Automobile Industry of Detroit, USA

20-Aug-2014
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History of Detroit
Located in State of Michigan
Referred to as Motor City
International headquarters of
Big Three US Auto Makers
Henry Ford a native of
Detroit
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Why Detroit
Ideal location for trade
Easy access to capital & rich
domestic market
Availability of raw materials such
as iron, Steel, coal & copper
Pioneering effort of Henry Ford
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Henry Ford
Born July 30, 1863
Became an Engineer with Edison Illuminating
Company
Built a self propelled vehicle (Quadricycle) in 1896
Founded Ford motors Co. in 1903
His success in implementing the moving assembly
line to manufacture the Model T Car was adopted
by different industries
Died April 7, 1947

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Rise & Fall of US
Auto Industry
1903 Henry Ford starts Ford Motor in Detroit
1908 William Durant starts GM in Flint, Mich.
1924 Half of cars in the world are Ford Model T at $260 price
1925 Walter Chrysler starts Chrysler Corp in Detroit
1929 90% of all cars in the world are manufactured in US. The great depression
hits Detroit
1935 Michigan Auto workers form the union United Auto Workers (UAW)
1936 Strikes paralyze GM until they sign the first union contract in USA
1939 World War II creates a huge demand for motor vehicles & aircraft engines
1942 All car manufacturers stop production of civilian cars to help military
1952 73% of all cars in the world are manufactured in US
1956 The first Japanese car is sold in US
1973 OPEC oil crisis send the price of gas skyrocketing that favours compact cars
made by Japanese manufacturers
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Rise & Fall of US
Auto Industry
1978 >50% of imports are made in Japan
1979 Iranian revolution causes another oil crisis.
Imports reached record high
1980 Japan produces more cars (28.5%) than USA (21%).
1991 GM & Ford post record loses while Japanese imports boom due to better
fuel economy, lower prices and higher quality
2006 President Bush gives $17.4 Billion bailout to GM and Chrysler
2008 Chrysler and GM declare bankruptcy due to global economic downturn
2013 Detroit files for bankruptcy

7
Thank You