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Team Project Part I, Strategic Business Unit Proposal: The Ford Motor Company Strategic Business Unit Proposal: The Ford Motor Company
Industry Background The Automotive Industry is one of the most important industries in the economic sector worldwide. Most of the industrialized countries produce their own brand of cars and/or trucks. According to the International Organization of Motor Vehicle Manufacturers statistics, during the year 2010, over 78 million of cars and trucks were produced in over 50 countries worldwide, with China, Japan and the United States as the world top three producers.
The Automotive Industry started in Germany with the introduction of the gasoline power internal combustion engine in 1876 by Nikolous Otto (the same type of engine that is used today). In 1885 Karl Benz started the first production of an automobile, a three wheeler that was delivered for the first time in 1886. In Springfield Massachusetts, the Duryea brothers, Charles and Frank, were fascinated with Karls Benz’s idea of a “horseless carriage” and in September 1893, they successfully road tested their automobile on the streets of Springfield. The Duryea Motor Wagon Company became the first automobile production factory in America and by 1896 they had sold a grand total of 13 “horseless carriages” (Wright R.A, 1996).
After the Duryea Brothers, many others followed with the most famous being Henry Ford, who established The Ford Motor Co. It was said that at one point America had over “one thousand small factories” producing automobile (Bellis M. n.d.).
The Automotive Industry quickly became the largest consumer of raw materials in America and around the world (steel, rubber, plastic, cloth, vinyl, lubricants etc.). Also, it created a large chain of suppliers and regulatory agencies that provided jobs for the community and revenue to the federal government.

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