The report analyzes the U.S. Automobile Industry performance during 1985 and the first half of 1986. Despite a substantial restructuring of its operations and product lines since the late 1970s, the U.S. automobile manufacturing industry continues to face serious competitive challenges. These challenges include narrowing the large Japanese cost advantage in the production of small cars and compact trucks, improving the quality of U.S.-made automotive products, and managing a changing and increasingly complex labor relations environment. During the past 3 years the U.S. industry has made very significant progress in increasing productivity, controlling costs, and improving its labor relations climate. The advent of increasing U.S. operations by the Japanese automotive manufacturers will lead to a changed U.S. automobile industry.


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