Changes

* [[Ford Motor Company]]

* [[Ford Motor Company]]

All the major car companies have three roles: they design cars for the future, they build cars, and they sell them through network of locally-owned dealers. Until recently the car-makers built practically the entire car.  In the 21st century, however, the makers build their own engines but purchase nearly all the other parts from independent parts companies, then assemble them.  Several thousand parts companies now operate in the U.S.; the largest are Delco, Visteon, American Axle (as well as the tire makers). They employ more factory workers than the car makers do, typically at much lower wages. Blue collar workers at the Big Three (GM, Ford and Chrysler) are unionized and are paid on average $55 an hour (including benefits). Blue collar workers at the "transplants" in the U.S. (Toyota, Honda, Mercedes, etc.) are not unionized and are paid on average $40 an hour (including benefits.  The automobile industry in Canada is integrated with the U.S. industry.

All the major car companies have three roles: they design cars for the future, they build cars, and they sell them through network of locally owned dealers. Until recently the car-makers built practically the entire car.  In the 21st century, however, the makers build their own engines but purchase nearly all the other parts from independent parts companies, then assemble them.  Several thousand parts companies now operate in the U.S.; the largest are Delco, Visteon, American Axle (as well as the tire makers). They employ more factory workers than the car makers do, typically at much lower wages. Blue collar workers at the Big Three (GM, Ford and Chrysler) are unionized and are paid on average $55 an hour (including benefits). Blue collar workers at the "transplants" in the U.S. (Toyota, Honda, Mercedes, etc.) are not unionized and are paid on average $40 an hour (including benefits.  The automobile industry in Canada is integrated with the U.S. industry.

The [[Recession of 2008]] saw auto sales plunged by 18% from 2007, to only 13.2 million units, with very steep declines at the end of the year as sales fell 36% in December. GM and Chrysler verged on bankruptcy.  They were rescued, temporally, by loans from President [[George W. Bush]] in December, 2008, in order to avoid a major economic disaster that would cost the nation hundreds of thousands of jobs.

The [[Recession of 2008]] saw auto sales plunged by 18% from 2007, to only 13.2 million units, with very steep declines at the end of the year as sales fell 36% in December. GM and Chrysler verged on bankruptcy.  They were rescued, temporally, by loans from President [[George W. Bush]] in December, 2008, in order to avoid a major economic disaster that would cost the nation hundreds of thousands of jobs.

The "transplants" are built in the South and are non-union. Facing steady financial losses, The Big Three have closed many factories and drastically cut employment, especially in Michigan. They are handicapped by union contracts which require them to "buy out" union workers when plants close, at a typical cost of $100,000 to $150,000 each. Health care and pension costs add $1500 to the cost of each vehicle made by the Big Three, and their wage levels are much higher than the transplants.  Average annual wages for production workers at the Big Three were $67,480 in 2007, and $81,940 for skilled workers.  GM spun off some of its divisions into independent companies, such as American Axle  in 1995 and Delphi in 1999.  Ford spun off Visteon in 2000. The spin-offs have shared Detroit's downturns, as have the U.S. owned plants in Canada.   

The "transplants" are built in the South and are non-union. Facing steady financial losses, The Big Three have closed many factories and drastically cut employment, especially in Michigan. They are handicapped by union contracts which require them to "buy out" union workers when plants close, at a typical cost of $100,000 to $150,000 each. Health care and pension costs add $1500 to the cost of each vehicle made by the Big Three, and their wage levels are much higher than the transplants.  Average annual wages for production workers at the Big Three were $67,480 in 2007, and $81,940 for skilled workers.  GM spun off some of its divisions into independent companies, such as American Axle  in 1995 and Delphi in 1999.  Ford spun off Visteon in 2000. The spin-offs have shared Detroit's downturns, as have the U.S. owned plants in Canada.   

Meanwhile the transplants have been growing. Led by Toyota, Nissan and Honda, by 2003 the transplants were producing more vehicles than the Big Three. The transplants built new factories and adding to the employment rolls in non-union plants in the South, especially Kentucky and Tennessee. The United Automobile Workers (UAW) has shrunk steadily since 1980, falling from 1.5 million members to 600,000.<ref>CRS Report for Congress, ''U.S Automotive Industry: Policy Overview and Recent History'' (April 25, 2005) [http://ncseonline.org/NLE/CRSreports/05apr/RL32883.pdf online]</ref>

Meanwhile, the transplants have been growing. Led by Toyota, Nissan and Honda, by 2003 the transplants were producing more vehicles than the Big Three. The transplants built new factories and adding to the employment rolls in non-union plants in the South, especially Kentucky and Tennessee. The United Automobile Workers (UAW) has shrunk steadily since 1980, falling from 1.5 million members to 600,000.<ref>CRS Report for Congress, ''U.S Automotive Industry: Policy Overview and Recent History'' (April 25, 2005) [http://ncseonline.org/NLE/CRSreports/05apr/RL32883.pdf online]</ref>

==Financial crisis==

==Financial crisis==

Bankruptcy in practice in 2009 means continued operation for Chrysler and GM. If it involves totally shutting down, then bankruptcy of the Big Three would be very expensive to the economy as a whole and the federal government. It would mean loss of 240,000 very high paying jobs at the Big Three, a loss of 980,000 high-paying jobs at the suppliers and local dealers, and 1.7 million jobs throughout the economy.  It would cause a decline in personal income of $151 billion the first year, and $398 billion over three years.  The federal, state and local governments would lose tax revenue and spend on welfare programs a total of $156 billion over three years.<ref>CAR Research Memorandum. "The Impact of the U.S. Economy of a Major Contraction of the Detroit Three Automakers" (Nov 2008) [http://www.cargroup.org/documents/FINALDetroitThreeContractionImpact_3__000.pdf online edition]</ref>

Bankruptcy in practice in 2009 means continued operation for Chrysler and GM. If it involves totally shutting down, then bankruptcy of the Big Three would be very expensive to the economy as a whole and the federal government. It would mean loss of 240,000 very high paying jobs at the Big Three, a loss of 980,000 high-paying jobs at the suppliers and local dealers, and 1.7 million jobs throughout the economy.  It would cause a decline in personal income of $151 billion the first year, and $398 billion over three years.  The federal, state and local governments would lose tax revenue and spend on welfare programs a total of $156 billion over three years.<ref>CAR Research Memorandum. "The Impact of the U.S. Economy of a Major Contraction of the Detroit Three Automakers" (Nov 2008) [http://www.cargroup.org/documents/FINALDetroitThreeContractionImpact_3__000.pdf online edition]</ref>

A bankruptcy of the Big Three would not quickly benefit foreign makers.  The transplants would be severely hurt by the closing of parts companies like American Axle, Delco and Visteon they share with the Big Three, and their output would fall. There would be far fewer new cars for sale for years, and prices would soar. Eventually imports would come from abroad, but they would be much more expensive than current autos.  It takes years to build new plants, and in the current financial crisis there is no funding available for risky multi-billion dollar manufacturing ventures.<ref>Louis Uchitelle, "If Detroit Falls, Foreign Makers Could Be Buffer," [http://www.nytimes.com/2008/11/17/business/economy/17impact.html?_r=1&hp&oref=slogin ''New York Times,'' Nov. 16. 2008]</ref>

A bankruptcy of the Big Three would not quickly benefit foreign makers.  The transplants would be severely hurt by the closing of parts companies like American Axle, Delco and Visteon they share with the Big Three, and their output would fall. There would be far fewer new cars for sale for years, and prices would soar. Eventually imports would come from abroad, but they would be much more expensive than current autos.  It takes years to build new plants, and in the current financial crisis there is no funding available for risky multibillion-dollar manufacturing ventures.<ref>Louis Uchitelle, "If Detroit Falls, Foreign Makers Could Be Buffer," [http://www.nytimes.com/2008/11/17/business/economy/17impact.html?_r=1&hp&oref=slogin ''New York Times,'' Nov. 16. 2008]</ref>

===Chrysler===

===Chrysler===

The auto industry developed late in Britain and for the first half of the 20th century the small output of British-owned companies focused on luxury and upscale models notably  Rolls-Royce and  later Bentley as well as Jaguar and Rover.  The stress was on high quality hand-made craftsmanship, regardless of high cost.   

The auto industry developed late in Britain and for the first half of the 20th century the small output of British-owned companies focused on luxury and upscale models notably  Rolls-Royce and  later Bentley as well as Jaguar and Rover.  The stress was on high quality hand-made craftsmanship, regardless of high cost.   

Beginning 1925 William Morris, later Viscount Nuffield, began to mass produce small cars of modest power under the "M.G." nameplate. Morris modeled his methods after [[Henry Ford]], and sought high volume production of inexpensive cars geared to the urban middle class. In 1953 M.G. merged with Austin to form the British Motor Corporation, the largest  producer, which also produced the Austin, Austin-Healey, Morris,  Riley, Wolseley. It added Jaguar in 1966. BMC specialized in small, economy sedans and sports  cars, with 4 cylinder engines. It merged in 1968 with rival Leyland.  Another rival was the Rootes group, with the brands Sunbeam, Talbot, Hillman, Singer, and Humber.<ref>Timothy R. Whisler, ''The British Motor Industry, 1945-1994: A Case Study in Industrial Decline'' (1999)</ref>

Beginning 1925 William Morris, later Viscount Nuffield, began to mass-produce small cars of modest power under the "M.G." nameplate. Morris modeled his methods after [[Henry Ford]], and sought high volume production of inexpensive cars geared to the urban middle class. In 1953 M.G. merged with Austin to form the British Motor Corporation, the largest  producer, which also produced the Austin, Austin-Healey, Morris,  Riley, Wolseley. It added Jaguar in 1966. BMC specialized in small, economy sedans and sports  cars, with 4 cylinder engines. It merged in 1968 with rival Leyland.  Another rival was the Rootes group, with the brands Sunbeam, Talbot, Hillman, Singer, and Humber.<ref>Timothy R. Whisler, ''The British Motor Industry, 1945-1994: A Case Study in Industrial Decline'' (1999)</ref>

Ford opened a plant as early as 1911 and soon had 40% of the British market. In 1931 Ford opened the largest auto plant in Europe near London. Ford eventually acquired [[Aston Martin]], Jaguar and Land Rover. By 2008 it was selling off those divisions.<ref>Huber Bonin, et al. ''Ford, 1902-2003: The European History'' 2 vol Paris 2003. ISBN 2-914369-06-9</ref>  Rootes was taken over by Chrysler in the late 1960s and its brands phased out by the 1970s.  The Chrysler operations were taken over by Peugeot in 1978.  Nissan opened a plant in 1986.

Ford opened a plant as early as 1911 and soon had 40% of the British market. In 1931 Ford opened the largest auto plant in Europe near London. Ford eventually acquired [[Aston Martin]], Jaguar and Land Rover. By 2008 it was selling off those divisions.<ref>Huber Bonin, et al. ''Ford, 1902-2003: The European History'' 2 vol Paris 2003. ISBN 2-914369-06-9</ref>  Rootes was taken over by Chrysler in the late 1960s and its brands phased out by the 1970s.  The Chrysler operations were taken over by Peugeot in 1978.  Nissan opened a plant in 1986.

== Racing ==

== Racing ==

Automobile racing is quite popular world wide, with several variations including:

Automobile racing is quite popular worldwide, with several variations including:

*Open Wheel Racing (Example [[Formula1]], ChampCar or the Indy Racing League)

*Open Wheel Racing (Example [[Formula1]], ChampCar or the Indy Racing League)

*Endurance Racing (Le Mans, World Endurance Championship, United Sportscar Championship)

*Endurance Racing (Le Mans, World Endurance Championship, United Sportscar Championship)