Two automotive titans—Henry Ford and Alfred Sloan—…
Two automotive titans—Henry Ford and Alfred Sloan—symbolize the far-reaching changes that took place in American industry during the 1910s and 1920s. In 1913 and at the age of 50, Ford revolutionized American manufacturing by introducing the automated assembly line. By using conveyor belts to bring automobile parts to workers, he reduced his cars’ assembly time from 121?2 hours in 1912 to just 11?2 hours in 1914. Declining production costs allowed Ford to cut prices — six times between 1921 and 1925, reducing a new Ford’s cost to just $290. This was less than three months’ wages for an average American worker, and it made cars affordable for the average family. To lower employee turnover and raise productivity, Ford also introduced a minimum daily wage of five dollars in 1914—twice what most workers earned. In addition, he shortened the workday from nine hours to eight. Twelve years later, he reduced his workweek from six days to five. Ford proved the logic of mass production: expanded production allows manufacturers to reduce costs and increase the number of products sold. Ford also realized that higher wages allow workers to buy more products. Alfred Sloan, the president of General Motors from 1923 to 1941, built his company into the world’s largest automaker. Sloan achieved this not by improving the production process but by adopting new approaches to advertising and marketing. He summed up his philosophy with these blunt words: “The primary object of the corporation was to make money, not just to make cars.” Sloan was convinced that Americans were willing to pay extra for luxury and prestige. His stance contrasted with Henry Ford’s. Ford, a farmer’s son, wanted to produce an inexpensive, practical vehicle with few extras. For instance, Ford said that his customers could have any color they wanted as long as it was black. Instead, Sloan advertised his cars as symbols of wealth and status. In 1927, he introduced the yearly model change, to convince motorists to trade in old models for new ones with flashier styling. Sloan also developed the idea of automotive “classes,” which classified cars by status, price, and level of luxury. According to this system, Chevrolets were less expensive than Buicks or Cadillacs. To make his cars affordable, he set up the nation’s first national consumer credit agency in 1919. If Henry Ford proved the power of mass production, Sloan revealed the importance of merchandising in a modern consumer society. According to the passage, Ford’s minimum daily wage of five dollars
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