III.

Success of Model T

The success of the Model N convinced Ford that the company’s future lay in producing inexpensive cars for a mass market. In 1908 Ford introduced the Model T, a sturdy four-cylinder car with an attractive design and a top speed of 72 km/h (45 mph). Priced at $850, the car created an immediate sensation, selling more than 10,000 in the first year. To keep up with demand, in 1913 Ford instituted an assembly-line system, in which each worker performed only one specialized task. This new technique allowed workers to assemble Model Ts in a fraction of the time required previously. By 1913 Ford had established assembly plants in Canada, Europe, Australia, South America, and Japan.

In 1914 Ford astonished the business world by more than doubling the minimum wage for his workers. He reasoned that if his employees earned more, the company would sell more cars to them and reduce employee turnover. By 1916 Ford had lowered the price of the Model T to about $350, making the cars affordable to the average worker. By the early 1920s more than half of all cars in the United States were Model Ts. In 1922 Ford purchased the Lincoln Motor Company, a maker of luxury cars.