After a good run, warning lights are flashing in the auto industry—and that’s not good for either the broader manufacturing sector, heartland metropolitan areas, or President Trump.
Here’s the problem: After seven strong years of growth after the crack-up of the 2008 economic crisis and federal bailouts of both GM and Chrysler, auto-sector output and employment growth have slowed markedly from record levels. Years of catch-up purchases by car buyers have finally plateaued. Likewise, automakers need to economize in order to invest billions in developing the electric and self-driving cars of tomorrow.
