Stateside
9:16 pm
Wed July 30, 2014

Auto business is booming, but report warns of next industry downfall

Auto sales are booming, but don't expect this to be a continuous growth period.
Credit Lester Graham / Michigan Radio

When the economy in Michigan is hurting, you always hear politicians talking about diversifying the economy.

But when the auto industry is doing better and the economy in Michigan is riding along with it, that talk seems to disappear.

Well, not this time. Rick Haglund recently wrote about a report that indicates the auto industry might be hitting the brakes.

Haglund joined us today. He’s a freelance journalist and contributor to Bridge Magazine, MLive and others. Michigan Radio's auto reporter, Tracy Samilton, also joined us on the show.

Haglund said there were a quite few reasons cited for this possible industry downfall.

“The report predicted that the interest rate could rise next year, which could slow auto sales. Another reason has to do with the fact that young people appear not to be as interested in purchasing cars. Plus, there are global problems going on in the auto industry, and Michigan is very sensitive to those,” Haglund said.

Samilton added that there could still be huge opportunities for the industry, if we make good decisions.

“We have a strong industry right now that needs to build more fuel efficient cars and connected vehicles. The changes in this industry can be an opportunity to make Michigan stronger… if we do the right thing,” Samilton said.

*Listen to the full interview above.