Forbes July 24, 2024
By the time Henry Ford introduced the Model T in 1908, the automotive industry had been around for 15 years, and competition was fierce, with approximately 200 manufacturers.
Just 20 years later, automotive sales had increased by ~10X, but the number of manufacturers had dropped to 24.
What happened?
An industry shakeout, due to a combination of factors: the emergence of dominant technology and design (internal combustion engine, steel body), production efficiency and scale (assembly lines), and lower, more accessible pricing, among others. Survival of the fittest, as it was.
The biggest beneficiaries of the shakeout were consumers and, in the longer term, American society and economy. Affordable automobiles led to increased mobility, extended and expedited trade, and expanded the...
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