U.S. SMALL CARS: SINK OR SWIM?

Despite recent developments, U.S. carmakers will not abandon a large market by halting small-car production from their U.S. plants. Thus, GM maintains that despite appearances, it intends to remain very much a small-car producer as time goes by. Evidence shows that in the future U.S. automakers will place far greater emphasis on stateside manufacturing solutions aimed at putting small-car production into the black and rely less on political and economic relief to protect their flanks. It is expected that very soon GM and its domestic competitors will cut down the cost advantage of Japanese cars. This will be done by discarding outmoded assembly-line philosophy, adopting new car building methodologies, lengthening cost-justification and return on investment horizons for capital expenditures, offering greater variety of models and options, emphasizing safety and corrosion-resistance, developing and implementing new technology and software faster than the Japanese, and improving management-union relationship to better utilize human resources. It is believed that 25% of the subcompact's cost can be eliminated with highly automated plants and forcing technology improvements through the supplier chain. Computer aided design (CAD) and computer aided manufacture (CAM) and the entire concept of integrating product design, engineering and manufacturing assisted by computers offers the best opportunity for major cost reductions in producing cars regardless of size.

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  • Corporate Authors:

    Ward's Communications Incorporated

    28 West Adams Street
    Detroit, MI  United States  48226
  • Authors:
    • WINTER, D
  • Publication Date: 1984-5

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00396506
  • Record Type: Publication
  • Source Agency: National Highway Traffic Safety Administration
  • Report/Paper Numbers: HS-037 557
  • Files: HSL, USDOT
  • Created Date: Aug 31 1985 12:00AM