The Effects of Japanese Competition on the American Automobile Industry
Roux, Robert M.
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Within the paper I take quick overview of the world automotive industry with a look at the production break down by continent. A brief look at the production levels of the United States and Japan, along with the on going trade deficit follows, with a mention of the employment levels that are supplied through the industry. From that juncture I review the history of the Japanese auto industry. To completely understand the power and size of Japan's automotive corporations, it is imperative to understand the relationships formed and the steps taken to get them to top of the business. Following this history, I mention the Big Three's response to the Japanese. The closing of the quality gap, the debate on protectionism, and the attempted penetration into Japan's domestic market are all discussed. MY conclusions reveal that the United States auto industry is in a much better state than people believe. The quality of their products has improved, production techniques are becoming more •lean,• and their prices are lower than comparable Japanese models. On top of all that, Japan has recently announced a lowering of their import ceiling into America by 650,000 units. No, the automotive industry is not in dire straights, as everyone believes.