In the early 1990s, as Korean automobile industry has made rapid progress due to favorable trend in domestic demand and steady increase of export it is very important to analyze the extents of competitiveness and the trends of change in the field of production. In this dissertation, the current situation of our competitiveness and its changes in the field of production are synthetically reviewed through examining productivity and quality, that is output, as well as other overall factors related in the process of production. And this analysis reassures that first of all, our prior tasks lie in the quality and volume of production, and we should develope competitiveness through multilateral innovation of management Now in order to meet these prior tasks, we must secure our own technology design and ability for innovaton ; enlarge overseas local production technical tie-up with leading companies and develop M&A for globalization ; improve price competitiveness, construct cooperation of labor and capital, and improve the structure of finance for innovation of management saving the cost ; establish the new method of production for the preparation of increasing overseas investment in near future.