Final answer:
The bargaining power of suppliers in the automotive manufacturing industry has decreased due to union membership decline and increased international competition, which has prompted U.S. manufacturers to innovate and respond to consumers more efficiently.
Step-by-step explanation:
The bargaining power of suppliers in the automotive manufacturing industry is influenced by unionization, globalization, and international competition. Historically, the United Auto Workers (UAW) union had substantial influence in the industry. However, with a decline in membership from 975,000 in 1985 to 390,000 by 2015, there has been a decrease in bargaining power, partly due to import competition.
Globalization has expanded market boundaries, meaning U.S. companies like General Motors, Ford, and Chrysler, once dominant, now compete with international firms such as Toyota, Honda, and Volkswagen, among others. This competition has fostered innovation and responsiveness to consumer demands in the U.S. automotive sector.