EH.Net Abstracts in Economic History

AEH: AMER.I.O: The Importance of Adjusting Production to in the Early Automobile Industry

O'Brien, Anthony Patrick (aobrien at eh.net)

Mon May 12 14:21:33 EDT 1997

               EHS Abstract Submission
                    (c) 1997 Academic Press and EH.Net
-----------------------------------------------------------
              Name:  Anthony Patrick O'Brien
               Email:  aobrien at eh.net
         Institution:  Lehigh University  

         Co-author:  None
 
             Title:  The Importance of Adjusting Production to
Sales in the Early Automobile Industry

  Internet Address
of abstracted work:  Not available on the Internet  

           By mail:  
                        Anthony Patrick O'Brien
                        Department of Economics 
                        Rauch Business Ctr. #37
                        Lehigh University
                        621 Taylor Street
                        Bethlehem, PA 18015-3144
                        USA      
                      
          Language:  English
 
          Abstract:
 Producing and selling mechanically complex and expensive
consumer durables involves a number of difficulties, especially
if the products are manufactured in high volume.  This paper
focuses on the problem that companies employing high-volume
production methods are extremely vulnerable to the consequences
of the variance in final sales across the business cycle, unless
they devise methods for adjusting production for sales.  Evidence
is presented that it was the Ford Motor company that first
developed the methods required to ensure that production was kept
in line with sales.  These methods played a heretofore overlooked
role in the success of Ford during its early years.  General
Motors was able to overtake Ford for leadership of the automobile
industry only after it began to adopt similar methods, beginning
in 1924. 

 
      Bibliography:  O'Brien, Anthony Patrick. "The Importance of
Adjusting Production to Sales in the Early Automobile Industry,"
Explorations in Economic History (April 1997).

 
                  Subject:  R
 Geographical Area:  7
      Country/Region:  United States
           Time Period:  8