It might surprise you to learn that at one point during my upbringing Detroit automakers controlled a whopping 92% of the American marketplace.
Meaning more than 9 out of every 10 cars sold in America were made by American manufacturers. Built by American labor and sold by American dealers.
The only foreign cars sold here back then were mainly those little Volkswagen beetles and the 190d Mercedes-Benz ugly, clunky 4-door sedans. They were very expensive even back the. Hippies drove the Beetles and doctors drove the M-B's. Just a few of them, certainly not enough to worry about.
They thought.
Now? Detroit, meaning what's left of the "Big Three," General Motors, Ford and Chrysler (which is owned by the Italian Fiat) control only 44% of the American marketplace. And who controls the other 56%? Mostly Japan, with Toyota and Honda leading the way. And South Korea featuring Hyundai and Kia chief among them. And Fiat of Italy, meaning besides little Fiats, Ferraris and Maseratis, to be sure. And Mercedes-Benz and Porsche of Germany, plus a few others. To put it coloquially, they've eaten our lunch. We served it to them, and watched them chew it up and swallow it...
At the end of the Big War, back in the 1950's, Soichiro Honda started a motorcycle company. The little 50cc motorbikes he made were selling like hotcakes in Japan. For those who wanted a quick, simple and cheap way to get from here to there, those little bikes were paramount. Some of them were exported to the U.S. and we bought them like hotcakes, too. They were bulletproof, cheap and fun.
And that's what started it all.
What followed during the late '50's and early '60's was what's called "Just in Time" manufacturing. The Japanese didn't have much money or a stock market to help them finance unlimited production like we did. They also didn't have the raw materials to make oodles of cars to put in gigantic parking lots as we Americans were doing, to build millions of them and then wait for people to buy them. Back then Detroit would guess at how many cars they'd sell and manufacture to that number. If they overproduced, they'd sell last year's model alongside this years' at big discounts until last years' was all sold out.
The end of the model year was August 31st. All the new automobiles were released during the first two weeks of September. And each car model was introduced in a big reveal. The dealers would put butcher paper on their usually floor-to-ceiling windows so no one could see them early. And then, on that Big Day, they'd invite in the public and show them the two or three they had in their showrooms. And hopefully take orders. So when sales didn't match production and we'd overbuilt, Detroit would close the plants and everyone would go to the lake for a few weeks. Unlike today with cars being built all the time.
The Japanese, on the other hand had to figure a way to make a lot from a little. They had to figure a way to make cars from parts that arrived at exactly the right moment. At exactly the moment they were ordered. And not one car more. They struggled to figure a way to do it protifably, quickly and with little overlap.
While we were building works of art, like the '57 Chrysler 300c, and the '59 Chevrolet Impala, and the '57 Studebaker Golden Hawk, the Japanese were building tiny little cars that we were loving to buy. Cars like the original Honda Civic and the Toyota Corolla. Cheap, well built and producing great gas mileage, they were. Even before worrying about gas mileage was a thing.
Even I, your friend The Chuckmeister, bought a Honda Civic wagon as I was starting my family. I needed cheap transportation and that Honda provided it. So a guy who loved loud, fast and thirsty muscle cars found a place in my garage for one of "those." And so did a whole bunch of others.
Detroit decided to try and compete with these cars by producing dumb, ugly, poorly screwed together pieces of crap and sell them alongside thier usual fare. Remember, they were in the business of producing 18' long behemoths. Like the 1970's Cadillac Eldorados. 19' long and wouldn't fit into anyone's garage. But they tried to also compete with cars like the Chevy Chevette. And the Ford Pinto, and the Plymouth Valiant. Not worth the powder to blow them to Hell. And in the case of them Pinto, it would literally burn you to Hell.
Nobody bought them. And Detroit nearly went bankrupt. The Federal Gubmint had to extend loans in the 80's (to all but Ford) to keep automaker jobs from going away. Chrysler's Lee Iaccoca responded by creating nice little cars. Smart. I even bought the very first Plymouth Voyager minivan to land in Orange County, California. I drove the wheels off it. They sold them by the tens of thousands. And Iaccoca paid back his loan to us 4 years early. GM never paid back their loan, BTW, so far as I know.
So America put tariffs in place to protect our car manufacturing. What did the foreigners do? They built car plants here. They hired Americans to compete with Americans at non-union plants. Paying the workers $27 an hour vs. the $50 paid in union plants. But without union dues, and in places like the south where there were no other jobs, people took those jobs and prospered. There are now 23 foreign car plants here in 'Murica, selling us foreign cars, produced here locally, and made by Americans. Confused yet?
So now we sell 11 or 12 million cars every year. We used to sell upwards of 20 million cars. But we've been subsidizing the world with our favorable trade arrangements. Up until Trump, that is!
Now Trump is finally charging a flat 20% on all foreign cars the moment they land on our dirt. Which brings in a projected $1 Billion New Dollars every year. Finally somebody did something about it.
Oh yeah, BTW, there was this named guy named Ernest Sadler who worked for Henry Ford. He helped Ford establish our very first assembly line back in the early 19th Century. Sadler developed the "Just in Time" concept for Model T's. Later, while he was teaching at a college, he offered to bring that concept to General Motors. Like how to have a railroad car full of bumpers and fenders and car seats arrive exactly when bumpers and fenders and car seats were needed. They told him to pound sand. So what did he do? He went to Taiichi Toyoda and taught him and the Japanese how to manufacture cars using his plan. Toyoda (his real name) used that system to produce his cars better, cheaper, of higher quality, and only when needed. So he could successfully compete with us Americans like never before. He was able to finally win World War II without any more bullets flying.
And BTW, Detroit ultimately adopted the "Just in Time" system as well. Long after the Japanese did. Long after they'd figured out how to make their cars more profitably. After they were taught how to do so by an American. Long after the horse had left the barn. Long after the Japanese had eaten desert. Just thought you'd like to know...