At the risk of stoking unwanted protectionist flames, I'll just note for those who are intent to push all or most of the blame the way of the auto unions:
- Item: After tough trade negotiations under Clinton in the 1990s, Japan's auto imports have leveled out for a long time at circa 280,000 units (also here), even against a domestic industry that ought to have been weakened by sluggish economic growth - normally, you'd expect to see domestic share decline in such an environment. (see also, imports shown by car model)
- Item: Despite growth in manufacturing in the U.S., Japanese production capacity in Japan for export may have grown faster. (The "yen hawks" certainly think so, at least - appear to be backed up by growth rate differential, shown here).
- Item: The penetration of the Japanese domestic market for foreign suppliers doesn't seem to respond to changes in any financial variables, standing at less than 10%, given a total production of circa 3.2 million cars (peak domestic production has been much higher).
- Item: the UAW has had troubles organizing the foreign auto manufacturers, for a number of reasons, including that the benefits paid and the employment "guarantees" offered are pretty good.
Rob Reich has a somewhat unexpected take on Chapter 11.
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