Abstract

In 1906, a writer declared that it remained an “unsolved problem whether the automobile is to prove a fad like the bicycle, or a lasting factor in the industry of the country.” A few years later, concerned with the possibility of overproduction and market saturation, auto executives and other commentators were writing articles for the advertising trade press with titles like “Why Auto Production Must Be Curtailed” and “The Fading of the Automobile Rainbow.” Considering that by the early twenty-first century, the United States had a population of nearly 300 million people and an average of 2.1 registered motor vehicles per household, it is difficult to appreciate how uncertain the industry’s status seemed in its early years. Yet although contemporary observers may not have known it, in many ways by the end of 1908 the foundation stoneswere already in place for a hundred years of automotive economic and cultural preeminence in the United States. Two events from that year are well known as harbingers of the industry’s future. In September, General Motors was established, and in October, Ford introduced its Model T to the nation's auto dealers. In time, these developments had a profound impact on American automobile manufacture and management.

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