The Model T ushered in the start of the Motor Age. Moreover, it changed the concept of the automobile from a luxury item to a basic and functional means of transportation for the ordinary masses and majority of the people. The luxury became a necessity.
True to his mission to distribute cars to the greater many of Americans, Ford employed the strategy of continuous price reduction. The Model T’s price of $575 in 1912 was considerably lesser than the prevailing average annual wage in the United States. Ford sacrificed profit margins. He slashed the car’s price from $220 in 1909 to $99 in 1914.
As Ford lowered the car’s selling cost, sales rose exponentially. The Model T sold 248,000 units in 1913 alone. He showed that a strategic lowering of prices actually translates to more cars sold. This, in turn, actually meant profits. His net income rose from $3 million in 1909 to $25 million in 1914.
In the United States market, Ford held a market share of 9.4 percent in 1908. Six years later, in 1914, Ford’s company had cornered 48 percent of market share. The Model T dominated the world’s leading market. On June 4, 1924, the ten millionth Model T rolled out of the factory.
The Model T, the first affordable car in America, was also the first world car. It was the first automobile built by various countries simultaneously. The car was being manufactured simultaneously in Canada and Manchester, England by 1911. Car assembly factories for the Model T were built in Germany and Argentina by 1925. Other countries followed suit such as France, Spain, Denmark, Belgium, Brazil, Mexico and Japan.
The car was a certified success, and an icon of the great American dream. By the time Ford rolled out his 10 millionth car, 9 out of 10 of all cars in the entire world were Fords. The Model T manufactured a grand total of more than 15 million units, more than any other car model for almost a century. The Ford Model T, fondly called the Tin Lizzie, was named the world’s most influential car of the 20th century in an international poll.
Via CMOC/howstuffworks
