American automotive industry

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  1. 1. 1900 20111910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Automotive industry annual production (per million units) Reports state that the price tag through fiscal year 2011 for such purposes as military operations, base security, reconstruction, foreign aid, embassy costs, and veterans health care will be $1.283 trillion. If the fiscal year budget for 2012 is approved, the total global security and conflict-related costs will be $1.415 trillion. U.S. military killed 5,921 and wounded 42,673. The price of oil began rising in October 2003 and reached record levels in 2004 and again in 2005. As a result of these price increases, consumers budgets have been under pressure, business costs have risen, and oil producers profits have increased. A long term explanatory factor for increasing oil prices could be the decline of the world reserve base. The reserves to production ratio is the measure which indicates the worlds ability to maintain current production, based on proved reserves. A wide variety of cyclic and short term factors have converged in such a way that the growth of demand has been unexpectedly high causing upward pressure on oil prices. 2001 War on Terrorism Begins The current conflict in the Niger Delta arose in the early 1990s over tensions between the foreign oil corporations and a number of the Niger Deltas minority ethnic groups who felt they were being exploited, particularly the Ogoni and the Ijaw. Competition for oil wealth has fueled violence between many ethnic groups, causing the militarization of nearly the entire region by ethnic militia groups as well as Nigerian military and police forces. 2004 Niger Delta Conflict on Oil At least 1,836 people died in the actual hurricane and in the subsequent floods, making it the deadliest U.S. hurricane since the 1928 Okeechobee hurricane. Total property damage was estimated at $81 billion. The Bush Administration sought $105 billion for repairs and reconstruction in the region. Katrina damaged or destroyed 30 oil platforms and caused the closure of nine refineries. 2005 Hurricane Katrina The crisis affected European and Asian automobile manufacturers, but it was primarily felt in the American automobile manufacturing industry. The downturn also affected Canada by virtue of the Automotive Products Trade Agreement. The automotive industry was weakened by a substantial increase in the prices of automotive fuels linked to the 2003-2008 energy crisis. Ultimately ending in a government created plan to supply the major industry will money to drive capital and innovate the industry. 2009 American Automotive Bailout On the evening of April 20, 2010, a gas release and subsequent explosion occurred on the Deepwater Horizon oil rig working on the Macondo exploration well for BP in the Gulf of Mexico. The fire burned for 36 hours before the rig sank, and hydrocarbons leaked into the Gulf of Mexico for 87 days before the well was closed and sealed. As of 31 December 2010, BP had spent $17.7 billion for their response activities. 2010 BP Oil Spill It was passed by Congress and addressed energy efficiency, energy conservation and energy management, natural gas imports and exports, alternative fuels and requiring certain fleets to acquire alternative fuel vehicles, which are capable of operating on non- petroleum fuels, electric motor vehicles, radioactive waste, coal power and clean coal, renewable energy, and other issues. Energy Policy Act of 1992 The North American Free Trade Agreement, or NAFTA. While NAFTAs intention has been to create a trade balance, there have been other side effects; this is especially true in the United States auto industry. It was envisioned for the automobile industry of the US, with NAFTA being used as the catalyst to allow the US to export automobiles to Mexico and Canada, increasing the market for American automobiles, and giving the often struggling industry a chance to revive and grow. 1994 The North American Free Trade Agreement (NAFTA) The western economy begin by outsourcing production and opening a free market in China and Vietnam. This transition creates a boom of production in both countries which leads to an enormous growth in both economies. The market forces set prices rather than a central planning organization and trade barriers are removed, privatization of government-owned enterprises and resources, and the creation of a financial sector to facilitate stabilization. 1994 Capitalism in China and Vietnam. The northeast is frozen in time by a time record high amounts of snow in most major cities in the northeast. Production slows and markets drop for several days. Up to 4 feet (1.2 m) of wind-driven snow from January 6 to January 8, 1996. 1996 The Blizzard in the Eastern U.S. Datsun dominated the Japanese market before and after the second world wars. They transitioned after the war from military trucks to the consumer car. They started a relation with Nissan in the early 50s but kept their name in the high-end American car market due to recognized car design. It was not until the early 60s when Datsun began to use the Nissan name. The Vice President of Nissan Motor Company, Yutaka Katayama, foresaw a need for Datsun to take the Nissan name.What we need to do is improve our cars efficiency gradually and creep up slowly before others notice. Then, before Detroit realizes it, we will have become an excellent car maker, and the customers will think so too. If we work hard to sell our own cars, we wont be bothered by whatever the other manufacturers do. If all we do is worry about the other cars in the race, we will definitely lose. 1983 Datsun Becomes Nissan The ABS was first developed for aircraft use in 1929 by the French automobile and aircraft pioneer, Gabriel Voisin, as threshold braking on airplanes is nearly impossible. The ABS system was first developed for the aircraft, by Gabriel Viosin, as a threshold braking system which deemed to be nearly impossible. The system transformed into the motorcycle market and eventually made its way into the car market and became standardized. 1985 Antilock Braking System (ABS) Hyundai was influenced heavily by western engineering. American leads the market today for Hyundai but it did not start here. Hyundai began exporting to countries in South America in the late 70s and shortly after to Canada due to failure of emissions testing in America. 1986 Hyundai in American Market. In 1985 significant changes happened in the American car market. Sales began to decline drastically and after the exposure of the Jeep roll-overs AMC lost the market. American Motors major stockholder, Renault, was later assassinated which pressured AMC to sell all remaining shares of the company to Chrysler. 1987 Chrysler Buys American Motors Ford placed Aston Marting along with Jaguar in the Premier Automotive Group. Ford invested substantially in Aston Martins and Jaguars manufacturing and productions to revamp their industry. Both companies are still alive today due to investments made by Ford. Ford will eventually sell both companies in the coming decade earning little to no profit from both companies. 1987 Ford Buys Aston Martin and then Jaguar Annual average gas price (per dollar) Politics Enviroment Technology Industry Total miles of road (per million miles) Cadillac is the first American carmaker to offer automatic stability control, increasing safety in emergency handling situations. 1997 Automatic Stability Control This refers to the colonial expansion adopted by Europes powers and, later, Japan and the United States, during the 19th and early 20th centuries; expansion took place from the French conquest of Algeria until World War I: approximately 1830 to 1914. The period is distinguished by an unprecedented pursuit of overseas territorial acquisitions. New Imperialism Ford Motor Company develops the first moving assembly line for automobiles. It brings the cars to the workers rather than having workers walk around factories gathering parts and tools and performing tasks. Under the Ford assembly line process, workers perform a single task rather than master whole portions of automobile assembly. Fords process allows it to drop the price of its Model T continually over the next 14 years, transforming cars from unaffordable luxuries into transportation for the masses. 1913 Assembly Line Rudolf Diesel demonstrated the diesel engine in the 1900 Exposition Universelle (Worlds Fair) in Paris using peanut oil fuel. Rudolf Diesel originally designed the diesel engine to use coal dust as a fuel. He also experimented with various oils, including some vegetable oils, which were used to power the engines which he exhibited at the 1900 Paris Exposition and the 1911 Worlds Fair in Paris. 1906 Diesel Engine A departure from previous speedway policy of holding numerous smaller racing meets during 1909 and 1910 racing seasons. The singular, large scale event, attracted widespread attention from both American and European racing teams and manufacturers. 1911 Indy 500 From the earliest days of radio, enthusiasts had adapted domestic equipment to use in their cars but the commercial introduction of the fitted car radio came in the 1930s from the Galvin Manufacturing Corporation. In 1930, the Galvin Corporation introduced the first commercial car radio, the Motorola model 5T71, which sold for between $110 and $130 and could be installed in most popular automobiles. 1930 Radio C. L. Horock designs the telescope shock absorber, using a piston and cylinder fitted inside a metal sleeve, with a one-way valve built into the piston. As air or oil moves through the valve into the cylinder, the piston moves freely in one direction but is resisted in the other direction by the air or oil. Shocks The Wright brothers, Orville and Wilbur, were two Americans credited with inventing and building the worlds first successful airplane and making the first controlled, powered and sustained heavier-than-air human flight, on Dec