The success of American auto sales in 2025 proves what President Trump knew all along: when the government gets out of the way and puts American workers first, our economy thrives. New vehicle sales rose 2.4 percent, the strongest performance since 2019, with Ford, General Motors, Hyundai and Honda all posting banner years. Tariffs haven’t hiked prices as doomsayers predicted. Instead, they’ve sparked massive new investments in U.S. production facilities, jobs and innovation.
This is what the rebirth of American manufacturing looks like. But this success story depends on one critical piece of infrastructure that often goes unnoticed: a competitive, innovative freight rail network.
Behind every vehicle sold in America is a complex logistics choreography. Finished cars and trucks must move from assembly plants to distribution centers, ports and dealerships. Billions of dollars in automotive goods flow through these supply chains annually, supporting American jobs, gross domestic product (GDP) growth and a network of manufacturers, suppliers, and logistics providers. Auto parts must flow seamlessly from suppliers across North America to production facilities. Billions of dollars in automotive goods traverse our supply chains annually. Get this logistics network wrong, and the entire system collapses.
President Trump’s trade policies have revitalized American manufacturing by prioritizing domestic production and integrated cross-border supply chains. But realizing this vision requires seamless movement of goods. Freight rail is the backbone of that movement.
Consider what’s at stake. Competition in freight rail directly impacts competitiveness in auto manufacturing. When railroads compete, they drive innovation, reduce costs and improve service reliability. Shippers, whether automakers or parts suppliers, get better rates and dependable service. History shows that industry consolidation leads to reduced service quality, higher prices and supply chain disruptions.
Yet rail networks face mounting pressure from consolidation trends. Late last year, Union Pacific and Norfolk Southern filed an application to merge. If approved by the Surface Transportation Board (STBD), the companies would create the country’s first transcontinental railroad. However, it would also give one company control of almost half of American freight rail, calling into question the impact on market competition.
Not all mergers are inherently bad, so long as enhanced competition is achieved. The rail industry is like any other – it should embrace competition as an engine for growth. A truly competitive rail system, one where railroads compete on service, innovation and efficiency, delivers the reliable, cost-effective infrastructure that American manufacturers depend on. We cannot revitalize American manufacturing if our supply chains are constrained by monopolistic consolidation.
Market competition must be embedded in freight rail. Competition drives reliability, innovation, and lower costs. When automakers decide to expand operations in the United States, they don’t just consider labor costs or tax policy. They consider the entire ecosystem: How quickly can finished vehicles reach markets? How reliably can parts suppliers connect to assembly plants? Can the transportation network support their growth? Do they have options and negotiating power with their freight carriers?
A competitive rail network answers yes to all of these questions. It keeps rates fair, service standards high, and supply chains resilient. This is the standard that the Union Pacific-Norfolk Southern merger – and those that come after it – must be held to. The STB has a duty to the American people to ensure this merger passes the test. This is how to sustain economic momentum.
As we celebrate 2025’s auto sales success and the vindication of Trump’s America-first policies, we must recognize that keeping this momentum alive requires competitive, efficient infrastructure. A vibrant, competitive rail industry stands ready to deliver.
The auto industry’s success story is just beginning. Our transportation infrastructure needs to be part of that success.
