Hurricane Harvey Compounded on an Already Weak Year for Auto Manufacturers in the U.S.
Several of the U.S.’s largest automakers struggled in August, posting losses both due to Hurricane Harvey’s impact as well as continuing to show slow growth in 2017.
While President Donald Trump often spoke about the importance of automakers during his campaign, sales continue to falter among the U.S.’s largest producers, which will likely impact future job prospects for U.S. workers in the automotive industry.
Nissan Motor Co Ltd (TYO:7201) was the hardest hit, with deliveries nosediving by 13%. Fiat Chrysler Automobiles NV (NYSE:FCAU) also took a severe hit in August, down 11%, while Ford Motor Company (NYSE:F) dropped 2.1%.
The damage done by Hurricane Harvey harmed U.S. automakers’ sales deliveries, which will likely put them on the back foot for the next few months. This type of setback is hardly what the embattled auto-industry needs.
The White House has consistently championed manufacturing jobs as a priority to this administration, with the auto industry taking a particular focus. After all, the auto industry used to be linked to a thriving middle-class in the U.S., while the near failure of some of the largest car producers in American during the debt crisis in 2008 led to panic across the economy.
While the U.S. auto industry has been angling for a resurgence for some time now, with a slowdown in car delivery sales on top of the devastation that Hurricane Harvey has reaped, the outlook for the auto industry may have taken a negative turn. And with it, the U.S. economy may take a hit as well.
“Nissan Leads Sales Plunge in Mixed Results for U.S. Carmakers,” Bloomberg, September 1, 2017.