 2018, but it is not yet over. A few strategies, such as driver-assist technology and reimagined operations, can help the auto industry thrive in the years to come.
While car sales in the U.S. have experienced a slump since the Great Recession began, the industry will rebound in 2020. In fact, the U.S. automotive industry 2020 is expected to sell 14.5 million vehicles, down from 17.1 million in 2019. This is a significant decrease from the previous year, which is the fifth-largest loss since the Great Recession. The decline, however, is still less than the first two years of the recession, when car sales were booming.
Ending Line
The automotive industry in the U.S. is facing a tough time. Compared to the past, there have been fewer layoffs in the industry. But now, the auto industry is facing broader challenges. In fact, new imports from Europe have been reduced by more than 80%, which has hurt the automotive sector. And the resurgence of the auto industry has boosted demand, but the United States economy is still suffering from the recession.
