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A Profile of the Automobile and Motor Vehicle Industry: by James M. Rubenstein

By James M. Rubenstein

The motorcar is without doubt one of the world’s largest.
More than 1 billion cars are in use round the
world, and eighty million are produced and bought annually.
Motor vehicles—including passenger automobiles, vans, and
commercial automobiles equivalent to buses and taxis—are the
principal capability in which humans and items are transported
within and between so much groups in the
This booklet information the background of the motor vehicle
and of the best carmakers. within, you’ll examine just
how vehicles are made and offered; the prime providers of
parts that pass right into a motor vehicle; the expanding position of government
in regulating cars; and destiny demanding situations for
the industry.
The motorized vehicle contains corporations
that layout, enhance, and manufacture vehicles and trucks.
These carmakers, reminiscent of Ford and Toyota, are among
the world’s most-familiar company manufacturers. The motor
vehicle additionally encompasses lesser-known businesses,
including a number of thousand elements makers, tens of
thousands of outlets, and really good lending agencies.
The value of the motorized vehicle transcends
even its primary position within the international economic climate. The
industry was once chargeable for a few of the fundamental
innovations of twentieth century creation, such as
corporate association, production techniques, and
labor relatives, in addition to revenues options including
product branding and client financing. within the 21st
century, the motorized vehicle has been a leader
in adopting new creation ideas and expanding
into new markets.

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Extra resources for A Profile of the Automobile and Motor Vehicle Industry: Innovation, Transformation, Globalization (Industry Profiles Collection)

Sample text

Ford was convinced that demand for cars would become u ­ niversal and was limited in 1900 only by the high prices. At odds with his ­financial backers, Ford set out to build the lowest-priced car possible. When introduced in 1909, the Ford Model T was initially priced at $850 at a time when most cars sold for around $2,000. The price dropped to $440 in 1915 and $260 in the 1920s. More than 15 million Model Ts were sold, the most of any model until passed by the VW Beetle in 1972. During the 1910s, more than half the cars in the entire world, as well as in the United States, were Model Ts.

An entirely new vehicle can roll off the assembly line within two or three years of start of development, about half of the time typically needed ­during the second half of the 20th century. Computer-assisted design and testing as well as allocating more responsibility to the project team, have contributed to the reduction in development time. Marketing Operations The third major responsibility of carmakers is to market their vehicles to the public. Carmakers do not sell their products directly to the public, relying instead on independent dealers, as discussed in Chapter 4.

Ford captured half the new-vehicle market in the United States and the world during the 1910s by selling a single model, the Model T. For most of the eighteen-year run of Model T, it was famously produced in only one color, black. The company’s newspaper and magazine advertising communicated Henry Ford’s vision of the car as a low-cost, practical machine, useful for farm chores and deliveries. GM passed Ford as the best-selling carmaker during the 1920s by offering vehicles with attractive styling.

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