Yup, large automakers bought up a lot of rail lines, especially local inter- and intracities, and tore out the tracks as part of the highway program. My hometown had extensive tram lines (and a halfway built subway that we ran out of money for in the 20s) that got ripped up when I75 got built.
A lot of cities also just did this of their own accord, partially to enforce segregation and redlining. Awful harder for black and brown people to get to your Rich White Neighborhood if there's no train or bus service to easily take them there.