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Automotive Industry: The Competitive Challenge to U.S. Companies

  Premium   Download PDF Now (24 pages)
Report Type Reports and Testimonies
Report Date Jan. 27, 1992
Report No. T-NSIAD-92-7
Subject
Summary:

This testimony, which discusses the competitiveness of the U.S. economy in general and the U.S. automobile industry in particular, is based on prior GAO work addressing the causes of the U.S. trade deficit, Japanese economic and industrial policies, foreign investment in the U.S. automobile industry, and management practices used by U.S. firms to improve their competitiveness. GAO concludes that the federal government can do a much better job of establishing the underlying conditions affecting the competitiveness of the U.S. economy. Some have called for the federal government to directly assist the U.S. automotive industry. However, government lacks the power to transform individual companies into world-class competitors--only corporate management has that ability. Some firms have shown how to accomplish this. In GAO's view, any federal initiatives should encourage needed management changes rather than merely protect auto industry firms from competition and necessary change.

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