American auto industry: history, development, current state. US automotive industry

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Henry Ford introduced innovative mass production methods that became the standard, and by 1920 Ford, General Motors, and Chrysler were the Big Three automobile companies.

Manufacturers poured their resources into the military during World War II, and subsequently vehicle production in Europe and Japan skyrocketed to meet the growing demand. Once vital to the expansion of American urban centers, the automobile industry began to acquire. The American auto industry has given the world many technical solutions. Today, large corporations continue to introduce technologies to improve their models.

Although the automobile was to have the greatest social and economic impact in the United States, it was initially perfected in Germany and France towards the end of the nineteenth century by men such as Gottlieb Daimler, Karl Benz, Nikolaus Otto and Emile Levassor.

The appearance of the first production models

1901 Mercedes designed by Wilhelm Maybach for Daimler MotorenThe Gesellschaft deserves credit for being the first modern car.

Its thirty-five horsepower engine weighed only 6.4kg per horsepower and reached a top speed of 85km/h. In 1909, in establishing the most integrated car factory in Europe, Daimler employed about 1,700 workers to produce less than a thousand cars a year. It was the breakthrough in Europe that expanded the scope of new technologies. Later, the American auto industry will borrow and refine these ideas. In 30 years, Western companies will become leaders.

Nothing illustrates the superiority of European design better than the stark contrast between this first Mercedes model and the single-cylinder, curved, steered Oldsmobile Ransom E. Olds 1901-1906, which was just a motorized wagon. The Olds sold for as little as $650, allowing middle-class Americans to snap them up, and the 1904 Olds production of 5,508 units surpassed all previously produced cars.

The central problem of automotive engineering during the first decade of the 20th century would be to reconcile the refined design of the 1901 Mercedes with the moderately priced and low maintenance Olds.

Henry Ford and William Durant

Cyclist J. Frank and Charles Durya of Springfield, Massachusetts developed the first successful American gasoline car in 1893, then won the first American automobile race in 1895 andlaunched the first sale of a US-made gasoline car next year.

Thirty American manufacturers produced 2,500 cars in 1899, and about 485 companies went into business in the next decade. In 1908 Henry Ford introduced the Model T and William Durant founded General Motors.

The American auto industry worked in the market of expensive consumer goods. With its vast landmass and hinterland of scattered and isolated settlements, the United States had a much greater need for technology than the nations of Europe. High demand was also supported by a significantly higher per capita income and a more equitable distribution of income than in European countries.

Model T

Given the tradition of the American auto industry, it was also inevitable that vehicles would be produced in greater volume at lower prices than in Europe. The absence of interstate tariff barriers stimulated sales across a wide geographic region. Cheap raw materials and a chronic shortage of skilled labor contributed early to the mechanization of manufacturing processes in the United States.

This in turn required the standardization of products and led to the mass production of items such as firearms, sewing machines, bicycles and many other items. In 1913, the United States produced about 485 of the world's 606,000 automobiles.

Ford Motor Company is well ahead of its competitors in harmonizing contemporary design with moderate pricing. Having receivedorders, Ford installed improved production equipment and, after 1906, was able to deliver a hundred cars a day. New methods and principles of conducting transport business appeared. Henry Ford's car attracted buyers. This allowed us to optimize sales.

Encouraged by the success of the Model T, Henry Ford was determined to create a better car for a huge number of people. The Model T, with four cylinders and twenty horsepower, first offered in October 1908, sold for $825.

In an effort to mass-produce the Model T, Ford adopted modern mass production techniques at its new plant in Highland Park, Michigan, which opened in 1910. In 1912, a Model T sold for $575, less than the average annual wage in the United States.

By the time the Model T was discontinued as a symbol of the American automobile industry in 1927, its price had been reduced to US$290. With 15 million units sold, having two or more vehicles per family became a reality. Later, the market increased several times.

Industrial Growth

Ford's mass production methods were quickly adopted by other American car manufacturers. European businessmen did not begin to use them until the 1930s. The number of active automobile manufacturers declined from 253 in 1908 to just 44 in 1929, with about 80% of the industry's output coming fromFord, General Motors and Chrysler.

Demand for the basic haulage that the Model T provided continued to increase in the 1920s.

Sales booth

By 1927, the need for new car replacements outstripped demand from new owners and multiple car buyers combined. Given the earnings for the day, companies could no longer count on the expansion of the market. Installment sales were initiated by the moderately priced American auto industry in 1916 to compete with the Model T, and by 1925 about 30% of all new cars were bought on credit. There were many offers from private credit institutions.

Although several types of expensive goods such as pianos and sewing machines were sold before 1920, it was installment sales of cars during the 1920s that made buying expensive consumer items on credit a middle-class habit and a mainstay of the American economy.

Combination of companies

Saturation of the market coincided with technological stagnation in both products and production technologies. The main differences that separate the post-WWII models from the Model T are: auto-start, enclosed all-steel body, high compression engine, hydraulic brakes, synchromesh transmission, low pressure and balloon tires.

The rest of the innovations - automatic transmission and drop frame design - came in the 1930s. Moreover, with a few exceptions, cars were produced in the early 1950s in much the same way as in the 1920s.

To deal with the problems of market saturation and technological stagnation, General Motors, under the leadership of Alfred P. Sloan, Jr., introduced planned product obsolescence in the 1930s and placed a new emphasis on modeling. Thus, engineering was subordinated to the dictates of stylists and accountants. General Motors has become the model of a rational corporation driven by a technostructure.

The impact of the war

The Big Detroit Three, which includes Chrysler Group LLC, General Motors and Ford Motor Company, played a crucial role in the production of military vehicles and military equipment during the First World War. During World War II, in addition to producing several million military vehicles, American vehicle manufacturers produced about seventy-five major military items, most of which had nothing to do with the automobile. These materials had a total value of $29 billion, one-fifth of the national production.

Because the production of vehicles for the civilian market ceased in 1942, and tires and gasoline were strictly rationed, the number of car trips during the war years fell sharply. After the war, models and options expanded, and every year cars got longer and heavier, more powerful, more expensive to buy and run. It was believed that large cars were more profitable to sell than small ones.

Japanese manufacturers rise

Later the quality deteriorated to such an extent that by the middleA 1960s classic from the American auto industry was delivered to retail customers with 20 defects per model, many of which were safety related. There were many dissatisfied citizens. What's more, the high profits that Detroit has made from gas-absorbing funds have come at the expense of the social costs of rising air pollution and depleting the world's oil reserves.

The yearly restyled road cruiser era ended with federal standards for automotive safety (1966), pollutant emissions (1965 and 1970), and energy consumption (1975). The empire of US manufacturers began to crumble with rising gasoline prices after the oil shocks of 1973 and 1979, and especially with the increasing penetration of the US and world markets, first by the German Volkswagen Bug and then by Japanese economical, functionally designed, well-built small cars.

After hitting a record 12.87 million units in 1978, sales of American-made cars fell to 6.95 million in 1982 as imports boosted their US market share from 17.7 percent to 27.9 percent. In 1980, Japan became the world's leading automaker, a position it continues to hold. However, concerns do not extend their influence to all market segments.

US Manufacturers

The history of the American auto industry is still being written today. Basically, it includes events related to innovation and competition with the east. In the 1980s, the American auto industry underwent a massive organizational restructuring andtechnological revival. The management revolutions and downsizing of GM, Ford and Chrysler's production facilities and staff have resulted in companies becoming more agile and tough with lower break-even points, allowing them to profit on lower volumes in increasingly saturated competitive markets.

Production quality and employee motivation and engagement programs were a priority. The industry in 1980 carried out a five-year program of modernization and technical re-equipment of the plant worth 80 billion dollars.

US Heritage

The legends of the American auto industry have been a key force for change in the 20th century. During the 1920s, the industry became the backbone of a new society focused on consumer goods. By the mid-1920s, it was number one in product value, and in 1982 it provided one in six jobs in the United States.

In the 1920s, the automobile became the lifeblood of the oil industry, one of the main consumers of the steel industry, and the largest consumer of many other manufactured goods.

The automobile stimulated participation in outdoor recreation and contributed to the growth of tourism and tourism-related industries such as service stations, roadside restaurants and motels. The construction of streets and highways, which is one of the largest items of government spending, reached its peak whenThe Interstate Highway Act of 1956 introduced the largest public works program in history.

The car ended rural isolation and brought urban amenities - better he alth care and schools to rural America. The modern city, with its industrial and residential suburbs, is a product of road transport.

Transportation has changed the architecture of the typical American home, the concept and composition of city blocks, and freed many from the narrow boundaries of the home.

In 1980, 87.2% of American households owned one or more cars, and 95% of domestic car sales were replacements. Americans have become truly autodependent.

1990s: resources and dimensions

During this decade, Sport Utility Vehicles (SUVs) became incredibly popular. Stable gas prices since the 1980s have made consumers less concerned about resource usage for these larger 4WD vehicles. While customers weren't overly concerned about environmental issues, governments were.

The activism of states like California has led to cars becoming more environmentally friendly. This has contributed to significant technological advances, such as an increase in the production of electric battery-powered vehicles. In the late 1990s, the first hybrid cars with a small gas and electric engine were released.

2000s: Cars are getting smaller and more efficient

By 2005, 11 countries accounted for 80% of world production, which meant a broader playing field and a significant increase in global competition. For the first few years of the new millennium, car companies catered to consumers who expected powerful cars.

The SUV cost a lot, and it was easy for consumers to get a loan to buy one of those expensive cars. However, in 2008, a severe economic downturn prompted banks to tighten their funding requirements. Fewer people could afford to buy an expensive car. At the same time, fuel became more expensive. In the summer of 2008, record fuel prices forced many consumers to sell their large vehicles and buy smaller, more efficient vehicles. Hybrids now flood the roads.

Modern history and the emergence of innovations

Since 2010, the automotive industry has been rapidly recovering from past losses. The industry experienced its best year in 2013 with sales and jobs increasing every year. Drivers now have more choices for vehicle types and additional luxuries than ever before.

Efficient cars are gaining popularity and the first self-driving vehicles are emerging. One of the innovators of this idea and its development was Elon Musk. In 2016, nearly half of people aged 25 to 34 said they would use fullautonomous transport because they believe it is safer than traditional transport.

Adapting to customer needs

Throughout history, the automotive industry has demonstrated a remarkable ability to adapt to changing times. While manufacturers have come and gone over the past century, the industry has focused on creating appliances that meet customer needs. Tesla CEO Elon Musk, who created unmanned all-electric vehicles, is one of the drivers of this development.