The U.S. Automobile Industry: Will It Survive Increasing International Competition
ARMY WAR COLL CARLISLE BARRACKS PA
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The United States automobile industry is a vital basic manufacturing industry. In the past 25 years the U.S. auto industry has fallen on hard times because of increasing foreign competition. Prior to 1980, the auto industry provided 1 in every 6 non-government jobs. The U.S. was a revered exporter of automobiles and related technologies. Today, imported automobiles claim almost a third of the domestic market share and government legislation is in place attempting to preserve the industry. The decline of the auto industry mirrors the erosion of manufacturing in the U.S. in general. Deterioration of the U.S. machine tool industry share its roots with the auto industry. The auto and machine tool industries are critical elements of Americas strategic capabilities. Both the machine tool and auto industries were vital to mobilization efforts during major armed conflicts. Loss of these industries will inhibit the nations ability to convert new technologies into defense related and commercial commodities. Reasons for the decline of American manufacturing have been extensively studied. Solutions have been proposed, some have been implemented. Varying progress has been achieved with American plants being more efficient producing products that are better. Challenges remain however, particularly for weaker firms.
- Economics and Cost Analysis
- Manufacturing and Industrial Engineering and Control of Production Systems