Cars We Remember; American car companies now growing, but inventories shrinking

Cars We Remember; American car companies now growing, but inventories shrinkingThere were more than 2,000 car companies operating from 1900 to 1919. However, when Henry Ford began mass production of the Model-T in 1909, most companies simply closed because they could not compete. Ford’s amazing assembly line resulted in a prosperous time for all who worked for Ford as he paid an unheard of $5.00 a day after three years of service, up from the $1.50 a day starting pay. In 1912, $5.00 a day was really good money. Pictured are Ford employees in late 1939, assembling a line of 1940 Ford Sedans. (Ford photo)

Q: Greg, can you give us an update on the auto history in the United States? Things are changing all the time, and we enjoy your car columns as we always learn something. How are things going nowadays as for car companies compared to yesteryear? Charles S., email from Rhode Island.

A: Charles thanks for your letter and kind words. The American based car companies have increased of late thanks to the electric movement and most notably Tesla, the California based car builder that now also has assembly platforms in China. Still, it’s 100-percent an American company in my opinion, as China builds many U.S. cars, notably Buick.   

However, with the current shortage of computer chips that are needed to literally start every car and truck built these days, inventories at area dealerships have shrunk to alarming low numbers while new vehicles sit at production plants awaiting chips. 

I have been diligent in visiting car dealerships the last few months, only to see fewer and fewer new cars available to buy. I’ve been to big dealerships from Mechanicsburg, Pa. to Elmira, N.Y. and have encountered the same results at just about every dealership. One large GMC / Buick / Cadillac dealer had no new Buicks, six new GMC trucks, and one new Cadillac on its lot. Meanwhile a Subaru dealer had just five new cars to sell, while a farmers market was being held at his one packed dealer lot.

Cars We Remember; American car companies now growing, but inventories shrinking

Tesla is now the official “leader of the pack” when it comes to electric vehicles. Thanks to the talents of its founder, Elon Musk, electric cars are indeed the future of automotives worldwide. Pictured is the modern-day robotic Tesla assembly line. (Tesla photo)

This low inventory reality has pushed the prices of used cars sky high and eliminated many of the dealer discounts that were common when new car inventories were plentiful. Further, with the recent temporary closings of two main production plants for Ford and Chevy pickups as reported last week, I see no immediate relief to what is the worst low inventory occurrence I can remember in my lifetime.

As for the car company history, the number of new American owned car companies (until the latest electric company additions) stayed the same for decades thanks to Ford, General Motors, and Chrysler. However, even though Chrysler is still a 100-percent American company responsible for Dodge, Chrysler, Jeep and Ram, it is now part of a new corporation called Stellantis, which owns 14 different brands including Chrysler, Fiat, Jeep, Ram, Peugeot, Opel, Maserati, Vauxhall, Lancia, and Citroën. The result finds Stellantis as the fourth largest vehicle manufacturer in the world with forward looking emphasis on electric and hybrid production.

Further, from 1900 to 1919 there were some 2,000 American companies involved in the separate construction of motor vehicles. Henry Ford receives credit for the first mass-produced car in 1908 (the Model T), but many Americans don’t know that Ford relied on the Model T until 1927, and actually shut down his plant several times to re-tool for the Model A.

Cars We Remember; American car companies now growing, but inventories shrinking

Willys-Overland introduced the Jeep FC-170 pickup in 1957. Through all the auto turmoil and company consolidations and bankruptcies through the years, Jeep is still a viable product and is sold at Chrysler / Dodge / Jeep / RAM dealers nationwide and is now part of the Stellantis, a Dutch-based multi-national mega car production corporation. (Willys-Overland advertisement)

Through it all, the competition caught up to Ford’s brilliantly produced automobiles and as smaller companies folded, larger concerns forged ahead. General Motors (GM), founded in 1908, became a giant as it utilized even better production methods than Ford. GM gobbled up Oakland (Pontiac) in 1909, and emphasized its long-term strategic marketing. However, Ford adapted well to GM’s threat, and the two went head-to-head for sales leadership.

The third powerhouse, Maxwell, continued its climb and in 1925 became Chrysler Corporation, which then bought Dodge in 1928. These companies formed the “Big Three” that we have come to know today. They controlled production and price as the number of U.S. car companies by 1929 had shrunk to just 98. During the 1930s this number dwindled to 44. I can’t forget the American Austin, built in Butler, Pa. thanks to a co-op with British Austin from 1930 to 1934.

At the beginning of the 1940s, Chrysler, Ford and General Motors accounted for 90 percent of all U.S. car sales, with the rest divided between Packard, Hudson, Nash-Kelvinator, Studebaker, Crosley, and Willys-Overland / Jeep.   

By the early ’50s two new builders, ala Preston Tucker and Kaiser-Frazer, joined the fray while Nash-Kelvinator, which also produced the Rambler, merged with Hudson to become American Motors in 1954. 

Next, Studebaker and Packard joined forces in 1954 and lasted only until 1963. Tucker, meanwhile, made just 51 of his famous cars – recounted in the movie “Tucker”, which I always recommend viewing. Today, 47 Tuckers still survive and are precious to collectors.

Crosley closed its doors in 1952, while Kaiser purchased Willys-Overland and lasted until 1955 as a car builder. In 1956 Kaiser concentrated on the Willys-Overland Jeep and Jeep truck / station wagon vehicles. The company was re-named Kaiser Jeep Corporation until 1970, when Kaiser sold the Jeep line to American Motors and exited the car / truck manufacturing business. 

By 1976 only 11 car companies were left, with many consolidating their businesses. Checker Motor Company, famous for its taxicabs, hung on in auto manufacturing until 1982 as one of the last independents, relying on Chevrolet engines and transmissions in its final years. Checker Motors produced underbody stampings for the “Big Three” at its home plant in Kalamazoo, Michigan, although, not surprisingly filed for bankruptcy in January of 2009. There are two books I recommend concerning Checkers, both by author Ben Merkel titled “Checker The All-American Taxi” and “The American Taxi, A Century of Service.” (Check Amazon and other online book sites for availability and pricing.)

Chrysler then purchased American Motors in 1987, acquiring the popular Jeep line as the major trump card. Then Daimler AG, parent of Mercedes-Benz, bought Chrysler in 1998, only to unload it in 2007 to Cerberus Capital Management LLC, a private American company. Chrysler was then purchased by Fiat, and more recently reorganized under the above-mentioned Stellantis.  

There you have it Charles, the car industry, past and present. Thanks for your letter.

(Greg Zyla is a syndicated auto columnist who welcomes questions on auto nostalgia, collector cars or motorsports at greg@gregzyla.com.)

Be the first to comment on "Cars We Remember; American car companies now growing, but inventories shrinking"

Leave a comment

Your email address will not be published.


*