By the start of 20th century, the demand for cars started growing but the cars were still expensive, because these cars were manufactured and assembled with hands. Henry Ford introduced the legendary Ford Model T which was the beginning of an era, where even middle class could own a car. For the first time, Ford’s Model T introduced the concept of Assembly line in the automobile sector. The concept of mass production-high volume low variety”- was brought into focus and this was made immortal by the words said by Henry Ford in his Autobiography where he says, “Any customer can have a car painted any color that he wants so long as it is black."
The era after the First World War was known as the vintage era (1919-1930). The First World War was a milestone, as closed body cars was put into production in the 1920s and the technology of automatic transmission was first conceptualised in this era. During the great depression in 1930s the number of automobile manufacturers decreased drastically and consolidation in the industry took place. The period 1930-45 was a slack period, except for demand from military forces for personnel transport. After the World War II, large scale rehabilatation of war ravaged economies took place and this led to increased industrial activity and increased incomes. The development of automotive sector saw different trends in different countries across the world. America was known for manufacturing power ridden luxurious cars; Europe was known for manufacturing compact cars. This was also a period when growing level of world trade made competition from foreign manufacturers a new reality with which the automobile firms had to deal with.
The modern era of automobiles (1980-2010) is the era which saw the maximum action in the form of revolutionary designs, enhanced performance and increased fuel efficiency. The oil shocks in 1973, 1980 and 1990s ensured that smaller and more fuel efficient cars came to stay even in the American market,...
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