<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 March 31, 2001

                                       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 May 11, 2001 was 7,438,870 shares.


<PAGE>   2






                      UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.

                                      INDEX

PART I.  FINANCIAL INFORMATION

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

         Consolidated Balance Sheets
                  March 31, 2001 (Unaudited) and December 31, 2000                               3

         Consolidated Statements of Operations
                  (Unaudited) - for the three months ended
                  March 31, 2001 and 2000                                                        4

         Consolidated Statements of Cash Flows
                  (Unaudited) - for the three months ended
                  March 31, 2001 and 2000                                                        5

         Notes to Condensed Financial Statements (Unaudited)                                     6

   Item 2. Management's Discussion and Analysis of Financial Condition
              and Results of Operations                                                          7 - 9

   Item 3. Quantitative and Qualitative Disclosure About Market Risk                             9

PART II.  OTHER INFORMATION

   Item 1 is not applicable to the Company in this report.

   Item 2 - Changes in Securities and Use of Proceeds                                            10

   Items 3 through 5 are not applicable to the Company in this report

   Item 6 - Exhibits and Reports on Form 8-K                                                     10

   Signatures                                                                                    10

    EXHIBIT II - Computation of Earnings Per Share                                               11
</TABLE>



                                       2
<PAGE>   3


                      UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                          March 31,2001           December 31, 2000
                                                                         --------------           -----------------
                                                                           (Unaudited)
<S>                                                                      <C>                         <C>
        Assets
Current Assets:
   Cash                                                                  $       26,565              $       56,127
   Accounts receivable, trade                                                15,823,272                  14,592,188
   Inventories                                                               18,932,651                  19,744,571
   Deferred income taxes                                                        578,000                     578,000
   Prepaid expenses and other current assets                                    648,999                     762,843
    Net current assets of discontinued operations                               152,957                     213,087
                                                                          --------------              --------------
                                                                             36,162,444                  35,946,816
                                                                          --------------              --------------
Property and Equipment - continuing operations, net                           4,975,613                   4,996,811
                                                                          --------------              --------------
Property and Equipment - discontinued operations, net                           800,000                     800,000
                                                                          --------------              --------------
Other Assets:
   Goodwill, net                                                                505,957                     521,690
   Deferred income taxes                                                        307,000                     307,000
   Due from stockholders                                                        237,262                     237,262
   Other assets                                                                 714,210                     836,737
                                                                          --------------              --------------
                                                                              1,764,429                   1,902,689
                                                                          --------------              --------------
                                                                         $   43,702,486              $   43,646,316
                                                                         ==============              ==============
   Liabilities and Stockholders' Equity
Current Liabilities:
   Accounts payable, trade                                               $   14,468,718              $   14,524,409
   Long-term indebtedness, current portion                                      442,458                     473,405
   Accrued expenses and other current liabilities                             3,162,404                   3,850,668
   Estimated loss on disposal of discontinued operations                        860,161                     860,161
                                                                          --------------              --------------
                                                                             18,933,741                  19,708,643
                                                                          --------------              --------------
Long-term Liabilities:
   Revolving loan indebtedness                                               18,824,370                  17,264,111
   Subordinated debenture                                                     4,441,875                   4,430,625
   Long-term indebtedness, non-current portion                                  924,960                     856,151
   Deferred income taxes                                                        206,446                     217,174
                                                                          --------------              --------------
                                                                             24,397,651                  22,768,061
                                                                          --------------              --------------
Minority Interest in Subsidiary                                                 100,000                     450,000
                                                                          --------------              --------------

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, 7,438,870 shares and 7,243,570
issued and outstanding at March 31, 2001 and
December 31, 2000, respectively)                                                 74,388                      72,435
   Additional paid-in-capital                                                 9,067,770                   8,670,736
   Retained earnings                                                         (7,859,541)                 (6,774,614)
   Accumulated other comprehensive losses                                    (1,011,523)                ( 1,248,945)
                                                                          --------------              --------------
                                                                                271,094                     719,612
                                                                          --------------              --------------
                                                                         $   43,702,486              $   43,646,316
                                                                         ==============              ==============
</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 March 31,
                                                                                  --------------------------------
                                                                                      2001               2000
                                                                                 --------------     --------------
<S>                                                                              <C>                <C>
Net Sales                                                                        $   16,028,365     $   17,502,604
Cost of Sales                                                                        13,164,890         13,814,105
                                                                                 --------------     --------------
Gross Profit                                                                          2,863,475          3,688,499
Selling, General, and Administrative Expenses                                         3,181,135          3,087,660
                                                                                 --------------     --------------
Income (Loss) From Operations                                                          (317,660)           600,839
                                                                                 --------------     --------------
Other Expense (Income):
   Interest expense                                                                     580,003            577,454
   Loss from discontinued operations                                                    154,893                  0
   Other                                                                                 21,871            (65,925)
                                                                                 --------------     --------------
                                                                                        756,767            511,529
                                                                                 --------------     --------------


Income (Loss) before Provision for Income Taxes                                      (1,074,427)            89,310
Income Tax Provision                                                                     10,500             32,300
                                                                                 --------------     --------------
Net Income (Loss)                                                                $   (1,084,927)    $       57,010
                                                                                 ==============     ==============

Comprehensive Income (Loss):
   Net Income (Loss)                                                             $   (1,084,927)    $       57,010
   Other Comprehensive Income, Foreign
   Currency Translation Adjustment                                               $      237,422     $       14,730
                                                                                 --------------     --------------
Comprehensive Income (Loss)                                                            (847,505)            71,740
                                                                                 ==============     ==============

Earnings (Loss) Per Share:

Basic                                                                            $        (0.15)     $        0.01
                                                                                 ==============     ==============
Diluted                                                                          $        (0.15)             $0.01
                                                                                 ==============     ==============
Weighted average number of common shares Outstanding:
   Basic                                                                              7,295,402          6,839,310
   Common stock equivalents resulting from
        warrants and options                                                                  0          1,172,035
                                                                                 --------------     --------------
   Diluted                                                                            7,295,402          8,011,345
                                                                                 ==============     ==============

</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>
                                                                                   Three Months Ended March 31,
                                                                                 ---------------------------------
                                                                                      2001               2000
                                                                                 --------------     --------------
<S>                                                                              <C>                <C>
Cash Flows from Operating Activities:
   Net Income (Loss)                                                             $   (1,084,927)    $       57,010

Adjustments to reconcile net income (loss) to net cash used in operating
activities:
   Depreciation and amortization                                                        382,162            309,547
   Provision for bad debts                                                               81,755             88,512
   Effect of exchange rate changes                                                      237,422             14,730
   Compensation expense for stock options                                                 9,900              9,900
   Stock issued upon termination of employee                                             38,760                  0
   Deferred income taxes and other                                                      (10,728)              (463)
   Other                                                                                 36,016             11,250
   Changes in operating assets and liabilities:
      Accounts receivable, trade                                                     (1,312,839)        (2,646,546)
      Inventories                                                                       811,920         (2,572,071)
      Prepaid expenses and other current assets                                         177,306           (128,642)
      Other assets                                                                            0            (41,267)
      Accounts payable, trade                                                           (55,692)         2,358,950
      Accrued expenses and other current liabilities                                   (688,264)            13,660
                                                                                 --------------     --------------
    Net cash used in operating activities from
      continuing operations                                                          (1,377,209)        (2,525,430)

    Net cash provided by (used in) operating activities from
      discontinued operations                                                           (57,179)            28,068
                                                                                 --------------     --------------
    Net cash used in operating activities                                            (1,434,388)        (2,497,362)
                                                                                 --------------     --------------
Cash Flows for Investing Activities:
   Purchase of property and equipment                                                  (320,832)          (324,907)
                                                                                 --------------     --------------
   Net cash used in investing activities                                               (320,832)          (324,907)
                                                                                 --------------     --------------
Cash Flows from Financing Activities:
   Net increase in revolving loan indebtedness                                        1,560,259          3,002,621
   Proceeds on notes payable                                                             93,977                  0
   Principal payments on notes payable                                                  (56,115)          (175,485)
   Common stock issued by exercise of options                                               327            120,500
                                                                                 --------------     --------------
   Net cash provided by financing activities                                          1,598,448          2,947,636
                                                                                 --------------     --------------
Net Increase (Decrease) in Cash                                                        (156,772)           125,367
Cash, Beginning of Period                                                               216,686             42,401
                                                                                 --------------     --------------
Cash, End of Period                                                              $       59,914     $      167,768
                                                                                 ==============      =============

Cash of continuing operations                                                    $       26,565     $       10,950
Cash of discontinued operations (included with
  net current assets of discontinued operations)                                         33,349            156,818
                                                                                 --------------     --------------
                                                                                 $       59,914      $     167,768
                                                                                 ==============      =============


Supplemental Disclosures of Cash Flow Information:
   Cash paid for interest                                                        $      624,783     $      601,009
                                                                                 --------------     --------------
   Cash paid for income taxes                                                    $        3,531     $            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 Universal Automotive Industries,
Inc. (the "Company") Annual Report on Form 10-K for the year ended December 31,
2000.

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

2.   INVENTORIES

<TABLE>
<CAPTION>
                                         March 31, 2001
                                         --------------
     <S>                                 <C>
     Finished goods                      $ 14,638,579
     Work in process                          394,209
     Raw materials                          3,899,863
                                         ------------
                                          $18,932,651
                                         ------------
</TABLE>

3.   BASIS OF PRESENTATION

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 March 31, 2001, common stock
equivalents are not included in the weighted average number of shares
outstanding in determining net loss per share.

Income Taxes
For the quarter ended March 31, 2001, the provision for income taxes differed
from the amount computed by applying the statutory rate to income (loss) before
income taxes primarily due to an increase in the valuation allowance for
deferred tax benefit.

4.   DISCONTINUED OPERATIONS

As previously disclosed in Note 10 of the 2000 audited financial statements, the
Company finalized its decision to discontinue its Hungarian operation in
December 1999. As of December 31, 1999, the Company provided for estimated costs
of disposition of $1,500,000 including estimated losses of the discontinued
operations during the disposal period. The disposition was initially expected to
occur by the end of 2000. For the period ending March 31, 2000, losses from the
discontinued operations of $142,000 were applied against the aforementioned
reserve. The Company is actively engaged in attempting to sell the entire
Hungarian operation and believes that it will do so by the end of 2001.
Commencing in 2001,


                                       6
<PAGE>   7

because the Company had not disposed of the Hungarian operations within one
year, generally accepted accounting principles require that income or loss from
such discontinued operations be included in the Statement of Earnings as a
component of income or loss. Accordingly, a net loss of $155,000 ($0.02 per
share) was charged to expense for the period ended March 31, 2001.


5.   CONVERSION OF LIABILITIES TO EQUITY

The Company has commenced a private offering of its common stock to certain of
its key suppliers pursuant to which they have agreed to convert certain of the
accounts payable of the Company owed to them into common stock at a slight
discount to the public market price of its common stock from time to time. To
date, the Company has received commitments to convert $500,000 of such
liabilities (incurred prior to December 31, 2000 and therefore listed as
liabilities as of such date as well as March 31, 2001) to common stock. All of
such commitments will be closed and reflected as additional paid-in capital
during the second quarter of 2001.


6.   MINORITY INTEREST IN SUBSIDIARY

At December 31, 2000, the Company owned seventy-four percent (74%) of the
outstanding capital stock of its eParts eXchange, Inc. ("EPX") subsidiary, which
is engaged in internet-based sales of automotive parts. The Company has entered
into exchange agreements with the minority holders of preferred stock in EPX,
exchanging its common stock for EPX preferred stock based upon a $2.00 per share
value of the Company's common stock in exchange for the preferred stock valued
at the original paid-in capital for the preferred stock. $350,000 in stock value
was issued in the first quarter 2001; the remaining $100,000 of stock value will
be issued in the second quarter of 2001.


7.    LASALLE INDEBTEDNESS

At December 31, 2000 and March 31, 2001, the Company was not in compliance with
one financial covenant under its Credit Agreement with LaSalle Bank, NA. On
April 13, 2001, LaSalle informed the Company that it will waive such violation
upon completion of required documentation that will include certain
modifications to the Credit Agreement.


                                       7
<PAGE>   8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS1


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 significantly 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 March 31, 2001 Compared To Three Months Ended March 31, 2000

     Net sales for the three months ended March 31, 2001 decreased $1,474,000 or
8.4% over the same quarter in 2000 to $16,028,000. The decreased sales of brake
parts are consistent with weakness experienced throughout the automotive
aftermarket. Also, the 2000 first quarter included initial ramp-up shipments to
Pep Boys, Inc., a new customer in the first quarter of 2000, which shipments
were not repeated in 2001.

     Gross profits for the three months ended March 31, 2001 were $2,863,000 or
17.9% of net sales compared to $3,688,000 or 21.0% in the same period of 2000, a
decrease of $825,000 or 22.4%. Approximately $425,000 of the decrease is
attributable to decreased sales. The remainder of the decrease is primarily due
to underabsorbed overhead costs associated with the start-up of the Cuba,
Missouri rotor machining facility that was relocated from Laredo, Texas and
underabsorbed manufacturing overhead costs related to lower than anticipated
production of friction products.

     Selling, general and administrative expenses of $3,181,000 (19.8% of net
sales) for the three months ended March 31, 2001 increased by $93,000 when
compared to $3,088,000 (17.6% of net sales) for the same period in 2000.
Selling, general and administrative expenses increased as a percentage of sales
due primarily to the increased freight costs of shipments to customers.

--------
1 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

     Other expense for the three months ended March 31, 2001 increased to
$757,000 from $512,000 for the same period of 2000. Included in other expense
for the three months ended March 31, 2001 is the net loss of the discontinued
Hungarian foundry of $155,000 as explained in Note 4 of Notes to Condensed
Financial Statements.

     Net loss for the three months ended March 31, 2001 was $1,085,000 compared
to net income of $57,000 for the same period in 2000. This decrease in net
income is attributed to the individual factors discussed above.

LIQUIDITY AND CAPITAL RESOURCES

     Net cash used in operating activities for the three months ended March 31,
2001 was $1,434,000 which was primarily due to a) a net loss of $1,085,000
offset by non-cash items (principally depreciation, amortization, and exchange
rate changes) totaling $775,000 b) an accounts receivable increase of $1,313,000
from December 31, 2000 that was a low point due to seasonality and market
factors c) reduced inventory of $812,000 in response to soft sales activity and
d) reduction in accrued expenses of $688,000 through the payment of rebates
accrued as of December 31, 2000. Net cash used in investing activities was
$321,000, which is attributable primarily to acquisition of various items of
tooling, manufacturing equipment, and warehouse equipment. Net cash provided by
financing activities was $1,598,000, consisting primarily of borrowings under
the Company's revolving credit agreement.

     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.




ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

     We believe that our Company does not have significant exposure to market
risk associated with derivative financial instruments, other financial
instruments, or derivative commodity instruments. The Company had previously
utilized only limited derivative financial instruments and did not use them for
trading purposes and has never used derivative commodity instruments. At March
31, 2001, 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
that the interest rate of 12.25% 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.



                                       9
<PAGE>   10
PART II  OTHER INFORMATION

ITEM 1 IS NOT APPLICABLE TO THE COMPANY IN THIS REPORT.

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS

During the quarter ended March 31, 2001, 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 20,000 shares to
one person as a portion of a severance payment upon termination from the Company
valued at $38,760. As described in Note 6 of the Notes to Condensed Financial
Statements, we issued 175,000 shares valued at $350,000 to two persons pursuant
to an exchange agreement whereby preferred shares of our subsidiary eParts
eXchange, Inc. are exchangeable for common shares of the Company based on a
value of $2.00 per share. 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 and/or Regulation D promulgated thereunder.

ITEMS 3 THROUGH 5 ARE NOT APPLICABLE TO THE COMPANY IN THIS REPORT.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

a)   Exhibit II - Computation of Earnings Per Share

b)   The Company did not file any reports on Form 8-K during the period covered
     by this report.




                                   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: May 15, 2001


                                       10