The American Auto Transport Services is in the process of replacing its fleet of 18,000 Ford Ranger and Chevrolet Suburban minivans with new, higher-powered models.
The move comes as American Auto transport says it has lost about 3,000 jobs in the last year.
The company said that in the first quarter of 2017, it lost about $10 million due to the global recession and is “underperforming” the company’s peers.
American Auto transport is also losing money in a downturn for a range of other industries, including tourism, which the company said was also hurt.
It said that the impact of the downturn has been felt across the country and that “there are significant gaps in our supply chain and infrastructure” that are causing the company “unprecedented challenges”.
The American Auto transportation company said it would be hiring in the coming weeks, but that it is working with the American Automobile Association to determine which parts and suppliers will be required to meet safety standards.
The announcement came in a press release that said the automaker plans to invest $25 million over the next two years to “expand our supply chains, increase productivity and strengthen our workforce”.
“We are also investing in infrastructure to better support our customers’ ability to operate their vehicles safely and efficiently, and we are working closely with the Department of Transportation to establish a plan to meet the future challenges of the auto industry,” it said.
However, the automakers announcement comes just months after a federal court in Texas ruled that the federal government’s National Automobile Dealers Association is “at fault” for failing to enforce the federal Motor Vehicle Safety Act.
In January, the court in Houston ruled that, under the federal law, the association was “at least partially responsible” for the deaths of 18 people who died in 2012 in a minivan crash in San Antonio.
An attorney for American Auto said the company would appeal the decision.
“In our opinion, the federal courts have not yet addressed the underlying cause of this accident, the role of the National Automotive Dealers Act in this tragic incident, and the impact that the act has had on the auto and auto parts industry in Texas,” the attorney said in a statement.
A spokesman for the American Auto trucking company said the group was not commenting.
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