The automobile industry directly influences the economies of the United States and other countries around the world. In a typical year, the U.S. automobile industry generates between 15 and 20 percent of manufacturers' shipments of durable goods (products designed to last at least three years). Automobile production consumes large amounts of iron, steel, aluminum, and natural rubber. The automobile industry also consumes more copper, glass, zinc, leather, plastic, lead, and platinum than any other U.S. industry.
Rising imported car sales in the United States during the 1980s threatened the economic strength of U.S. automakers, but domestic sales rebounded in the 1990s. U.S. import sales declined from 31 percent of the total car market in 1987 to 20 percent in 1999. With fewer imported and more domestic car sales, the U.S. auto industry has experienced strong job growth. In 1998 the automotive industry accounted for 9 percent of all U.S. jobs producing durable goods, the highest level since 1979. Automobile production workers earned compensation averaging $17.56 an hour - a 25 percent increase since 1990 and among the highest rates paid to any manufacturers of durable goods.
Recent growth in the production of light vehicles in the United States has been impressive. Vehicle production increased by 48 percent between the recession years of 1991 and 1999 (Automotive News, 2000). The 13 million vehicles produced in 1999 were a record high for the U.S. industry, breaking the previous record set in 1978. The recovery of the U.S. motor vehicle manufacturing industry from a period of relative stagnation in the 1980s can be attributed to three major factors. The first factor is a decision by international producers to source many of their U.S. vehicle sales from assembly plants in the United States (Department of Commerce, 2000)................
