Bringing the automobile to the common man

Henry Ford is a man who literally transformed the world. The car he built and the changes he made on the techniques of industrial production revolutionized the lives of people everywhere. At the height of his fame, in the 1920s, Ford was a name known universally. "Fordismus" entered the European vocabulary as a word for mass production.

Ford himself came from a humble farming background. Born July 30, 1863, in Dearborne, Michigan, near Detroit, young Henry hated almost everything about farming except the machinery. When he was 16, he went to Detroit to serve as an apprentice in a machine shop. He held a series of jobs and became completely knowledgeable of the way different types of machines operated. He began to experiment with internal combustion ma­chines in his home workshop in 1891. He was one of many would-be-in­ventors working on plans for the automobile; and he discussed his project with other mechanics and businessmen working in Detroit. In 1896 Ford succeeded in building an automobile powered by a gasoline engine which he had built in his kitchen sink. Running on four horsepower, the car would reach a speed of 25 miles per hour.

Ford organized the Detroit Automobile Company in 1899 and produced a small number of cars before the company collapsed two years later. He designed and manufactured racing cars, and in 1900, raced one model at 70 miles per hour.

In 1903, at the age of 40, and with an investment of $28,000, Henry Ford established the Ford Motor Company. The automobile was still con­sidered a toy of the rich, and Ford set about to change this situation.

Ford's philosophy of manufacturing and business is set forth in his au­tobiography: "Ask a hundred people how they want a particular article made. About eighty will not know; they will leave it to you. Fifteen will think that they must say something, while five will really have preferences and reasons. The ninety-five, made up of those who do not know and admit it and the fif­teen who do not know but do not admit it, constitute the real market for any product. The majority will consider quality and buy the biggest dol­lar's worth of quality. If therefore you discover what will give this 95 per­cent of the people the best all-round service and then arrange to manu­facture at the very highest quality and sell at the very lowest price, you will be meeting a demand which is so large that it may be called universal...

The only further step required is to throw overboard the idea of pricing on what the traffic will bear and instead go to the common-sense basis of pricing on what it costs to manufacture and then reducing the cost of man­ufacture..."

The Model T Ford was introduced in 1908. It was boxy and tinny-look­ing, as its nickname, the "Tin Lizzie", implied; but it was within the pur­chasing power of people who were not rich. It fulfilled the goal which Ford had set for himself:

"I will build a motor car for the great multitude. It will be large enough for the family but small enough for the individual to run and care for. It will be constructed of the best materials by the best men to be hired, after the simpliest designs that modern engineering can devise. But it will be so low in price that no man making a good salary will be unable to own one — and enjoy with his family the blessing of hours of pleasure in God's great open spaces."

Ford was able to lower the price of the Model T from $850, which it cost when it first appeared, to $360 in 1916. He did this by introducing mass production assembly line techniques. The assembly line revolution­ized car production. It tripled the production of Model T's within three years.

Ford also introduced the $5.00 wage for the eight-hour day. Such a sal­ary was unheard of in 1914, and he attracted both national and interna­tional attention when he began this practice. He also introduced a plan which allowed his workers to share in the profits of the company — the profit sharing plan which is used by many companies today.

During the 1920s, however, the Ford Motor Company lost much of its popularity with the American public. When other manufactures produced more stylish, relatively inexpensive cars. Ford automobile sales began to drop. Though he closed his factories for 18 months in 1927-28 to prepare for a new Ford car, the Model A, he never regained his position of leader­ship in the car industry.

As owner of the Ford Motor Company, Henry Ford accumulated more than $1 billion. Between the years 1908 and 1947, when he died, he con­tributed more than $40 million to charitable causes, such as public hospi­tals, and research institutions. He established the Ford Foundation which continues to support various programs in education, media, and culture. And he constructed Greenfield Village, near his birthplace in Michigan, as a living museum representing the industrialization of America.

Without a doubt Ford was a technological genius. Not a great inventor, he was able to borrow ideas and apply them to new uses. In bringing the automobile to the average worker, he altered the structure of society, its cit­ies, and the nations of the world.

 

Vocabulary

apprentice — ученик, подмастерье

internal combustion — внутреннее сгорание

workshop — мастерская, цех

engine —двигатель

sink — раковина

horsepower — лошадиная сила

to reach a speed of 25 miles per hour — достигать скорости 25 миль в час

to collapse — рушиться; терпеть крах

racing cars — гоночные машины

article — изделие, товар

to constitute — составлять

to meet a demand — удовлетворять спрос

pricing — ценообразование

nickname — прозвище

purchasing power — покупательская способность

goal — цель

leadership — лидерство

industry — промышленность

charitable — благотворительный

average — средний

society — общество

 

UNIT 7: MARKET AND COMMAND ECONOMIES

Text 1: a) Translate the following text into Russian;