rude Oil Embargo against western countries, the automobile manufacturing industry in the United States has been on the defensive against foreign competition. The American industry suffered additional setbacks in the economic recession of the early-1980s. Although the American Big-3 automobile manufacturers made some progress following the end of the recession, they continued to see their market share erode.
In the mid-1960s, the foreign share of the American new car market was low, and the share of the Japanese manufacturers was minuscule. Perceptions of product quality and design innovation among American consumers were low for all Japanese products. The Japanese, in all industries, set out to change their images among American consumers. Strict attention to quality control, high quality/price ratios, and a can-do philosophy brought success for the Japanese automobile manufacturers in the American market. When the energy crises struck in the 1970s, American automobile manufacturers contended that they needed years to
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