Foreign Investment:

Growing Japanese Presence in the U.S. Auto Industry

NSIAD-88-111: Published: Mar 7, 1988. Publicly Released: Mar 28, 1988.

Additional Materials:


Office of Public Affairs
(202) 512-4800

In response to a congressional request, GAO provided information on the impact of Japanese automakers' investments in the United States on U.S. auto manufacturers and parts suppliers, focusing on whether: (1) foreign investment created job losses in the U.S. automobile industry; and (2) U.S. parts suppliers had the opportunity to supply parts for U.S.-based foreign auto manufacturers.

GAO found that: (1) Japanese-affiliated automakers in the United States used fewer workers and parts than their domestic counterparts; (2) Japanese automakers imported higher percentages of auto parts than U.S. automakers because of price, quality, and delivery time; (3) although some U.S. parts suppliers have been able to sell parts to Japanese-affiliated automakers by adapting to the rigorous requirements, they are at a disadvantage because of differences in language, culture, and business practices; and (4) in 1987, there were 104 Japanese-affiliated parts suppliers in the United States. GAO also found that: (1) U.S. auto-related employment will probably be substantially lower in 1990 due to gains in worker productivity, increased use of foreign parts, and increased imports; and (2) net job loss or gain will depend on the extent to which Japanese-affiliated production displaces U.S. production.

Nov 19, 2020

Nov 9, 2020

Oct 27, 2020

Oct 2, 2020

Sep 22, 2020

Sep 15, 2020

Sep 14, 2020

Aug 27, 2020

Jul 28, 2020

Looking for more? Browse all our products here