<PAGE>   1
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

               For the quarterly period ended September 30, 1999

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                   For the transition period from          to
                                                 ----------  ----------
                         Commission file number 1-13516
                                                -------
                     UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
                     -------------------------------------
             (Exact name of registrant as specified in its charter)

           Delaware                                          36-3973627
-------------------------------                            --------------
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                           Identification No.)

                           11859 South Central Avenue
                              Alsip, Illinois 60803
                              ---------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (708) 293-4050
                  --------------------------------------------
              (Registrant's telephone number, including area code)

                                       N/A
   -------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X   No
                                             ---    ---


               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

     Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes    No
                         ---   ---

                     APPLICABLE ONLY TO CORPORATE ISSUERS:
The number of shares of issuer's Common Stock, par value $.01 per share,
outstanding as of November 11, 1999 was 6,797,310 shares.

<PAGE>   2



                      UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.

                                      INDEX

PART I. FINANCIAL INFORMATION                                       Page(s)
------------------------------                                      --------
Item 1. Financial Statements

      Consolidated Balance Sheets
               September 30, 1999 (Unaudited) and December 31, 1998      3

      Consolidated Statements of Operations
               (Unaudited) - for the three and nine months ended
               September 30, 1999 and 1998                               4

      Consolidated Statements of Cash Flows
               (Unaudited) - for the nine months ended
               September 30, 1999 and 1998                               5

      Notes to Condensed Financial Statements (Unaudited)                6 - 7

Item 2. Management's Discussion and Analysis of Results of
        Operations and Financial Condition                               8 - 11



PART II.  OTHER INFORMATION

   Item 6 - Exhibits and Reports on Form 8-K                             12

   Signatures                                                            12

   EXHIBIT II - Computation of Earnings Per Share                        13






                                       2

<PAGE>   3
                      UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
                          CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                        September 30, 1999          December 31, 1998
                                                                        ------------------          -----------------
                                                                            (Unaudited)
<S>                                                                        <C>                         <C>
                                Assets

Current Assets:
   Cash                                                                    $    106,888                $    347,626
   Accounts receivable, trade                                                18,486,821                  10,553,136
   Inventories                                                               18,915,101                  16,101,634
   Income taxes refundable                                                      109,017                     234,225
   Deferred income taxes                                                        883,720                   1,062,800
   Prepaid expenses and other current assets                                  1,606,184                   1,027,198
                                                                           ------------                ------------
                                                                             40,107,731                  29,326,619
                                                                           ------------                ------------

Property and Equipment, net                                                   8,815,229                   8,210,547
                                                                           ------------                ------------

Other Assets:
   Goodwill, net                                                                306,640                     305,945
   Deferred income taxes                                                        145,200                     145,200
   Other assets                                                                 902,997                     940,219
                                                                           ------------                ------------
                                                                              1,354,837                   1,391,364
                                                                           ------------                ------------
                                                                           $ 50,277,797                $ 38,928,530
                                                                           ============                ============
                  Liabilities and Stockholders' Equity

Current Liabilities:
   Accounts payable, trade                                                 $ 14,468,351                $  6,910,313
   Long-term indebtedness, current portion                                      740,564                     321,500
   Accrued expenses and other current liabilities                             4,903,386                   3,987,300
                                                                           ------------                ------------
                                                                             20,112,301                  11,219,113
                                                                           ------------                ------------

Long-term Liabilities:
   Revolving loan indebtedness                                               15,515,000                  12,910,000
   Subordinated debenture                                                     4,374,375                   4,340,625
   Long-term indebtedness, non-current portion                                3,808,552                   3,784,340
   Deferred income taxes                                                        168,801                     177,072
                                                                           ------------                ------------
                                                                             23,866,728                  21,212,037
                                                                           ------------                ------------

Stockholders' Equity:
   Preferred stock (authorized 1,000,000 shares,  $.01 par
   value, none issued or outstanding)                                                 0                           0
   Common stock (authorized 15,000,000 shares, $.01 par
   value, 6,797,310 shares and 6,769,425 issued
   and outstanding at September 30, 1999
   and December 31, 1998, respectively)                                          67,973                      67,694
   Additional paid-in-capital                                                 8,338,382                   8,257,398
   Accumulated deficit                                                       (1,556,606)                 (1,228,070)
   Accumulated other comprehensive losses                                      (550,981)                   (599,642)
                                                                           ------------                ------------
                                                                              6,298,768                   6,497,380
                                                                           ------------                ------------
                                                                           $ 50,277,797                $ 38,928,530
                                                                           ============                ============
</TABLE>

    The accompanying notes are an integral part of the financial statements.


                                       3
<PAGE>   4


                     UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                  Three Months Ended September 30,   Nine Months Ended September 30,
                                                          1999            1998            1999           1998
                                                          ----            ----            ----           ----
<S>                                                   <C>             <C>             <C>            <C>
Net sales                                             $18,747,671     $16,137,125     $54,660,020    $50,135,323
Cost of sales                                          14,763,308      12,722,478      43,802,079     39,468,850
                                                      -----------     -----------     -----------    -----------
Gross profit                                            3,984,363       3,414,647      10,857,941     10,666,473
Selling, general, and administrative expenses           3,502,059       2,856,251       9,425,134      8,487,085
                                                      -----------     -----------     -----------    -----------
Income from operations                                    482,304         558,396       1,432,807      2,179,388
                                                      -----------     -----------     -----------    -----------
Other expense:
   Provision for lawsuit settlement                             0               0               0       (151,000)
   Interest expense                                       575,458         557,653       1,594,980      1,606,990
   Other                                                   (1,914)            589)        (13,437)        91,003
                                                      -----------     -----------     -----------    -----------
                                                          573,544         557,072       1,581,543      1,546,993
                                                      -----------     -----------     -----------    -----------

Income (loss) before provision for income taxes           (91,240)          1,324        (148,736)       632,395
Income tax provision                                       44,300          77,599         179,800        316,999
                                                      -----------     -----------     -----------    -----------
Net income (loss)                                       $(135,540)       $(76,275)      $(328,536)      $315,396
                                                      ===========     ===========     ===========    ===========

Comprehensive income (loss):
   Net income (loss)                                    $(135,540)       $(76,275)      $(328,536)      $315,396
   Other comprehensive income (loss),
   foreign currency translation adjustment                105,617          60,114          48,661         (1,516)
                                                      -----------     -----------     -----------    -----------
                                                         $(29,923)       $(16,161)      $(279,875)      $313,880
                                                      ===========     ===========     ===========    ===========
Comprehensive income (loss) Earnings per share:
Basic:
Net income (loss) per share                                $(0.02)         $(0.01)      $(0.05)           $ 0.05
                                                      ===========     ===========     ===========    ===========

Weighted average number of common shares
outstanding                                             6,793,777       6,769,425       6,783,411      6,769,425
                                                      ===========     ===========     ===========    ===========
Diluted:
Net income (loss) per share                                $(0.02)         $(0.01)         $(0.05)         $0.05
                                                      ===========     ===========     ===========    ===========
Weighted average number of common shares
outstanding                                             6,793,777       6,769,425       6,783,411      6,771,359
                                                      ===========     ===========     ===========    ===========
</TABLE>

    The accompanying notes are an integral part of the financial statements

                                       4
<PAGE>   5


                     UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                          Nine Months Ended September 30,
                                                                   -------------------------------------------
                                                                               1999            1998
                                                                           ------------    ------------
<S>                                                                        <C>             <C>
Cash flows from operating activities:
   Net income (loss)                                                       $  (328,536)    $   315,396

Adjustments to reconcile net income (loss) to net cash used in
operating activities:
   Depreciation and amortization                                               887,596         940,584
   Provision for lawsuit settlement                                                  0        (151,000)
   Effect of exchange rate changes                                              48,661          (1,516)
   Compensation expense for stock options                                       29,700          23,091
   Deferred income taxes and other                                             256,122         304,431
   Changes in operating assets and liabilities:
      Accounts receivable, trade                                            (7,933,685)     (2,339,645)
      Inventories                                                           (2,813,467)     (3,365,007
      Prepaid expenses and other current assets                               (453,778)       (176,165)
      Other assets                                                            (143,609)       (356,242)
      Accounts payable, trade                                                7,558,038       4,692,660
      Accrued expenses and other current liabilities                           916,086        (115,168)
                                                                          ------------    ------------
    Net cash used in operating activities                                   (1,976,872)       (228,581)
                                                                          ------------    ------------
Cash flows used in investing activities:
   Purchase of property and equipment                                       (1,312,141)       (508,416)
                                                                          ------------    ------------
   Net cash used in investing activities                                    (1,312,141)       (508,416)
                                                                          ------------    ------------
Cash flows from financing activities:
   Net increase in revolving loan indebtedness                               2,605,000       1,080,000
   Proceeds on notes payable                                                   773,026               0
   Principal payments on notes payable                                        (329,750)       (172,977)
   Principal payments on loans from shareholders                                     0         (21,064)
                                                                          ------------    ------------
   Net cash provided by financing activities                                 3,048,276         885,959
                                                                          ------------    ------------
Net increase (decrease) in cash                                               (240,738)        148,962
Cash, beginning of period                                                      347,626         196,010
                                                                          ------------    ------------
Cash, end of period                                                        $   106,888     $   344,972
                                                                          ============    ============
Supplemental disclosures of cash flow information:
   Cash paid for interest                                                  $ 1,694,466     $ 1,496,593
                                                                          ------------    ------------
   Cash paid for income taxes                                              $    39,793     $    31,315
                                                                          ------------    ------------

Supplemental disclosure of Noncash Investing and Financing
Activities - issuance of common stock for services                         $    51,563     $         0
                                                                          ------------    ------------
</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                       5
<PAGE>   6


                      UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1. UNAUDITED INTERIM FINANCIAL STATEMENTS
Interim condensed financial statements are prepared pursuant to the requirements
for reporting on Form 10-Q. Accordingly, certain disclosures accompanying annual
financial statements prepared in accordance with generally accepted accounting
principles are omitted. For additional disclosures, see the Notes to
Consolidated Financial Statements contained in the Company's Annual Report on
Form 10-K for the year ended December 31, 1998.

In the opinion of management of Universal Automotive Industries, Inc. (the
"Company"), all adjustments, consisting solely of normal recurring adjustments,
necessary for the fair presentation of the financial statements for these
interim periods have been included. The current periods' results of operations
are not necessarily indicative of results which ultimately may be achieved for
the year.


2. INVENTORIES
                                       September 30, 1999
                                      -------------------
     Finished goods                      $ 16,688,791
     Work in process                          247,828
     Raw materials                          1,978,482
                                         ------------
                                          $18,915,101
                                         ============

3. BASIS OF PRESENTATION
Income Taxes
------------
The variation of the Company's effective tax rate from the federal statutory tax
rate is principally due to losses in the Company's Hungarian subsidiary for
which no tax benefits are available.

Net Income Per Share
--------------------
Warrants and options issued by the Company are only included in the computation
of weighted average number of shares, where their inclusion is not
anti-dilutive. For the three months ended September 30, 1999 and 1998 and for
the nine months ended September 30, 1999, common stock equivalents are not
included in the weighted average number of shares outstanding in determining net
loss per share.


4. LASALLE NATIONAL BANK INDEBTEDNESS
On September 29, 1999, the Company closed a renewal and restructure of the
Credit Agreement whereby the existing revolving line of credit was increased to
$22 million and the term loan was extended at the amount outstanding as of the
renewal date. Advance rates applicable to eligible accounts receivable and
inventory are to increase with the renewal.
The credit renewal bears a term ending May 1, 2002.



                                       6


<PAGE>   7
5. COMPANY FACILITIES

The Company completed a move to a larger leased distribution and headquarters
facility located in a southern suburb of Chicago. The Company's former Chicago
distribution center building has been sold in a cash transaction closed in
October, 1999 netting proceeds of approximately $3 million. Under terms if its
Credit Agreement with LaSalle National Bank, the proceeds paid down the existing
term loan. The Company will recognize an after-tax gain of approximately $740
thousand or $0.11 per share in the fourth quarter from such sale.


6. ACQUISITION OF TOTAL BRAKE INDUSTRIES, INC.

In November, 1999, the Company acquired certain assets of Total Brake
Industries, Inc. located in Walkerton, Virginia. Total Brake Industries, Inc.
formulates and manufactures strip lining used in the manufacture of brake shoes
and disc brake pucks. Assets acquired include substantially all manufacturing
assets and inventory related to the Walkerton facility. The total purchase price
was approximately $1.5 million.


7. GEOGRAPHICAL SEGMENT DATA
<TABLE>
<CAPTION>

                                            United                                            Consolidated
                                            States            Canada             Europe        Eliminations           Total
                                          -----------        -----------       ----------     -------------        -----------
<S>                                       <C>                <C>               <C>            <C>                  <C>
Total Revenue:
      Unaffiliated customers              $44,802,530        $ 6,119,418       $3,738,072     $           0        $54,660,020
      Inter area transfers                    476,409          5,194,230                0         5,670,639)                 0
                                          -----------        -----------       ----------     -------------        -----------
Total                                     $45,278,939        $11,313,648       $3,738,072     $  (5,670,639)       $54,660,020
                                          ===========        ===========       ==========     =============        ===========
Income (Loss) from operations             $ 2,116,081        $    72,950       $ (756,224)    $           0        $ 1,432,807
                                          ===========        ===========       ==========     =============        ===========
Total assets                              $61,754,145        $14,711,814       $4,103,499     $ (30,291,661)       $50,277,797
                                          ===========        ===========       ==========     =============        ===========
</TABLE>



                                       7

<PAGE>   8
                 MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
                     OF OPERATION AND FINANCIAL CONDITION1

RESULTS OF OPERATIONS

Three Months Ended September 30, 1999 Compared To Three Months Ended September
30, 1998

     Sales for the quarter of $18,747,671 were $2,610,546 or 16.2% greater as
compared to the same quarter in 1998. This result was achieved due to
significant gains in sales of brake parts, especially sales of the Company's
friction products. Sales of non-brake "commodities" and sales of the Hungarian
foundry's castings were slightly higher than the corresponding period of 1998.
However, sales and production volumes at the foundry continue to be well below
breakeven levels. New sales opportunities are being developed to replace sales
lost in the latter half of 1998, when the foundry's then largest customer halted
orders due to a worsening economic climate in Russia. Although the Company is
exploring ways to exit this business as it no longer fits Company objectives,
there can be no assurance that the Company will be successful in its efforts.

     Gross profits for the three months ended September 30, 1999 were $3,984,363
or 21.3% of net sales compared to $3,414,647 or 21.2% in the same period of
1998. Gross profit percentages for the core brake business was slightly lower in
1999 compared to 1998 due to some one-time costs incurred in connection with
moving to the Company's larger facility. Gross margin percentage was lower at
the Hungarian foundry where some pricing concessions were given to maintain
production levels. Gross margins for the commodity business were higher in the
1999 third quarter compared to 1998 due to more favorable mix of products.

     Selling, general and administrative expenses for the three months ended
September 30, 1999 increased by $645,808 or 22.6% from $2,856,251 for the third
quarter of 1998 to $3,502,059. Selling, general and administrative expenses
increased principally due to (a) increases in costs which vary in proportion to
sales, (b) costs incurred in connection with the relocation of the Company's
main distribution center to a larger leased facility and (c) additional cost
incurred to augment the sales and marketing efforts at the Hungarian foundry.

     Other expense for the three months ended September 30, 1999 increased to
$573,544 from $557,072 for the same period of 1998. The increase is attributable
primarily to an increase in interest expense due to a higher average level of
borrowing during the quarter ended September 30, 1999 compared to the quarter
ended September 30, 1998 offset somewhat by lower average interest rates.

     Net loss for the three months ended September 30, 1999 was $135,540
compared to net loss of $76,275 for the same period in 1998. This result is
indicative of robust operating earnings of the core brake business more than
offset by significant operating losses of the Hungarian foundry.

--------------------------------------------------------------------------------
1 Some of the statements included in Management's Discussion and Analysis of
Financial Condition and Results of Operations, may be considered to be "forward
looking statements" since such statements relate to matters which have not yet
occurred. For example, phrases such as "the Company anticipates," "believes" or
"expects" indicate that it is possible that the event anticipated, believed or
expected may not occur. Should such event not occur, then the result which the
Company expected also may not occur or occur in a different manner, which may be
more or less favorable to the Company. The Company does not undertake any
obligation to publicly release the result of any revisions to these forward
looking statements that may be made to reflect any future event or
circumstances.

                                       8
<PAGE>   9
Nine Months Ended September 30, 1999 Compared to Nine Months Ended September 30,
1998

     Net sales for the nine months ended September 30, 1999 increased by
$4,524,697 or 9.0% to $54,660,020. Sales of brake parts for the nine months
ended September 30, 1999 increased by 9.6% or $3,973,051 over the same 1998
period attributable mainly to increased sales of friction products. Sales from
non-brake warehouse "commodity" business increased $1,444,759 or 36.0% over the
same 1998 period. However, sales of the Company's Hungarian foundry were
$893,113 or 19.3% lower than the same period of 1998 due to the loss of business
late in the nine month period of 1998 of the foundry's largest customer whose
business was hurt by the economic crisis in Russia.

     Gross profits for the nine months ended September 30, 1999 increased
$191,468 or 1.8% to $10,857,941. The gross profit margin percentage for the nine
month period was 19.9% compared to 21.3% for the same 1998 period. Gross profits
for the brake business for the nine months ended September 30, 1999 increased
$521,551 or 5.5%. Gross profit margin percentage for the brake business
decreased to 22.0% for the nine months ended September 30, 1999 from 22.9% for
the year earlier period. The decrease in the gross profit margin percentage is
due to gaining two important new buying groups as customers in late 1998 by
aggressive brake parts pricing, especially in the first quarter of 1999 in
anticipation of incremental volumes in the future. Gross profit margin
percentage for the Hungarian foundry decreased to 5.2% for the 1999 nine month
period compared to 14.6% for the 1998 nine month period due to reduced sales of
the Hungarian foundry as there has not been enough new business to compensate
for the loss in 1998 of the foundry's major customer due to the Russian economic
crisis. Although the Company is exploring opportunities to exit this business,
there can be no assurance that the Company will be successful in their efforts.
However, the Company is increasing sales and marketing support in the hopes of
increasing business in the short term.

     Selling, general and administrative expenses for the nine months ended
September 30, 1999 increased $938,049 or 11.1% to $9,425,134 from $8,487,085 for
the same period in 1998. Such increase was due primarily to (a) increases in
costs which vary in proportion to sales, (b) an increase in sales and marketing
support for the Hungarian foundry, and (c) costs attributable to relocating the
Company's main distribution center to a larger facility.

     Other Expense for the nine months ended September 30, 1999 increased by
$34,550 to $1,581,543 from $1,546,993 for the same period of 1998. The increase
is attributable to a lack of a benefit recorded in the 1998 period related to
reducing a provision for lawsuit settlement initially recorded in the first
quarter of 1997 offset by a lack of foreign exchange losses due to unfavorable
fluctuations in the Canadian dollar in 1998. Interest expense for the nine
months ended September 30, 1999 was basically flat when compared to the same
period of the prior year due to a higher level of borrowings, offset by lower
interest rates.

     Net loss for the nine months ended September 30, 1999 was $328,536 compared
to net income of $316,999 for the same period in 1998. Despite strong operating
income of the brake parts business, operating losses of the Hungarian foundry
were substantially greater than the same period in 1998. The foundry has
operated at below breakeven levels because new sales have not been enough to
replace the business lost in 1998.


                                       9

<PAGE>   10
LIQUIDITY AND CAPITAL RESOURCES

     Net cash used in operating activities for the nine months ended September
30, 1999 was $1,976,872. This was due primarily to cash generated from
operations ($.842 million) which, coupled with cash generated through an
increase in accounts payable ($7.6 million) and accrued expenses ($.916
million), fell short of the amount of cash required to finance growth in
accounts receivable ($7.9 million) and to increase inventories ($2.8 million) to
a level the Company considers necessary.

     Net cash used in investing activities was $1,312,141, which is attributable
primarily to acquisition of various items of tooling and manufacturing
equipment, especially equipment necessary to increase production of friction
product to support sales growth in this category. Net cash provided by financing
activities was $3,048,276, consisting primarily of borrowings under the
Company's revolving credit agreement and proceeds from capital leases used to
finance equipment purchases.

     The Company expects to continue to finance its operations through cash flow
generated from operations, borrowings under the Company's bank lines of credit
and credit from its suppliers. See Note 4 of Notes to Condensed Financial
Statements related to increased borrowing availability under a renewed and
extended credit agreement with LaSalle National Bank.


"YEAR 2000" COMPLIANCE

The Company has reviewed the information technology ("IT") and non-IT systems
and related software in use throughout its operations that could be affected by
the Year 2000 issue. The Year 2000 issue is the result of computer programs
being written using two digits rather than four to define the applicable year.
Thus, time sensitive software may recognize a date using the digits "00" as the
year 1900 rather than the year 2000. This could result in system failure or
miscalculation.

IT Systems
     The Company has three major IT systems, the software for which has been
licensed from various IT vendors: a system that processes and controls sales,
inventory, and warehouse operations for its North American distribution
business; an accounting system for its North American business; and an
integrated business/accounting system for its Hungarian foundry.

     The distribution business IT system required a software upgrade from the
vendor to be Year 2000 compliant. The Company chose to upgrade its computer
hardware and operating system prior to installing the software upgrades to take
advantage of more efficient computer operations and robust capabilities the new
operating system offers. The new hardware and operating system have been
installed and migration to the fully Year 2000 compliant software upgrades is
complete. The cost of the new hardware and operating system software is
approximately $75,000. The upgrade version of the software is provided by the
vendor under a maintenance agreement.

     The accounting system in use for the North American business has been
certified as Year 2000 compliant by the software publisher for the version in
use. No additional costs are anticipated for this system.

     The Year 2000 upgrade needed for the integrated business/accounting system
in use at the Hungarian foundry has been installed and has been provided by the
software vendor under a maintenance agreement.


                                       10

<PAGE>   11

Non-IT Systems

     The Company has considered the risk that the Year 2000 issue may adversely
affect non-IT systems in use. In several instances, the providers of outside
services have certified Year 2000 compliance (i. e. banking, payroll processing,
etc.). The Company believes that its manufacturing processes are not subject to
Year 2000 risk due to the nature of the processes and machines in use. The
Company also believes that the impact of other non-IT systems not being Year
2000 compliant would be minimal.

Third Party Issues

     The Company is currently addressing the Year 2000 readiness of third
parties whose business interruption would have a material adverse affect on the
Company's business. Significant vendors and customers have been surveyed to
ascertain their plans for Year 2000 readiness. The survey results are being
evaluated and appropriate follow-up measures are being taken as required.

     In a highly unlikely worst case scenario in which a portion of the
Company's computer system fails to produce accurate data due to Year 2000, a
temporary manual/personal computer system would be used until the software is
corrected or until replacement software is installed.

     Despite diligent preparation, unanticipated third-party failures, more
general public infrastructure failures or failure to successfully conclude the
Company's Year 2000 readiness efforts as planned could have a material adverse
impact on the Company's results of operations, financial condition and cash
flows in 2000 and beyond.



                                       11
<PAGE>   12
PART II  OTHER INFORMATION
--------------------------

Item 6 - Exhibits and Reports on Form 8-K
-----------------------------------------

a) Exhibit 11 - Computation of Earnings Per Share



                                   SIGNATURES
------------------------------------------------------------------------------
         Pursuant to the requirements of Section 13 or 15(d) of the Securities
and Exchange Act of 1934, the Company has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


                 UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.


                            /s/ ARVIN SCOTT
                            -----------------------------------------------
                            Arvin Scott, Chief Executive Officer, President
                            (Principal Executive Officer)

                            /s/ JEROME J. HISS
                            -----------------------------------------------
                            Jerome J. Hiss, Chief Financial Officer (Principal
                            Financial Officer and Principal Accounting Officer)

                         Date: November 15, 1999



                                       12