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The American invasion by Japanese automakers / by Chetan I. Damania.

by Damania, Chetan I.

Automobile industry and trade -- Management -- United States

Automobile industry and trade -- Management -- Japan

Organizational change

i, 103 leaves : ill. ; 29 cm.

Advisor: Gene Wright.

Introduction -- Rise of Japan's automakers -- Japan's automakers move to U.S. -- U.S. automakers counter Japan's move -- Successful Japanese strategies ensure U.S. growth -- Future of Japanese automakers.

Japanese automakers are rapidly increasing their share of the American car market. They have transformed their export-oriented Japan-based operations to full-fledge American companies – “transplants” – with the ability to design, engineer, build and assemble cars in the United States (U.S.). The transplants, which had no domestic capacity in 1981, will build 2.5 million automobiles by end of 1991 and some 3 million by 1994. This massive transfer of Japanese production to the U.S. in less than a decade is indeed a historic landmark in the world automotive industry. It has posed serious threats to the U.S. Big Three automakers – General Motors, Ford and Chrysler. Their prospects for growth are more uncertain today than at any time since 1980, when they pushed for “voluntary” quotas on Japanese imports. Their sales are slumping, and they are being forced to weigh shutting plants, laying off workers and delaying investments. This essay gives a brief history of U.S. and Japanese auto industries. It highlights the important philosophies and strategies that led to the rapid growth of Japanese car makers – especially, Honda, Toyota and Nissan – in the U.S. It compares the Japanese and American approaches to auto manufacturing and analyzes their successes and failures. As discussed in the study, teamwork, communication, efficient use of resources, elimination of waste and continual improvements are the most important ingredients in the Japanese success. This extends upstream from factory to the research lab and design center, as well as downstream to the sales and dealer system . As the Japanese transplants prove the effectiveness of their system in the U.S., the Big Three will have to respond quickly. The study recommends that U.S. automakers should become leaders in globalization by integrating the innovative, flexible thinking of the West with the meticulous, strategic mentality of the East. They must focus on restructuring their management, strengthening manufacturing, reducing throughput, and enhancing product quality and diversity. They can achieve positive results by adopting some of the Japanese strategies and techniques, which can be implemented to counter their Japanese competitors.

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