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Lesson 1 - FSM

The document outlines the history of the automotive industry, beginning with the first practical automobile created by Karl Benz in 1885 and detailing significant developments through various decades. It highlights the evolution driven by technological innovations, globalization, and changing consumer preferences, as well as challenges faced by the industry in recent years. The automotive sector has transformed into a major global industry, characterized by competition and the emergence of new market players.

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Jian Tiratira
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2 views

Lesson 1 - FSM

The document outlines the history of the automotive industry, beginning with the first practical automobile created by Karl Benz in 1885 and detailing significant developments through various decades. It highlights the evolution driven by technological innovations, globalization, and changing consumer preferences, as well as challenges faced by the industry in recent years. The automotive sector has transformed into a major global industry, characterized by competition and the emergence of new market players.

Uploaded by

Jian Tiratira
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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HISTORY OF

AUTOMOTIVE
Automotive

The term automotive was created from Greek autos


(self), and Latin motives(of motion) to present any
form of self power vehicles.
The automotive industry comprises wide range of
companies and organizations involved in the design,
development, manufacturing, marketing, selling,
repairing, and modification of motor vehicles. It is the
worlds largest industries by revenue.
History of Automotive Industry

• The Automotive Industry is a massive and


competitive field that has undergone significant
changes in recent times. Its evolution has been
driven by factors like globalization,
environmental concerns, and rising fuel prices.
The industry has also been influenced by
innovation in fuels, vehicle components,
societal infrastructure, and manufacturing
practices.
First Practical Automobile in 1885

The first practical automobile with a petrol engine by


Karl Benz in 1885 in Mannheim, Germany. Benz was
granted a patent for his invention in 1886 and began
production of automobiles in 1888. His wife , Bertha
Benz, famous took a long distance trip in August
1888 to prove the cars practicality for daily use. This
event is commemorated by the Bertha Benz
Memorial Route.
Benz Patent- Motowargen The First Practical Automobile in 1885
Birth of Automotive Industry (1890-1910)
• During 1890- 1910s) development of other technologies
such steering wheel and floor- mounted accelerator.
• In America social infrastructure that provide fertile ground
for proliferation of automobiles.
• Driver license were issued, service stations were opened,
and car sales with loan.
• Famous vehicle models-such Fords Model T were
developed.
• 1906 car designs began abandoning
Early Automotive Infrastructure Put in Place
(1910-1920)
• During the 1900s, automotive infrastructure development
continued, with traffic lights and road signs being
implemented.
• Henry Fords assembly line in 1913 enabled mass
production, achieving economies of scale.
• The concept of interchangeable part was introduced, and
automakers began merging with other companies and
expanding to new markets.
• This period saw the rise of mass production and the
development of new manufacturing practices.
The Era of Mass Production an Variety
(1920-1930)
• The 1920s saw the development of infrastructure, new
manufacturing practices, and company merger likes Benz,
Daimler, Chrysler, Dodge, Ford, and Lincoln.
• The Bureau of Public Roads and the Khan- Wadsworth Bill
facilitated road- building projects and national road
systems.
• Mass production methods improved, leading to a wide
range of satisfactory cars.
• Ford focused on a single model, while GM adopted a new
production strategy for greater product variety, increasing
its market share by snatching it from Ford.
The Decade of New Market Players
(1930-1940)
• During the 1930s, new vehicle brands like Ford
Mercury, Lincoln Continental, and Volkswagen
emerged, influencing consumer preferences in the
US and Europe.
• In the US, luxury and powerful cars were preferred,
while in Europe, smaller, low- priced cars were
preferred. GMs products variety strategy helped
them gain a competitive advantage over Ford,
increasing their market share while Ford struggled.
Volkswagen SUVs S5
1940 Lincoln continental
vehicles

Ford Mercury vehicle 1939 to


2011
The End of World War II
• After World War II, decimated economies in Europe
and Asia- Pacific, including Japan, spurred the
development of new products and business
strategies like Toyota ‘s Just in Time(JIT)
manufacturing initially focusing on pre-war designs
before transitioning to new models.
The Era of Technological Innovations
(1950- 1960)
• The 1950s and 1960s saw significant
technological advancements in the automotive
industry, including redesigned vehicle aesthetics,
fiberglass bodies, higher compression fuels,
enhanced comfort, and the introduction of safety
features like front seat belts. This era also
marked the beginning of environmental
regulations, vehicle speed limits, and improved
heating and ventilation systems.
The Era of Fuel- Efficient Cars (1970-
1980)
• The 1970s saw stricter environmental regulations
and the oil crisis, leading to the development of
low- emission technologies like catalytic converters.
Rising fuel prices spurred consumer demand for
fuel- efficient cars, especially foreign models like
the Japanese Honda Civic. Asian automakers also
introduced lean production techniques, gaining
market share in developed countries.
1970 s Japanese
Honda Civic
Start of Globalization (1980-1990)
• From 1980 to 1990 the automotive industry
saw a shift towards globalization as Japanese
automakers gained market share with fuel-
efficient cars, prompting U.S. manufactures to
assemble vehicles globally and expand
overseas in the 1990s, leading to increased
market penetration and lower costs.
Variety & Empowerment of Consumer
(1910- 2000)
er

• The 1990 saw the rise of globalization, with the construction of large overseas assembly Plants and
numerous mergers among multinational automakers. This led to a greater variety of vehicles and
heightened competition. The growing sophistication and empowerment of consumers spurred the
development of specialized markets in regions like Southeast Asia and Latin America, fueling global
alliances and strategic partnerships among automakers.
The Era of Financial Troubles (2000-
Present)
• Since 2000, the automotive industry has faced financial
challenges, with low revenue growth, rising fuel prices,
and growing environmental concerns shifting consumer
preferences toward smaller, fuel- efficient cars. The 2007
global economics crisis caused financial hardship for
major automakers, leading to job losses and declining
wealth. General Motors filed for bankruptcy in 2009, and
vehicle sales plummeted in 2008 and 2009, though they
have since rebounded.
THANK YOU
Group 1
Rhealyn Adia
Kim de Borja
Ma. Luisa Labrador
• Quiz
• 1.True or false, The development of the steering
wheel and flour- mounted accelerator occurred
during the 1890-1900s.
• 2.Which country s automakers were particularly
successful in producing and selling fuel- efficient
cars during this period.
• 3.True or false Ford focused on multiple models
during the 1920s, while GM focused on a single
model.
4. This term was created from Greek autos
(self) and Latin motives (of motion).
5.True or false Henry Ford’s assembly line
was introduced in 1910.
6.What was Karl Benz built in 1885 in
Mannheim Germany?
7.True or false , The automotive industry’s
shift towards globalization began from 1980 to
1990.
• 8.The years when automotive industry’s shift
towards globalization began.
• 9.True or false, General Motors filed for
bankruptcy ln 2007.
• 10.True or false, The decade of New Market
Players was 1930 to 1940.

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