U.S. Auto Industry Discussed

The United States auto industry may no longer be competitive in the international market, a group of experts said last night at the Kennedy School of Government.

The four-member panel said that recent cuts in top U.S. auto corporations, such as General Motors, indicate that the industry will soon relinquish its role as a primary international power.

The question of the future of the American auto industry will be an important issue in the 1992 presidential campaign, the panelists said.

The discussion, led by Kennedy School lecturer and noted economist Robert B. Reich, was the first in a series of live television broadcasts about issues related to the presidential campaign.

Institute of Politics (IOP) director Charles T. Royer moderated the event, which was televised on the Monitor Channel, channel 68. The show was co-produced by the IOP and the channel.

The panelists and the student audience members who spoke were overwhelmingly pessimistic about the condition of the auto industry and the rising presence of Japanese investment in the U.S.

Students in the audience suggested increased educational training and domestic investment would be the best preparation for the future.

"The fault lies in the American educational system not properly preparing people for U.S. manufacturing and productivity roles," said one student.

Shin Otsubo, a student at the Kennedy School, said corporate America concentrates too much on short-term gains.

"United States corporations...are concerned with showing stockholders profit and not with long-term productivity," said Otsubo.

Panelist James Womack, an auto industry analyst, added that American mass production techniques are outdated and ineffective compared to the Japanese emphasis on monitoring quality control.

"As long as we remain in this tradition, there is no way we will be able to compete globally," said Womack, a researcher at MIT.

Reagan administration pollster Richard Wirthlin and economist Robert Lawrence also participated in the forum.