Initially considered a luxury item, the automobile was democratized through Henry Ford’s mass-production innovations, which drastically changed the way modern society travels and lives. GM’s flexible production methods also played an important role in the development of the automotive industry.
Have you ever imagined riding a horse to work, walking to meet friends, or traveling in a horse-drawn carriage? For those of us who live in urban centers where there are more cars than trees, this may not sound familiar. But the truth is, the automobile came into the world just over 120 years ago. Born in 1886 as a gasoline-powered means of transportation, the automobile was initially perceived as a specialized form of the bicycle and went largely unnoticed. Yet today, there are more than a billion cars in the world, and they’re now accepted as an essential form of transportation. So why did the number of cars increase so quickly?
First, let’s go back to 1910. It was before World War I. Back then, cars were difficult to start, complicated to operate, and often broke down. Their complex mechanical structure made them difficult to repair, and they were inferior to trains for speed and long distances. Nevertheless, for those who sought adventure and pleasure, the car represented a new challenge. The vibration of the car’s body and the view ahead gave them a unique sense of speed that trains could not, and the complexity of the controls allowed them to show off their ability to handle a car. This excited many people, and racing competitions began to be organized to see who could go the fastest. At the time, a record of 202.648 kilometers per hour had already been set. However, the cars were mostly produced by hand, and productivity was very low, taking more than a year to build one. For this reason, they were also very expensive, making them unaffordable for everyday transportation. Cars were still a luxury item for sports and leisure.
That changed with the outbreak of World War II. In ground battles, mobility became the difference between victory and defeat, and leaders took note of the maneuverability of the automobile. As a result, various technological studies were funded by the state to mass-produce cars and improve their performance. After the war, expectations were high for the popularization of the automobile, but productivity was still largely handmade and productivity did not improve significantly.
It wasn’t until the 1910s that the United States innovated and created a car that everyone could ride in. It was Henry Ford, the “King of Cars,” who devised the Ford System, an efficient mass production system. Up until then, manual manufacturing required skilled laborers to move between processes, and inefficient machine layouts meant that parts had to travel excessively long distances. Henry Ford broke down the entire process into simple, repetitive tasks by dedicating machines to a single process and rearranging them according to the work process. He also introduced conveyor belts to optimize the production process. Ford solved this problem by specifying the dimensions of parts and introducing precise production equipment. He also reduced the number of steps in the process by purchasing some parts from outside sources, and motivated workers by offering them high wages.
Thus, Henry Ford succeeded in mass-producing the first automobile. The Ford Model T was a huge success because it was designed to be easy to operate and repair, with a raised body that allowed it to travel well in rural areas with poor roads. Cars were in short supply at the time, so the Ford T sold like hotcakes. Continuous improvements in production methods reduced the price by as much as an eighth, and 15 million Ford T’s were produced between 1913 and 1927. By 1925, half of the world’s passenger cars were Ford T’s.
By the mid-1920s, however, Ford’s automotive empire was in crisis. Henry Ford had stuck with the same style for too long. The Model T’s popularity for driving on dirt roads was waning, and consumers wanted something more refined, convenient, and fast. Ford rushed to introduce new models, but they were still unable to break away from the monotonous styling and were rejected by consumers. Alfred P. Sloan’s General Motors was at the forefront of the market during this time, acquiring several car brands to create a lineup that ranged from low-end to high-end models. This was a strategy that appealed to a wide range of consumers, from low-income people who valued price and practicality to high-income people who valued individuality, and it also allowed GM to respond quickly to market changes by introducing new models every year.
GM adopted Ford’s off-the-shelf parts production method to maintain high productivity, while offering a variety of options at the final assembly stage to create unique cars. This flexible mass production method, which balances model diversification with standardization of parts, has since had a profound impact on the world. In the post-war economy, mass production created tremendous wealth in a market that was unable to keep up with the enormous demand. However, the Ford and GM examples show that in order to maintain that success, it is necessary to be “flexible” to market changes.
The production system that began in the United States spread around the world, resulting in a dramatic increase in the number and variety of cars. Without Ford’s production revolution, we wouldn’t have the car-filled, transit-oriented cities we have today.
