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The motor car was first established in Europe 128 years ago. Since then a large automotive industry has established with a wide range of car manufacturers, suppliers and aftermarket service. An industry can be defined by Stigler as follows “an industry should embrace the maximum geographical area and the maximum variety of productive activities in which there is strong long-run substitution” (Lipczynski and Wilson et al., 2005).
The roots of the automobile industry can be traced back to Henry Ford who was responsible for the development of the assembly line technique of mass production which allowed middle class America to afford to buy vehicles. However despite its impact Fords competitive advantage was short lived and was soon taken over as Alfred P. Sloan at General Motors sensed consumers wanted more variety than what they were being offered and he offered “a car for every purse and purpose” (Holweg, 2014, p. 14). Customers were soon given a choice with a broader range of products to include cars of different colour which was in contrast to Fords standard black car.
Employment
Europe is the largest automobile producing region with nearly 20 million vehicles assembled in 2001. It is the world’s largest market in terms of size and the competition is intense. The automotive industry represents up to one third of European manufacturing jobs. In any industry it is the employment that it generates that is the biggest help to an economy. The spin off employment from the automotive industry is quite large with a lot of industries supplying automotive producers and retailers. The direct employment, spin-off employment and exports help towards a growing and prosperous economy.
Employment in the UK automotive industry is on a declin...
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...s such as “build to order” (BTO) link production to customer demand, building a car to a specific customer order within three weeks or less and not have unsold stock building up. Renault, Nissan, BMW and Volvo have implemented such programmes and said they were successful.
Changes in Supply Chain
Companies are building long term collaborative relationships with suppliers rather than changing opportunistically. This means they’re not totally basing their supplier decisions on cost but looking to build up relationships with their suppliers so they can understand and try help the firms strategies to achieve goals. Manufacturers are recently relying heavily on outsourcing, getting suppliers to provide design and assembly assistance to match the evolving product variety that manufacturers try to offer their customers and make their new innovative ideas into a reality.
Flink’s Three stages of American automobile consciousness fully express the progress of the whole automobile industry. From the first model T to the automatic production, it gives me an intuitive feeling of the automobile history from a big picture. On the other hand, Kline and Pinch focus more on a certain group of people--farmers or people who live in the rural area, they use it as an entry point to talk about automobile, alone with the role and duty transition between male and
In the 1920’s the United States economy was booming, and a famous man by the man of Henry Ford came along and had an industry changing idea. He set up the first production line style for producing automobiles. Each assembly line worker had one or two specific tasks to complete on the cars that came through. The process began with a skeleton on the car, and as it went down the line from worker to worker it slowly gained more and more pieces finishing the automobile completely...
In the twentieth century, the introduction of the motor vehicle in the United States became not only noteworthy, but also vital in the development of modern American civilization. This technologically complex machine led citizens to vast future dependence on the invention. While mobility was suddenly not limited to alternative, more convoluted options such as railroad stations or bicycles, yet copiously amplified to aid convenience and expanded leisure opportunities. From auto-racing to redesigning infrastructure, motor vehicles allowed progression, digression, and essentially uttermost change to the lifestyles of the American people. This radical idea of the automobile permeated throughout America with most, if not all, credit renowned to Henry Ford.
Imagine how life would be if our society did not have cars. Today, our society is depended on cars for our daily routines. From getting our food, clothes, and technology to just going to the store across the street, cars are a very important part of our society. In the 18th century, only the wealthy people had access to automobiles, and they only used cars for fancy transportation and to show off their money. This was because of the extreme prices of cars in the 18th century. With these high prices not many people could afford them, especially not the working class. Henry Ford reevaluated the automobile industry in the late eighteenth and early nineteenth centuries. With Ford's enthusiasm to mechanics, he perfected the assembly line, developed cheap cars for the common people, and sparked an era of mass production. Because of this, Ford paid higher and his actions allowed the common people to have access to cars.
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...
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
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:
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.
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer.
This paper takes a look at the ways in which the ideas of Fordism and Taylorism helped the success of the U.S motor vehicle industry. The motor vehicle industry has changed the fundamental ideas on the process of manufacturing and probably more expressively on how humans work together to create value.
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.
Honda has established a program for its suppliers to strive for improvements in order to meet Honda’s requirements. The goals of the BP program are to improve the relationship between Honda and their suppliers, reduce manufacturing costs, and eliminate product defects. They accomplish these goals by focusing on 5 key areas: Best Position, Best Productivity, Best Product, Best Price, and Best Partners (Bounds and Arnold).
The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).
Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
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