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U.S. Car Companies - Essay Example

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is one of the most efficient and prosperous economies in the world. The country is considered to be a developed nation and its economic system goes through massive commercial activities. With the growth of domestic economic system, the U.S. economy experienced large amount…
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U.S. Car Companies
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U.S. Car Companies

Download file to see previous pages... The huge demand for the products of this industry in the domestic market of U.S., allowed the companies in the industry to enjoy economies of mass production (scale economies). This helped to speed up the rate of growth of the industry.
At the beginning in 1890s, the U.S. auto industry began with approximately 100 automobile companies. These companies used to employ several modern technologies in their product and production processes. Steam engines, internal combustion engines and battery powered engines were the various types of engines found in the cars manufactured by these companies. Since that time, electric cars were available in the nation. The use of steam cars was also famous in the country; however, at times of cold weather, these cars could not be used. Lack of proper road infrastructure hindered this industry from expanding in the initial years. The Federal Aid Road in 1916 and the Federal Aid Highway Act in 1921, helped in allocation of substantial funds in U.S., to build proper roads.
In 1896, Henry Ford introduced a new car company named The Ford Motor Company in U.S. Model T was the first model produced and sold by the company and its worth at that time was about $850. The model of the company became very famous in U.S. market and experienced high demand. High demand helped the company to enjoy economies of scale in production. This in turn reduced the cost of production and hence, profit and soon made the organization the largest auto company in the world. The next famous prominent auto company of U.S. that had become famous in the world market was General Motors Corporation (Hirsch 245). The company was founded by William Durant in 1908. The company acquired many small car producing firms, like, Cadillac and soon became a strong competitor of Ford Motor Company in the industry. Chrysler Group LLC was another famous car manufacturing company in ...Download file to see next pagesRead More
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