The major domestic auto companies continue losing market share in the motor vehicle market. In 1985, the combined passenger car production of General Motors, Ford, and Chrysler totalled 7.8 million. This year the three are expected to produce only 4.8 million units, down over 38 percent. Truck production by the three rose from 3.2 million units in 1985 to 3.8 million in 1988. However, production of trucks in 1990 is expected to fall to 3.4 million, down 11.4 percent.
Lower volumes make it difficult for the motor vehicle gear plants to operate efficiently.
This was up 20 percent from 1984 shipments in nominal dollars, but only five percent in inflation adjusted dollars. Over 40 percent of industrial gear production takes place in captive shops. Large firms such as Caterpillar, John Deere, Cummins Engine, and Lufkin have captive gear shops. Employment shrank by about 500 thousand people, which was more than 30 percent of the workforce. While 1988 was a good year by recent standards, many firms within the capital goods sector saw sales soften in 1989, and then worsen more in 1990.