HOW HENRY FORD CREATED A MIDDLE CLASS THROUGH HIS MODEL T BRAND

Henry Ford completely revolutionized American society with the Model T. This brand created a strong middle class in this country

This nation was in need of a transportation tool that allowed people quick transportation.  On October 1, 1908, the date of the launch of the Model T, there were 88 car companies operating in this country. These brands were targeted for the rich. Most owners felt that to maximize profits a car had to be sold at the highest price possible.

            Henry Ford approached the market from a different perspective. Ford knew that this nation was in dire need of a means of transportation that an average wage earner could afford. He understood that if he did this he would create a pre-eminent brand in cars. He realized that people were thirsting for a car that they could afford to drive.  The Model T accomplished this.

            This created a problem for Mr. Ford. He had large orders that he couldn’t fill. His brand’s success was dependent quality. In 1908, there was a shortage of passable roads for a car. A car had to be tough to withstand the punishment. If the car did need service that car had to be repaired easily.  This placed a premium upon  the workers.  For the Model T to be successful it was essential that Ford use good workers who really cared about their job. This created a problem.

            In 1908, the work in auto plants was hard, dangerous, with terrible pay. The workers had no incentive to do good work. Mr. Ford’s solution revolutionized America. He offered a wage of $5 a day. At the time of this increase, auto workers were making $.39 a day. In this one masterstroke, workers now wanted to work at Ford. 

            This move created real problems for Ford’s competitors. Because of scale, the costs of creating costs were lowest at Ford. Ford was now attracting the very best workers from the competitive companies. The only way that other companies could compete is that if they offered comparable wages.

            This destroyed many competitive companies. The added labor costs made it    impossible for many of the original 88 brand  to compete. In one swoop, Ford created a middle class.

            The car business is one of the most significant businesses in this country. This is because the car business is a “feeder” business. The car business affects the 1 in 8 jobs in this country. To make a car, you need steel, tires, parts. The car business is one of the biggest upholstery clients in the country. All these job sectors now had pay $5 or close to it to attract workers good enough to supply their auto clients.

            Overnight , this created a middle class. Ford used the social media of the day to make sure that people knew where there sudden blessings were coming from. This created a brand for Ford that other automakers could not compete against. In 1908, Henry Ford became a folk hero. He became one of the most beloved men in American history. Unfortunately, things happened to change this, but in 1908 everyone wanted to buy a Ford. Everyone loved Mr. Ford. Mr. Ford and his car were synomous with one another.