The Life and Death (And Life) of the U.S. Auto Industry

THE LIFE AND DEATH (AND LIFE) OF THE U.S. AUTO INDUSTRY The United States has been a leader in automobile production since the 1890s. It's been a long and winding road, and challenges from the Asian-Pacific market, coupled with the 2008 recession, hit the United States hard. But with the 2008 bailout, the U.S. auto industry is slowly on its way back to the top. 1924 FORD'S MODEL T COMES WITH A 31,000 $260 MILES OF ROAD ARE PAVED AS A RESULT OF THE 1916 PRICETAG FEDERAL AID ROAD ACT 1929 90% --- OF ALL CARS ARE PRODUCED IN THE U.S. 1939-1945 CAR FOR EVERY PEOPLE 1929 1980 WORLD WARII 1946 75% OF ALL CARS ARE PRODUCED IN THE US 1960 48% OF ALL CARS 1929 1980 ARE PRODUCED IN THE U.S. 1929 1980 1966 TOYOTA INTRODUCES THE COROLLA, WHICH WOULD GO ON TO BECOME THE BEST-SELLING CAR IN HISTORY, SELLING 37.5 MILLION UNITS SINCE ITS DEBUT 1970 28% OF ALL CARS ARE PRODUCED IN THE U.S. 1979 CHRYSLER RECEIVES $1.5 BILLION BAILOUT THANKS IN PART 1929 1980 TO 1979 ENERGY CRISIS 1980 21% OF ALL CARS FINAL YEAR OF PRODUCTION FOR FORD ARE PRODUCED PINTO, WHICH WAS THE FOCUS OF LAWSUITS IN THE U.S AND RECALLS DUE TO A FAULTY GAS TANK THAT CARRIED A HIGHER RISK OF FIRES 1984 1929 1980 1990-1991 CHRYSLER INTRODUCES THE MINIVAN, WITH THE PLYMOUTH VOYAGER AND DODGE CARAVAN MODELS GLOBAL AUTO PRODUCTION IN PERCENTAGE 1997 23% U.S. GULF WAR BEGINS, CAUSING A TEMPORARY YEAR U.S. CHINA JAPAN REST OF WORLD 21 54 19 54 SPIKE IN GAS PRICES 1997 23 1998 23 OF ALL CARS ARE PRODUCED 1999 23 2000 2 20 IN THE U.S. 18 56 17 57 17 58 2000s 2001 2001 21 U.S. AUTOMAKERS BEGIN FOCUSING ON TRUCKS AND SUVS, WHICH HAVE A HIGHER PROFIT MARGIN THAN SMALLER, LIGHTER VEHICLES 2002 17 56 16 57 16 57 17 57 2003 20 2004 19 2005 18 2006 16 10 2007 15 12 16 57 2001 2008 12 2009 9 10 2011 13 16 58 22 13 56 2010 24 12 54 11 23 10 56 2003 2007 260 U.S. AUTO MANUFACTURING EMPLOYMENT 2003 1,116,500 2004 1,11,200 2005 1,087,100 2006 1.040,700 2007 957.000 2008 782.700 2009 653,400 2010 688,900 2011 741,500 2012 786,000 BILLION GALLONS OF OIL ARE CONSUMED AROUND SEPT, 11 ATTACKS AND START OF OPERATION ENDURING FREEDOM IN AFGHANISTAN THE WORLD 2008-2009 U.S. OIL PRICES REACH RECORD HIGH AT $147 A BARREL, RECESSION CAUSING AMERICANS TO DRAMATICALLY BEGINS GM SLOW PURCHASES OF SUVS, CAUSING SHAREHOLDERS IN THE MAJOR AUTOMAKERS TO BECOME FEARFUL OF BANKRUPTCY SHARES OF GM FALL CAR MANUFACTURERS BELOW 1946 PRICES PRODUCE ONLY ABOUT 60% THE AVERAGE DEALERSHIP'S PROFITS FALL ALMOST 14% OF THEIR CAPAÇITY AS FEWER PEOPLE PURCHASE VEHICLES AUTOMAKERS RECEIVE BETWEEN 2007 AND 2008 $17.4 BILLION IN BAILOUT MONEY 2010 U.S. AUTO DEALERSHIPS POST $512 BILLION IN REVENUE, A 2.3% INCREASE OVER 2009 U.S. AUTO SALES BY YEAR 2012 16,460,315 13,493,165 14,785,936 AMERICANS PURCHASE 14.7 MILLION 13,040,613 11,772,219 VEHICLES, UP 38% FROM 2009 10,601,368O 2007 2008 2009 2010 2011 2012 SOURCES OICA Popular Science Monthly thedetroitbureau.com U.S. Bureau of Labor Statistics San Francisco Chronicle http://wardsauto.com/keydata/historical/UsaSa0lsummary http://www.nada.org/ bizbrain.org