American Auto Industry

1599 Words4 Pages
bulb-icon

Recommended: Birth of the automotive industry

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.

Show More
Related

  • The U.S. Automobile Industry

    2538 Words  | 6 Pages

    This paper will focus on the future of the U.S. Automobile industry as the United States recovers from the worst recession we have experienced in the past 75 years. I will provide information on the following topics pertaining to the U.S. automobile industry:

    Read More

  • General Motors, Chrysler, and Obama's Bailout Program

    1618 Words  | 4 Pages

    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...

    Read More

  • Christianity and the Economic Impact of the Automotive Industry on Canada

    2560 Words  | 6 Pages

    In many ways, the automotive industry has huge impacts on Canada. The impact it has creates jobs, and services. It also boosts economy and contributes to its success. Over the last two decades, the automotive industry has been a leading contributor to Canada’s economy and is a primary factor as to whether or not the economy will be successful. There are many contributing branches of the sector that allow it to be successful. This is shown through the production and manufacturing of vehicles, as well as the sale of the vehicles. The automotive industry has had a significant impact on Canada’s economy over the last 10 years. If the production and sale of domestic vehicles were to decline, Canada’s economy to be severely crippled and fall back into a recession.

    Read More

  • Impact of the Recession on the US Auto Industry

    1759 Words  | 4 Pages

    In the United States, modern car manufacturing has been historically dominated by the American companies including Ford Motor Co., Chrysler Group LLC, and General Motors Co. These three companies, known as the Detroit Three, controlled 95% of the market in the 1950’s and the dominance continued until the beginning of the 21st century. In the 1980’s Japanese auto manufacturers entered the United States, a decade later the Germans, and finally in 2000’s the Koreans. By the end of 2009, the Detroit Three only accounted for 45% of the total U.S. auto market. Another factor that had influence on this was constant fluctuations in gasoline prices and price sensitive consumers. According to the U.S. Department of Energy, gas prices hit record high averaging $3.07 per gallon in May 2007 and kept climbing up to $4.08 in July 2008. As gas prices kept increasing, consumer buying trends have been changing. In 2006 sales for SUVs, pickup trucks, and vans dropped 16%, while the market for compact cars rose by 3%. Unfortunately, the Detroit Three were not prepared for this since their...

    Read More

  • Car Technology of European and American Cars

    1183 Words  | 3 Pages

    The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.

    Read More

  • Essay On The Model T

    1466 Words  | 3 Pages

    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

    Read More

  • Comparison Of Western European Car Industries And Economies Of Scale

    983 Words  | 2 Pages

    As the economic integration of Europe continues, it is likely that increasing international competition will affect firms in European industries. As other countries expand and have more trade worldwide, the more the European economy will be affected. The economy will tend to buy from outside of Europe due to taste and lower prices. There would be more firms to choose from decreasing Economies of scale are significant because motor vehicle manufacturing is an industry based on growth. Since the automotive industry being discussed is in Italy, it is based primarily around one company, Fiat. The majority of sales of automobiles in Italy are acquired by Fiat. The automotive industry constitutes a substantial part in the European economy because this industry makes up 10 percent of total manufacturing output.

    Read More

  • The Assembly Line

    929 Words  | 2 Pages

    Throughout the 1920s the assembly line, design by Henry Ford, helps move forward the automobile into a new age of affordability and necessity. He makes the car more than just symbol of wealth but a symbol of the every man. The model T, Henry Ford’s pride and joy is the first car ever to be built using the assembly line. This new manufacturing process of mass production uses a conveyer belt to move parts and product down a line to be assembled by workers and machines(Lerner 343).This new process made it easier, faster, and cheaper for the average working class person to afford a car for the first time. The assembly line was not only made for cars it could be integrated into other industries that require a similar quality product being created continuously and quickly. During World War two, American factor...

    Read More

  • How the automobile has changed America

    592 Words  | 2 Pages

    The automobile had changed America in many ways since it has been created in the early 1900’s. When the automobile was first invented it was a thing only the rich could afford. After the invention of the mass production line more and more people were able to buy automobiles because they were being produce and sold for cheaper. A historian once said that Henry ford is the reason why common people have no limitations of their geography.

    Read More

  • Automotive Industry Analysis

    794 Words  | 2 Pages

    Since the 1890s, the time when the automotive industry began, the industry has developed rapidly. The industry started its development in the US, which contributed over 90% of the global vehicle production before the Great Depression (Popular

    Read More

  • Ford Motor Company Business Case Study

    1932 Words  | 4 Pages

    The Ford Motor Company inspired a manufacturing revolution with its mass production assembly lines in the early 20th century. Ford and Lincoln are one of world's most well known automotive brands, most known for the Ford Mustang, and F-Series pickup trucks. Henry Ford incorporated Ford Motor Company in 1903 at Dearborn, Michigan. Ford Motor Company is known as one of the largest automobile companies in the world. (DATAMONITOR: Ford Motor Company, 2010 p. 4). Since 1980, Ford has been able to remove $5 billion from its operating cost (Brady, 1986, p. 8). The Ford Motor Company has around 181,000 employees and 65 plants worldwide using the automotive brands Ford and Lincoln (FMC Annual Report 2013, p.149).

    Read More

  • The Invention of The Automobile

    798 Words  | 2 Pages

    The first automobile was invented in Europe, however the automobile industry had an enormous favorable impact on the United States economy.(Brown,

    Read More

  • history

    1421 Words  | 3 Pages

    Starting in the 1920’s America began its shift towards a consumer culture as the economic growth of the nation began to depend more on the proliferation of consumer goods than of capital goods. Even at the outset of this trend, the automobile held a significant place in the new consumer economy. The automobile, which was once thought of as a rare luxury, was being sold by the millions. Assembly lines were becoming more efficient, thus allowing cars to be made more cheaply allowing the price of automobiles to drop. The growth of the automobile helped stimulate the economy through its dependence on other industries such as glass, rubber and steel, which were connected to the production of cars. These automobile related industries created new jobs, greater affluence and more spending power for millions of American consumers. Even at the beginning of America’s transformation into the consumer culture of today the automobile was at the forefront this conversion.

    Read More

  • Ford Motor Company

    1840 Words  | 4 Pages

    Ford is forecasting that 2010 sales in industry will rise to between 11.5 million and 12.5 million vehicles, up considerably from last year’s 8.4 million. Boudette, and Dolan, 2010). Ford is about to launch its smaller vehicles; less than two years ago Ford Motor’s plant in Mexico was building big pick-up trucks. But Ford has retooled to produce Ford’s small Fiesta car, due to go on sale in America for the first time in June. Simon, 2010).Mulally is the architect of Ford’s remarkable recovery in its fortunes.

    Read More

  • Auto Ford Motor Company Case Analysis

    911 Words  | 2 Pages

    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

    Read More

More about American Auto Industry

Open Document