The North American Auto Industry in Crisis

Abstract

The current financial crisis marks a series of turning points in the history of the North American auto industry.1 First, the iconic "Big Three" have been downsized to "The Detroit Three." Once the global symbol of U.S. productivism and consumerism, they now teeter on the brink of bankruptcy and, in the process, profound questions are being raised about the decline of U.S. manufacturing jobs more generally. Second, the auto unions, themselves once emblematic of what workers could achieve within capitalism, have been reduced to lobbying to save "their" companies, and a decades-long trend in private-sector labor negotiations has now confirmed collective bargaining as having shifted from demands by workers to demands on workers. This highlights the broader crisis of labor: if labor cannot find a way to renew itself it could fade into irrelevancy. And third, the environment—which the industry so rapaciously disregarded and the unions so short-sightedly ignored—seems to have forced itself onto the agenda. In coming to grips with both the threats and opportunities provided by this historic moment, the following points are crucial.This article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website.