Final answer:
Japanese and West German car manufacturers became major competitors for American carmakers in the 1970s due to their production of smaller, fuel-efficient vehicles and advanced manufacturing techniques. This competition spurred innovation and improvements in the quality of American-made cars.
Step-by-step explanation:
Why Japanese and West German Cars Were Big Competitors for American Car Manufacturers
In the 1970s, the American auto industry faced significant competition from Japanese and West German car manufacturers. Detroit's automotive oligopoly, consisting of General Motors, Ford, and Chrysler, became vulnerable due to their production of overpriced, inefficient vehicles. In contrast, Japanese firms like Honda and Toyota were producing small, fuel-efficient cars more suited to the era's rising gas prices. These companies had also developed sophisticated manufacturing techniques, enabling them to create more reliable and cost-effective vehicles. Simultaneously, globalization diminished market boundaries, increasing the pressure on U.S. manufacturers from international competitors.
By the 1980s, Japan had become a substantial exporter of automobiles to the U.S., contributing to a significant trade deficit and worries regarding U.S. global competitiveness. Additionally, the resurgence of Japan and Germany's economies, with their expanding automotive industries, posed a challenge to U.S. domestic manufacturers. These foreign companies offered innovation, variety, and responsiveness to consumer demands, which motivated American carmakers to improve their vehicles' quality. Ultimately, this competition led to the production of better cars by U.S. manufacturers.