Economic Turmoil and Change.

The 1970s proved to be a decade of tumultuous change for the automobile industry in the United States. Caught first in the economic turmoil of high interest rates, high inflation, and price control and then in the energy crises of 1973-1974 and 1979, the automobile industry bore the brunt of the changes brought upon the U.S. economy. In addition to the domestic economic situation, U.S. automakers also faced a changed international market, with more competition from foreign manufacturers.

A Poor Start.

The decade started badly with a paralyzing strike by the United Auto Workers (UAW) during 1970. As a result production at the four major automakers — General Motors (GM), Ford Motor Company, Chrysler, and the American Motors Corporation (AMC) — sank by one million vehicles, 10 percent below 1969 figures. In addition to the strike, automakers were faced with a...