<PAGE>
                                  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, 2003

                                       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 0-25198

                      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
                                             -----     -----

     Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act): Yes       No   X
                                                -----    -----


The number of shares of issuer's Common Stock, par value $.01 per share,
outstanding as of September 30, 2003 was 8,560,797 shares.


<PAGE>
                      UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.

                                    FORM 10-Q

                                TABLE OF CONTENTS

PART I.  FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                                                                  Page(s)
                                                                                  -------
   <S>                                                                            <C>
   Item 1. Financial Statements

         Consolidated Balance Sheets
                  September 30, 2003 (Unaudited) and December 31, 2002                  3

         Consolidated Statements of Operations
                  (Unaudited) - For the nine months ended
                  September 30, 2003 and 2002                                           4

         Consolidated Statements of Cash Flows
                  (Unaudited) - For the nine months ended
                  September 30, 2003 and 2002                                           5

         Notes to Condensed Financial Statements (Unaudited)                        6 - 7

   Item 2. Management's Discussion and Analysis of Financial Condition
            and Results of Operations                                              8 - 10

   Item 3. Quantitative and Qualitative Disclosure About Market Risk                   10

   Item 4.  Controls and Procedures 11

PART II.  OTHER INFORMATION

   Items 1, 3, and 5 are not applicable to the Company in this report                  11

   Item 2 - Changes in Securities and Use of Proceeds                                  11

   Item 4 - Submission of Matters to a Vote of Security Holders                        11

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

   Signatures                                                                          12

EXHIBIT II - Computation of Earnings Per Share                                         13

EXHIBIT 31.1 Certificate of Chief Executive Officer                                    14

EXHIBIT 31.2 Certificate of Chief Financial Officer                                    15

EXHIBIT 32 Certificate of Chief Executive Officer and Chief Financial Officer          16
</TABLE>



                                       2
<PAGE>
                      UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
                           CONSOLIDATED BALANCE SHEET


<TABLE>
<CAPTION>
                                                                       September 30, 2003     December 31, 2002
                                                                       ------------------     -----------------
                                                                           (Unaudited)
                          Assets
<S>                                                                       <C>                    <C>
Current assets:
Cash                                                                      $    110,143           $    237,600
Accounts receivable - trade, net                                            12,110,754             12,702,701
Inventories                                                                 13,810,170             17,051,952
Deferred income taxes                                                          240,000                240,000
Prepaid expenses and other current assets                                      291,550                215,987
                                                                          ------------           ------------
                                                                            26,562,617             30,448,240
                                                                          ------------           ------------

Property and equipment , net                                                 4,029,554              4,175,208
                                                                          ------------           ------------

Other assets:
Goodwill, net                                                                  480,498                480,498
Due from stockholders                                                          361,539                345,296
Other assets                                                                   941,422                695,542
                                                                          ------------           ------------
                                                                             1,783,459              1,521,336
                                                                          ------------           ------------
                                                                          $ 32,375,630           $ 36,144,784
                                                                          ============           ============
            Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable, trade                                                   $ 10,063,061           $ 10,212,291
Accrued expenses and other current liabilities                               2,954,693              2,608,466
Subordinated debenture, current portion                                         71,770                 84,020
Long-term indebtedness, current portion                                        177,091                356,663
                                                                          ------------           ------------
                                                                            13,266,615             13,261,440
                                                                          ------------           ------------
Long-term liabilities:
Revolving line of credit                                                    13,435,819             16,949,821
Subordinated debenture, non-current portion                                  2,200,549              1,109,986
Long-term indebtedness, non-current portion                                     36,183                110,510
Deferred rent expense                                                           39,694                 30,419
                                                                          ------------           ------------
                                                                            15,712,245             18,200,736
                                                                          ------------           ------------
Stockholders' equity:
Preferred stock (authorized 2,000,000 shares, $.01 par value,
201,438 shares of Series A and 100,000 shares of Series B issued
and outstanding)                                                                 3,014                  3,014

Common stock (authorized 30,000,000 shares, $.01 par value,
8,560,797 shares issued and outstanding at September 30, 2003
and 8,224,949 at December 31, 2002)                                             85,608                 82,249
Additional paid-in-capital                                                  15,373,008             15,208,441
Accumulated deficit                                                        (11,416,210)            (9,644,606)
Accumulated other comprehensive loss                                          (595,500)              (904,340)
Stock subscription receivable                                                  (53,150)               (62,150)
                                                                          ------------           ------------
                                                                             3,396,770              4,682,608
                                                                          ------------           ------------
                                                                          $ 32,375,630           $ 36,144,784
                                                                          ============           ============
</TABLE>


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


                                       3
<PAGE>

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

<TABLE>
<CAPTION>
                                                              Three Months Ended September 30,       Nine Months Ended September 30,
                                                                  2003               2002               2003               2002
                                                                  ----               ----               ----               ----
<S>                                                           <C>                <C>                <C>                <C>
Net sales                                                     $ 14,083,051       $ 17,146,536       $ 46,938,618       $ 55,215,258
Cost of sales                                                   12,176,229         13,940,213         40,648,203         44,793,042
                                                              ---------------------------------------------------------------------
Gross profit                                                     1,906,822          3,206,323          6,290,415         10,422,216
Selling, general, and administrative expenses                    2,457,024          2,855,154          7,323,398          8,472,768
                                                              ---------------------------------------------------------------------
Income (loss) from operations                                     (550,202)           351,169         (1,032,983)         1,949,448
Other expense:
     Interest expense                                              284,816            352,713            772,904          1,106,956
     Other                                                         (22,801)           (13,529)           (34,283)           161,371
                                                              ---------------------------------------------------------------------
                                                                   262,015            339,184            738,621          1,268,327
                                                              ---------------------------------------------------------------------

Income (loss) before provision for income taxes                   (812,217)            11,985         (1,771,604)           681,121

Income tax provision                                                     -                  -                  -                  -
                                                              ---------------------------------------------------------------------
Net income (loss)                                             $   (812,217)      $     11,985       $ (1,771,604)      $    681,121
                                                              =====================================================================

Comprehensive income (loss) :
Net income (loss)                                             $   (812,217)      $     11,985       $ (1,771,604)      $    681,121
     Other comprehensive income (loss),
     Foreign currency translation adjustments                      (49,549)          (101,371)           308,840             (8,751)
                                                              ---------------------------------------------------------------------
Comprehensive income (loss)                                   $   (861,766)      $    (89,386)      $ (1,462,764)      $    672,370
                                                              =====================================================================
Earnings (Loss) per share:

Basic                                                         $      (0.09)      $       0.00       $      (0.21)      $       0.08
Diluted                                                       $      (0.09)      $       0.00       $      (0.21)      $       0.08

Weighted average number of common shares outstanding:

Basic                                                            8,437,589          8,220,949          8,296,608          8,187,803
Common stock equivalents resulting from
warrants and options                                                     -          3,014,380                  -          3,377,640
                                                              ---------------------------------------------------------------------
Diluted                                                          8,437,589         11,235,329          8,296,608         11,565,443
                                                              =====================================================================
</TABLE>


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


                                       4
<PAGE>

<TABLE>
<CAPTION>
                                                                                  Nine Months Ended September 30,
                                                                               ------------------------------------
                                                                                   2003                    2002
                                                                                   ----                    ----
<S>                                                                            <C>                      <C>
Cash flows from operating activities:
Net income (loss)                                                              $(1,771,604)             $   681,121
Adjustments to reconcile net income (loss) to net cash provided
by (used in) operating activities:
    Depreciation and amortization                                                  885,192                1,025,215
    Provision for bad debts                                                        245,571                  294,674
    Compensation expense for stock options                                               -                   19,800
Changes in operating assets and liabilities:
    Accounts receivable, trade                                                     426,376                 (313,672)
    Inventories                                                                  3,241,782               (2,618,428)
    Prepaid expenses and other current assets                                     (525,759)                 (38,635)
    Accounts payable, trade                                                       (149,230)                 488,046
    Accrued expenses and other current liabilities                                 268,164                   53,058
                                                                               -----------              -----------
Net cash provided by (used in) operating activities                              2,620,492                 (408,821)

Cash flows for investing activities:
    Payments on notes receivable                                                     5,500                    2,500
    Increase in investments, reflected with other assets                           (25,000)                       -
    Purchase of property and equipment                                            (337,244)                (459,321)
                                                                               -----------              -----------
Net cash used in investing activities                                             (356,744)                (456,821)

Cash flows from financing activities:
    Net increase (decrease) in revolving loan indebtedness                      (3,514,002)                  24,749
    Payments on notes payable and subordinated debt                               (329,202)                (694,290)
    Proceeds from subordinated debt                                              1,240,000                        -
    Proceeds from excercise of options                                             167,925                  601,623
                                                                               -----------              -----------
Net cash (used in) provided by financing activities                             (2,435,279)                 (67,918)

Effect of exchange rate changes on cash                                             44,074                   (8,751)
                                                                               -----------              -----------

Net decrease in cash                                                              (127,457)                (942,311)
Cash, beginning of period                                                          237,600                  976,585
                                                                               -----------              -----------
Cash, end of period                                                            $   110,143              $    34,274
                                                                               ===========              ===========

Supplemental disclosures of cash flow information:
    Cash paid for interest                                                     $   841,695              $ 1,193,200
                                                                               ===========              ===========
    Cash paid for income taxes                                                 $         -              $    56,107
                                                                               ===========              ===========
</TABLE>


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


                                       5

<PAGE>

                      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 Universal Automotive Industries,
Inc. Annual Report on Form 10-K for the year ended December 31, 2002.

Our significant accounting policies are described in Note 2 to the Consolidated
Financial Statements contained in Universal Automotive Industries, Inc. Annual
Report on Form 10-K for the year ended December 31, 2002. The application of
these policies may require management to make judgments and estimates about the
amounts reflected in the financial statements. Management uses historical
experience and all available information to make these estimates and judgments,
and different amounts could be reported using different assumptions and
estimates.

In the opinion of our management, 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 period's
results of operations are not necessarily indicative of results which ultimately
may be achieved for the year.

Certain reclassifications have been made for the period presented in the
financial statements to conform to the classifications presented in 2003.

2.   INVENTORIES

                               SEPTEMBER 30, 2003        DECEMBER 31, 2002

Finished goods                  $      10,966,117         $     13,815,563
Work in process                           574,588                  510,264
Raw materials                           2,269,465                2,726,125
                               --------------------------------------------
                                $      13,810,170         $     17,051,952
                               ============================================

3.   BASIS OF PRESENTATION

Net Loss Per Share
Warrants and options issued by us are only included in the computation of
weighted average number of shares where their inclusion is not anti-dilutive.
For the nine months ended September 30, 2003, common stock equivalents are not
included in the weighted average number of shares outstanding in determining net
loss per share.

Income Taxes
For the quarters ended September 30, 2003 and 2002, no provision for income
taxes has been provided. We believe that, consistent with accounting principles
generally accepted in the United States, it was not more likely than not that
the tax benefits associated with the balance of loss carryforwards and other
deferred tax assets will be realized through future taxable earnings or
alternative tax strategies. Accordingly, net deferred tax assets were offset
with a valuation allowance.



                                       6
<PAGE>

4.  LASALLE INDEBTEDNESS

The LaSalle Credit Agreement contains certain limitations on dividends and
capital expenditures and requires us to satisfy a defined minimum tangible net
worth. At September 30, 2003, we were in compliance with this financial
covenant. In June 2003, the credit agreement was extended to May 31, 2005.

5.  RECENTLY ISSUED ACCOUNTING STANDARDS

In December 2002, the FASB issued Statement of Financial Accounting Standards
("SFAS") No. 148, Accounting for Stock-Based Compensation-Transition and
Disclosure, which (i) amends SFAS No. 123, Accounting for Stock-Based
Compensation to add two new transitional approaches when changing from
Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued
to Employees intrinsic value method of accounting for stock-based employee
compensation to the SFAS No. 123 fair value method and (ii) amends APB Opinion
No. 28 Interim Financial Reporting to call for disclosure of SFAS No. 123
pro-forma information on a quarterly basis. We have elected to adopt the
disclosure-only provisions of SFAS No. 148 and will continue to follow APB
Opinion No. 25 and the related interpretations in accounting for the stock
options granted to our employees and directors. Accordingly, employee and
director compensation expense is recognized only for those options whose price
is less than fair market value at the measurement date.

6.  STOCK-BASED COMPENSATION

We have elected to follow APB Opinion No. 25, Accounting for Stock Issued to
Employees, and related interpretations in accounting for the stock options
granted to employees and directors. Accordingly, employee and director
compensation expense is recognized only for those options whose price is less
than fair market value at the measurement date. We have adopted the
disclosure-only provisions of SFAS No. 123, Accounting for Stock-Based
Compensation, as amended.

Had the compensation cost for our stock options plans been determined in
accordance with SFAS No. 123, our reported earnings per share for the three
month periods ending September 30, 2003 and 2002, would differ by less than $.01
per share from that which would have been recorded using the Black-Scholes
option valuation method.

7.  CONTINGENCIES

The company is a party to various other claims, legal actions and complaints
arising in the ordinary course of business. In the opinion of management, all
such matters are adequately covered by insurance, or if not covered, would not
have a material effect on the Company's financial position, results of
operations, or liquidity.


                                       7
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS(1)

GENERAL

We are a manufacturer and distributor of brake rotors, drums, disc brake pads,
relined brake shoes, non-asbestos friction lining and a complete line of
hydraulic parts. We believe that we are the leading supplier of "value line"
brake parts (brake parts sold at prices below those of certain leading national
brand name brake parts) to mass-market retailers, traditional warehouse
distributors and specialty undercar distributors in North America.

RESULTS OF OPERATIONS

Three Months Ended September 30, 2003 Compared To Three Months Ended September
30, 2002

Net sales for the three months ended September 30, 2003 decreased $3,064,485 or
17.9% under the same quarter in 2002 to $14,083,051. The decreased sales were a
result of a temporary disruption in the supply-chain for products imported from
China, the loss of a major customer coupled with a general slow-down in economic
activity, partially offset by increases in commodity sales of non-brake part
products.

Gross profit for the three months ended September 30, 2003 is $1,906,822 or
13.5% of net sales compared to $3,206,323 or 18.7% in the same period of 2002, a
decrease of $1,299,501 or 40.5%. Reduced gross margins on the lower sales volume
and the under absorption of fixed overhead at our manufacturing facilities due
to reduced production levels were partially offset by cost containment and
expense reduction initiatives.

Selling, general and administrative expenses of $2,457,024 (17.5% of net sales)
for the three months ended September 30, 2003 decreased by $398,130 when
compared to $2,855,154 (16.7% of net sales) for the same period in 2002. The
13.9% reduction was a result of reduced freight and commission costs on the
lower sales levels and cost containment and expense reduction initiatives.

Total other expense for the three months ended September 30, 2003 decreased
$77,169 to $262,015 from $339,184 for the same period of 2002. Of this total,
interest expense decreased $67,897 from the same period in 2002 due to lower
borrowing levels on the revolving line of credit coupled with lower interest
rates.

Net loss for the three months ended September 30, 2003 was $812,217 compared to
net income of $11,985 for the same period in 2002. The decrease in net income is
attributed to reduced margins on lower sales and under absorption of
manufacturing costs due to reduced production levels offset by lower selling,
general and administrative expenses and reduced interest expense.





-------------------------
(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 "we anticipate," believe" or "expect"
indicate that it is possible that the event anticipated, believed or expected
may not occur. Should such event not occur, then the result, which we expected,
also may not occur or may occur in a different manner, which may be more or less
favorable to us. We do 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>

Nine Months Ended September 30, 2003 Compared To Nine Months Ended September 30,
2002

Net sales for the nine months ended September 30, 2003 decreased $8,276,640 or
15.0% under the same period in 2002 to $46,938,618. The decreased sales were a
result of a temporary disruption in the supply-chain for products imported from
China, the loss of a major customer coupled with a general slow-down in economic
activity partially offset by increases in commodity sales of non-brake part
products.

Gross profit for the nine months ended September 30, 2003 is $6,290,415 or 13.4%
of net sales compared to $10,422,216 or 18.9% in the same period of 2002, a
decrease of $4,131,801 or 39.6%. Reduced gross margins on the lower sales volume
and the under absorption of fixed overhead at the friction manufacturing
facilities due to reduced production levels and start-up expenses relating to
the relocation of the rotor manufacturing facility were partially offset by cost
containment and reduction initiatives.

Selling, general and administrative expenses of $7,323,398 or 15.6% of net sales
for the nine months ended September 30, 2003 decreased by $1,149,370 when
compared to $8,472,768 or 15.3% of net sales for the same period in 2002. The
13.6% reduction was a result of reduced freight and commission costs on the
lower sales levels, cost containment and reduction initiatives.

Total Other Expense for the nine months ended September 30, 2003 decreased
$529,706 to $738,621 from $1,268,327 for the same period of 2002. Of this total,
interest expense decreased $334,052 from the same period in 2002 due to lower
borrowing levels on the revolving line of credit coupled with lower interest
rates, and the absence of a $162,500 charge to income, incurred during the prior
period, resulting from the cancellation of a strategic supply agreement with
Creative Friction LLC.

Net loss for the nine months ended September 30, 2003 was $1,771,604 compared to
net income of $681,121 for the same period in 2002. The decrease in net income
is attributed to reduced margins on lower sales and under absorption of
manufacturing costs due to reduced production levels and start-up expenses
relating to the relocation of the rotor facility offset by lower selling,
general and administrative expenses and reduced other expense.

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided from operating activities for the nine months ended September
30, 2003 was $2,620,492 which was primarily due to (a) a reduction in
inventories of $3,241,782 and (b) non-cash items consisting of depreciation and
amortization of $885,192, (c) reduction in net accounts receivable of $426,376
and (d) decrease in accrued expenses and other assets of $268,164 offset by (e)
the net loss for the period of $1,771,604, (f) an increase in accounts payable
of $149,230, and (g) an increase in prepaid and other current assets of
$540,360.

Net cash used in investing activities was $356,744 which is attributable
primarily to leasehold improvements incurred in connection with the relocation
of the rotor manufacturing from Cuba, MO into our Alsip, IL facility, and the
acquisition of tooling and patterns for the Brampton, Ontario friction facility.

Net cash used by financing activities was $2,435,279, consisting primarily of
reductions in borrowings under our line of credit agreement of $3,514,002 and
scheduled payments under term notes of $329,202 offset by proceeds from
subordinated debt of $1,240,000 and proceeds from the exercise of options of
$167,925.

We expect to continue to finance our operations through cash flow generated from
operations, borrowings under our bank lines of credit and obtaining credit from
our suppliers, and possibly additional unsecured lines of credit. In June 2003
our credit facility was amended to provide for a revised due date of May 31,
2005.


                                       9
<PAGE>

Future contractual obligations of the Company are as follows:

                         PAYMENTS DUE BY PERIOD 09/30/03


<TABLE>
<CAPTION>
CONTRACTUAL                                     NEXT                              AFTER
OBLIGATIONS                     TOTAL         12 MONTHS         1-3 YEARS        4 YEARS
-----------                     -----         ----------       -----------      ----------
<S>                          <C>              <C>              <C>              <C>
Revolving loan               $13,435,819      $        0       $13,435,819      $        0
Subordinated debt              2,272,319          71,770         2,200,549               0
Long-term debt                    56,718          56,718                 0               0
Capital leases                   156,556         120,373            36,183               0
Operating leases               4,571,030       1,468,950         1,450,647       1,651,433
                             -----------      ----------       -----------      ----------
Total                        $20,492,442      $1,717,811       $17,123,198      $1,651,433
                             ===========      ==========       ===========      ==========
</TABLE>


SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are described in Note 2 to the Consolidated
Financial Statements contained in our Annual Report on Form 10-K for the year
ended December 31, 2002. The application of these policies may require
management to make judgments and estimates about the amounts reflected in the
financial statements. Management uses historical experience and all available
information to make these estimates and judgments, and different amounts could
be reported using different assumptions and estimates.

RECENTLY ISSUED ACCOUNTING STANDARDS

In December 2002, the FASB issued Statement of Financial Accounting Standards
("SFAS") No. 148, Accounting for Stock-Based Compensation-Transition and
Disclosure, which (i) amends SFAS No. 123, Accounting for Stock-Based
Compensation to add two new transitional approaches when changing from
Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued
to Employees intrinsic value method of accounting for stock-based employee
compensation to the SFAS No. 123 fair value method and (ii) amends APB Opinion
No. 28 Interim Financial Reporting to call for disclosure of SFAS No. 123
pro-forma information on a quarterly basis. We have elected to adopt the
disclosure-only provisions of SFAS No. 148 and will continue to follow APB
Opinion No. 25 and the related interpretations in accounting for the stock
options granted to its employees and directors. Accordingly, employee and
director compensation expense is recognized only for those options whose price
is less than fair market value at the measurement date.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

We believe that we do not have significant exposure to market risk associated
with derivative financial instruments, other financial instruments, or
derivative commodity instruments. We previously utilized only limited derivative
financial instruments and did not use them for trading purposes and have never
used derivative commodity instruments. At September 30, 2003, there were no such
derivative instruments. The fair value of financial instruments, other than debt
instruments, closely approximates their carrying value. Because the interest
rate of the revolving loan and the term loan with LaSalle National Bank adjusts
with the changes in the market rate of interest, we believe that the fair value
is equivalent to the carrying value.

We believe the interest rate of seven percent (7.0%) on the subordinated
debenture is approximately equal to the current rate available for similar debt.
Accordingly, the fair value of this debenture approximates its carrying value.


                                       10
<PAGE>

ITEM 4.  CONTROLS AND PROCEDURES.

We maintain a system of controls and procedures designed to provide reasonable
assurance as to the material reliability of the financial statements and other
disclosures included in this report as well as to safeguard assets from
unauthorized use or disposition. However, no cost effective systems of internal
controls will preclude all errors and irregularities, and management is
necessarily required to apply its judgment in evaluating the cost-benefit
relationship of possible controls and procedures.

We evaluated the effectiveness of the design and operation of our disclosure
controls and procedures under the supervision and with the participation of
management, including our chief executive officer and chief financial officer,
within 90 days prior to the filing date of the this report. Based upon that
evaluation, our chief executive officer and chief financial officer concluded
that our disclosure controls and procedures are effective in timely alerting
them to material information required to be included in our periodic Securities
and Exchange Commission filings. No significant changes were made to our systems
of internal controls or other factors that could significantly affect these
disclosure controls and procedures subsequent to the date of their evaluation.

PART II  OTHER INFORMATION

ITEMS 1, 3, AND 5 ARE NOT APPLICABLE TO THE COMPANY IN THIS REPORT.

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS

     During the quarter ended September 30, 2003 we sold shares of our Common
stock (the "shares") in transactions not registered under the Securities Act of
1933, as amended (the "Securities Act"). During the quarter, we issued 240,000
shares to two persons in connection with the exercise of warrants. We did not
use the services of any finders or securities broker-dealers in connection with
the issuance of these shares. We believe that all Shares issued in these
transactions are exempt from registration under the Securities Act by virtue of
Section 4(2) of the Securities Act.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     On July 18, 2003 Universal Automotive Industries, Inc. held its annual
meeting of shareholders. Present at this meeting, in person and by proxy, were
shareholders representing 7,862,282 of the 11,239,329 issued and outstanding
shares of voting securities consisting of 8,224,949 shares of Common Stock,
201,438 shares of Series A Preferred Stock, which have voting rights equivalent
to 2,014,380 shares of Common Stock and 100,000 shares of Series B Preferred
Stock, which have voting rights equivalent to 1,000,000 shares of Common Stock,
at the date of record (69.95% of the total number of shares of voting securities
outstanding and entitled to vote). The following items were voted upon at the
meeting:

     A) The following Directors were elected to the Board:

NAME                    VOTES FOR(2)     VOTES AGAINST     VOTES WITHHELD
----                    ------------     -------------     --------------
M. Catherine Jaros        7,848,482            0               13,800
Dennis Kessler            7,848,482            0               13,800
Sheldon Robinson          7,791,482            0               70,800
Arvin Scott               7,791,482            0               70,800
Yehuda Tzur               7,791,482            0               70,800
Zemin Xu                  7,848,432            0               13,850
Alan Zeffer               7,848,482            0               13,800


----------------------

(2) Includes 2,014, 380 votes of the holders of Series A Preferred Stock and
1,000,000 votes of the holders of Series B Preferred Stock.


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<PAGE>

     B) An amendment to the Universal Automotive Industries, Inc. Share Option
Plan was approved to increase the number of shares available for issuance to
2,500,000 from 1,400,000. Holders of Common Stock holding 4,847,902 shares,
holders of 2,014,380 shares of Series A Preferred Stock having 2,014,380 votes
and holders of 1,000 shares of Series B Preferred Stock having 1,000,000 votes
cast their votes in favor of the amendment, no votes were cast against, and no
shares abstained from voting.


ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

a)  (i)   Exhibit 11 -    Computation of Earnings Per Share
    (ii)  Exhibit 31.1 - Certifications of Chief Executive Officer required by
          Rule 13(a)-14(b) under the Securities Exchange Act of 1934
    (iii) Exhibit 31.2 - Certifications of Chief Financial Officer required by
          Rule 13(a)-14(b) under the Securities Exchange Act of 1934
    (iv)  Exhibit 32 - Certifications Required by Rule 13(a)-14(b) under the
          Securities Exchange Act of 1934 (Sarbanes-Oxley Act of 2002, Section
          906)

b)  The Company filed forms 8-K on May 22, 2003 wherein we reported information
under Item 12 and on September 24, 2003 wherein we filed an exhibit under
Item 7.











                                   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
                                 ---------------
Date: November 14, 2003          Arvin Scott, Chief Executive Officer, President
                                 (Principal Executive Officer)

                                 /s/ ROBERT W. ZIMMER
                                 --------------------
                                 Robert W. Zimmer, Chief Financial Officer
                                 (Principal Financial Officer)



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