Will the U.S. auto market come back? -ECONOMICS-

((((((((((ECONOMICS))))))))))…I didn’t get an invitation for economics

This article talks about the recession that happened in the end of 2007 in the United States of America. Automobile is a great sector in the U.S economy, which affected the economy during the recession. The vehicle industry is the largest consumer spending sector, and also the housing and financial markets.

The recession’s effect on Automobiles:

-Chrysler and General Motors were bankrupted.

-276,000 jobs were destroyed, that’s a 36% of the total employment in the sector.

We all know that the auto industry in the U.S was a great success but will it return to the way it was?

The U.S government had never experienced a thing like this, but according to their suggesting, No it will never return to the conditions it was in.

Impact of housing and auto on real GDP

2007:Q4 403.4 525.0 13,391

2008:Q1 379.6 483.2 13,367

2008:Q2 339.3 462.9 13,415

2008:Q3 333.6 443.3 13,325

2008:Q4 279.8 415.0 13,142

2009:Q1 215.9 367.9 12,925

2009:Q2 222.7 344.4 12,902

Difference -180.7 -180.6 -490

% change -45% -34% -3.7%

Contribution to GDP 37% 37%

Change

According to the chart shown above, the recession made a disaster on the U.S government. There are a few changes, and the economy is growing but not so much. The effect of the recession is still there.

Link: http://findarticles.com/p/articles/mi_m1094/is_4_45/ai_n56471340/?tag=content;col1