The United States automobile industry has been a staple in the economy for over a century. However, the auto industry has come upon hard times, two of the Big 3 required government aid within the last decade. The purpose of this thesis is to take an in depth look towards when innovation will take place in the industry, primarily looking towards whether or not recessionary times spur innovation. The hypothesis is that there will be a negative correlation between recessions and the amount of innovation within the industry. There were multiple problems with multicollinearity throughout the regression analyses that were run in this study. Ultimately there was one significant variable found in three regressions, this being the price of crude oil. The null hypothesis was neither proved nor disproved in this study.
Includes bibliographical references.