The domestic manufacturers will continue to confront serious financial burdens, wholly apart from any changes in fuel economy regulations. The domestic automotive industry is mature and highly cyclical; the peaks and troughs in vehicle demand essentially parallel economic activity. Even though Chrysler, Ford, and General Motors have diversified through foreign vehicle production and sales, as well as nonautomotive activities in financial services, defense electronics, and vehicle rental companies, vehicle production in North America is an important part of their total sales. The level of vehicle demand is the primary factor in determining profitability, but market share and the mix of cars and trucks and of small and large cars also influence profits.
Answer:
The automotive industry had a significant impact on how many industries produced materials for market. Henry Ford put considerable resources into factory-efficiency methods, using the conveyor belt method and introducing the assembly-line process to optimize efficiency. Cars became more affordable because Ford was able to produce more cars. Ford's production ideas were copied by other industries seeking to optimize profits.
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The automotive industry also had a significant impact on the growth and success of the gasoline industry. Before the expansion of the automotive industry, gasoline was merely a byproduct of kerosene production and had very few uses. In fact, much of it was dumped down wells and into streams, causing massive pollution problems. As automotive demand and production increased (at the beginning of 20th century, there were about 8,000 registered vehicles; by 1920, there were 23 million cars), so did the demands for functionality. In the early 1900s, most cars were electric, and the battery-powered engines did not have sufficient range. It was not yet clear if using gasoline engines to fuel the automobile was a practical advancement or solution to the electrical engine’s short comings. Finally, with the construction of a network of gasoline filling stations, the infrastructure was put in place to ensure a consistent supply of fuel, making it easy for consumers to fuel their autos. Thus, the idea of gasoline-powered automobiles shaped and captured the market.
Explanation:
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