THE U.S. AUTOMOBILE INDUSTRY, 1980. REPORT TO THE PRESIDENT FROM THE SECRETARY OF TRANSPORTATION

Recent development in the U.S. auto industry are reviewed and their implications in the near term and after 1985 are explored. The potential effects of these developments on the auto industry, its employees and the communities in which they work, and on the national economy are evaluated. It is concluded that a minimum of five years is required for the auto industry to return to full competitive strength. Elimination of the $1000 to $15,000 comparative cost advantage held by the Japanese must be a key goal. The greatest source of Japanese advantage is structural: process and product technology which yield major productivity gains. The U.S. auto industry faces enormous capital requirements to retool; even under the best assumptions, the transition will probably eliminate many jobs and impact heavily on the involved cities. A compact is recommended under which the government would negotiate an import restraint agreement with Japan and aid the industry in capital requirements, labor would agree to a wage strategy designed to close the differential with Japan, and management would compensate labor with a profit sharing or other incentive program. It is further recommended that government reform its regulatory approach, redefine the antitrust laws, and increase support for worker retraining. Labor should also support measures to increase productivity and promote new forms of worker retraining and reemployment. Management should restructure its relationship with labor, improve productivity, intensify research and development, and accept more responsibility for social and environmental impacts.

• Corporate Authors:

  Asst Secretary for Policy & International Affairs

  400 7th Street, SW
  Washington, DC  United States  20590
• Publication Date: 1981

Media Info

• Features: References;
• Pagination: 134 p.

Subject/Index Terms

• TRT Terms: Automobile industry; Competition; Development; Economics; Evaluation; Federal government; Imports; Labor market; Management; Productivity; Research; Technology
• Uncontrolled Terms: Research and development
• Geographic Terms: United States
• Subject Areas: Administration and Management; Economics; Research; Safety and Human Factors; Vehicles and Equipment;

Filing Info

• Accession Number: 00369711
• Record Type: Publication
• Source Agency: National Highway Traffic Safety Administration
• Report/Paper Numbers: DOT-P-10-81-02, HS-031 178
• Files: HSL, USDOT
• Created Date: Jan 31 1983 12:00AM