Why American Automotive Industry Is Plummeting?

Why is it that the American Automotive Industry is plummeting? The American Automotive Industry has had a major plummet in auto sales over the years. There are a lot of issues to why America is dropping in auto sales compared to China. The main points of these issues are tax inflation, Safety regulations, and NAFTA. Each one of these issues has had a major impact on the American auto industry.

Numerous industries are having major difficulties due to growing inflation. Inflation is one of the most significant issues that the American auto industry is facing. Rising costs for companies means that these costs have to be paid for. It is typically the customers whom pay for it through the increase in prices. Thus, the cost of car finance also increases and less people want to purchase cars. China’s government plans to keep the automotive industry fueled by keeping taxes low and giving more subsidies. This alone is a reason why China is beating the U.S. in auto sales. If American government would lower car taxes and grant the automotive

NAFTA has fallen short of creating the jobs and the local economic integration its promoter’s guaranteed in the past. Trade relations have expanded considerably, and U.S. manufacturers established supply chains throughout countries that have made businesses more competitive globally. This may have fueled economic growth. Unfortunately, almost 750,000 U.S. jobs have been lost since enacting NAFTA. This including those of the automotive industry. Automotive workers were at least 15 % of the job losses. Less workers means less productivity. Which in the end promotes a huge issue when it comes to manufacturing vehicles in America’s automotive industry. The government could resolve this issue by providing funds to the automotive industries so they can keep their workers but America just simply cannot afford