history DB
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HIS2113_Lesson13_AutoIndustry.pptxMichigan history
The Birth of the Automotive Industry
Economic Expansion
By the late 1800s, motorcars, or “horseless buggies,” were seen as nothing more than novelties.
By 1920, there were over 7.5 million registered vehicles in the United States, and automobiles had reshaped the social and economic landscape.
Old’s “Mobile”
Ransom E. Olds
Olds’ goal was to produce a motor car that cost the same as a horse and buggy.
Olds experienced much trial and error, both in design and finance.
Olds legacy is popularizing the motorcar and pioneering mass production.
Henry Ford and His “Lizzie”
Olds’ success brought many investors and innovators into the emerging auto industry. By 1907, there were 270 companies in Michigan.
Henry Ford’s goal was to “democratize the car, so that everybody could afford one.”
In 1908, he developed the Model T – the Tin Lizzie. The durable Model T was produced until 1925.
Ford’s legacy is perfecting Olds’ assembly line process – and passing resulting savings to customers.
Ford Motor Company
How did Ford manage to turn his invention into icon?
Ford was viewed as a workingman’s friend:
A champion of farmers.
Raised workers wages so they could afford cars.
Ford’s anti-Semitism.
“Ford is one of us.”
Buick
David D. Buick
Scottish immigrant
Innovator and Inventor
Lost his company in 1904
Died in poverty in 1929.
William Durant
Quickly turned around Buick’s company.
Durant was a gifted planner and marketer.
By 1910, 1 in 6 cars sold in America was a Buick.
Durant drew manufactures from the East Coast to Flint to allow him to increase production.
Flint’s population rose from 13,000 in 1900 to 91,000 in 1920.
The Birth of General Motors
Durant’s dream: Many companies, one financial base.
Beginning in 1908, General Motors was born; during the year, Durant purchased 30 companies including Oldsmobile, Oakland (Pontiac), and Cadillac.
In 1910, Durant forced out of GM because of his over-aggressive buying.
Durant Teamed up with Louis Chevrolet to build a car to compete with the Model T.
In 1918, Durant bought out Chevrolet and took over GM.
In 1923, Durant forced out again, and GM reorganized to create a “status ladder” of products.
Chrysler and American Motors
Walter P. Chrysler
Took over smaller companies, including Dodge.
Initially focused on luxury market; during Great Depression sales remained steady.
Depression helped make Chrysler competitive with GM and Ford.
American Motors Company
Youngest and Smallest major company.
George W. Romney
Cars and Culture
Why and How did Michigan become the center of the automobile industry?
Financial resources and connections.
Leadership in manufacturing.
Skilled craftsman and inventors.
Social Impacts
Urbanization
Mobile Population - weaker family ties, smaller homes.
Tourism and “motels.”
