Lawrence J. Bur
Abstract: The Japanese automobile has penetrated the American marketplace to a greater degree than any other imported commercial product. It captured an astounding twenty-three percent of the market in 1980, undermining America’s strongest industry. This article ranges from a discussion of the thriving Japanese industry to a look at the failing of their American counterparts, as well as the changes that have taken place in the market itself. The author identifies several advantages of Japanese carmakers, including a less restrictive government, more efficient manufacturing, a more productive workplace culture, and products that are overall superior to their American counterparts. In America, Detroit automakers have simply failed to innovate, producing large, gas-guzzling automobiles that Americans don’t want to buy. Instead of improving, American automakers have sought to reduce Japanese imports to allow the American industry time to retool. In response, Japan imposed a voluntary cutback of auto exports in 1981 to help the Americans, but it’s unclear how much this will help. The Japanese are not at fault for undermining the American auto industry, but rather, Detroit’s woes are due to its own mistakes, as well as economic and energy problems. Detroit has pursued short-term cost effectiveness instead of performance and quality. If the American automakers had been as flexible as the Japanese in realizing the need for a more efficient automobile, they would have survived easily. There is a great lesson to be learned from Japan, and hopefully it’s not too late.
Keywords: Japan, industry, protectionism, protectionist, manufacturing, Detroit, America, automation, trade
