The U.S. auto industry could be lowering its gears on President Donald Trump's economic ideals. Recent sales data showed that after new vehicles sales experienced a steady growth in the past seven years, the numbers reflected a significant drop.
The news comes as Trump relied on automakers to boost America's economy. The government also recently bared its $1 trillion infrastructure plan, which will impact the future of the industry and its bid for self-driving cars.
Demand for new vehicles dropped to 4.7 percent last April, as per Yahoo. The IHS Automotive projected car sales will further fall in the coming months.
In a previous meeting with Trump, car industry leaders such as Ford, Fiat and General Motors declared it will add more jobs in its U.S. plants to heed the president's call for automakers to help the economy. At least 3,000 workers, however, remained idle in a few Michigan and Tennessee plants, according to Daily Mail. Ford, on the other hand, announced it will cut 1,400 jobs by September despite the president's pressure for the auto industry to give Americans more jobs, as per CNN Money.
Analysts also said consumers grew less-enticed for car loans, which factored into the slugging new vehicle sales record. Car sales might have also peaked as banks put a stop to low-interest rates.
Meanwhile, the Trump government revealed it will invest $1 trillion in improving national roads and infrastructure for the benefit of automakers and motorists. "Crumbling infrastructure will be replaced with new roads, bridges, tunnels, airports and railways gleaming across our beautiful land," the president promised in a February speech, as per Fortune.
Transportation secretary Elaine Chao told the Senate last Thursday the department tapped 16 federal agencies to fast-track the projects as the auto industry prepares for self-driving cars to hit the mainstream market, as per Forbes. She also said the department will provide a more "comprehensive legislative package" by the third quarter to show where this trillion budget will go. Watch President Trump discuss with U.S. automakers in the video below.
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