Decline of U.S. Automobile Industry
Ref: Kramer proposal (#9359).
When the
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Although the automobile manufacturing industry in the United States remains in the early 1990s as one of the pillars of the American economy, there is little doubt that the industry is in decline, and has been in decline for at least two decades. Inflation and price increases for technological advances have permitted automobile manufacturers to maintain growth in total revenues over the past two decades. In the context of units produced, however, the industry performance trend has been dismal. The proposed research study will examine the problems confronting the American automobile manufacturing industry in the 1990s, with a view toward assessing the industry's prospects for the early years of the next century.Since the 1970s, American automobile manufacturers have faced increasingly stiff competition from foreign manufacturers. Fuel efficiency, meeting environmental protection standards, product quality, and cost are the main factors that have placed the American industry at a competitive disadvantage. Rather than address these issues head on, American automobile manufacturers have tended to seek governmental protection from imports, by claiming alternatively that (1) the American industry cannot meet the standards attained by the foreign manufacturers, and that (2) foreign countries discriminate against American made automobiles. For the most part, such claims are ludicrous. Certainly, American industry c
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espective of international political boundaries.
In the years before 1965, the British Commonwealth was still an economic reality, as well as a political entity the United Kingdom did not become a member of the EEC until 1973. The preferential tariff agreements between the Commonwealth countries caused automobile manufacturers from the United States to build production facilities in Canada, as a means of avoiding customs barriers for American automobile products sold in Commonwealth countries.2 The operation of facilities in both the United States and Canada, however, was not the most operationally efficient method of operation for the American automobile manufacturers. The American market in 1965 was approximately 8.5 times as large as was the Canadian market, and there were more efficient ways of arranging production to serve the adjacent markets than operating a completely separate set of production facilities in Canada.
Further, the automobile workers in Canada and the United States were, by the 1960s, members of the same international labor union the United Automobile Workers (UAW). The Canadian locals felt that access for Canadian production to the American market would improve their opportunities for work. Press
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Some common words found in the essay are:
North American, Introductory Statement, Charge Automotive, Japan Japanese, Automobile Pact, Competition United, Canadian American, Secondly American, Agreement Japanese, Investment Survey, american automobile, automobile manufacturers, automobile manufacturing industry, manufacturing industry, automobile manufacturing, american automobile manufacturing, automobile industry, american automobile manufacturers, free trade, north american, federal government, trade agreement, free trade agreement, automobile workers, proposed research study,
Approximate Word count = 2887
Approximate Pages = 12 (250 words per page)
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