Driving to Discord: U.S.–Japan Auto and Auto Parts Dispute, 1993–1995

Driving to Discord: U.S.–Japan Auto and Auto Parts Dispute, 1993–1995

  • Case
  • Teaching Notes
Abstract

This case study examines the U.S. government's Partnership for a New Generation of Vehicles, an initiative aimed at bringing American automakers together to produce a high-efficiency vehicle by 2004. The case presents various models of industrial policy, then describes the technological, economic, and legislative issues facing both policymakers and the auto firms as they addressed the issue of how to close the gap with Japanese firms. Issues such as who should be the beneficiaries of public policy efforts, and how far policy should go in leading a market, are raised in the case.

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