The model T owed a great deal of its success to its low cost. Henry Ford stated

Question

The model T owed a great deal of its success to its low cost. Henry Ford stated that

“I will build a car for the great multitude. It will be large enough for the family, but small enough for the individual to run and care for. It will be constructed of the best materials, by the best men to be hired, after the simplest designs that modern engineering can devise. But it will be so low in price that no man making a good salary will be unable to own one – and enjoy with his family the blessing of hours of pleasure in God's great open spaces.” (Wikipedia; italics added for emphasis)

Use the information that you can find at: https://en.wikipedia.org/wiki/Ford_Model_T and information available on average pay to determine whether Ford got it right…

Explanation / Answer

The concept that ford used is the volume. They saw that selling a larger volume of cars at a lower cost will help them make more money and eventually break even, This was very sucessful becuase the masses could very easily afford one. The modifications to the assembly line and the use of invetory to produce the car was reduced by a great extent. The first T model was introduced in the year 1908 with a cost of around $825. Later the creativity and changing of traditonal manyfaturing processes brought down the cost to about $350 in the 1920s. All the cars where painted black beacuse the paint dried faster and also absorbed heat. Henry ford said "You can have any color car you want as long as it is black".

The reduced cost and increase sales volume with popluar appeal made this car a great sucess and ford became a very popular company.

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