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Search by topic:   17750. U.S. AUTO INDUSTRY: PROBLEMS & PROSPECTS. Following a brief overview of the structure and current conditions in the U.S. auto industry, this paper considers the reasons behind the deplorable state of the industry (particularly GM and Ford) and considers possible solutions to address these problems. The major reasons behind the industry’s decline are found to include a lack of brand focus and definition; high labor and “legacy” (i.e., pension, benefits) costs; unwise labor commitments such as the JOBS Bank; bureaucratic operating structures; inefficient supplier relationships; ineffective management; and failures to respond quickly to changing market and environmental conditions, including changing conditions related to rising fuel costs. In order to survive and to potentially thrive in years to come, the two flagging competitors in the industry must simultaneously cut costs and increase revenues. Cost-cutting will be painful but even if successful, GM and Ford face enormous challenges in designing, producing and marketing vehicles that customers will want to buy. KEYWORDS: automobile industry automakers carmakers gm general motors ford motor company uaw legacy costs labor marketing quality control. APA Style. Written 2006. 16 pages, 81 footnotes, 61 bibliographic sources. 5,890 words.   $112 Copyright 2002 Academic Research Papers Associate Term Paper Sites: Academic Research Papers Academic-Research-Papers Research Central Term Paper Assistance