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Ford Motor Company In this paper I will illustrate how implementation of new technologies influenced Ford Motor Company. By 1920, the immense scale Henry Ford's international fame could be matched only by the size of his financial assets and the magnitude of his ego. Though Henry would not wrest sole control of Ford Motor Company -- the automobile manufacturer he founded with twelve investors in 1903 -- until the 1920 s, the wild success of the car maker was attributed entirely to his individual genius. During Ford's early years, the company was virtually indistinguishable from its founder. "Fordism, " as it came to be known -- a system of mass production which combined the principles of "scientific management" with new manufacturing techniques, such as the assembly line-created more than fantastic profits for his company: it literally revolutionized industry on a global scale within twenty years of its implementation at Ford's factory in Highland Park, Michigan. Away from the factory, the Model T, produced between 1908 and 1927, defined the mass consumer market of the 1920 s, and in the process helped make the automobile an essential component of American culture. After Henry's resignation in 1945 and series of problems throughout the 1950 s, the remarkable success of the Mustang in the 1960 s re-established the prominence of Ford Motor Company in the postwar era.
The rapid growth of Ford Motor Company during the first twenty years of this century was due to the astounding sales record of the Model T, or "Tin Lizzie" as it came to be known. Because the cost of early automobiles was prohibitive for most Americans, cars were essentially luxury items and few manufacturers saw the potential for mass appeal of the motorized vehicle. With a debut price of only $ 850, significantly less expensive than its competitors, the Model T was within the budget of many potential consumers. Because Ford's ingenious labor-saving techniques were not yet available -- the assembly line, for instance, would later quadruple productive capacities and reduce labor expenses -- Ford kept costs for the Model T low by producing only one type of car (other companies tried to build several different models simultaneously) but assembling it with interchangeable body styles. Due to its functional simplicity, the car was often ridiculed for its aesthetic shortcomings, and Ford himself boasted that consumers could purchase the Model T "in any color they want so long as it's black. " Despite its competitive price, the Model T did not sell particularly well during its initial release. It was aggressive marketing that turned the Model T into the best selling car in history.
Henry Ford had originally won financial backing for Ford Motor Company by racing cars and he turned to racing once again in an effort to sell his new product. This competition, however, was a much-publicized transcontinental race. Though the winning Ford car was later disqualified for irregularities, the Model T gained enormous notoriety for its victory and Ford turned that success into massive sales. Later, Ford would market the Model T by appealing to his own person: purchasers could buy a piece of Henry Ford's genius as well as a part of America itself. To a large extent, we can trace the evolution of America's "car culture" to Ford and the Model T. It was the first car marketed to a large consumer audience, and this alone redefined the role of the automobile industry in the United States.
In their famous sociological study Middletown, Robert and Helen Land conclude that the automobile, by 1925, was already an accepted and indispensable part of American life. It is no exaggeration to suggest that the Model T permanently changed the geography of this country: the popularity of the car made the huge suburban building booms of the 1920 s possible, while millions of miles of paved roads were built in response to the demands of new motorists. In addition to the changes brought by the automobile, Ford's production of tractors and other internal combustion farming equipment had a lasting effect on the rural landscape and the agricultural business. Though Henry himself came from a farming community and had nostalgic sympathies for the family farm, his products made life difficult for many small farmers who could not afford (or make profitable) the new harvesting machines. As much as Henry may have loved the farmer, he hated the inefficiency of small operations and imagined an agriculture of mass scale. By 1911, the popularity of the Model T began to present fresh challenges to Ford and its management team.
The young company had already moved its base of operations to Highland Park after reaching productive capacity at its Detroit shop and was rapidly approaching its limit once again. The appetite of consumers was far from sated, but labor shortages and productivity ceilings were arresting further plans for expansion. Over the next five years or so, Henry Ford began to develop the concept of "Fordism, " an industrial regime which would shortly revolutionize factory production on a global scale. In its early years, the philosophy of Fordism rested on two simple strategies: the invention of the assembly line and the increase of wages. Before the introduction of linkwork at Ford, the bodies of cars remained stationary while teams of workers moved from station to station. By simply putting the unfinished body on rails and attaching it to a drive train, Ford could move the car from point to point while groups of laborers remained at their assigned posts.
This new method allowed for greater specialization of tasks among the workers and permitted management to monitor the efficiency of laborers. And though Henry Ford did not "invent" the assembly line, he has been credited with the development and refinement of this manufacturing technique. One of the earliest and most persistent critiques of the assembly line came from craftsmen who complained that the division of labor reduced the level of skill required for employment. The assembly line created a distinct division of labor, and the standardization of tasks it required led to a more general deskilling of workers. In order to induce workers to accept this new industrial regime, Ford decided to raise wages. Although this contradicted the logic of supply and demand (with the assembly line, fewer workers could produce more), Ford reasoned that workers would only accept more mundane work in return for better compensation.
With the introduction of the eight-hour, five-dollar day (more than doubling the average daily pay) in 1914, Ford single-handedly revolutionized wage structures. Thousands of job-seekers flooded employment offices across the Detroit area looking for positions at Ford, and Henry himself later said that the five-dollar day was the best idea he ever had. Ironically, the concept of higher wages also permitted the company to discriminate in the workplace. Employees of eastern European and middle-eastern descent were given the most dangerous and physically taxing jobs, while African-Americans were not hired until World War I and women were a rarity before World War II. Meant to bring stability to the organization, the five-dollar day was introduced as part of a larger profit-sharing scheme: workers were only eligible after six months at the company and had to pass a battery of "tests" in order to qualify. On the road, Ford maintained its visibility during the 1950 s with the Thunderbird.
Its eight cylinder engine was one of the most powerful in its time, but its size necessitated a fairly large body. Because it was priced in the range of other luxury cars (the Chevrolet Corvette was the only true sportscar made in the United States), the Thunderbird faced stiff competition from sleek foreign models though it always achieved high sales figures. New technology of the early 1960 s allowed for more streamlined vehicles, and Ford responded by releasing the Mustang in 1963 (under the direction of a young Lee Iaccoca). Smaller and more affordable than the Thunderbird, the Mustang became all things to all people: at once a sports coupe and a touring sedan, it offered a unique combination of practicality and flair.
Its remarkable success helped invent the genre of the sports-sedan and reinvigorated Ford's lagging profits. Although the 1970 s and early 1980 s were a difficult time for Ford and the other American auto manufacturers-the oil crisis of 1973 and competition from Japanese firms sapped profits, while the well-publicized safety problems of the Pinto did little to enhance the company's image-Ford re-emerged during the 1980 s with the Escort, a functional, economy car designed for the growing legions of suburban Americans. The Escort was the best-selling car in the world for a number of years during that decade and it helped catapult Ford into a period of renewed profitability. With the Escort, Ford returned to its roots, using the principles of functionality and reliability to once again capture a mass consumer audience. Bibliography: Byrne, A. John.
The Whiz Kids. New York: Bantam Doubleday Dell, 1943. Monroe, Tom. Background. 1996.
September 29, 2002. web Alvarado, Rudolph and Sonya Alvarado. Drawing Conclusions on Henry Ford. University of Michigan: Ann Arbor, 2001. Rupert, Mark. Production Politics and Ideological Struggle at Ford Motor Company.
Producing Hegemony. 1 st Edition. Great Britain University Press, 1995. 104 - 208. Lee, Iococca. Driving Force, Henry Ford. Unknown Date of Posting. 27 December, 2002. web
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Research essay sample on Ford Motor Company Division Of Labor
