Robert E. Cole - The American and Japanese Auto Industries in Transition

The American and Japanese
Auto Industries in Transition

The American and Japanese
Auto Industries in Transition

Report of the Joint U.S.-Japan Automotive Study

edited by

Robert E. Cole
and
Taizo Yakushiji

conducted under the general direction
of research chairmen

Paul W. McCracken
and
Keichi Oshima

Ann Arbor

Center for Japanese Studies
The University of Michigan

Tokyo

Technova Inc.

1984

Open access edition funded by the National Endowment for the Humanities/Andrew W. Mellon Foundation Humanities Open Book Program.

Copyright 1984

Center for Japanese Studies
The University of Michigan
108 Lane Hall
Ann Arbor, MI 48109

and

Technova Inc.
13th Floor, Fukoku Seimei Building
2-2 Uchisaiwai-cho, 2-chome
Chiyoda-ku, Tokyo 100
Japan

All rights reserved

Cover Design by Carrie Di Lorenzo
Calligraphy by Shunichi Kato

Library of Congress Cataloging in Publication Data

Joint U.S.-Japan Automotive Study.

The American and Japanese auto industries in transition. Includes bibliographical references.

1. Automobile industry and tradeUnited States.

2. Automobile industry and tradeJapan. I. Cole, Robert E. II. Yakushiji, Taizo, 1944- . III. Title.

HD9710.U52J64 1984 338.4762920952 84-5814

ISBN 0-939512-20-3

Printed in the United States of America

ISBN 978-0-939512-28-7 (paper)
ISBN 978-0-472-88001-0 (ebook)
ISBN 978-0-472-90205-7 (open access)

The text of this book is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License: https://creativecommons.org/licenses/by-nc-nd/4.0/

Contents

.

In the Spring of 1980, the prospects for the U.S. auto industry stood at low ebb, and there were rapidly growing trade frictions between Japan and the United States. At that time, a number of us initiated a set of private discussions that led to the formal establishment of the Joint U.S.-Japan Automotive Study in September 1980.

At the time of this writing, conditions have once again changed, and the sighs of collective relief can be heard widely throughout the respective auto industries. That the situation changed so rapidly in such a short time, however, should make us mindful that the future holds little promise of tranquility or ease of predictability.

Paul W. McCracken

Keichi Oshima

Research Chairmen

This report was prepared for the Policy Board by the U.S. and Japanese research staffs of the Joint U.S.-Japan Automotive Study under the general direction of Professors Paul W. McCracken and Keichi Oshima, with research operations organized and coordinated by Robert E. Cole on the U.S. side, in close communication with Taizo Yakushiji on the Japanese side. The range of views within the Policy Board, representing widely varying backgrounds, perspectives, and interests, is great. The report is not what any one member of the Policy Board would have written. Therefore, each member reserves the right to his own views on specific matters. The sponsors listed on a subsequent page have joined the study with the intent to promote understanding and open dialogue on the subject of the U.S. and Japanese automotive industries. The report, while taking sponsors views into account, does not necessarily reflect their individual or organizational views of issues covered in the report. Finally, individual researchers associated with the project do not themselves necessarily agree with all statements in the report. Notwithstanding, there was a substantial measure of consensus within the Policy Board and among the research scholars as to the nature of the problems and policy options of the auto industry. Therefore, we commend this report, produced by scholars in both countries, to the general public.

The Policy Board of the

Joint U.S.-Japan Automotive Study

Shoichi AKAZAWA

President

Japan External Trade Organization

David E. COLE

Director

Office for the Study of Automotive Transportation

The University of Michigan

Robert E. COLE

U.S. Project Director

Joint U.S.-Japan Automotive Study

The University of Michigan

Donald F. EPHLIN

Vice President and Director

National General Motors Department

United Automobile Workers

R. Eugene GOODSON

Group Vice President

Automotive Products Group

Hoover Universal, Inc.

Takashi HOSOMI

President

Overseas Economic Cooperation Fund

Robert S. INGERSOLL

Chairman

The Japan Society

Former U.S. Ambassador to Japan

Motoo KAJI

Professor of Economics

The University of Tokyo

Julius L. KATZ

Chairman and Chief Executive Officer

ACLI International Commodity Services, Inc.

James KNISTER

Vice President

Donnelly Mirrors

Paul W. McCRACKEN

Edmund Ezra Day Distinguished University Professor of Business Administration

The University of Michigan

Keichi OSHIMA

Professor Emeritus, Engineering

The University of Tokyo

Fred G. SECREST

Consultant

Ford Motor Company

John SMITH, Jr.

Director

Worldwide Product Planning Group

General Motors Corporation

Minoru TOYODA

Chairman

Board of Directors

Technova Inc.

Shoichiro TOYODA

President

Toyota Motor Corporation

Nobuhiko USHIBA

Advisor

Ministry of Foreign Affairs

Former Japanese Ambassador to the United States

Shigenobu YAMAMOTO

Executive Vice Chairman

Toyota Motor Corporation

Yoshihisa YOKOYAMA

Executive Vice President

Nissan Motor Company, Ltd.

George BITTLINGMAYER

Assistant Professor of Business Administration

The University of Michigan

John CAMPBELL

Director

Center for Japanese Studies

The University of Michigan

David E. COLE

Director

Office for the Study of Automotive Transportation

The University of Michigan

Robert E. COLE

Professor of Sociology

The University of Michigan

Michael S. FLYNN

Associate Research Scientist

Joint U.S.-Japan Automotive Study

The University of Michigan

Mieko HANAEDA

Project Researcher

Technova Inc.

Lawrence. T. HARBECK

Associate Research Scientist

Office for the Study of Automotive Transportation

The University of Michigan

Richard P. HERVEY

Management Consultant and President

Sigma Associates

Masakazu IGUCHI

Professor of Mechanical Engineering for Production

The University of Tokyo

Motoo KAJI

Professor of Economics

The University of Tokyo

Fumio KODAMA

Associate Professor of System Engineering

The Saitama University

Jeffrey LIKER

Assistant Professor of Industrial and Operations Engineering

The University of Michigan

Paul W. McCRACKEN

Edmund Ezra Day Distinguished University Professor of Business Administration

The University of Michigan

Keichi OSHIMA

Professor Emeritus of Engineering

The University of Tokyo

Vladimir PUCIK

Assistant Professor of Business Administration

The University of Michigan

Haruo SHIMADA

Professor of Economics

Keio University

Robert J. THOMAS

Assistant Professor of Sociology

The University of Michigan

Adrian TSCHOEGL

Assistant Professor of Business Administration

The University of Michigan

Richard C. WILSON

Professor of Industrial Engineering

The University of Michigan