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Detroit
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DETROIT (1890 -1920)The Mass Production of Mobility
Invention of mass production of automobile - how and why Henry Ford did it ??
And why Detroit ??
American automobile Industry
Beginnings of automobile lay in Europe
All major innovations were taking place in Europe
Daimler and Benz built the first vehicle in 1895
American technology was ten years behind
Americans found themselves reinventing the automobile
Daimler and Benz's first car
Detroit
Detroit was similar to Manchester of the 1770's
Major growth came after opening of Erie Canal and after discovery of iron and copper.
Leading manufacturer of ships, carriages, rail road cars and furniture.
Biggest stove maker in the United States
Biggest copper refiner in the world
Struggle For Supremacy
The automobile industry was scattered
Detroit was a busy manufacturing center
It had a rich network related industries
Subcontracting tradition in the city
Detroit became an immigrant town, providing cheap labor
Workforce was flexible
Detroit's bankers had good business sense and wereready to take risks
Detroit Skyline
New England vs Detroit
Detroit was not a favored candidate
A number of inventors and pioneers were in the city
Detroit's manufacturers saw car as a necessity
New England's Manufacturers saw car as a luxury
They were not concerned business end
The Move to The Mass Market
Reasons for going into Mass Market
Detroit made the cheapest cars
Entrepreneurs were trying to mass produce cheap cars
Old's runabout accounted for 56% of national production
Americans were ready for cheap mass car
Old's curved dash runabout
Ford Beginnings
Henry Ford
Born on July 30, 1863
Worked as an engineer inMichigan car company
Worked on his car in sparetime
Founded Detroit Automobile Company with W.H.Murphy
Birth of Model T
Ford wanted a car that cheap car which could substitute the family horse
The car should be light weight reliable and easy maintain
Focused on designing a car for the mass market
Norman Rockwell's Painting
Model T
Model T's features and production
Simplistic design only four constructional units
The running expenses were low
No special skill for repair or replacement
DRIVE TO MASS PRODUCTION
Invention of the idea of mass production
Using machines already developed
Principle of social organization
Assembly line manufacturing
Assembly line manufacturing in Detroit
Ford Factories
No organization
No specific duties
No line of succession
No authority
FORD
AND
THE DETROIT ELITE
WHAT ALLOWED FORD TO INNOVATE WHEN OTHERS FAILED???
Old companies focused on selling luxurious cars
Social prejudices cost them the industry
Ford focused on lower strata of society
After 1910, power depended on mass production
RISE OF GENERAL MOTORS
Freezing of Model T design
Resignation of Couzens in 1915
Entire company left to be dependent on Ford's whim
General Motors rose during this time
Merging of GM, United Motors and Chevrolet
Alfred P Sloan
Sloan reorganized General Motors
Selling at different price brackets
Bought in components
Ford's customers wanted something different
Chevrolet competed with Model T in terms of looks
Sloan invented installment buying
Used car trade-in
Closed cars
Annual models
DETROIT AS INNOVATIVE MILIEU
EUROPEANS VS AMERICANS???
EUROPEANS AMERICANS
Larger skilled workforce
Technical perfection
Market wasn't big enough
Unskilled labor
Standardized designs
Better tools
U.S was the right place!
Large and expanded market
High standards of living
Natural resources
Transportation
Precedents ( especially Detroit )
Machine tools
Assembly line
Ford's talented in-house engineers
SO WHY DETROIT??
Rapid growth of natural resources
Rich engineering culture
Production of transportation equipment
Railroad car manufacturing
Rich network of interdependencies and skills
Union of old money and young innovation
Ready supply of venture capital
Equal interest in potential of the motor car
DETROIT TODAY
Off shoring manufacturing jobs
Shuttering of factories
Great recession
Declared bankruptcy in 2013 - $18 billion debt
Resurged in manufacturing last year
Federal bailout of GM and Chrysler enabled the Big 3 U.S Automakers thrive
THANK YOU :)
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