How did the Great Depression affect the automobile industry?

History The Great Depression Questions



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How did the Great Depression affect the automobile industry?

The Great Depression had a significant impact on the automobile industry. During this time, the demand for automobiles drastically declined as people faced financial hardships and could not afford to purchase new vehicles. As a result, many automobile manufacturers faced financial difficulties and had to lay off workers or shut down their operations. The production of automobiles significantly decreased, leading to a decline in employment within the industry. Additionally, the automobile industry heavily relied on the steel and rubber industries, which were also severely affected by the economic downturn. Overall, the Great Depression caused a major setback for the automobile industry, leading to reduced production, job losses, and financial struggles.