The U.S. automotive parts industry is emerging from a massive restructuring that has enabled it to greatly strengthen its competitive position in relation to Japan, its major rival. Since 1987, productivity has increased about 3 percent annually, helping the industry narrow the cost gap with the Japanese, and quality has improved greatly. This enhanced competitive stance will be tested as U.S. automotive parts suppliers attempt to position themselves globally to meet the changing international sourcing strategies of automakers. Growth in mature major markets is expected to average less than 2 percent annually, so the biggest opportunities for U.S. exporters will be in the fast-growing markets in Asia and Latin America. Exports are total f.a.s.
Imports are customs value.
During the late 1980s, the U.S. industry underwent a massive restructuring, greatly narrowing cost, quality, and productivity gaps with Japan, its major competitor in world markets. Going Global Without Going Bust More competition at home and the increasing globalization of the U.S. motor vehicle industry are driving competitive U.S. automotive parts suppliers toward the world market to gain more business. To comply with the global sourcing strategies of automakers, U.S. suppliers must not only continually adjust their manufacturing capabilities and product lines to increase export sales, but they must also increase their manufacturing presence in foreign markets. Although the major U.S. automotive parts manufacturers have long had a substantial presence in the European, Canadian, and Mexican markets, many U.S. suppliers are increasing their role in these and other markets through acquisitions and mergers to capitalize on opportunities there. An effective global strategy must take into account the increasingly stringent requirements of U.S. automakers, who began demanding significant annual cost cuts and quality improvements from their suppliers in the early 1990s.