Newspapers / The Carolina Times (Durham, … / Nov. 28, 1981, edition 1 / Page 31
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America's Auto Industry: A Period of Transformation By Claude Reed, r. Lust year, National Scene presented (i three-port series on the American Auto Industry illustrating the impact of that industry's downturn on the na tional economy. The problems experi enced by Detroit not only affect the autoworker, but a vast number of inter dependent industries that have all severely felt the repercussions of de creased auto production and sales. A great number of Black Americans work in the auto and related industries and all have; certainly been impacted by layoffs-bath short-term and indefi nite1. In this year's auto industry series we will offer an update oi the stale of what has been colled America's cor nerstone industry. Although Detroit's automakers maintain an attitude of optimism and are aggressively moving to update the technology of the American automo bile, they have not found the road to recovery smoothly paved. By the end of 1980, the industry experienced sig nificant declines in vehicle output and sales. The Motor Vehicle Manu facturer's Association reports that American and Canadian motor vehicle production declined for a combined total of 28. Separately, Canada suf fered a 16 decrease in production while America's production fell by 30. (see chart). Further, North American motor vehi cle production of 9.4 million units in 1980 was the lowest since 19(52. U.S. passenger car production fell to (5.4 mil lion in 1980 compared to H.4 million units in 1979. -a 24 drop. Truck and bus production declined by 4(5 in 1980 compared to 1979. Coupled with diminished vehicle production in 1980 domestic passenger car sales posted a 21 decline from 1979 levels and 29 below 1978. Conversely, import auto sales increased last year by 2.8 over 1979. It is not difficult to determine what these auto industry setbacks mean when you consider the following; Ac cording to the MVMA's 1981 publica tion Facts and Figures the nation's transportation industry represents nearly one-fifth of the Gross National Product. Latest available data reflect that vehicle and parts manufacturing represents an 18.4 Billion dollar pay roll. When vehicle sales, maintainance, highway construction and related in dustries are included an additional $38.8 Billion is added to the national payroll. As of 1978, motor vehicle and related industries accounted for one of every five private sector, non-agricultural jobs in the nation. In addition, the Bureau of the Census reports that there are 3,725 motor vehi cle and equipment manufacturing fa cilities in 46 states. It is obvious that the influence of the auto industry is nation wide. Brighter 1981 Picture domestic automakers have made some positive gains over last year. In its sec ond quarter report for 1981 Ford Motor Company reported a net income of $60 million compared with a $468 million loss in the second quarter of 1980. Also, in that quarter Ford earned $31 million before taxes compared with a $971 mil lion pre-tax loss in 1980. Much of this company's success is attributed to their efforts to reduce costs and the position ing of the Ford Escort as "the best sell ing car line in America" Ford reports. In addition, Ford's entire line of com pacts have either outsold its domestic competitors or been in strong competi tion with them. As a result, Ford's share of the U.S. auto market increased in the second quarter. General Motors also enjoyed a profit able second quarter this year their best in two years. The second quarter upswing was GM's third consecutive profitable quarter. World-wide sales of GM cars and trucks were up 17 from last year's second quarter. GM's net in come for the quarter totaled $515 mil lion as opposed to a net loss of $412 million at the same point last year. Al though this is encouraging, GM cau tions that earnings are still below the needed level to fund the company's enormous capital expenditures for new technology, plants and products. Chrysler Corporation has also en joyed a dramatic recovery in 1981's Although there were severe declines in the American auto industry in 1980, SOURCf Motor Vehicle Manufacturer s Association ot The U S and Ward s Automotive Yearbook PASSENGER CAR RETAIL SALES Inc 1980 26.7 1979 21.9 1978 1 7.7 J 1977 18.5 1976 14.8 1975 18.4 P Domestic Sales I 1 Import I Sales tic I 1 1 1 1 1 1 1 1 1 1 1 1 0 3 6 9 12 Millions Of Cars The chart on the far left illustrates the increase of the imports into the domes auto market while U.S. auto sales declined. Source Motor Vehicle Manufactuiers Associat.on u' the U S Motor Vehicle Manufacturers Association (Canada) Inc lulled with ot hers TOTAL U.S. AND CANADIAN VEHICLE PRODUCTION (In Millions) CANADA J UNITED STATES 1978 "J 1 82 1472 1979 J 1.63 13 11 1 980 j T37 9 38 SOURCE Motor Vehicle Manulacturors Association ul the U S Inc and Motor Vehicle Manufacturers Association (Canada) This chart gives emphasis to the decline in auto production in 1980 for Canada and the U.S. continued on page 11
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