For more information, please see the full notice. The embargo both banned petroleum exports to the targeted nations and introduced cuts in oil production. Cars wait in long lines during the gas shortage. Leffler The Oil Embargo acutely strained a U.
He remembers that one of the issues facing NADA at its February convention was stalled sales of import cars. Datsun dealers were coming to us, worried about inventory. Ninety days later, that inventory had evaporated. Overnight, the demand changed to small cars. Casey Oil crisis of the 1970s the industry paid good wages, built what it wanted, didn't worry much about quality.
The oil crisis brought quality problems and gas mileage to the forefront, Casey said. People who made the switch to Japanese cars found they were better built than American cars. American auto companies were in trouble.
They would have to shape up or disappear. Inbefore the energy crisis, subcompact cars made up only Overall new-car sales for the Big 4 plunged The Big 4, caught with their collective pants down, took a beating.
Chrysler, worst off of all, nearly died from its wounds. Hemorrhaging red ink, Chrysler had to turn to the federal government for help.
Iacocca's autobiography indicates that he didn't realize the extent of Chrysler's woes when he signed on. Right after I came in, our share of the market headed due south, the book says.
We started to hit numbers as low as 8 percent, which was pretty dismal even by Chrysler's modest standards. I was beginning to realize that it might take years before this company was back on its feet.
Chrysler began lopping off limbs to reduce costs and raise money. It sold its operations abroad, closed several plants and asked for and got concessions from its unionized workers.
While most of the attention in was on Chrysler, other U. Someworkers were pink-slipped in In addition to the recession and invasion of importers, Ford's product line, headed by the boxy Granada and Fairmont, was not well received by the public, and its reputation for quality was lousy.
Ford had to remake itself. Inunder the direction of Red Poling, newly appointed executive vice president of North American Automotive Operations, Ford cut production by 1 million units and laid off 60, employees, according to Robert Shook in Turn Around: The New Ford Company.
InFord closed nine factories. Ford studied Japanese auto workers and found that they were given more responsibility and were involved in problem solving and decision making.
Ford adopted the process at its plants. Slowly but surely, Ford was getting its act together,' Shook writes. GM tightened its belt. InGM laid off someUAW workers, got concessions from its other employees and canceled its S-car project, a four-passenger minicar that was projected to get 50 mpg.
GM's answer to the Japanese was to produce overpriced, cookie-cutter cars of questionable quality. A case in point was its stable of four-cylinder, compact J cars: Consumers and dealers were appalled by the steep price and sluggish performance.
By JanuaryGM decontented the cars and reduced their base prices. But for the Big 3, the recession had lifted, and they enjoyed strong sales through the mids. You can reach Arlena Sawyers at asawyers crain. Have an opinion about this story?
Click here to submit a Letter to the Editorand we may publish it in print. Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site.The oil crisis began in October when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC, consisting of the Arab members of the OPEC, plus Egypt, Syria and Tunisia) proclaimed an oil embargo.
By the end of the embargo in March , the price of oil had risen from $3 per barrel to nearly $ The energy crisis played a key role in the economic downturn of the s. With the OPEC oil embargo of , oil prices jumped %, and the higher costs rippled through the economy.
In the s when the oil crisis, the Watergate scandal and the unwinnable war in Vietnam shook American self-belief, it was the unimpeachable anchorman Walter Cronkite. In the early decades of television, the audience looked to news anchors to help them understand the world.
s oil crisis The s energy crisis was a period when the major industrial countries of the world, particularly the United States, Canada, Western Europe, Japan, Australia, and New Zealand, faced substantial petroleum shortages, real and perceived, as well as elevated prices.
s energy crisis - caused by the peaking of oil production in major industrial nations (Germany, United States, Canada, etc.) and embargoes from other producers oil crisis - caused by an OAPEC oil export embargo by many of the major Arab oil-producing states, in response to Western support of Israel during the Yom Kippur War.
The oil embargo of was just one of many complicating factors that led US policymakers to overestimate our national potential and to underestimate their own role in the broad inflation that occurred throughout the s.