Thursday, January 22, 2015

Thoughts and Reflections on Dynasty and Destiny

     Innovation and adaptation are central in most industries in order to meet the needs of consumers and maintain a customer base. This, coupled with mass production and affordability, formed the basis for the American automobile Industry. With Ford promptly stepping up to show everyone how it's done (even if he lacked innovation in his later years), others soon caught on. This set the industry on the somewhat circular path from the early 20th century to present day. One aspect of the industry which has shifted over the past century or so has been the number of U.S. companies producing automobiles. The industry went from having around twenty companies manufacturing cars in its fledgling years to just three controlling 90% of the market. But perhaps the formation of conglomerates was inevitable, what with the constant buying, selling, and folding in of companies. Another significant change that occurred as the automobile market developed was the variety found in models. At first, companies (namely Ford) produced whatever could be manufactured wuickly with little cost. This business model in the U.S. changed with the variety offered by General Motors with their different vehicle lines. But despite their initial success, the conglomerates controlling the industry were not without their challenges. These challenges came, partly, in the form of the Union Auto Workers, who demanded to be recognized by the auto corporations. After the Sit-Down Strike of 1937, GM agreed to their terms, allowing the union to get a foot in the door. The fact the that the Union was eventually recognized by the big three meant that they could, if necessary, keep the companies in check and ensure that employees were treated fairly. 

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