The US auto industry got hurt because the 'big three' operated like an oligopoly, with the United Auto Workers (UAW) acting as the coordinating organization (an

The US auto industry got hurt because the 'big three' operated like an oligopoly, with the United Auto Workers (UAW) acting as the coordinating organization (and reaping most of the 'monopoly rents'). The Japanese were able to disrupt the oligopoly because they weren't beholden to the UAW; many studies were done, and some found that the American companies' costs were simply higher than the Japanese's (due to both direct labor costs, and other costs related to their CBA), so the Japanese could either make cheaper cars, or higher quality cars for the same price as the big three.