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FC. 142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010

FC. 142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010. a. Ind. Rev.  Higher wages ( FC. 117) . Ind. Rev.  Higher wages ( FC. 117) . First cars made individually by hand for a limited and affluent market. Ford’s assembly lines  Cheaper cars.

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FC. 142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010

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  1. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Growing need for Mid-east oil US supports Isr. to protect its oil (FC.146.2) Cycle of Ind. Rev. spreading to countries with cheaper labor (FC.116A) Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Oil embargo in 1970s makes big American cars impractical (FC.146.2) Newly industrializing nations in East Asia after 1970 More oil consumers Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Oil prices rise Need for fuel-efficient cars rises Oil prices rise Need for fuel-efficient cars rises Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s E. Asia companies w/cheap labor taking over bigger shares of US mkt U.S. companies work to make more competitive fuel-efficient cars for 21st century U.S. companies outsource production  Millions of Am. consumers lose their jobs

  2. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117)

  3. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market

  4. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars

  5. Henry Ford’s assembly line process for mass producing cars was turning out a new car every five minutes. Even factoring in the higher wages his workers made (and could use to buy his cars), this allowed him to drastically cut the cost of a new car compared to the older hand-made models, thus making cars affordable to millions of consumers.

  6. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items

  7. Women, who were becoming increasingly independent, represented a new market for automakers to exploit. Of course, women were seen as too weak and frail to be able to handle a tough machine like a car. So various amenities, such as electric ignition instead of having to crank-start the car, were added to make driving an easier and more pleasant experience for the ladies.* * Men liked it too. They just weren’t allowed to admit it.

  8. Even for several years after World War II, car designs stayed somewhat static, since they were seen more as practical tools rather than status symbols.

  9. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars

  10. Charles Kettering was a major innovator who worked for GM. In addition to the high compression engine (1947), he also owned 140 other patents for such innovations as the electric self starter and all-electric lighting. GM recognized Kettering’s importance by naming an annual award for technological innovation after him: the “Boss” Kettering award.

  11. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142)

  12. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success

  13. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success

  14. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success

  15. GM hierarchy of status and cars in 1956. Working class people and young couples just starting out started with the basic Chevy, then progressed up through the Buicks and the Oldsmobile and finally to the Cadillac as the ultimate sign that one had arrived at the top of society.

  16. Harley Earl, the head of GM’s design department, was fascinated with jet planes and tried to give his cars a “space age” look, such as this early model for the Corvair. Later it would be toned down as a cheap compact car that proved unsafe and unreliable to drive. 1954

  17. 1954

  18. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste

  19. The first big sign that Detroit was getting out of touch with the buying public was the production of the Ford Edsel, which for decades would be a byword for marketing failures.

  20. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales

  21. This somewhat counter-intuitive ad for the 1959 VW was also somewhat revolutionary in advertising history. Starting off with the line :”This Volkswagen missed the boat”, it goes on to explain that a blemished chrome strip on the glove compartment caused it to fail inspection and that one out of fifty VW’s also fail inspection. Not because of poor quality, but because of extremely high inspection standards, so that the consumer always gets a good car. Thus, after catching the reader’s attention by giving the first impression that they are saying their own cars are lemons, they turn it around by claiming none of their cars are lemons, ending with the memorable catch phrase: “We pluck the lemons, you get the plums.”

  22. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales

  23. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s

  24. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Cycle of Ind. Rev. spreading to countries with cheaper labor (FC.116A) Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s

  25. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Cycle of Ind. Rev. spreading to countries with cheaper labor (FC.116A) Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Newly industrializing nations in East Asia after 1970 More oil consumers Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s

  26. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Cycle of Ind. Rev. spreading to countries with cheaper labor (FC.116A) Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Newly industrializing nations in East Asia after 1970 More oil consumers Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Oil prices rise Need for fuel-efficient cars rises Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s

  27. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Growing need for Mid-east oil US supports Isr. to protect its oil (FC.146.2) Cycle of Ind. Rev. spreading to countries with cheaper labor (FC.116A) Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Newly industrializing nations in East Asia after 1970 More oil consumers Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Oil prices rise Need for fuel-efficient cars rises Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s

  28. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Growing need for Mid-east oil US supports Isr. to protect its oil (FC.146.2) Cycle of Ind. Rev. spreading to countries with cheaper labor (FC.116A) Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Oil embargo in 1970s makes big American cars impractical (FC.146.2) Newly industrializing nations in East Asia after 1970 More oil consumers Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Oil prices rise Need for fuel-efficient cars rises Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s

  29. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Growing need for Mid-east oil US supports Isr. to protect its oil (FC.146.2) Cycle of Ind. Rev. spreading to countries with cheaper labor (FC.116A) Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Oil embargo in 1970s makes big American cars impractical (FC.146.2) Newly industrializing nations in East Asia after 1970 More oil consumers Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Oil prices rise Need for fuel-efficient cars rises Oil prices rise Need for fuel-efficient cars rises Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s

  30. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Growing need for Mid-east oil US supports Isr. to protect its oil (FC.146.2) Cycle of Ind. Rev. spreading to countries with cheaper labor (FC.116A) Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Oil embargo in 1970s makes big American cars impractical (FC.146.2) Newly industrializing nations in East Asia after 1970 More oil consumers Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Oil prices rise Need for fuel-efficient cars rises Oil prices rise Need for fuel-efficient cars rises Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s E. Asia companies w/cheap labor taking over bigger shares of US mkt U.S. companies work to make more competitive fuel-efficient cars for 21st century U.S. companies outsource production  Millions of Am. consumers lose their jobs

  31. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Growing need for Mid-east oil US supports Isr. to protect its oil (FC.146.2) Cycle of Ind. Rev. spreading to countries with cheaper labor (FC.116A) Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Oil embargo in 1970s makes big American cars impractical (FC.146.2) Newly industrializing nations in East Asia after 1970 More oil consumers Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Oil prices rise Need for fuel-efficient cars rises Oil prices rise Need for fuel-efficient cars rises Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s E. Asia companies w/cheap labor taking over bigger shares of US mkt U.S. companies work to make more competitive fuel-efficient cars for 21st century U.S. companies outsource production  Millions of Am. consumers lose their jobs

  32. FC.142D A SHORT HISTORY OF THE AMERICAN AUTO INDUSTRY TO c.2010 a Ind. Rev. Higher wages (FC.117) Ind. Rev. Higher wages (FC.117) First cars made individually by hand for a limited and affluent market Ford’s assembly lines Cheaper cars Cars become mass consumer items 1947- High compression engine makes possible both big powerful cars &/or smaller & cheaper cars Affluence of 1950s (FC.142) Affluence of 1950s (FC.142) General Motors (GM), which makes nearly half the world’s cars, favor big expensive cars because they: Make bigger profits since small cars cost almost as much to make as big cars Are now seen mainly a status symbol of the consumer’s success Growing need for Mid-east oil US supports Isr. to protect its oil (FC.146.2) Cycle of Ind. Rev. spreading to countries with cheaper labor (FC.116A) Increasingly ridiculous size and unnecessary features (e.g., tailfins) constantly added to American cars in 1950s Detroit increasingly out of touch with the public’s taste Oil embargo in 1970s makes big American cars impractical (FC.146.2) Newly industrializing nations in East Asia after 1970 More oil consumers Late 1950s- Smaller and cheaper foreign cars start entering the US market Detroit starting to lose sales Detroit cuts corners in making small cars Unsafe and unreliable Hurts Detroit’s reputation & sales Oil prices rise Need for fuel-efficient cars rises Oil prices rise Need for fuel-efficient cars rises Detroit learns wrong lesson, giving up on small efficient cars and continuing to make big & less efficient cars as oil prices temporarily come back down in 1980s & 90s E. Asia companies w/cheap labor taking over bigger shares of US mkt U.S. companies work to make more competitive fuel-efficient cars for 21st century U.S. companies outsource production  Millions of Am. consumers lose their jobs

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