Lecture 5 Automobile Industry

Fall 2012 jim love adms 1010 12 why already had

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Unformatted text preview: ts •  1904 Gordon McGreggor of Walkerville Ontario – owner of Wagon Works (another industry protected by Tariff) meets Henry Ford •  Convinces Ford to license manufacture of Ford Automobiles to him •  Tariff of 35% applied to automobiles – same as horse drawn wagons •  Ford, Buick, Packard, Studebaker and Chrysler all set up in Canada •  By 1920 Ford of Canada is the largest automo>ve enterprise in the Bri>sh Empire •  McLaughlin Motor Care produces Canadian designed bodies with US built (Buick) engines Fall 2012 Jim Love ADMS 1010 11 Why? Fall 2012 Jim Love ADMS 1010 12 Why? •  Already had carriage factories •  Faster to retool than to build new •  Capital was at a premium •  New industry is risky (banks are risk averse) •  Growth in US is tying up capital Fall 2012 Firm strategy, structure and rivalry Factor condi>ons Jim Love ADMS 1010 Demand condi>ons Related and suppor>ng industries 13 Early Trends •  US producers rely heavily on outsourcing manufacturing of vehicle parts –  US expansion into Canada promotes Canadian parts industry •  Ford is a low cost automobile sold to the masses –...
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This note was uploaded on 01/26/2014 for the course LAPS ADMS 1010 taught by Professor D.jurkowski during the Winter '10 term at York University.

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