Auto Mobile Industry

Topics: Manufacturing, Ford Motor Company, General Motors Pages: 114 (41457 words) Published: August 1, 2013
Wesleyan University

The Honors College

The Development of the M-form in the American Automobile Industry by Daniel Joseph Koblenz Class of 2010

A thesis submitted to the faculty of Wesleyan University in partial fulfillment of the requirements for the Degree of Bachelor of Arts with Departmental Honors in General Scholarship Middletown, Connecticut April, 2010

Table of Contents Acknowledgements.................................................................................... ii Introduction................................................................................................ 1 Chapter 1 – The Development of the Modern Corporation ...................... 8 Introduction to Williamson, Chandler, and the Modern Corporation ................................... 9 The Development of the H-form......................................................................................... 12 The Development of the U-form......................................................................................... 17 The Development of the M-form ........................................................................................ 24

Chapter 2 – The Successes and Failures of Ford’s U-form ..................... 29 Two Founders with Two Very Different Philosophies ....................................................... 30 The Origins of Ford and General Motors............................................................................ 31 The Initial Success and Subsequent Failure of Fordism ..................................................... 38 Social Controls at Ford Produce Mixed Results ................................................................. 45

Chapter 3 – The Successes and Failures of GM’s H-form ...................... 52 Durant’s First Reign as President of GM ............................................................................ 53 Enlisting Pierre du Pont, Durant Retakes GM .................................................................... 60 History Repeats as Durant is Once Again Forced from Power ........................................... 67

Chapter 4 – The Organization Study of 1919-1920 ................................ 72 To Save GM, Pierre Puts Sloan in Charge .......................................................................... 73 The Interdivisional Committees and Technical Staffs ........................................................ 79 Sloan Begins to Sort Out GM’s Market Presence............................................................... 86

Chapter 5 – The Product Plan of 1921 .................................................... 91 Sloan Begins the Process of Reorganizing GM’s Brands ................................................... 92 Sloan Incorporates Styling into GM’s Strategy .................................................................. 97 GM’s Challenges During The Great Depression .............................................................. 100 Why the M-form Triumphed ............................................................................................ 104

Chapter 6 – Ford’s Attempt to Emulate GM ......................................... 108 Ford Slowly Moves Away From the U-form .................................................................... 109 Ford Adopts More of GM’s Policies and Expands it Brand Offerings ............................. 115 Henry II’s Rise to Power, and the Final Push Towards the M-form................................. 123 The Crusoe-Reith Plan ...................................................................................................... 127

Conclusion ............................................................................................. 134 Figures ................................................................................................... 145 Works Cited and Consulted ................................................................... 150 i

Acknowledgements
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