Selling cars in America

American Automobiles

Timeline

• 1890’s : 1st American automobiles developed

• 1903 : Ford Motor Company was created• 1913 : First conveyor belt Reduced costs

3x• 1920’s – 1950’s : GM is largest automaker

with Ford and Chrysler• 1970’s : Oil crisis Sales decreased• 1988 : Merger of Chrysler and Daimler-Benz

The collapse• In the latter half of 2008, a global-scale recession  affected

the economy of the United States. A combination of several years of declining automobile sales and scarce availability of credit led to a more widespread crisis in the United States automobile industry in 2008 and 2009.

The collapse• Consequences:

• Dramatic drops in automobile sales in 2008• The “Big Three” requested emergency loans• The US and Canadian governments provided

unprecedented financial bailout support ( 1st bailout: $17.4 billion, 2nd bailout: $21.6 billion total: $ 80.3 billion in June 2009)

• Chrysler and GM bankruptcy (GM became a nationalized institution: the US government owned 60% and the Canadian 12.5% after a $80 billion losses in 2007-2008)

• It cost US taxpayers $130 billion• Factory closings: 20 for GM and 30 for Chrysler

2.The Fordism• The Ford Motor Company’s success occurred

because of the introduction of a very tough and compact vehicle named Model T. The mass production of this automobile lowered its unit price, making it affordable for the average consumer. Furthermore, Ford substantially increased its workers' wages, giving them the means to become customers. These factors led to massive consumption. In fact, the Model T surpassed all expectations, because it attained a peak of 60% of the automobile output within the United States.

2.The Fordism

• Henry Ford revolutionized a system, which consisted of synchronization, precision, and specialization within a company. These innovative ideas led to Fordism, and as mentioned below, this concept helped increase economic prosperity in the United States in the 1940s to 1960s

MODEL T ASSEMBLY LINE

3. General Motors• It is a United States-based automaker with its headquarters

in Detroit, Michigan• Manufactured in 34 countries• 204,000 people employed in the world (2009), 68,000 in the US• Sell services and cars in 140 countries• By sales, it is the largest US automaker and the world’s second

largest in 2008• Current brands: Buick, Opel, Cadillac, GMC, Daewoo, Chevrolet,

Vauxhall (after 2009 crisis).• 5,000 dealerships.

Present time…• The American car industry is in recovery with

consume confidence in the economy growing• Consumer confidence skyrocketed the most in

more than eight years, while the percentage of consumers that planned to buy a new vehicle within 6 months was the highest it had been since April.

• Many analysts and speculators alike, feel that overall markets will rebound from the 2008/09-disaster period, and continue to rise.