Automotive industry in the United States

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Main article: Automotive industry
Automotive industry in the United States
A Ford Model T, built in 1927. Originally released in 1908, it was the first affordable automobile and dominated sales for years.
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In the United States, the automotive industry began in the 1890s and, as a result of the size of the domestic market and the use of mass production, rapidly evolved into the largest in the world. The United States was the first country in the world to have a mass market for vehicle production and sales and is a pioneer of the automotive industry[1] and mass market production process.[2][3] During the 20th century, global competitors emerged, especially in the second half of the century primarily across European and Asian markets, such as Germany, France, Italy, Japan and South Korea. The U.S. is currently second among the largest manufacturers in the world by volume.

American manufacturers produce approximately 10 million units annually.[4] Notable exceptions were 5.7 million automobiles manufactured in 2009 (due to crisis), and more recently 8.8 million units in 2020 due to the global COVID-19 pandemic.[4][5] Production peaked during the 1970s and early 2000s at 13–15 million units.[6][7][8]

Starting with Duryea in 1895, at least 1,900 different companies have been formed, producing over 3,000 makes of American automobiles.[9] World War I (1917–1918) and the Great Depression in the United States (1929–1939) combined to drastically reduce the number of both major and minor producers. During World War II, all the auto companies switched to making military equipment and weapons. By the end of the 1950s the remaining smaller producers disappeared or merged into amalgamated corporations. The industry was dominated by three large companies: General Motors, Ford, and Chrysler, all based in Metro Detroit. Those "Big Three" continued to prosper, and the U.S. produced three-quarters of all automobiles in the world by 1950, 8.0 million out of 10.6 million produced. In 1908, 1 percent of U.S. households owned at least one automobile, while 50 percent did in 1948 and 75 percent did in 1960.[10][11] Imports from abroad were a minor factor before the 1960s.[7][8]

Beginning in the 1970s, a combination of high oil prices and increased competition from foreign auto manufacturers severely affected the US companies. In the ensuing years, the US companies periodically bounced back, but by 2008 the industry was in turmoil due to the aforementioned crisis. As a result, General Motors and Chrysler filed for bankruptcy reorganization and were bailed out with loans and investments from the federal government. June 2014 seasonally adjusted annualized sales were the biggest in history, with 16.98 million vehicles and toppled the previous record of July 2006.[12] Chrysler later merged into Fiat as Fiat Chrysler and is today a part of the multinational Stellantis group. American electric automaker Tesla emerged onto the scene in 2009 and has since grown to be one of the world's most valuable companies, producing around 1/4th of the world's fully-electric passenger cars.

Prior to the 1980s, most manufacturing facilities were owned by the Big Three (GM, Ford, Chrysler) and AMC. Their U.S. market share has dropped steadily as numerous foreign-owned car companies have built factories in the U.S. As of 2012, Toyota had 31,000 U.S. employees, compared to Ford's 80,000 and Chrysler's 71,100.[13]

  1. ^ The Pit Boss (February 26, 2021). "The Pit Stop: The American Automotive Industry Is Packed With History". Rumble On. Archived from the original on April 25, 2021. Retrieved December 5, 2021.
  2. ^ Rae, John Bell. "automotive industry". Encyclopædia Britannica. Archived from the original on April 22, 2021. Retrieved December 5, 2021.
  3. ^ "Automobile History". History.com. August 21, 2018. Archived from the original on April 23, 2021. Retrieved December 5, 2021.
  4. ^ a b "Motor vehicle production of the United States and worldwide from 1999 to 2020". statista.com. Archived from the original on April 14, 2023. Retrieved December 5, 2021.
  5. ^ IW Staff (March 26, 2021). "Global Auto Production Dropped 16% Last Year Thanks to COVID-19". Industry Week. Archived from the original on April 21, 2021. Retrieved December 5, 2021.
  6. ^ "2013 production statistics". Oica.net. Archived from the original on November 6, 2013. Retrieved August 16, 2014.
  7. ^ a b "2017 Production Statistics". International Organization of Motor Vehicle Manufacturers. Archived from the original on December 5, 2021. Retrieved December 5, 2021.
  8. ^ a b Ward's: World Motor Vehicle Data 2007. Wards Communications, Southfield MI 2007, ISBN 0910589534
  9. ^ Rae(1986), p 6
  10. ^ Putnam, Robert D. (2000). Bowling Alone: The Collapse and Revival of American Community. New York: Simon & Schuster. p. 217. ISBN 978-0684832838.
  11. ^ Statistical Abstract of the United States: 1955 (PDF) (Report). Statistical Abstract of the United States (76 ed.). U.S. Census Bureau. 1955. p. 554. Archived (PDF) from the original on September 16, 2021. Retrieved June 29, 2021.
  12. ^ "U.S. June auto sales hit level not seen since July 2006". Reuters. July 1, 2014.
  13. ^ O'Dell, John (June 19, 2013). "Foreign Cars Made in America: Where Does the Money Go?". Edmunds.com. Archived from the original on February 11, 2017. Retrieved August 16, 2014.