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Big Three (automobile manufacturers)

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122-593: In the United States automotive industry , the term Big Three is used for the country's three largest motor vehicle manufacturers, especially indicating companies that sell under multiple brand names. The term originated in the United States, where General Motors was the first to form a large, multi-brand, motor-vehicle corporation (in the 1910s), followed by the Ford Motor Company , and

244-698: A Chapter 11 reorganization bankruptcy and its stake was subsequently bought by the Italian automaker Fiat . On June 3, 2011, Fiat bought out the remaining US Treasury's stake in Chrysler for $ 500 million, increasing its ownership of the automaker to 53 percent. On January 21, 2014, Fiat bought out the remaining stake in Chrysler Group that it did not already hold from the United Auto Workers' employee medical benefit retirement trust. Due to

366-538: A 5% import tariff, compared with 10% for passenger cars. In February 2024, voters in Paris mandated a triple parking charge rate for SUVs, citing environmental impact and street capacity; this followed similar decisions in Lyon and Tübingen with similar ordinances being considered by London, Brussels and Amsterdam. Many years after most passenger cars had transitioned to unibody construction, most SUVs continued to use

488-493: A big edge in marketing, production, and technological innovation. Most of the Big Three's competitors ended production by the 1960s, and their last major domestic competitor- American Motors Corporation, was acquired in 1987. Crosley Motors ceased auto production in 1952. Packard and Studebaker merged in 1954, but ended production of Packard-branded cars in 1958 and ceased all auto production in 1966. Kaiser-Frazer Corporation

610-410: A broad range of vehicles with four-wheel drive." Some definitions claim that an SUV must be built on a light truck chassis; however, broader definitions consider any vehicle with off-road design features to be an SUV. A crossover SUV is often defined as an SUV built with a unibody construction (as with passenger cars); however, the designations are increasingly blurred because of the capabilities of

732-532: A coil-sprung independent front suspension . The relatively compact Niva is considered a predecessor to the crossover SUV and combines a hatchback-like passenger car body with full-time four-wheel drive, low-range gearing, and lockable center differential. Nonetheless, unibody SUVs remained rare until the 1984 Jeep Cherokee (XJ) was introduced and became a sales success. The introduction of the 1993 Jeep Grand Cherokee resulted in all Jeep SUV models using unibody construction, with many other brands following suit since

854-405: A common, rear-wheel drive vehicle, any 4WD (four-wheel drive) needed many essential extra components, including a transfer case , a second differential, and constant-velocity joints for the driven front axle—which were expensive due to the precision involved in this required manufacturing gears and other specialized parts. Before World War   II, these were produced in the United States by only

976-400: A cost advantage over the Big Three. Despite the history of their marques, several long-running cars have been discontinued or relegated to fleet sales, as the Big Three shifted away resources from midsize and compact cars to lead the "SUV Craze". Since the late 1990s, over half of their profits have come from Sport utility vehicles , while they often could not break even on compact cars unless

1098-409: A crash than regular cars and that SUV roofs were more likely to cave in on passengers than in other cars, resulting in increased harm to passengers. Between 1991 and 2001, the United States saw a 150% increase in sport-utility vehicle rollover deaths. In 2001, though roll-overs constituted just 3% of vehicle crashes overall, they caused over 30% of occupant fatalities in crashes; and in crashes where

1220-483: A day, with electric cars reducing oil demand by under 100,000 barrels a day. Whereas SUVs can be electrified , or converted to run on a variety of alternative fuels , including hydrogen , their (manufacturing) emissions will always be larger than smaller electric cars. On average, SUVs consume about a quarter more energy than medium-size cars. Furthermore, the vast majority of these vehicles are not converted to use alternative fuels. Between 2010 and 2018 SUVs were

1342-536: A decision that was revised in 1982. With the Clean Air Act of 1963 and the Vehicle Air Pollution and Control Act of 1965, emission controls began being instituted in 1968. The use of leaded gasoline began being curtailed in the early 1970s, which resulted in lower-compression engines being used, and thus reducing horsepower and performance. Catalytic converters began being widely used by

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1464-400: A few specialized firms with limited production capacity. Due to the increase in demand for parts for the war effort, in the spring of 1942 Ford , Dodge , and Chevrolet joined in fabricating these parts in mass quantities, boosting their production more than 100-fold. An early usage of the term was the 1947 Crosley CC Four Sport Utility model, which used a convertible wagon body style and

1586-538: A four-wheeled car. Selden filed a series of amendments to his application which stretched out the legal process, resulting in a delay of 16 years before the patent was granted on 5 November 1895. Selden licensed his patent to most major American automakers, collecting a fee on each car they produced and creating the Association of Licensed Automobile Manufacturers . The Ford Motor Company fought this patent in court, and eventually won on appeal. Henry Ford testified that

1708-510: A gas that is linked to global warming. According to the International Energy Agency , from 2010 SUVs have been the second-largest contributor to the increase in global CO 2 emissions, second only to the power sector. SUVs were responsible for all of the 3.3 million barrels a day growth in oil demand from passenger cars between 2010 and 2018, whereas efficiency improvements in smaller cars saved over 2 million barrels

1830-595: A large market segment. Pony cars were introduced with the Ford Mustang in 1964. This car combined sporty looks with a long hood, small rear deck, and a small rear seat. The car proved highly successful and imitators soon arose, including the Chevrolet Camaro , Pontiac Firebird , Plymouth Barracuda (actually introduced two weeks prior to the Mustang), AMC Javelin , and the two-seat AMX , as well as

1952-508: A lawsuit against California Governor Arnold Schwarzenegger because of an earmarked impending tailpipe emissions requirement. In response, Governor Schwarzenegger told the Big Three to "get off [their] butt". In 2008, with relatively high energy prices, a stagnant and declining economy and an overall tense market situation due to the subprime mortgage crisis , the Big Three were re-strategizing and adapting their operations idling or converting light truck plants to passenger vehicle cars. Due to

2074-525: A local responsibility with limited government assistance. During this time, there was an increase in production of automobiles coupled with a swell of auto dealerships, marking their growth in popularity. State governments began to use the corvee system to maintain roads, an implementation of required physical labor on a public project on the local citizens. Part of their motivation was the needs of farmers in rural areas attempting to transport their goods across rough, barely functioning roads. The other reason

2196-892: A long-bodied version of a full-size SUV, which is called an "extended-length SUV" like the Ford Expedition EL and the Chevrolet Suburban . The additional length is used to provide extra space for rear passengers or cargo. As per the full-size SUVs they are based on, most extended-length SUVs are built on dedicated platforms, full-sized pickups ( 1⁄2 ton ), or heavy-duty pickups (3⁄4 ton or more). Extended-length SUVs are mostly sold in North America but may also be exported to other markets in small numbers. Some SUVs or crossovers with sloping rear rooflines are marketed as "coupe crossover SUVs" or "coupe SUVs", even though they have four side doors for passenger access to

2318-553: A number of other car companies and parts suppliers. Durant was interested in acquiring Ford, but after initial merger talks, Henry Ford decided to keep his company independent. In 1910, Durant lost control of GM after over-extending the company with its acquisitions. A group of banks took over control of GM and ousted Durant. Durant and Louis Chevrolet founded Chevrolet in 1913 and it quickly became very successful. Durant began acquiring stock in GM and by 1915 had majority control. Chevrolet

2440-461: A separate body-on-frame method, due to being based on the chassis from a light truck , commercial vehicle , pickup truck , or off-road vehicle . The first mass-produced unibody four-wheel-drive passenger car was the Russian 1955 GAZ-M20 Pobeda M-72 , which could be considered the first crossover car. The 1977 Lada Niva was the first off-road vehicle to use both a unibody construction and

2562-405: A small and local scale. Increasing sales facilitated production on a larger scale in factories with broader market distribution. Ransom E. Olds and Thomas B. Jeffery began mass production of their automobiles. Henry Ford focused on producing an automobile that many middle class Americans could afford. A patent filed by George B. Selden on 8 May 1879 covered not only his engine but its use in

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2684-462: A study by the U.S.-based IIHS found that, of a sample of 79 crashes from three urban areas in Michigan, SUVs caused more serious injuries compared to cars when impacts occurred at greater than 31 km/h (19 mph). The IIHS noted the sample size of the study was small and that more research is needed. The popularity of SUVs contributed to an increase in pedestrian fatalities in the U.S. during

2806-665: Is a wholly owned subsidiary of Ford Motor Company ), and are largely Germany based and carry out much of their research and development in the nation. Volkswagen Group has long been the largest automaker in Europe. In the late- 2000s , it edged out Ford , and later in mid-2010s also General Motors, to become the world's second largest automaker, after Toyota . It is also the parent group of Audi, Porsche , SEAT , Škoda , Bugatti , Lamborghini and Bentley . Daimler AG holds major stakes in other automakers including Mitsubishi Fuso . BMW also produces Mini branded vehicles, and has been

2928-569: Is currently second among the largest manufacturers in the world by volume . American manufacturers produce approximately 10 million units annually. Notable exceptions were 5.7 million automobiles manufactured in 2009 (due to crisis ), and more recently 8.8 million units in 2020 due to the global COVID-19 pandemic. Production peaked during the 1970s and early 2000s at 13–15 million units. Starting with Duryea in 1895, at least 1,900 different companies have been formed, producing over 3,000 makes of American automobiles. World War I (1917–1918) and

3050-440: Is less than a quarter of what it was for 2004 models. With ESC dramatically reducing rollover risk, the inherent advantages offered by SUVs' greater size, weight, and height emerge more clearly. Today's SUVs have the lowest driver death rate of any vehicle type." The high danger for cyclists and pedestrians of being seriously injured or even killed by SUV drivers has caused some public protests against SUVs in urban areas. In 2020,

3172-422: Is sometimes defined as a crossover being built using a unibody platform (the type used by most passenger cars), while an SUV is built using a body-on-frame platform (the type used by off-road vehicles and light trucks). However, these definitions are often blurred in practice, since unibody vehicles are also often referred to as SUVs. Also, crossover is a relatively recent term and early unibody SUVs (such as

3294-590: Is therefore unrelated to the design of later SUVs. Several models of carryall wagons began to be offered with four-wheel drive, beginning in 1949 when the Willys Jeep Station Wagon introduced the option of four-wheel drive. Four-wheel-drive versions of the Chevrolet Suburban were introduced for 1955, followed by the International Harvester Travelall in 1956 (credited as being the first full-size SUV) and

3416-507: The Big Three of the U.S. when surpassing Chrysler . After surpassing Ford as the world's second-largest automaker by 2005, Toyota surpassed Ford in 2007 as the second-largest U.S. automaker, a title Ford had held since 1931. However, by 2010, because of Toyota's controversy surrounding their unintended acceleration recall, Toyota fell back to fourth place in U.S. sales in the 2010s, and allowed G.M., Ford and Chrysler to reclaim their title as

3538-430: The Big Three . Toyota, however, overtook GM as the best-selling automaker in the United States in 2021, marking the first time a non-American automaker has led US auto sales for a full year. Ignoring all other reasons for The Big Three's decline, and beginning with a fixed ideological/political premise that efficiency is best achieved by reducing the wages and working conditions of the lowest ranked employees, advocates of

3660-488: The Chrysler Corporation , all before World War II . The term Big Three has since been sometimes used to refer to the following automakers: General Motors , the Ford Motor Company and Chrysler are often referred to as the Big Three , although Chrysler has been surpassed as the third-largest U.S. automaker by Toyota of America . G.M., Ford and Chrysler were for a time the three largest automakers in

3782-1015: The Doble Steam Motors Corporation (advanced steam engines) and Franklin Automobile Company (air-cooled aluminium engines) going out of business. Errett Lobban Cord , who controlled the Auburn Automobile Company (which also sold the Cord ) and the Duesenberg Motor Company, was under investigation by the Securities and Exchange Commission and the Internal Revenue Service . His auto empire collapsed in 1937 and production ceased. Major technological innovations were introduced or were widely adopted during

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3904-635: The Great Depression in the United States (1929–1939) combined to drastically reduce the number of both major and minor producers. During World War II, all the auto companies switched to making military equipment and weapons. By the end of the 1950s the remaining smaller producers disappeared or merged into amalgamated corporations. The industry was dominated by three large companies: General Motors , Ford , and Chrysler , all based in Metro Detroit . Those " Big Three " continued to prosper, and

4026-546: The Maxwell Motor Company , revitalized the company and, in 1925, reorganized it into Chrysler Corporation . In 1927, he acquired Dodge . The acquisition of Dodge gave Chrysler the manufacturing facilities and dealer network that it needed to significantly expand production and sales. In 1928, Chrysler introduced the Plymouth and DeSoto brands. Chrysler overtook Ford to become the second largest auto maker by

4148-590: The Model A in 1927, after a six-month production stoppage to convert from the Model T, and produced it to 1931. While the Model A was successful, Ford lost ground to GM and eventually Chrysler, as auto buyers looked to more upscale cars and newer styling. Ford was a pioneer in establishing foreign manufacturing facilities, with production facilities created in England in 1911, and Germany and Australia in 1925. Ford purchased

4270-573: The NSX , a midship V6 powered, rear-wheel-drive sports car. The NSX, an acronym for "New Sports eXperimental", was billed as the first Japanese car capable of competing with Ferrari and Porsche. This vehicle served as a halo car for the Acura brand. The NSX was the world's first all-aluminum production car, and was also marketed and viewed by some as the "Everyday Supercar" thanks in part to its ease of use, quality and reliability, traits that were unheard of in

4392-579: The attack on Pearl Harbor . All factories were enlarged and converted, many new ones such as Ford's Willow Run and Chrysler's Detroit Arsenal Tank Plant were built, and hundreds of thousands more workers were hired. Many workers were new arrivals from Appalachia. The most distinctive new product was the Jeep , with Willys making 352,000 and Ford another 295,000. The industry produced an astonishing amount of material, including 5.9 million weapons, 2.8 million tanks and trucks, and 27,000 aircraft. This production

4514-513: The "Utility Vehicle" category per the Society of Indian Automobile Manufacturers (SIAM) definitions and carry a 27% excise tax. Those that are 4 metres (13 feet) long, have a 1,500 cc (92 cu in) engine or larger, along with 170 mm (6.7 in) of ground clearance, are subject to a 30% excise duty. In Australia, SUV sales were helped by having lower import duties than passenger cars. Up until January 2010, SUVs were subject to

4636-668: The "luxury" version of the Mustang, the Mercury Cougar . Muscle cars were introduced in 1964 with the Pontiac GTO . These combined an intermediate-sized body with a large high-output engine. Competitors were quickly introduced, including the Chevrolet Chevelle SS , Dodge R/T ( Coronet and Charger ), Plymouth Road Runner /GTX, Ford Torino , and AMC's compact SC/Rambler . Muscle cars reached their peak in

4758-459: The 1930s, following similar strategies as General Motors. General Motors wanted automobiles to be not just utilitarian devices, which Ford emphasized, but status symbols that were highly visible indicators of an individual's wealth. Through offering different makes and models, they offered different levels in social status, meeting the demands of consumers needing to display wealth. Ford and General Motors each had their own impact on social status and

4880-548: The 1930s, such as synchromesh manual transmissions, semi-automatic transmissions, automatic transmissions , hydraulic brakes , independent front suspension , and overhead-valve engines. The Cord 810 used front-wheel drive, had hidden headlights, and was offered with a supercharger. Exterior styling designs were more flowing, as shown most noticeably on the Auburn Speedster and the Cord 810/812. Radical air-streamed design

5002-413: The 1950s and 1960s – from a very low base. In 1966, the Big Three (GM, Ford, Chrysler) had market share of 89.6% (44.5% in 2014). From 1966 to 1969, net imports increased at an average annual rate of 84%. The Volkswagen Beetle was the biggest seller. The compact Nash Rambler had been around since 1950, and American Motors Corporation (AMC) expanded into a range of smaller cars than were offered by

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5124-412: The 1960s, with the Big Three dominating the industry. Meanwhile, with the passage of the $ 33 billion Federal Aid Highway Act of 1956 , a network of regional and interstate roads continued to enhance transportation. As urban areas became more congested, more families migrated to the suburbs. Between 1960 and 1970, 70 percent of the population's growth occurred in the suburbs. Imported vehicles grew during

5246-760: The 1970s, a period known as the Malaise Era of auto design during which American cars suffered from very poor performance. Seat lap belts were mandated by many states effective in 1962. Under the National Traffic and Motor Vehicle Safety Act of 1966, Federal Motor Vehicle Safety Standards required shoulder belts for front passengers, front head restraints, energy-absorbing steering columns, ignition-key warning systems, anti-theft steering column/transmission locks, side marker lights and padded interiors starting in 1968. Beginning in 1972, bumpers were required to be reinforced to meet 5-mph impact standards,

5368-498: The 1984 Jeep Cherokee) are rarely called crossovers. Due to these inconsistencies, the term SUV is often used as a catch-all for both crossovers and SUVs. Outside of the United States, the term crossover tends to be used for C-segment ( compact ) or smaller vehicles, with large unibody vehicles—such as the Mercedes-Benz GLS-Class , BMW X7 , and Range Rover —usually referred to as SUVs rather than crossovers. In

5490-401: The 1990s and early 2000s was partly due to buyers perceiving that SUVs provide greater safety for occupants, due to their larger size and raised ride height. Regarding the safety of other road users, SUVs are exempted from U.S. regulation stating that a passenger car bumper must protect the area between 16 and 20 inches (41 and 51 cm) above the ground. This often increases the damage to

5612-559: The 2010s, alongside other factors such as distracted and drunk driving. A 2021 study by the University of Illinois Springfield showed that SUVs are 8 times more likely to kill children in a collision than passenger cars, and multiple times more lethal to adult pedestrians and cyclists. SUVs generally have poorer fuel efficiency than smaller cars, and thus contribute more to environmental degradation and global warming . SUVs emit about 700 megatonnes of carbon dioxide per year,

5734-639: The Big Three (GM, Ford, Chrysler) and AMC . Their U.S. market share has dropped steadily as numerous foreign-owned car companies have built factories in the U.S. As of 2012, Toyota had 31,000 U.S. employees, compared to Ford's 80,000 and Chrysler's 71,100. The development of self-powered vehicles was accompanied by numerous technologies and components giving rise to numerous supplier firms and associated industries. Various types of energy sources were employed by early automobiles including steam, electric, and gasoline. Thousands of entrepreneurs were involved in developing, assembling, and marketing of early automobiles on

5856-528: The Big Three and struggled financially. The French auto maker Renault took control of AMC in the early 1980s, but financial difficulties continued and AMC was purchased by Chrysler Corporation in 1987. Periodically, other entrepreneurs would found automobile companies, but most would soon fail and none achieved major sales success. Some of the best known included Preston Tucker 's 1948 sedan , Earl Muntz 's Muntz Car Company , Malcolm Bricklin 's Bricklin SV-1 ,

5978-472: The Big Three. By 1960, Rambler was the third most popular brand of automobile in the United States, behind Ford and Chevrolet. In response to this the domestic auto makers developed compact-sized cars, such as the Ford Falcon , Chevrolet Corvair , Studebaker Lark , and Plymouth Valiant . The four-seat 1958 Ford Thunderbird (second generation) was arguably the first personal luxury car , which became

6100-461: The CAFE regulations were changed to classify small, two-wheel-drive SUVs as passenger cars. However, the licensing and traffic enforcement regulations in the United States vary from state to state, and an SUV may be classified as a car in some states but as a truck in others. For industry production statistics, SUVs are counted in the light truck product segment. In India, all SUVs are classified in

6222-649: The CAW has so far refused. Delphi , which was spun off from GM in 1999, filed for Chapter 11 bankruptcy after the UAW refused to cut their wages and GM is expected to be liable for a $ 7 billion shortfall. In order to improve profits, the Detroit automakers made deals with unions to reduce wages while making pension and health care commitments. GM, for instance, at one time picked up the entire cost of funding health insurance premiums of its employees, their survivors and GM retirees, as

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6344-593: The Detroit three had trouble doing. Falling sales and market share at times have resulted in the Big Three's plants operating below capacity leading to production cuts, plant reductions, closures and layoffs. Market incentives and subsidized leases were implemented to help sales which was crucial to keeping the plants operating at capacity, which in turn drove a significant portion of the Michigan economy. These promotional strategies, including rebates, employee pricing and 0 percent financing, have boosted sales but have also cut into profits. More importantly such promotions drain

6466-482: The Great Depression were General Motors Corporation , Ford Motor Company , Chrysler Corporation , Hudson Motor Car Company , Nash-Kelvinator Corporation , Packard Motor Car Company , Studebaker Corporation , and Crosley Motors . The former three companies, known as the Big Three , enjoyed significant advantages over the smaller independent auto companies due to their financial strength, which gave them

6588-762: The PT Cruiser, being classified as light trucks. This classification as trucks allowed SUVs to be regulated less strictly than passenger cars under the Energy Policy and Conservation Act for fuel economy, and the Clean Air Act for emissions. However, from 2004 onwards, the United States Environmental Protection Agency (EPA) began to hold sport utility vehicles to the same tailpipe emissions standards as cars for criteria pollutants, though not greenhouse gas emissions standards as they were not set until 2010. In 2011,

6710-551: The SUV. Automotive websites' descriptions of SUVs range from specifically "combining car-like appointments and wagon practicality with steadfast off-road capability" with "chair-height seats and picture-window visibility" to the more general "nearly anything with available all-wheel drive and raised ground clearance". It is also suggested that the term "SUV" has replaced "jeep" as a general term for off-road vehicles. American dictionary definitions for SUVs include: In British English,

6832-481: The U.S. About 3,000 automobile companies have existed in the United States. In the early 1900s, the U.S. saw the rise of the Big Three automakers , Ford, GM, and Chrysler. The industry became centered around Detroit, in Michigan, and adjacent states and in nearby Ontario, Canada. Historian John Rae summarizes the explanations provided by historians: a central geographic location, water access, and an established industrial base with many skilled engineers. The key factor

6954-438: The U.S. produced three-quarters of all automobiles in the world by 1950, 8.0 million out of 10.6 million produced. In 1908, 1 percent of U.S. households owned at least one automobile, while 50 percent did in 1948 and 75 percent did in 1960. Imports from abroad were a minor factor before the 1960s. Beginning in the 1970s, a combination of high oil prices and increased competition from foreign auto manufacturers severely affected

7076-476: The US companies. In the ensuing years, the US companies periodically bounced back, but by 2008 the industry was in turmoil due to the aforementioned crisis . As a result, General Motors and Chrysler filed for bankruptcy reorganization and were bailed out with loans and investments from the federal government. June 2014 seasonally adjusted annualized sales were the biggest in history, with 16.98 million vehicles and toppled

7198-495: The US did not have a universal health care system. With most of these plans underfunded in the late 1990s, the companies offered and provided retirement packages to its elder senior workers, and made agreements with the UAW to transfer pension obligations to an independent trust. In 2009, the CBC reported that the non-unionized Japanese automakers, with their younger American workforces, lower wages and fewer retirees would continue to enjoy

7320-808: The United Kingdom The Collins English Dictionary defines a sport utility vehicle as a "powerful vehicle with four-wheel drive that can be driven over rough ground. The abbreviation SUV is often used." In Europe, the term SUV is generally used for road-oriented vehicles, described as "J-segment" by the European Commission . "Four-by-four" or the brand name of the vehicle is typically used for off-road-oriented vehicles. Similarly, in New Zealand, vehicles designed for off-road use are typically referred to as "four-wheel drives" instead of SUVs. In

7442-584: The United Kingdom, a crossover is sometimes defined as a hatchback model with raised ride height and SUV-like styling features. The smallest size class of SUVs is the "mini SUV". In Japan, SUVs under 3,400 mm (133.9 in)—such as the Mitsubishi Pajero Mini —are included in the kei car category and therefore attract lower taxes. Many recent vehicles labeled as mini SUVs are technically subcompact crossovers and are built on

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7564-516: The United States, many government regulations simply have categories for "off-highway vehicles" which are loosely defined and often result in SUVs (along with pick-up trucks and minivans ) being classified as light trucks . For example, corporate average fuel economy (CAFE) regulations previously included "permit greater cargo-carrying capacity than passenger carrying volume" in the definition for trucks, resulting in cars with removable rear seats, like

7686-776: The VER. Unlike the plants of domestic automakers, Japanese plants are non-unionized (save for NUMMI ), so they have lower wage expenses and do not face the risk of strikes. The VER was lifted in 1994 upon agreement of all members of General Agreement on Tariffs and Trade (GATT). Establishing US production facilities was also a significant step in improving public relations, along with philanthropy, lobbying efforts, and sharing technology. Europe has still largely maintained its protectionism policies against Japanese cars, though theirs varies considerably. Toyota has always been by far Japan's largest automaker, and it recently overtook perennial world leader GM in both production and sales by early 2008. As

7808-654: The actual major automobile manufacturers are the Volkswagen Group (majority owner of Audi AG), the Mercedes-Benz Group , and BMW. Other major German manufacturers are Opel and American-owned Ford-Werke (subsidiary of Ford Motor Company), but are not considered as part of this grouping, although they are among the top selling brands in Europe - they are both foreign-owned (Opel is a subsidiary of Stellantis since 2021 and had been owned by PSA Group and General Motors before that, whilst Ford Werke

7930-482: The addition of government financing reflected that change. The Federal Aid Road Act of 1916 allocated $ 75 million for building roads. It was also responsible for approving a refocusing of military vehicles to road maintenance equipment. It was followed by the Federal Aid Highway Act of 1921 , which provided additional funding for road construction. By 1924, there were 31,000 miles of paved road in

8052-527: The automaker's cash reserves in the near term while in the long run the company suffers the stigma of selling vehicles because of low price instead of technical merit. Automakers have since been reduced and scaled back on incentives and raise prices, while cutting production. The subprime mortgage crisis and inflated higher crude prices in 2008 resulted in the plummeting popularity of best-selling trucks and SUVs, led automakers to continue offering heavy incentives to help clear excess inventory. The Big Three filed

8174-473: The automakers granted workers a company-paid pension to those 65 years old and with 30 years seniority. In the mid-1950s, the automakers agreed to set up a trust fund for unemployed auto workers. In 1973, the automakers agreed to offer pensions to any worker with 30 years seniority, regardless of age. By then the automakers had also agreed to cover the entire health insurance bill for its employees, survivors, and retirees. The only major auto companies to survive

8296-399: The backbone of United States manufacturing during the 20th century. The practicality of the automobile was initially limited because of the lack of suitable roads. Travel between cities was mostly done by railroad, waterways, or carriages. Roads were mostly dirt and hard to travel, particularly in bad weather. The League of American Wheelmen maintained and improved roads as it was viewed as

8418-611: The biggest miscues in auto marketing with the Ford Edsel , which was the result of unpopular styling and being introduced during an economic recession. The introduction of the Interstate Highway System and the suburbanization of America made automobiles more necessary and helped change the landscape and culture in the United States. Individuals began to see the automobile as an extension of themselves. Big changes were taking place in automobile development in

8540-553: The buyer chose options. Ron Harbour, in releasing the Oliver Wyman ’s 2008 Harbour Report, stated that many small “ econoboxes ” of the past acted as loss leaders, but were designed to bring customers to the brand in the hopes they would stay loyal and move up to more profitable models. The report estimated that an automaker needed to sell ten small cars to make the same profit as one big vehicle, and that they had to produce small and mid-size cars profitably to succeed, something that

8662-562: The corporate structure of Fiat Chrysler Automobiles , which is headquartered in the United Kingdom for taxation purposes and the Italian Agnelli family as the major shareholders, some media sources now list Detroit as having a "Big Two" (GM and Ford) as opposed to a "Big Three". Chrysler has become part of multinational auto giant Stellantis after FCA Group merged with the largely pan-European PSA Group ) in 2021. In more recent times California-based Tesla has been included, thus

8784-486: The declining residual value of its vehicles, Chrysler has stopped offering leases on its vehicles. In 2009, General Motors and Chrysler filed for and eventually successfully emerged from Chapter 11 restructuring in order to restructure and liquidate burdensome corporate assets in the same year. General Motors of Canada did not file for bankruptcy. The United States and Canadian government control are reported as temporary. On June 10, 2009, Chrysler Group LLC emerged from

8906-533: The demise of many auto makers due to the economic effects of the Great Depression , stiff competition from the Big Three, and/or mismanagement. Luxury car makers were particularly affected by the economy, with companies like Stutz Motor Company , Pierce-Arrow Motor Car Company , Peerless Motor Company , Cunningham , and the Marmon Motor Car Company going out of business. The 1930s also saw several companies with innovative engineering, such as

9028-478: The design of modern SUVs was the 1940 Humber Heavy Utility , a four-wheel-drive off-road vehicle built on the chassis of the Humber Super Snipe passenger car. The most prohibitive initial factors to the potential civilian popularity of an SUV-like car were their cost and the availability of certain critical parts. Before the war, adding four-wheel drive to a car almost doubled its cost. Compared to

9150-498: The established brands. Following Honda's lead, Toyota launched the Lexus name with the LS 400 which debuted at $ 38,000 in the US, in some markets being priced against mid-sized six cylinder Mercedes-Benz and BMW models, and was rated by Car and Driver magazine as better than both the $ 63,000 Mercedes-Benz W126 and the $ 55,000 BMW E32 in terms of ride, handling and performance. It

9272-473: The expression "big four" has been used. Tesla as of 2021 ranked as the fourth-largest American automobile manufacturer by production output while being by far the fastest growing as well as being the most valuable in terms of its market valuation measured by market capitalization. In 2021 Tesla was worth more than all of Japan‘s and Germany‘s largest automakers combined. Japanese automakers Toyota , Nissan and Honda , among many others, have long been considered

9394-578: The first active suspension system offered on a motor vehicle, and numerous interior luxury appointments. These made it competitive against the German imports like Audi , BMW and Mercedes-Benz, which by the time of Infiniti's release had overtaken Cadillac and Lincoln in dominating the luxury segment of the American market. In 1990, four years after the debut of the Legend and Integra, Acura introduced

9516-423: The first conveyor belt-based assembly line in 1913, producing the Model T , which had been introduced in 1908. These assembly lines significantly reduced costs. The first models were priced at $ 850, but by 1924 had dropped to $ 290. The Model T sold extremely well and Ford became the largest automobile company in the U.S. By the time it was retired in 1927, more than 15 million Model Ts had been sold. Ford introduced

9638-430: The future under the sense of security, all the while increasing the rate of fatalities of pedestrians. There is no universally accepted definition of the sport utility vehicle. Dictionaries, automotive experts, and journalists use varying wordings and defining characteristics, in addition to regional variations of usage by both the media and the general public. The auto industry also has not settled on one definition of

9760-546: The largest size of commonly produced SUVs. Some, such as the Ford Expedition , and Chevrolet Tahoe , are marketed for their off-road capabilities, and others, such as the Lincoln Navigator and Cadillac Escalade , are marketed as luxury vehicles. While a few full-size SUVs are built on dedicated platforms; most share their platforms with full-size pickup trucks . Some North American SUVs are available as

9882-597: The late 1990s caused it to lose its place to Honda before. Nissan is Japan’s second largest automaker and was the sixth largest in the world in 2005 and later 2010 to 2017 . Suzuki, Mazda, and Mitsubishi are in a distant fourth, fifth, and sixth place compared to the Japanese Big Three. Toyota, Honda, and Nissan are all in the BusinessWeek magazine's "100 Top Global Brands" by dollar value, as ranked by leading brand consultancy Interbrand. The Toyota marque

10004-429: The late-1940s proved to be very successful and helped ignite the horsepower race, the second salvo of which was Chrysler's 1951 Hemi engine . Longer, lower, and wider tended to be the general trend. Exterior styling was influenced by jets and rockets as the space-age dawned. Rear fins were popular and continued to grow larger, and front bumpers and taillights were sometimes designed in the shape of rockets. Chrome plating

10126-414: The late-1960s, but soon fell out of favor due to high insurance premiums along with the combination of emission controls and high gas prices in the early 1970s. While the personal luxury, pony, and muscle cars got most of the attention, the full sized cars formed the bulk of auto sales in the 1960s, helped by low oil prices. The styling excesses and technological gimmicks (such as the retractable hardtop and

10248-571: The leaders in the segment of small fuel-efficient cars. A major contributing factor to their success was when their vehicles benefitted from the 1973 oil crisis which at the time drastically changed market situations and had a major impact on the automotive industry . For instance, the Honda Civic was the best-selling car in its segment in Canada for 22 years in a row. As well, the Nissan 240Z

10370-415: The leadership of Charles F. Kettering . GM followed Ford by expanding overseas, including purchasing England's Vauxhall Motors in 1925, Germany's Opel in 1929, and Australia's Holden in 1931. GM established GMAC, now Ally Financial , in 1919 to provide credit for buyers of its cars. Walter Chrysler was formerly president of Buick and an executive of GM. After leaving GM in 1920, he took control of

10492-514: The luxury Lincoln automaker in 1922 and established the Mercury division in 1939. General Motors Corporation (GM), the company that soon became the world's largest automaker, was founded in 1908 by William Durant . Durant had previously been a carriage maker, and had taken control of Buick in 1904. In 1908, the company initially acquired Buick , Oldsmobile and Oakland (later to become Pontiac ). In 1909, GM acquired Cadillac , along with

10614-416: The mid-1970s. Sport utility vehicle A sport utility vehicle ( SUV ) is a car classification that combines elements of road-going passenger cars with features from off-road vehicles , such as raised ground clearance and four-wheel drive . There is no commonly agreed-upon definition of an SUV, and usage of the term varies between countries. Thus, it is "a loose term that traditionally covers

10736-497: The mid-1990s. Today, most SUVs in production use a unibody construction and relatively few models continue to use body-on-frame construction. SUVs are typically of a two-box design similar to a station wagon . The engine compartment is in the front, followed by a combined passenger/cargo area (unlike a sedan, which has a separate trunk/boot compartment). Up until approximately 2010, many SUV models were available in two-door body styles. Since then, manufacturers began to discontinue

10858-453: The modern Stutz Blackhawk , Clénet Coachworks , Zimmer , Excalibur , and John DeLorean 's DeLorean . Initial auto production after World War II was slowed by the retooling process, shortages of materials, and labor unrest. However, the American auto industry reflected the post-war prosperity of the late-1940s and the 1950s. Cars grew in overall size, as well as engine size during the 1950s. The Overhead valve V-8 engine developed by GM in

10980-430: The most aggressive of Japan's companies when it came to expanding into light trucks and luxury vehicles, this proved largely successful. Their high-end brand Lexus became the top-selling luxury marque worldwide in 2000, despite being only started up in 1989. Consequently, Toyota's stock price has traded at a much higher premium than other automakers. Nissan regained its position on second place, financial difficulties in

11102-420: The neoclassical economic viewpoint argue that Union labor can result in higher labor costs than other multinational automakers, including those with plants in North America. The 2005 Harbour Report estimated that Toyota's lead in labor productivity amounted to a cost advantage of $ 350 US to $ 500 US per vehicle over American manufacturers. The UAW agreed to a two-tier wage in recent 2007 negotiations, something which

11224-547: The other car in a collision with an SUV, because the impact occurs at a higher location on the other car. In 2000–2001, 60% of fatal side-impact collisions were where the other vehicle was an SUV, an increase from 30% in 1980–1981. The introduction of electronic stability control (ESC) and rollover mitigation, as well as increased analysis of the risks of a rollover, led the IIHS to report in 2015 that "the rollover death rate of 5 per million registered vehicle years for 2011 models

11346-485: The parent company of Rolls-Royce Motor Cars since 1998. BMW, Mercedes-Benz and Audi make up about 80 percent of the global luxury car market. Automotive industry in the United States Employment In the United States, the automotive industry began in the 1890s and, as a result of the size of the domestic market and the use of mass production, rapidly evolved into the largest in

11468-410: The patent did more to hinder than encourage development of autos in the United States. Originally purchased by wealthy individuals, by 1916 cars began selling at $ 875. Soon, the market widened with the mechanical betterment of the cars, the reduction in prices, as well as the introduction of installment sales and payment plans. During the period from 1917 to 1926, the annual rate of increase in sales

11590-537: The platform of a subcompact (also called supermini or B-segment) passenger car. The "compact SUV" is the next bigger-size class after mini SUVs. Many recent vehicles labeled as compact SUVs are technically compact crossovers and are built on the platform of a compact (C-segment) passenger car. The next larger size is called the "mid-size SUV". Some mid-size SUVs are based on platforms shared with passenger cars and therefore, are crossovers. Other mid-size SUVs are based on compact or mid-size pickups. Full-size SUVs are

11712-499: The popularity of SUVs significantly increased, often at the expense of the popularity of large sedans and station wagons. SUVs accounted for 45.9% of the world's passenger car market in 2021. SUVs have been criticized for a variety of environmental and safety-related reasons. They generally have poorer fuel efficiency and require more resources to manufacture than smaller vehicles, contributing more to climate change and environmental degradation . Between 2010 and 2018, SUVs were

11834-421: The previous record of July 2006. Chrysler later merged into Fiat as Fiat Chrysler and is today a part of the multinational Stellantis group. American electric automaker Tesla emerged onto the scene in 2009 and has since grown to be one of the world's most valuable companies, producing around 1/4th of the world's fully-electric passenger cars. Prior to the 1980s, most manufacturing facilities were owned by

11956-604: The pushbutton automatic transmission) of the 1950s were de-emphasized. The rear fins were downsized and largely gone by the mid-1960s, as was the excessive chrome. Safety and environmental issues during the 1960s led to stricter government regulation of the auto industry, spurred in part by Ralph Nader and his book: Unsafe at Any Speed : The Designed-in Dangers of the American Automobile . This resulted in higher costs and eventually to weaker performance for cars in

12078-502: The seats and rear hatches for cargo area access. Just before and during World War II , prototypes and low-volume production examples of military cars with sedan or station wagon-type bodies and rugged, off-road capable four-wheel drive chassis began to appear around the world. These early models included the 1936 Kurogane Type 95 from Japan, the 1938 GAZ-61 from Russia as well as the 1941 Volkswagen Kommandeurswagen and 1936 Opel Geländesportwagen from Germany. An early predecessor to

12200-512: The second largest contributor to the global increase in carbon emissions worldwide. The "crossover SUV" segment (also known as "CUVs" or simply "crossovers") has become increasingly popular since around 2010. Crossovers are often based on a platform shared with a passenger car, as a result, they typically have better comfort and fuel economy, but less off-road capability (many crossovers are sold without all-wheel drive) than pickup truck-based SUVs. The difference between crossovers and other SUVs

12322-435: The second-largest contributor to the global increase in carbon emissions worldwide. Their higher center of gravity increases their risk of rollovers . Their higher front-end profile makes them at least twice as likely to kill pedestrians they hit. Additionally, the psychological sense of security they provide influences drivers to drive less cautiously, and may in-turn, cause others with smaller vehicles to opt for SUVs in

12444-513: The supercar segment at the time. The success of the Japanese automakers, which specialized primarily in more compact and fuel efficient budget friendly economical vehicles, especially in the aftermath of the energy crisis, contributed to their American counterparts losing market share in the late 1970s due to a lack of comparable vehicles in their respective portfolios of vehicles marketed. Unions and lobbyists in both North America and Europe, which

12566-403: The terms "4x4" (pronounced "four-by-four"), "jeep", four wheel drive, or "off-road vehicle" are generally used instead of "sport utility vehicle". The sardonic term "Chelsea tractor" is also commonly used, due to the perceived popularity of the vehicles with urban residents of Chelsea, London , and their likeness to vehicles used by farmers. However, in the 2020s, the term SUV has entered usage in

12688-576: The two-door models as the four-door models became more popular. A few two-door SUVs remain available, such as the body-on-frame Suzuki Jimny , Mahindra Thar , Toyota Land Cruiser Prado , Ford Bronco , and Jeep Wrangler as well as the Range Rover Evoque crossover SUV. SUVs typically have high ground clearance and a tall body. This results in a high center of mass , which made SUVs more prone to roll-over accidents . In 2003, SUVs were quoted as 2.5 times more likely to roll over in

12810-496: The type of market they were targeting. Henry Ford focused on delivering one inexpensive, efficient product for the masses. Ford's offer was one car, one color, for one price. He manufactured a product for the masses, and provided a $ 5 daily wage so that there was a local market to buy this product. By contrast, General Motors offered a product that catered to those looking to gain status by having that sense of individualism and offering different make, models, and quality. The 1930s saw

12932-401: The vehicle did roll over, SUV occupants in the early 2000s were nearly three times as likely to be killed as other car passengers. Vehicles with a high center of gravity do sometimes fail the moose test of maneuverability conducted by Swedish consumer magazine Teknikens Värld , for example, the 1997 Mercedes-Benz A-Class and 2011 Jeep Grand Cherokee . The increasing popularity of SUVs in

13054-425: The vehicles, the labelling by marketers, and the electrification of new models. The predecessors to SUVs date back to military and low-volume models from the late 1930s, and the four-wheel-drive station wagons and carryalls that began to be introduced in 1949. Some SUVs produced today use unibody construction; however, in the past, more SUVs used body-on-frame construction. During the late 1990s and early 2000s,

13176-475: The world, with G.M. and Ford remaining as the world's two largest until mid- 2000s when they both were surpassed by Toyota (and later the Volkswagen Group ), although Ford was in 1999 expected to surpass G.M. as the world's largest automaker by 2005, by increasing its production from around 7.77 million vehicles a year (of which about 1 million produced by Mazda in which Ford then owned a 33.4 % controlling interest) by 1999 to 9.15 million by 2005 (when G.M.

13298-409: The world. The United States was the first country in the world to have a mass market for vehicle production and sales and is a pioneer of the automotive industry and mass market production process. During the 20th century, global competitors emerged, especially in the second half of the century primarily across European and Asian markets, such as Germany, France, Italy, Japan and South Korea. The U.S.

13420-567: Was introduced at a relatively low price compared to other foreign sports cars of the time ( Jaguar , BMW , Porsche , etc.), while providing performance, reliability, and good looks. This broadened the image of Japanese car-makers beyond their econobox successes, as well as being credited as a catalyst for the import performance parts industry. Before Honda unveiled Acura in 1986, Japanese automobiles exports were primarily economical in design and largely targeted at low-cost consumers. The Japanese big three created their luxury marques to challenge

13542-499: Was a major factor in the victory of the allies. Experts anticipated that Detroit would learn advanced engineering methods from the aviation industry that would result in great improvements for postwar civilian automobiles. Due to the difficult working conditions in the auto production plants, auto workers began to seek representation to help improve conditions and ensure fair pay. The United Automobile Workers union won recognition from GM and Chrysler in 1937, and Ford in 1941. In 1950,

13664-425: Was acquired by GM in 1917 and Durant was back in charge of GM. In 1921, Durant was again forced out of the company. During the late 1920s, General Motors overtook Ford to become the largest automaker. Under the leadership of Alfred P. Sloan , General Motors instituted decentralized management and separate divisions for each price class. They introduced annual model changes. GM became an innovator in technology under

13786-437: Was considerably less than from 1903 to 1916. In the years 1918, 1919, 1921, and 1924 there were absolute declines in automotive production . The automotive industry caused a massive shift in the industrial revolution because it accelerated growth by a rate never before seen in the U.S. economy. The combined efforts of innovation and industrialization allowed the automotive industry to take off during this period and it proved to be

13908-530: Was expected to produce 9.10 million). The Big Three are distinguished not just by their size and geography, but by their business model. All three have their headquarters in the Detroit area. The majority of their operations are unionized with the United Auto Workers and Unifor . Toyota , which surpassed G.M. as the world's largest automaker in 2006 , became that year for the first time one of

14030-510: Was generally regarded as a major shock to the European marques. BMW and Mercedes-Benz's US sales figures dropped 29 percent and 19 percent, respectively, with the then-BMW chairman Eberhard von Kuenheim accusing Lexus of dumping in that market. Nissan's Infiniti became a player on the luxury market mostly thanks to its popular Q45 . The vehicle included a class-leading (at the time) 278  hp (207  kW ) V8 engine, four wheel steering ,

14152-703: Was introduced on the Chrysler Airflow , a sales flop, and the Lincoln-Zephyr (both of which used unit-body construction). Packard introduced their "Air Cool-ditioned" car in 1940. After the United States entered World War II in December 1941, all auto plants were converted to war production, including jeeps, trucks, tanks, and aircraft engines. All passenger automobile production ceased by February 1942. The industry received $ 10 billion in war-related orders by that month, compared to $ 4 billion before

14274-436: Was likewise affected, consequently put pressure on their governments to regulate and restrict imports to offset market imbalances at the time. In 1981, Japan agreed to Voluntary Export Restraints in order to preempt protectionism measures that the US may have taken, where it be tariffs or import quotas . Consequently, Japanese companies responded by investing heavily in US production facilities, as they were not subject to

14396-417: Was started in 1945 and acquired Willys-Overland Motors (maker of the Jeep ) in 1953. Production of passenger cars was discontinued in 1955. In 1970, the company was sold to American Motors Corporation . In 1954, Nash-Kelvinator and Hudson merged to form American Motors Corporation (AMC). The company introduced numerous product and marketing innovations, but its small size made it difficult to compete with

14518-552: Was that Detroit was the base for highly talented entrepreneurs who saw the potential of the automobile: Henry Ford, Ransom E. Olds, Roy D. Chapin, Henry Joy, William C. Durant, Howard E. Coffin, John Dodge and Horace Dodge, and Benjamin Briscoe and Frank Briscoe. From 1900 to 1915 these men transformed the fledgling industry into an international business. Henry Ford began building cars in 1896 and started his own company in 1903. The Ford Motor Company improved mass-production with

14640-469: Was the weight of the wartime vehicles. The materials involved altered during World War I to accommodate the heavier trucks on the road and were responsible for widespread shift to macadam highways and roadways. However, rural roads were still a problem for military vehicles, so four wheel drive was developed by automobile manufacturers to assist in powering through. As the prevalence of automobiles grew, it became clear funding would need to improve as well, and

14762-516: Was valued at US$ 22.67 billion, ranking it ninth among all global brand names - automotive or non-automotive, edging out that of Mercedes-Benz. 2010 end of year production figures from the International Organization of Motor Vehicle Manufacturers shows that Toyota holds the number 1 spot, Nissan number 6, and Honda number 7. The German trio Audi , Mercedes-Benz and BMW are often referred to as "Germany's Big Three", although

14884-511: Was very popular, as was two-tone paint. The most extreme version of these styling trends were found in the 1959 Cadillac Eldorado and Chrysler Corporation's 1957 Imperial . The Chevrolet Corvette and the Ford Thunderbird , introduced in 1953 and 1955 respectively, were designed to capture the sports car market. The Thunderbird grew in size in 1958 and evolved into a personal luxury car . The 1950s were also noted for perhaps one of

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