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

The editors at Biz Brain decided to research the topic of:

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

The United States has been the 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 $260 pricetag
- 31,000 miles of road are paved as a result of the 1916 Federal Aid Road Act

1929

- 90% of all cars are produced in the U.S.
- 1 car for every 5 people

1939-1945

- World War II

1946

- 75% of all cars are produced in the U.S.

1960

- 48% of all cars are produced in the U.S.

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 to 1979 energy crisis

1980

- 21% of all cars are produced in the U.S.
- Final year of production for Ford Pinto, which was the focus of lawsuits and recalls due to a faulty gas tank that carried a higher risk of fires

1984

- Chrysler introduces the minivan, with the Plymouth Voyager and Dodge Caravan models

1990-1991

- U.S. Gulf War begins, causing a temporary spike in gas prices

1997

23% of all cars are produced in the U.S.
Global auto production in percentage
Year - U.S. - China - Japan - Rest of world
- 1997 - 23 - 3 - 21 - 54
- 1998 - 23 - 3 - 19 - 54
- 1999 - 23 - 3 - 18 - 56
- 2000 - 22 - 4 - 17 - 57
- 2001 - 20 - 4 - 17 - 58
- 2002 - 21 - 6 - 17 - 56
- 2003 - 20 - 7 - 17 - 56
- 2004 - 19 - 8 - 16 - 57
- 2005 - 18 - 9 - 16 - 57
- 2006 - 16 - 10 - 17 - 57
- 2007 - 15 - 12 - 16 - 57
- 2008 - 12 - 13 - 16 58
- 2009 - 9 - 22 - 13 - 56
- 2010 - 10 - 24 - 12 - 54
- 2011 - 11 - 23 - 10 - 56

2000s

- U.S. automakers begin focusing on trucks and SUVs, which have a higher profit margin than smaller, lighter vehicles

2001

- Sept. 11 attacks and start of Operation Enduring Freedom in Afghanistan

2003

U.S. auto manufacturing employment
- 2003 - 1,116,500
- 2004 - 1,111,200
- 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

2007

- 260 billion gallons of oil are consumed around the world
- Recession begins

2008-2009

- U.S. oil prices reach record high at $147 a barrel, causing Americans to dramatically slow purchases of SUVs, causing shareholders in the major automakers to become fearful of bankruptcy
- Shares of General Motors fall below levels seen in 1946
- Car manufacturers produce only about 60% of their capacity as fewer people purchase vehicles
- Automakers receive $17.4 billion in bailout money
- The average dealership's profits fall almost 14% between 2007 and 2008

2010

U.S. auto dealerships post $512 billion in revenue, a 2.3% increase over 2009

2012

Americans purchase 14.7 million vehicles, up 38% from 2009
U.S. auto sales by year
- 2012 14,785,936
- 2011 13,040,613
- 2010 11,772,219
- 2009 10,601,368
- 2008 13,493,165
- 2007 16,460,315

SOURCES

- http://oica.net/
- http://www.popsci.com/
- thedetroitbureau.com
- http://www.bls.gov/
- http://www.sfgate.com/
- http://wardsauto.com/keydata/historical/UsaSa01summary
- http://www.nada.org/