Abstract
Many observers of the American automobile industry have focused on Ford's development of mass production shortly before the First World War; they have then moved to General Motors's success in the 1920s, usually attributing it to a marketing innovation, the introduction of the annual model change. This article argues that the emphasis on GM's marketing strategy is misplaced and that profound changes in the organization of production, exploiting the economies of common parts, were far more fundamental. Rough calculations of the cost structure involved in the rise of the Chevrolet to mass market domination are presented to support this interpretation.
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