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American Economy

ability, organization, and continuity. America, with its large population, high standard of living, and long distances, was the natural birthplace of the technique, which had been partly explored by agricultural methods, in the 19th century. The U.S. role was emphasized in the popular description of standardization and interchangeability as "the American system of manufacture." The fundamental techniques were known, but they had not previously been applied to the manufacture of a device as complex as a motor vehicle.Henry Ford invented neither the automobile nor the assembly line, but developed each to dominate a new era in organization and production of motor cars. By improving the assembly line so that the 'Model T' could be produced more cheaply, Ford placed the power of the automobile within reach of the average citizen. He transformed the automobile itself from a luxury item for the rich to a necessity for all.When the design of the Model T proved successful, Ford turned to the problem of producing the car in large volumes and at a low unit cost. The solution was found in the moving assembly line. After more experimentation, in 1913 the Ford Motor Company displayed to the world the complete assembly-line mass production of motor vehicles. The technique consisted of two basic elements: a conveyor system and the limitation of each worker to a single repetitive task. Despite its deceptive simplicity, the technique required elaborate planning and synchronization. The first Ford assembly line permitted only very minor variations in the basic model, a limitation that was compensated for by the low cost. The price of the Model T touring car dropped from $950 in 1908 to $360 in 1916, and yet the profit per car remained the same, at about $100 per car. The 1920's saw Ford's new plant at River Rouge opened. It was nearly self-sufficient, with all the components needed to manufacture the car, controlled and owned by Ford. General Motors...

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