The Automobile Industry in the US in 1920s Essay

The Automobile Industry in the US in 1920s - Essay Example In 2009, China successfully challenged its position, taking over as the second largest producer. Currently, America stands third in mass production of automobiles [1]. At the onset of the American automobile industry, a large number of manufactures came on the scene, and vigorously vied for the domination of the local market. However, towards the end of the 1920s, only three major companies had managed to control the market. Ford, General Motors, and Chrysler were the big players in the country. These companies continued to thrive strongly, even after the Great Depression and the advent of the World War 2. In the 1970s, a mishmash of rocketing oil costs, fervent competition from foreign brands, and tightening government laws greatly affected the companies negatively. From then on, the companies experienced widely fluctuating fortunes, but by 2008, the business was undergoing severe havoc. This resulted to the fall of General Motors and Chrysler, who had to file for bankruptcy. The Fo rd Company managed to stay afloat all through these trying periods, and is currently gaining momentum to regain its lost glory [2]. The Ford Company came into being from the original idea of its owner and founder, Henry Ford. Currently, the company stands second among the world’s biggest automobile producers. The multinational conglomerate is now currently worth about $167 billion dollars. Though the company specialized in automobiles, it now also runs Ford Credit, a venture that rakes in around $3 billion dollars annually. In addition, it also possesses The Hertz Corporation, which is the biggest car-rental company in the world. The corporation now produces a wide range of vehicle brands. These include Ford, Mercury,... This essay discusses the automobile industry, that is a huge part of the engineering sector and is involved in the devising, growth, production, and selling of vehicles. It is one of the major industries in the world in terms of economic worth and revenue. The definition of the industry, though broad, is limited to the production and sale of automobiles, and does not include after-sales services like repair and maintenance. The industry is laden with events and milestones that marked its start and evolution to what it is currently. Firstly, the researcher dicusses the onset of the American automobile industry and mentiones companies, such as Ford, General Motors, and Chrysler, that were the big players in the United States in the 1920s. The researcher discusses the Great Depression that happened in the late 1920s and severely depleted General Motors’ financial strength. This was what that gave the Ford Company a much-needed lifeline. The General Motors’s market share al l but disappeared, thereby greatly depleting its income avenues. The market stake of the Ford Company shot up drastically. In conclusion, the researcher states that Ford company managed to survive through the trying times mainly due to the backing of its continuous perfect performance of its financial services sector. However, reclaiming its position as the world’s biggest automotive producer is not an easy task. The frequency of changing technology and fluctuation of markets will certainly be a problem for most companies.