The automotive sector is a major industry in America. The invention of the automobile in the late 1800’s revolutionized transportation. It wasn’t till Henry Ford in 1903 with his Ford Motor company, was the automobile made available to everyday Americans. Ford’s invention of the assembly line brought the automobile sector into a large industry in America’s economy. According to Veronica Franco of Market Research stated that in 2010 the auto industry had a global value of $728.3 billion. He projects that at the average growth rate of 24.1%, like what we saw from 2009 to 2010, by 2015 the value of the industry will be at $904 billion. So what does this mean for the future of this industry? It is going to continue growing. To see where the industry is going, one must look at the past, present, both the American and global sector, and the future projections.
To look at the industry’s past in America we have to narrow down the 16 major auto makers. Three of these businesses are centered in America. Ford, General Motors, and Chrysler are known as Detroit’s Big Three. Four out of every ten employees of these three companies work here in America. The other 13 auto makers average about 5 out of every 100 employees work in America. These numbers come from the American Automotive Policy Council. One can see that these Big Three have a big influence in America. The automobile has been an icon in America for over a century. Following the creation of the auto industry, was the creation of multiple car brands owned by one corporation. This lead to the form of automotive giants, ultimately leading to what we know today has the Big Three.
In 1910 there was about 500,000 automobiles on the road. When Ford started producing Mo...
... middle of paper ...
...where but up. All markets have high and low points but the demand for the automobile will always be there. With advancements car may be different from what we know them to be but that do not mean they will dissolve. I believe that the auto industry will continue to revolutionize the way we transport and will continue to grow for many years to come. The United States has a great market and setting for this growth and I believe it will continue to dominate the auto industry.
Works Cited
"Auto Industry Navigates '80s, Revs Up For '90s." Orlando Sentinel. N.p., n.d. Web. 10 Dec. 2013.
"Car Industry Will Grow to $904 Billion by 2014." Yahoo Finance. N.p., n.d. Web. 09 Dec. 2013.
"Google." Google. N.p., n.d. Web. 09 Dec. 2013.
"Industry Facts." AAPC. N.p., n.d. Web. 09 Dec. 2013.
"The Auto Industry Since 1960." The Auto Industry Since 1960. N.p., n.d. Web. 10 Dec.
The Big Three automobile companies, General Motors, Chrysler, and Ford, also had a very demanding labor union, the United Auto Workers or UAW, which asked for many benefits and salary requirements which lowered their ability to compete with other companies on the market, foreign and non-union. The average...
Snyder, M. (2012, January 19). 17 Facts About The Decline Of The U.S. Auto Industry That Are Almost Too Crazy To Believe. The Economic Collapse. Retrieved November 17, 2013, from http://theeconomiccollapseblog.com/archives/17-facts-about-the-decline-of-the-u-s-auto-industry-that-are-almost-too-crazy-to-believe
In a capitalistic country with a free market, foreign competition is expected. This is no exception for the automobile industry where America competes with its various rivals. Competition from elsewhere encompasses that from Italy, Germany, and of course, the renowned Japan. The Japanese vehicle industry is especially competitive; according to the Automotive News Data Center, five out of the ten best selling vehicles of the year are Japanese vehicles. This data applies to the U.S. market over the first 9 months of the year. Expectedly, the automobile industry is an important and significant market. Motor vehicles are a major form of transportation as many people in the U.S. own at least one car.
"The Automobile." American Decades. Ed. Judith S. Baughman, et al. Vol. 2: 1910-1919. Detroit: Gale, 2001. Gale Virtual Reference Library. Web. 5 Mar. 2014.
Model T’s were everywhere in America, even long after Ford stopped production in 1927. (Henry) While Ford was the number one brand, selling the most cars throughout the early 1900’s, the Model T created a new industry that is distinctly American; the auto industry. Three manufacturers, Ford, General Motors, and Chrysler dominated the American auto industry, and all three companies still produce cars today. The Model T gave birth to the competitive auto market. To this day, car companies in America are constantly racing to innovate, improve, and outsell their competitors. Manufacturing of cars “became the backbone of a new consumer goods-oriented society. By the mid-1920s it ranked first in value of product, and in 1982 it provided one out of every six jobs in the United States.” (history –idk yet) The demand for cars also resulted in a booming petroleum industry, and a high demand for metals, like steel. ( History idk yet) Furthermore, with so many people driving cars, construction of roads was necessary. The popularity of automobiles set off a chain reaction that created new opportunities all across the country. All sections of the modern automotive industry, from marketing to manufacturing, as well industries like petroleum refining, steel production, and road construction, can trace their beginnings to the Ford Model
The first automobile produced for the masses in the US was the three-horsepower, curved-dash Oldsmobile; 425 of them were sold in 1901 and 5,000 in 1904--this model is still prized by collectors. The firm prospered, and it was noted by others, and, from 1904 to 1908, 241 automobile-manufacturing firms went into business in the United States. One of these was the Ford Motor Company which was organized in June 1903, and sold its first car on the following July 23. The company produced 1,700 cars during its first ...
The automotive industry is without a doubt an industry that has massive implications relating to the United States economy as well as affecting every American household. Shifts in the supply and demand of automobiles influence the current and future household purchases. Households must determine what amount of their hard-earned income to allocate to certain necessities. Because most households have a budget, the amount spent on transportation it limited. While most industries have an effect on the economy, the automotive industry has far-reaching implications for most Americans. Not only are the workers affected but the many spin-off jobs created as well as the consumers that must purchase the automobiles manufactured.
Today's automotive industry in very competitive. Ford has had to find ways to keep ahead of the following major companies: BANC ONE, Bank America, BMW, Budget Group, Chrysler, Daimler-Benz, Enterprise Rent-a-Car, General Motors, Honda, Hyundai, Isuzu, Mack Trucks, Mitsubishi, Nissan, Peugeot, Saab, Suzuki, Toyota, Volkswagen and many others. Ford has developed a number...
...een made. There have been many advancements in the automobile industry over the last few years, such as enhanced levels of quality and productivity, cars today are much safer and fuel efficient and this has all been done with out increasing the prices of cars by crazy amounts. The actual automotive work environment has also seen amazing changes, it is now seen as a place of development, new technologies and advanced skill sets. If you look at the industry you can clearly see how ad
As the decade’s fashion and architecture of the day portrayed conformity, the American car represented the country's optimism and enthusiasm in a decade of hopefulness. Car manufacturers looked at conformity as a foreign concept and did everything in their power to excite buyers and bring crowds to their showrooms. The 1950’s American automobile culture has had a long lasting influence on the people of the United States. The American car manufacturing switched from producing war weapons to consumer goods at the end of World War II, and by the end of the 1950’s, one out of every six working Americans were employed by the automotive industry. The United States became the world's largest manufacturer of automobiles, and Henry Ford's goal that any man with a good job should be able to afford an automobile, was achieved. In result, a new generation of service businesses focusing on customers with their automobiles, like drive-through restaurants and movies, were created. Another contemporary entity that was established from the result of the booming automobile industry was the expansion of the National Highway System with Interstate highways. The wider, multi-lane highways allowed traffic to move at faster speeds with few or no stoplights. The automobile industry not only positively influenced people’s perspectives on travel and appealing machinery, it predisposed many other innovations and necessities that we still use in modern
... the world. From humble origins in the late nineteenth century, the auto industry grew explosively in the early and mid-twentieth century’s, scattered and decentralized, and reconstituted its work force. The impact on everyday life, from where people live to what kind of work they did cannot be underestimated. The hard work people put in to making the assembly line helped almost all companies succeed in making more cars. Just imagine if the assembly line was not created. It would take years to make a car and the cost of a car would be very expensive. Those changes were especially visible in Detroit which was the capitol of the auto industry automobile nation. The automobile industry would not be where it was today if it wasn’t for all the hard work people put in it in the 1900’s. Ford, Chrysler and general motors’ help create what we call today as the automobile.
The automotive industry is dominated by a few key players. Kallstrom explains, “The top five players have a significant 49% share of the global automobile market. This share decreased by 5.1% in the 15-year period from 1998 to 2013. Smaller companies slowly took the major automotive companies’ share away. In terms of vehicles produced, General Motors (GM), Ford (F), Volkswagen, and Toyota (TM) are still featured on the top five list.” It is important to note that Hyundai comes in at number five.
As men returned from war, the new and hot item to own was a car. Ford and GM’s Chevy became the biggest automobile manufacturers. In fact, by 1923, Ford Model T’s accounted for just under 52% of automobiles in the market while Ford held over 62% of the market. The production of Ford automobiles had reached nearly 2 million. In 1924, you could buy a Model T for $290 dollars. Nowadays, that is probably a monthly payment. Yet some cars were very expensive, with a Rolls Royce costing 15-17,000. Yet, automobiles were not the rage throughout the world. The automobile was just another sign of American youth, vibrancy, and prosperity. In 1920, US automobile production was nearly 2.3 million. The next largest producer was France, making 400,000 units. The total automobile production was just under 2.4 million. Obviously, Americans were really the only people buying cars.
The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto
One of the industries that prospered due to the automobile industry, was the oil industry. Automobiles ran on gas, so the demand for gas, or oil, was high.