2. Ten per cent or more…
Automobile industry accounts for ten
per cent or more of each nation’s gross
national products
By Masters Division - Facoltà di
Economia di Torino
3. European by birth, American by
adoption
Although the automobile was invented in
Europe, mass production as the basis of
mass marketing was developed and
established in United States
By Masters Division - Facoltà di
Economia di Torino
4. First revolution
The Ford system became the fundamental
paradigm for production system in the US
automobile industry
and was then transferred to advanced
nations,
including those in Europe, Japan and
other Asian nations, and adapted to the
current state.
state.
By Masters Division - Facoltà di
Economia di Torino
5. Second revolution
In the US, mass production inherited from
the Ford system was followed by a more
marketing oriented paradigm shift…..
shift…..
created by A.P. Sloan of General Motors,
which respond better to a mature market.
market.
By Masters Division - Facoltà di
Economia di Torino
6. Third revolution
In contrast to the mass production model,
the automobile industry in Japan, which
was the last to join the developed nations,
gathered mass production
manufacturing techniques from both
the European and US system, but
generated a production system
different from both.
both.
By Masters Division - Facoltà di
Economia di Torino
7. Lean production
This is called the Japanese production
system or just-in-
just-in-time (JIT)
manufacturing.
anufacturing.
A further development based of this
system is lean manufacturing
which took shape by absorbing automotive
product development systems and
supplier systems of keiretsu companies.
companies.
By Masters Division - Facoltà di
Economia di Torino
10. A market for entertainment
When Henry Ford entered the car-making
car-
business in 1899, the optimal
manufacturing strategy was to concentrate
production on a small quantity of
relatively expensive products and sell
them at a high markup.
By Masters Division - Facoltà di
Economia di Torino
11. Marketing genius
Henry Ford’s marketing genius was to
recognize that the desire to own a car was
nearly universal.
universal.
… early producers assumed that the market was
primarily for the recreational and leisure
purposes of the wealthy.
wealthy.
Ford however believed that a vast market
existed among poorer people for an
inexpensive vehicle
He saw that the key to making inexpensive
vehicles was to change the production process.
process.
By Masters Division - Facoltà di
Economia di Torino
12. HENRY FORD I
By Masters Division - Facoltà di
Economia di Torino
13. Ford Motor Co. at last
Henry Ford’s first two tentative to set up a carmaker company failed.
failed.
Detroit Automobile Company, established in 1899, built a couple
Company, 1899,
of dozen vehicles before closing in 1900.
1900.
Reorganized as the Henry Ford Company in 1901, the firm failed
1901,
again within a year. Ford himself claimed that his financial backers
year.
had given up on him too quickly, while his critics charged that he
was more interested in racing cars than in building them.
them.
The Ford Motor Company, Henry Ford’s third and ultimate
Company,
successful attempt to make cars, was founded in 1903.
1903.
By Masters Division - Facoltà di
Economia di Torino
14. From Model N to Model T
At the end of a long dispute, Henry Ford could
concentrate on building an inexpensive car,
car,
beginning with the four-cylinder Model N
four-
introduced in 1906 at a price of 600 dollars.
Model N was greeted enthusiastically and Ford
sales rose to 10.000 in 1908.
The successor to the Model N, Model T, was
T,
priced at 650 dollars on its introduction on 1909.
By Masters Division - Facoltà di
Economia di Torino
15. FORD MODEL N (anno 1902)
By Masters Division - Facoltà di
Economia di Torino
16. FORD MODEL T (anno 1914)
By Masters Division - Facoltà di
Economia di Torino
17. Mass production at Highland Park
Ford began production at a new plant at
Highland Park, Michigan, on New Year’s Day
1911
The Highland Park complex was known as the
Crystal Palace, as 75% of the building façade
Palace, 75%
was glass.
glass.
After installing the moving assembly line in 1913,
1913,
Ford finally hit the 500 dollars target. In its
target.
last year of production, in 1927, Model T could
1927,
be purchased for 290 dollars
By Masters Division - Facoltà di
Economia di Torino
18. HIGLAND PARK (primo stabilimento Ford)
By Masters Division - Facoltà di
Economia di Torino
19. To River Rouge
Model T production hit an all time peak
of 1,6 million in 1924. 67.000 workers
were employed at Highland Park in 1925.
…. but the plant’s days were numbered.
When Model T production ended in
1927, Highland Park closed and the
assembly line itself was moved to Ford’s
River Rouge complex
By Masters Division - Facoltà di
Economia di Torino
20. Folk hero
Henry Ford became an instant celebrity in
the US on January 5 1914 when he
announced that
- he would pay his workers 5 dollars a
day, reduce the work day from 9 to 8
hours,
- and hire several thousand additional
workers to staff a third shift
By Masters Division - Facoltà di
Economia di Torino
21. Autocrat and despot
Success with mass production and Model
T had given Henry a belief in the
absolute infallibility of his judgment.
judgment.
Ford criticized teachers, bankers and
lawyers.
He wanted to kick out all the doctors from
the Henry Ford Hospital and replace them
with chiropractors.
By Masters Division - Facoltà di
Economia di Torino
22. The best managers go away
Most of the Ford Motor Company talented
executives departed during the late 1910s
and early 1920s, including most of those
that had been instrumental for the
company’s early success.
Thereafter Henry Ford became a despot
who wielded absolute, arbitrary authority
over his company.
By Masters Division - Facoltà di
Economia di Torino
23. Admired in Soviet Union
Ford’s mass production revolution was
widely admired and emulated in the Soviet
Union.
Lenin and Trosky thought of Ford not as a
capitalist but as a revolutionary.
Ford tractors had a key role in improving
Soviet agricultural productivity.
Ford rejected Soviet government request to
build a factory there, having determined that it
could not be profitable
By Masters Division - Facoltà di
Economia di Torino
24. Grand Croix
Henry Ford admired the enterprise, orderliness
and industrial skill of the German Third Reich.
Reich.
On his seventy-fifth birthday, July 30 1938, one
seventy- 1938,
month before of the Munich Pact, Ford accepted
the Grand Croix of Germany by the German vice
consul in front of a cheering crowd in Dearborn.
Dearborn.
By Masters Division - Facoltà di
Economia di Torino
25. Ford cease to hold
During the 1930s Henry Ford turned over
responsibility for running his mass production
empire to Henry Bennet a boxer with connection
to organized crime.
Bennet beat up workers suspected of union
sympathies, prevented them talking to each
other and monitored their trips to the bathroom.
Bennet power exceeded even that of Henry
Ford’s son, Edsel, who had the title of company
Edsel,
president.
By Masters Division - Facoltà di
Economia di Torino
26. Bennet’s takeover
Bennet’s takeover
Ford believed that his son Edsel was not
tough enough to stand up to competitors, Union
organizers and government regulators, whereas
Bennet got things done in a hurry, especially
disagreeable task, like as firing union
sympathizer.
When forty-nine-years- old Edsel died in 1943,
forty-nine-years-
the old man returned as president at age eighty,
but in reality Bennet’s takeover of the
company was by then nearly completed.
By Masters Division - Facoltà di
Economia di Torino
27. Market share fell
Many Americans fed up with Henry Ford’s
ignorant pronouncements and brutal treatment
of workers refused to buy Ford cars.
Ford’s market share fell from 51% in 1924 to
20% in 1942. It was in third place behind GM
and Chrysler when production was halted three
month after the Japanese attack on Pearl
Harbor.
By Masters Division - Facoltà di
Economia di Torino
28. Henry II
By threatening to sell their company stock,
the elder Henry’s wife and Edsel’s widow
finally forced the old man in 1945 to turn
over the presidency of the company to
young Henry II (Edsel’s oldest son,
twenty-six-
twenty-six-years old).
By Masters Division - Facoltà di
Economia di Torino
29. HENRY FORD II
By Masters Division - Facoltà di
Economia di Torino
30. The end
Minutes after becoming president, armed
with a gun, Henry walked into Bennet’s
office and fired him from the company.
Two years later, Henry Ford died.
By Masters Division - Facoltà di
Economia di Torino
31. From Ford to Fordism
By revolutionazing industrial production
Fordism made the automobile
- affordable for most American families
- and brought decent wages to workers
in the automotive industry.
By Masters Division - Facoltà di
Economia di Torino
32. ..but it failed to detect
Ford Motor Company stumbled badly
when it failed to detect changes in
consumer attitude during the 1920s.
1920s
Its market share slipped from one-half to
one-
one forth.
forth.
Ford ha sold most American families their
first motor vehicle, but General Motors
sold them their second, third and
second,
subsequent vehicles.
vehicles.
By Masters Division - Facoltà di
Economia di Torino
