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Mary T. Barra, the chief govt of Common Motors, with President Trump at a Michigan occasion last month to debate automaking and job creation.

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Complicating your exercise even more is the fact that people are inclined to hold their cars longer nowadays than they used to. That is in large part because quality has gone up, reducing the frequency needed to purchase a new automobile. I believe this has far more to do with the declining share of GDP dedicated to auto purchases than any of the other factors you talked about.

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The odd-trying line in this graph is the one for home consumption of autos and parts as a fraction of GDP; the line begins to drop after 2002, solely reversing in 2010. It’s odd to me because a graph of US car sales is actually flat from 2001 to 2007 at between 16 and 17 million vehicles per year. Reading off Stuart’s graph above, the gross consumption line starts at about three.7% of GDP in 2001 and drops to round 2.eight% in 2007, so roughly a 25% drop. Looking at BEA Table 1.1.5. US GDP rose 36% during that interval.