Ford Motor Company

Definition

Ford Motor Company is an American multinational automaker founded by Henry Ford on June 16, 1903. It revolutionized the automotive industry through the introduction of assembly line production techniques, significantly lowering costs and making automobiles affordable for the average consumer, thus playing a key role in the Second Industrial Revolution.

5 Must Know Facts For Your Next Test

1. Ford introduced the moving assembly line in 1913, which drastically reduced the time it took to build a car from over 12 hours to about 90 minutes.
2. The Model T was instrumental in establishing Ford as a dominant player in the automotive industry, selling over 15 million units between 1908 and 1927.
3. Henry Ford's implementation of higher wages, known as the 'Five Dollar Day,' attracted skilled workers and helped reduce employee turnover, boosting productivity.
4. Ford's innovations not only transformed the automotive sector but also had a ripple effect on other industries, influencing mass production techniques across various sectors.
5. The company's focus on making cars affordable changed American society by enabling more people to own cars, facilitating suburban growth and reshaping urban landscapes.

Review Questions

• How did Ford Motor Company's introduction of the assembly line impact the manufacturing industry?
  • Ford Motor Company's introduction of the assembly line revolutionized manufacturing by dramatically increasing efficiency and reducing production costs. This method allowed for faster production times and made it feasible to produce large quantities of vehicles at lower prices. The success of this technique set new standards in manufacturing processes not just for automobiles but also for various industries, promoting the widespread adoption of mass production practices.
• In what ways did the Model T contribute to social and economic changes in early 20th century America?
  • The Model T contributed significantly to social and economic changes by making car ownership accessible to a broader segment of the population. Its affordability allowed families to purchase vehicles, fostering greater mobility and enabling suburban expansion. Additionally, it stimulated job creation in both automobile manufacturing and related sectors such as road construction and petroleum industries, transforming the American landscape and lifestyle.
• Evaluate the long-term implications of Ford Motor Company's business practices on contemporary manufacturing and labor relations.
  • Ford Motor Company's business practices have had lasting implications on contemporary manufacturing and labor relations. The introduction of the assembly line not only reshaped production efficiency but also set a precedent for labor standards, such as higher wages and better working conditions. This focus on worker satisfaction led to changes in labor relations across industries, influencing union movements and workplace regulations. Today, many manufacturing sectors still apply these principles while navigating modern challenges like automation and globalization.

Related terms

Assembly Line: A manufacturing process in which parts are added to a product in a sequential manner, significantly increasing efficiency and reducing production time.

Model T: The first mass-produced automobile by Ford, introduced in 1908, which became affordable for many Americans and transformed transportation in the U.S.

Mass Production: The manufacturing of large quantities of standardized products, often using assembly lines, which was a significant innovation during the Second Industrial Revolution.