About thirty years ago, the famous American manager Lee Iacocca said that to beginning of XXI century, only a few players will remain in the global automotive market. Ex-president of Chrysler and Ford saw through the trends further development auto industry, so it is not at all surprising that his predictions are confirmed.
The world's largest automakers and alliances
At first glance, it may seem that there are many independent automakers in the world, but in fact, most auto companies are part of various groups and alliances.
Thus, Lee Iacocca looked into the water, and today there are actually only a few automakers left in the world who have divided the entire global car market among themselves.
What brands are owned by Ford
Interestingly, the companies he headed - Chrysler and Ford - the leaders of the American auto industry, suffered the most serious losses during the economic crisis. And they had never been in such serious troubles before. Chrysler and General Motors became bankrupt, and only a miracle saved Ford. But for this miracle, the enterprise had to pay too much expensive price, because as a result, Ford lost its premium division Premiere Automotive Group, which included Land Rover, Volvo and Jaguar. Moreover, Ford lost Aston Martin, the British supercar manufacturer, a controlling stake in Mazda, and liquidated the Mercury brand. And today, only two brands remain from the huge empire - Lincoln and Ford itself.
What brands belong to the auto concern General Motors
General Motors suffered no less serious losses. The American company lost Saturn, Hummer, SAAB, but its bankruptcy did not prevent it from defending the Opel and Daewoo brands. Today, General Motors includes such brands as Vauxhall, Holden, GMC, Chevrolet, Cadillac and Buick. In addition, the Americans own the Russian joint venture GM-AvtoVAZ, which produces the Chevrolet Niva.
Automaker Fiat and Chrysler
And the American concern Chrysler now acts as a strategic partner of Fiat, which has brought together such brands as Ram, Dodge, Jeep, Chrysler, Lancia, Maserati, Ferrari and Alfa Romeo under its wing.
In Europe, things are somewhat different than in the US. Here the crisis has also made its own adjustments, but the position of the monsters of the European automobile industry has not been shaken by this.
What brands belong to the Volkswagen Group
Volkswagen is still accumulating brands. After buying Porsche in 2009, the Volkswagen Group has nine brands - Seat, Skoda, Lamborghini, Bugatti, Bentley, Porsche, Audi, truck manufacturer Scania and VW itself. There is evidence that soon this list will include Suzuki, 20 percent of whose shares are already owned by the Volkswagen Group.
Brands owned by Daimler AG and BMW Group
As for the other two "Germans" - BMW and Daimler AG, they cannot boast of such an abundance of brands. Under the wing of Daimler AG are the brands Smart, Maybach and Mercedes, and the history of BMW includes Mini and Rolls Royce.
Renault and Nissan Automobile Alliance
Among the world's largest automakers, one cannot fail to mention the Renault-Nissan alliance, which owns such brands as Samsung, Infiniti, Nissan, Dacia and Renault. In addition, Renault owns 25 percent of AvtoVAZ shares, so Lada is also not an independent brand from the French-Japanese alliance.
Another major French automaker, PSA, owns Peugeot and Citroen.
Japanese automaker Toyota
And among Japanese automakers, only Toyota, which owns Subaru, Daihatsu, Scion and Lexus, can boast of a “collection” of brands. Also included in Toyota Motor truck manufacturer Hino is listed.
Who owns Honda
Honda's achievements are more modest. In addition to the motorcycle department and the premium Acura brand, the Japanese have nothing else.
Successful Auto Alliance Hyundai-Kia
In recent years, the Hyundai-Kia alliance has been successfully breaking into the list of leaders in the global automotive industry. Today he produces cars only under by Kia brands and Hyundai, but the Koreans are already getting serious about creating a premium brand that could be called Genesis.
Among the acquisitions and mergers of recent years, we should mention the transition under the wing of the Chinese Geely Volvo brands, as well as the acquisition of the British premium brands Land Rover and Jaguar by the Indian company Tata. And the most curious case is the purchase of the famous Swedish SAAB brand tiny Dutch supercar manufacturer Spyker.
The once powerful British auto industry is dead. All the famous British car manufacturers have long since lost their independence. Their example was followed by small English firms that passed to foreign owners. In particular, the legendary Lotus today belongs to Proton (Malaysia), and the Chinese SAIC bought MG. By the way, the same SAIC had previously sold the Korean SsangYong Motor to the Indian Mahindra&Mahindra.
All of these strategic partnerships, alliances, mergers and acquisitions have once again proven Lee Iacocca right. Single firms in the modern world are no longer able to survive. Yes, there are exceptions, like the Japanese Mitsuoka, the English Morgan or the Malaysian Proton. But these companies are independent only in the sense that absolutely nothing depends on them.
And in order to have annual sales amounting to hundreds of thousands of cars, not to mention millions, one cannot do without a strong “rear”. V Renault-Nissan Alliance partners provide each other with support, and in the Volkswagen Group, mutual assistance is ensured by the number of brands.
As for such companies as Mitsubishi and Mazda, in the future they will face more and more difficulties. While Mitsubishi can get the help of partners from PSA, Mazda will have to survive alone, which in the modern world is becoming more and more difficult every day ...
The next day, newspapers around the world came out with front-page obituaries. Among the thousands of polite, but standard notes and replies, a Detroit tabloid article stood out, very eloquently entitled "The father of the car has died."
Oddly enough, from a certain point of view, this was true. Of course, we know about a man named Karl Benz and his Motorwagen, quite officially recognized as the first car in history. But even though Henry Ford did not invent the car as an engineering device, he did more to popularize it than anyone else. It was thanks to him that the car turned from a toy for the rich into an object of universal passion, into a vehicle accessible to everyone. In short, in their own way, the Detroit journalists were right.
In one article, to talk about Ford is as utopian as it is to try to summarize the contents of the Great Soviet Encyclopedia in a nutshell. But still, we will try to remember the main milestones of the fate and character traits of the founder of one of the largest corporations in the world, whose contribution to the development of the auto industry cannot be overestimated.
Dreamer
Henry Ford was born July 30, 1863 in Springfield Township, Michigan to Irish immigrant parents. Having made a fortune in logging, they could afford a good house, a prosperous economy and considerable land in private ownership. So the eldest son of William and Mary Ligot Ford grew up in satiety and prosperity. From a young age, Henry showed an increased interest in technology. Moreover, this interest was sometimes manic. The younger sisters - there were 8 children in the Ford family - even hid clockwork mechanical toys from Henry, presented for Christmas. He still found them and took them apart to the screw in order to understand how everything works. Then the young Samodelkin became seriously interested in watches, managing complex mechanisms with the dexterity of a cadet taking apart an AK-47. But, in the end, the curious little boy found a more serious hobby. One fine day in July 1876, William Ford, taking his son, went on business to Detroit. On the way, a light double team of father and son met a self-propelled carriage with a steam engine ...
Here is how Henry himself described this meeting: “It was a huge steam boiler mounted on wheels, with a water tank and a coal cart attached to the back. From motor to rear wheels there were belts that set the whole structure in motion ... ".
Much later, in his very numerous memoirs, Ford would argue that this particular episode became a turning point in his life - it was then that he wanted to devote himself to the creation of vehicles. Not postponing the matter indefinitely, at the age of 15, Ford left school and went to Detroit, which was already turning into the center of America's nascent industry. The first cavalry attack on the future "City of Motors", however, was not very successful. After briefly working in a tram car factory, Henry then got a job as an apprentice in the workshop of James Flowers and Brothers. They paid mere pennies, but it didn’t matter - the main thing was that the young man was free to study hydrants, pumps, steam engines, elevators and other equipment, which turned out to be visibly invisible in the workshops of the company.
All this was great, of course, but Henry was hardly one step closer to realizing his childhood dream. In addition, he got married and for some time, together with the beautiful Clara, even returned to his father's house, but only to finally become disillusioned with the village lifestyle. In short, after a while, Ford found himself back in Detroit, this time taking a job in a branch of the gigantic empire of America's electric king, Thomas Edison. Henry started out as a simple caretaker of the lines, but in a very short time he achieved impressive success. Within two years, he was promoted to chief engineer, and his salary doubled to $90 a week.
I must say that Henry did not feel any particular need for banknotes and, by his own admission, he got a job at Edison's company with one goal - to understand all the intricacies of electricity. What for? To understand how the Otto ICE system, advanced for the late 19th century, works, fuel mixture in which it was ignited by a spark. Yes, yes, he did not forget about cars.
Henry's inquisitive mind coped with this task. And when, on Christmas Eve, 1893, Ford's primitive 1-cylinder gasoline engine of Ford's own design finally started working, the future automobile magnate knew that he was ready for the next step. Having put together a team of like-minded people, he started building his first car.
Under his careful guidance
The talent of the alpha leader manifested itself in Ford at a fairly young age. Since then, personal magnetism, the ability to infect others with enthusiasm and his own, sometimes even crazy ideas, have become integral features of his character. Imagine, already as a hired employee at the Edison enterprise, Henry was more of a leader than an engineer. One of the workers, who devoted his free time to the car project of yesterday's line superintendent, said so: “Mr. Ford himself did practically nothing. He only gave instructions all the time, advised something ... ".
Coal shed next to Ford's house, which Henry converted into a workshop. It was here that his first car, the Quadricycle, was born. By the way, when the car was ready, it turned out that it does not pass through the doors. I had to widen the opening with a pickaxe and a crowbar
One way or another, in the summer of 1896 the first car was ready. Oddly enough, the Quadricycle, as Ford himself later dubbed the car, turned out to be a fully functional specimen. 2-cylinder, four stroke engine 4 hp through a belt drive, accelerated the car to 30 km / h. On it, the entire Ford family, including Clara and Edsel's son, went out of town for walks, surprising the neighbors and scaring the horses.
But the Quadricycle made an even greater impression on Ford's immediate supervisor. Cars were still a curiosity at that time, which is why the director of the Detroit branch of the Edison Illuminating Company invited Henry to a status party, where Thomas Alva Edison himself was present. In the midst of a dinner party, America's greatest inventor was introduced to "a young engineer from Detroit who built his own self-propelled carriage."
Edison immediately invited Ford to his table and, with unconcealed curiosity, began to question young man about the design of the Quadricycle. Not at all shy, Henry answered in detail all the questions of the creator of the electric light bulb and even sketched circuit diagram operation of the internal combustion engine on the back of the menu.
“Young man, you are just brilliant! - looks like Edison was really impressed. - I believe that for such gasoline engines future. Hold on to your idea. This is your chance!
Henry took the words of the idol of his youth literally. First of all, he quit the Detroit Illuminating Company, refusing a two-fold salary increase and a leadership position, and a few months later Ford settled in the chair of the chief designer of the Detroit Automobile Company, the first automobile company in the city. But, as often happens, the starting pancake came out lumpy.
It so happened that Henry caught a virus, which in modern language is called star disease. Generous praise from Edison himself, the boundless trust of influential investors, multiplied by their own exaggerated ego, played a cruel joke. Ford felt like a technical genius with the manners of a free artist, saying that I do what I want. He quite inopportunely became interested in car racing and plunged headlong into the construction sports models. Meanwhile, only occasionally primitive trucks left the gates of the Detroit Automobile Company, each of which brought only losses to the company. The patience of investors proved to be limited, and after several warnings that had no effect, Henry had to vacate the office. Think! Having quarreled with influential businessmen in smoke, he immediately fooled the new ones, knocking out funds for the development of a racing car. But this happiness did not last long. Soon, Henry will spoil relations with the next business partners - something, but he has never been distinguished by an accommodating character.
Today it is hard to believe, but at the beginning of the 20th century in the business circles of Detroit, there was probably no figure more odious than Ford. Better known for his obnoxious nature than for his engineering genius, Henry, or rather his name alone, scared away investors and former associates. A man who, at the dawn of a new century, would have predicted to Ford the fate of the greatest industrialist of the era, would simply be ridiculed. It seemed that nothing would come of this arrogant upstart.
And in fact, the money for the next project managed to knock out literally by a miracle. With great difficulty, Henry found a common language with the coal magnate Alexander Malcolmson, a good friend from his time at Edison. Malcolmson provided funds for the development of a new model, and on June 16, 1903, a new one was born. automotive firm Ford Motor Company.
Everyone, and especially Henry himself, understood that there might not be another such chance to declare himself. Fortunately, fortune finally smiled on the stubborn descendant of Irish emigrants.
king of the hill
In fact, the production of the first serial Ford - model A began in early June, that is, even a little earlier than the date of the official registration of the company. A dozen workers in a rented workshop on Mac Avenue were slowly assembling simple 2-seat Runabouts with an 8-horsepower 2-cylinder engine. At first they worked "in a warehouse." The company received its first order only on July 15 - a certain Mr. Pfennig, a dentist from Chicago, chose a model with an optional top for $850. Then the second order came, followed by the third... By the end of the year, the company will sell 215 cars, and shareholders will receive their first dividends in November 1903 - just five months after the official registration of the Ford Motor Company! Further more. By the beginning of 1904, the staff of assembly workers will increase by more than ten times, and the total number of cars produced in the first year and a half of the company's existence will reach 1,700 units.
It was an absolute success. Ford finally realized his childhood dream - he produced cars, proving to skeptics that he could not only scandal and quarrel. However, until now, his career has been no different from that of hundreds of other relatively successful automobile manufacturers of the early 20th century. But the fact of the matter is that Henry looked much further than his colleagues in the shop. First, he did not believe much in the popular theory that the release expensive cars brings more profit. On the contrary, Henry had no doubt: the shortest path to success is the mass production of inexpensive models.
Contrary to popular belief, the first mass-produced Ford was by no means the legendary T, but debuted two years earlier model N. In fact, it was an experimental car. The most simplified, if not Spartan, car with a 15-horsepower engine cost only $500. Result? All 8,500 copies produced in 1906 sold out instantly, making Ford Motor the largest automaker in the United States.
Convinced that the concept of the cheapest possible car worked, Henry and his engineering team rushed to work on a model that, without any exaggeration, was destined to change the lives of millions of people.
Known popularity Ford N brought only extremely low price. The car itself, to be honest, turned out to be unimportant: with a low-power engine, only a 2-seater saloon, a weak frame that lacked rigidity and endurance, which, among other things, affected the disgusting smoothness of the ride. However, for a more than modest price tag, the Enke forgave a bunch of shortcomings. As they say, it is better to go badly than to go well.
And Henry was right. If people willingly buy not too good, but cheap car, then what will happen if we offer the market a car as affordable as the N model, but devoid of all its disadvantages?
So the Ford T was born. Sometimes this legendary car is called technically unremarkable, but this is not entirely true. Of course, the "teshka" did not impress with its design, heavy-duty motor or a scattering of revolutionary engineering solutions. But its design was thought out down to the smallest detail - from a reinforced frame made of vanadium alloy to a motor that digested both gasoline and kerosene, and even alcohol. In short, it was the world's first well-made budget car - consider it the great-great-grandfather of today's Logan.
« Teshka" was cheap in price, but not in performance. To the design thought out to the smallest detail, Henry added another important ingredient - a high, or rather the highest, maximum possible level of quality at that time. And this concerned not only the assembly process itself - at his enterprise, this was implied by itself. Another thing is that representatives of component suppliers who worked with Ford were in hysterics from super-strict quality requirements for parts, assemblies and mechanisms intended for the T model. Tolerances for some positions reached 4 mm - and this, I remind you, at the beginning of 20 century! On the other hand, the suppliers who worked for Ford were given exactly as much time to develop and complete the order as they required, and they were paid for their services at the highest level.
In the first incomplete year, about 10,000 "tesheks" were shipped to buyers. In 1911, almost 70 thousand people became the owners of the car, and a year later this figure doubled! Such popularity even Ford could not dream of in the most rosy dreams. The “teshka” itself very quickly turned from just a successful car into a social phenomenon.
The art of releasing
In his debut in 1908, Ford T was rightfully considered the most perfect budget car world, but time passed, and the design of the model almost did not change. In fact, for 19 (!) years on the assembly line, all the innovations that have touched the "Tin Lizzy" can be counted on the fingers of one hand. In 1915, electric headlights appeared on the car, in January 1919, an electric starter, and with it dashboard, consisting of only one ammeter, and after another six years, they finally began to install pneumatic tires. Everything else is completely trifles.
But why? After all, Ford, with all the desire, cannot be called a tyrant or an opponent of technological progress. Of course no. It's just that Henry's real passion has always been production efficiency - he worshiped this deity all his life, he readily brought everything to his altar, up to friendship.
After all, what is production efficiency? In a nutshell - the largest number of products produced per unit of labor. Now, Henry was never happy with that ratio. What would any other successful manufacturer concerned with the problem of expanding production do? Most likely, he would have built another plant, and then another one ... Henry hated this approach - he sincerely believed that it was possible to find another way to produce more, even when the production capacity seemed to be exhausted. And, as usual, he was right.
What Ford's inquisitive mind did not invent. For example, the workers at the assembly site were divided into teams, each of which performed a certain sequence of operations, but not on one, but on several machines at once. Thus, the manufacturing process was slightly accelerated. Then they guessed that time could be saved by delivering the necessary components from the warehouse ahead of time. So they carved out a few more minutes, and gradually, step by step, the pace of production increased.
In addition, Ford introduced an atmosphere of constant creative competition at the plant, when each employee could and even had to come up with his own idea for optimizing the production process. What is characteristic - they listened to every little thing. Workers whose ideas caught on were generously rewarded. As a matter of fact, and assembly line was a direct consequence of such rationalization proposals.
It is believed that the idea automobile conveyor occurred to Henry's assistants during a visit to the Chicago slaughterhouses of Swift and Co. In the workshops of the meat-packing plant, managers of the Ford Motor Company were shocked by an ominous and bewitching picture at the same time. The carcasses hung on chains moved from post to post, where butchers with cleavers at the ready chopped off pieces, wasting no time in moving from one workplace to another and practically without lowering their knives. The efficiency of the mechanized butchering of pigs amazed automotive engineers.
They decided to conduct a similar experiment in the workshops of the new Ford plant in Highland Park. The assembly of the magneto, a popular ignition system at the time, was split into two stages using a conveyor belt. Happened! The assembly time of the finished part from 20 minutes (in man-hours) was reduced by a third. Gradually, other operations began to be transferred to the conveyor, at first simpler, later more complicated. The turn has come to the engine, and to the gearbox, and to the suspension. Finally, in August 1913, the most complex operation was also automated - the so-called "wedding" of the chassis and body. Perhaps this day can be considered the date of birth of the automobile assembly line.
The effectiveness of the new working methods was unparalleled. Chassis assembly time reduced from 12.5 hours to 93 minutes! But, of course, new technologies were not introduced for the sake of records. Most importantly, starting from 1913, the productivity of the plant doubled every year, and Ford price T steadily declined, eventually dropping to $260! At current prices, it's only $3,200.
The automobile assembly line is not the only thing Henry gave to the civilized world. Among other brilliant ideas of the giant of thought and the father of the automotive industry, for example, are record-breaking salaries for their own workers on the market, which not only increased staff loyalty, and at the same time labor efficiency, but also spurred sales. After all, the wealthy hard workers became buyers of cars that they themselves produced.
Ford not only applied the principles of car production that are relevant to this day, he also came up with very effective sales tools. Say, in 1914, in order to spur demand, Henry publicly promised every customer a $50 discount. More than generous considering the car's base price at the time was only $500. What is the genius of the action? So the money was returned to buyers only on the condition that Ford sells at least 300 thousand cars at the end of the calendar year. Sales that year were 308,213 cars, and Henry was happy to keep his promise. In any case, he earned more than he spent. “Every time I lower my price by $1, I get a thousand new customers!” Ford said with a laugh.
As early as the beginning of the century, Henry realized that one of the indispensable conditions for effective mass production was the production of his own auto components. And by 1920, the company, for example, produced not only wooden frames for bodies, but also planted forest plantations for future harvesting! Ford realized before others that the key to worldwide popularity was the production of cars in different countries and continents. The first foreign subsidiary of the Ford Motor Company opened in Canada in 1904. By the time the production of the Model T began, representative offices of the company appeared in Paris and London, and in 1911 a factory in Manchester was launched - the first Blue Oval assembly plant in Europe.
His quirks
Wealth was never the goal of Ford, in the end he was born into a wealthy family, but it turned out that the money itself was chasing Henry. Even before the release of the Model T, he was considered a more than successful businessman, but "Tin Lizzy" overnight made him a millionaire. Or rather, a multimillionaire. At the same time, having all the opportunities, he did not lead a riotous luxurious lifestyle, which distinguishes people who quickly made capital. Of course, Ford was not known as a hermit and, by and large, did not deny himself anything, but he preferred to spend money on anything but entertainment.
It is difficult to say how much Henry cost the lawsuit with a certain George Selden, an inventor and lawyer, best known for his patent for ... a car. Back in the late 19th century, this American filed a patent application for a self-propelled vehicle with an internal combustion engine. Moreover, Selden, experienced in matters of law, turned the case in such a way that everyone who later intended to produce cars in the United States had to pay him patent royalties. And everyone paid until Ford said, "Enough!"
Henry, like no one else, could afford transfers for the "Selden patent", but his very nature was sickened by the idea that some scoundrel was profiting from an inherently false patent. No one believed that the tenacious and stubborn Selden could be overcome, but Ford turned out to be even more tenacious and stubborn. On January 10, 1911, after lengthy and bitter litigation, the controversial patent lost its validity.
Even more expensive was Henry and his most unsuccessful venture. At the height of the First World War, Ford, who had been known as a staunch pacifist all his life, paid for the freight of a huge ocean liner. On board, he, with a group of diplomats and cultural figures, went to Europe in order to try to convince the warring parties to lay down their arms. Needless to say, the expedition failed, and after that, only the lazy did not laugh at Henry's naivety ?! But no matter how primitive his act seemed, Ford's thoughts were pure and noble.
Again, with the best of intentions, he went down in history as one of the most implacable fighters against trade unions. And this position of Henry is quite easy to understand and share. He literally created a system from scratch in which workers and managers had the opportunity to earn good money if they were completely devoted to their work. Ford was convinced that a good worker, as well as a smart manager, does not need an advocate from the labor organization at all. Not surprisingly, Henry was at the forefront of the anti-union movement of the 1930s.
With a new misfortune, the automotive giant fought with very specific methods. As head of service internal security Henry hired navy sailor and boxer Harry Bennett. The two-meter tall man whom Ford had once saved from prison was pathologically loyal to the boss and did not hesitate to carry out all his orders, including orders of a very dubious nature. It is not surprising that there were no problems with labor discipline at the Blue Oval factories, and those that arose were suppressed in the most decisive way. As the saying goes, a fist and a kind word convinces better than just a kind word. Moreover, attempts by union leaders to force Ford to sign a collective labor agreement, which by the mid-30s was approved by all other automakers in America, including General Motors and Chrysler, also did not lead to anything.
In the end, what should have happened did happen. However, it was not reason, the advice of colleagues, or, God forbid, public opinion that forced Ford to sign the ill-fated document. No no and one more time no! Henry, who did not doubt the correctness of his own decisions, was ready to break the company into small branches and start selling off assets rather than go along with people whose ideals he despised all his life. But his wife intervened. Clara threatened her husband with a divorce if he did not preserve the integrity of the company and did everything to ensure that the Ford Motor Company would forever remain the Ford family estate. Only then did Henry, reluctantly, sign an agreement with the hated trade unions...
And what are his very dubious (and this is putting it mildly) anti-Semitic views worth?! Not to mention the fact that it was Ford who turned out to be the only American that Hitler mentions, and mentions in enthusiastic tones in Mein Kampf!
But who are we to judge the greatest automaker of the 20th century? In any case, the righteous in the world of big business simply do not exist, besides, Ford already got hard from fate. He survived his only son - Edsel died of cancer back in 1943, and by that time he had no friends left for a long time. Who knows, perhaps this is the price that the brilliant auto manufacturer had to pay for fabulous wealth and worldwide fame?
Danila Mikhailov
The main production of which is located in America. It produces not only cars (Mercury, Ford, Lincoln), but also trucks and various agricultural machinery.
The history of Ford is unequivocally connected with its discoverer, director and simply brilliant man Henry Ford.
The stage of the company's birth from 1900 to 1920
The location of the company is a small factory specializing in the production of carriages. One of the first significant achievements of Henry Ford is a sidecar for carrying passengers, called "Model A". Her work was carried out at the expense of, the power of which was eight horsepower.
The car was considered the most perfect of all present on the market. The ease of its control attracted even the most demanding gentlemen. For the next five years, Henry Ford was engaged in a constant increase in the production of this type of transport. This served as a significant impetus. Wheelchair models are constantly being upgraded and improved. However, many of them have not gone beyond the experimental level.
Henry Ford's company made a huge breakthrough in 1911. The newly created by the brilliant designer car "Iron Lizzy" became available to a huge number of the population. The second name of the car is "Model T". In the auto industry, such a modification enjoyed a special and. The price component for the "Model T" fluctuated within two hundred and sixty dollars. Approximately 11,000 pieces of equipment were sold during the year.
Mass production of cars begins precisely after the appearance of the Iron Lizzy on the car market, and the demand for personal vehicles began to gain incredible momentum.
In parallel with the production of a well-known model, some are being developed. Among them are ambulances, pickup trucks, small buses and vehicles for the transport of goods.
In order to meet significant consumer demand, Henry Ford for the first time switched to assembly line production. At the same time, the work of each participant in the process has a narrow focus, forces are not scattered to perform several phases of the process at once. The moving conveyor has literally revolutionized the automotive industry..
Second stage of development from 1920 to 1940
The rhythm of people's lives was constantly increasing, as was the production capacity of the company. Developers worked day and night on new inventions that would meet all the requirements of the population.
1932 was marked by the release of a monolithic eight-cylinder V-shaped power unit. The Ford company became a pioneer in the creation of such equipment. with such an engine have long been a priority for a huge number of Americans.
On the video - the history of the Ford brand:
Two years later, the modified power unit appeared on many trucks.
In the same period, buyers begin to think about the safety of the car. This question becomes relevant for Henry Ford. The company's factories begin to produce safety glasses. Risks of Harm human body constantly reduced to a minimum. A large part of the company's policy is based on ensuring safety for both the driver and passengers.
People's love for the Ford brand is growing exorbitantly. Cars occupy their cell in America, as well as in Russia and Europe. are considered truly popular.
The period from the forties to the sixties
In the early forties, the company put all its strength and power into the creation of a specialized military equipment. The production of civilian vehicles was temporarily suspended.
During the period of hostilities, the Ford plant produced 57,000 aircraft engines, 86,000 B-24 Liberator bombers, and 250,000 tanks.
In 1945, Henry Ford, after long and fruitful years, retires. He transfers all his rights to his grandson Henry Ford Jr. In 1947, the founder of a well-known company dies on his own estate. At that time he was 83 years old.
However, the company under the leadership of the grandson is still thriving. was introduced in 1949 at the New York Auto Show. She had a number of features:
- independent front suspension;
- smooth side panels;
- rear side windows able to open.
The standard of the future automotive design was the integration of wings and bodywork. The sale of these cars was a huge breakthrough in the life of the company. The volume of units sold exceeded .
The company's profits began to rise at an accelerated pace. Accordingly, production capacities began to expand: new factories, laboratories, test sites appear.
The company is moving into financial business, studies the features of insurance. Expands its activities in the fields of electronics and space technology. To date, the shareholders of Ford Corporation are 700 thousand people..
Period from 1960 to 1980
The main direction of the corporation in the sixties was youth. Production is dominated by affordable sports cars with modern and creative designs.
Period since 1980
During this period, the competitiveness of other manufacturers increases significantly. In order to stay afloat, the corporation begins to practice the introduction of the latest technologies not only in cars, but also in other industrial areas.
The main goal of designers is to create a world leader for the executive class. Average price segment also did not go unnoticed.
To demonstrate all its capabilities, Ford produces two models: the Mercury Sable and the Ford Taurus. Every detail in the cars is absolutely perfect. As a result, the Taurus became the 1986 car of the year. In the late eighties, both cars underwent crushing. All of America was kneeling before them.
The subsequent innovative models were the Ford Mondeo and the globally restyled Mustang. Galaxy minivans and F-series pickups appeared in Europe.
The main credo of the company is: "While reducing production costs, strive for continuous improvement of our products."
In our time, the Ford brand has earned recognition around the world. More than seventy are produced by factories. Among them are the most famous: Lincoln, Ford, Jaguar, Aston Martin.
The Ford company, in addition to its own numerous productions, has a significant number of shares in the Kia Motors Corporation and Mazda Motor Corporation.
The leaders of the American company do not stop there and are constantly working to improve their capabilities.
History of Ford- This is not only the history of the American, but of the entire global automotive industry. It was the Ford company that first began to produce a mass cheap car. It is the fourth in the world in terms of production in history. It is now third in the US and second in Europe.
The company's annual turnover exceeds $150 billion. The asset value is $208 billion. The corporation has 62 factories, a network of outlets located in 30 countries. They employ over 200 thousand employees. We offer you to get acquainted briefly with the history of Ford.
History of the company
Ford history began with the first meeting in 1875, 12-year-old Henry Ford with a locomobile. The future father of the automotive industry called this meeting the most important in his life, which radically influenced his choice of profession. From a young age, he has been involved in technology, working as an apprentice in a mechanical workshop, as a repairman for locomotives. Evenings are spent in the workshop on the parent farm.
Henry Ford as a child
First car
In 1884, Henry got a job in one of the workshops in Detroit. Here he got acquainted in practice with the gas engine of the Otto model, known at that time.
Soon Henry returns to his native village, marries. His father gave him a large plot of land, where the young Ford built a house and equipped himself with a first-class workshop. In it, out of curiosity, he designed for himself a motor modeled after four-stroke model Otto operating on lighting gas.
Four years later, he is hired as an engineer for an electrical company. Henry and his wife rent a house in Detroit. In a brick shed behind the house, he set up a workshop, which he moved with him from Springfield. In it, the inventor devotedly worked in the evenings on his two-cylinder engine.
In 1892, Henry Ford built his first car. It looked like a cart with bicycle wheels. The two-cylinder engine developed a power of about 4 horsepower. There was no steering wheel, the car was set in motion by a crank. The first car of Henry Ford received from the inventor the simple name Ford Quadricycle (Ford Quadricycle).
Ford Quadricycle
In the spring of 1893, it was tested on the rural roads of Michigan. Until 1896, Ford drove it for thousands of miles, then sold it for $ 200 to a passionate car lover.
First experience
Meanwhile, the electrical company offered him a top engineering position on the condition that he stop working on machines. But the young engineer was already firmly convinced of the success of his business and on August 15, 1899, he refused the service in order to devote himself entirely to cars.
A group of entrepreneurs offered to organize a car company with his participation. Ford worked there for three years. During this time, he built 15 cars based on his first model. But sales were poor, there were no opportunities to design new models, and Henry left the company.
Own enterprise
Ford decides to organize an independent enterprise. He rents another brick shed for his workshop and continues to experimentally build new car models.
Most American car buyers at the time considered speed to be their trump card. To meet the needs of the public, Henry produces two models with a 4-cylinder engine of 80 hp, which at that time seemed to be gigantic power.
One of them, the "999" car, as he called it, successfully showed its speed in a three-mile race. Those willing to profitably invest in the business were quickly found, and in June 1903 the Ford Automobile Society was founded. Thus began the history of the company. The founder himself got a quarter of the company, the position of director and responsible for all production. The founders collected 28 thousand dollars.
Henry Ford and racing driver Barney Oldfield legendary car"999"
Subsequently, Ford bought back the shares for the money he earned and brought his share to 59%. And in 1919, when he began to have disagreements with shareholders over economic policy, the remaining 41% was bought by his son Edzel for a substantial sum of $ 75 million.
First steps
The history of the development of the Ford society began to be written with the "Model A". She had a two-cylinder engine of 8 hp. and chain transmission. Parts for the machine were produced by partners, and the company was already engaged in assembly. Cars immediately gained a reputation for being simple and reliable machines. Already in the first year, 1,708 copies were sold and the company's business went well.
Model "A"
In 1906, at the expense of working capital, the company built a 3-storey building, began to produce a number of parts on its own.
In the process of manufacturing and selling products, Ford came to the conclusion that the market was in dire need of a cheap mass car. Due to the simplification of the design, the streamlining of prices, sales volumes in 1907-1911 increased significantly. The company has already assembled more than 100 cars a day.
The number of employees in the company reached 4110 people, the number of cars produced - 45 thousand. The company has branches in London and Australia. Ford has already traded in many countries around the world.
The history of the Ford company has developed according to the methods of its founder. The company's machines were designed less complex than those of competitors, the company did not use foreign capital, all profits were invested again in production, and a favorable balance always made it possible to have working capital.
Model T
According to Ford, the car should be simple and affordable. He embodied his idea in the development of the "Model T", which the company began to produce since 1908. It absorbed everything that the inventor had worked out over the previous time, plus vanadium compounds in the materials.
Tin Lizzie (Model "T")
"Tin Lizzy" (Tin Lizzy), as it was nicknamed by motorists, became the first mass-produced car. In 1914, the company celebrated the release of the anniversary 10 millionth copy. The car was produced until 1928.
Conveyor
Since 1913, Ford began to gradually introduce conveyor production cars. The results were stunning. For example, engine assembly time was reduced from 9.9 to 5.9 working hours.
The introduction of the Ford assembly line reduced the price of the Tin Lisa from $850 to $290. In 1914, Henry set the country's highest minimum wage for workers, $5 a day.
An innovative production method at the time - assembly line
How the lineup has changed as the company has evolved
Today, the concern manufactures more than 70 car models. Consider the main instances of the model range Ford cars motor company.
After the decline in sales of the Model T, Ford closed all production for six months, having carried out the necessary reconstruction to switch to new model Ford A (prototype of the Soviet Pobeda), which has more perfect characteristics. This car was the first to have safety glass.
Model A 1929
Again ahead of the competition, Ford was the first to begin production of station wagon models in 1929.
Competitors, meanwhile, have mastered the production of V-6 engines. The company's shareholders offered to begin production of their counterparts, but Ford insisted on developing a more advanced engine. So in April 1932, a new V-shaped 8-cylinder engine installed on the Model B was presented to the public. The engine was called flathead - in translation: “flathead”. It was quite compact, worked quietly and, thanks to the small number of parts, very reliable and easy to maintain. Only a few years later, competitors were able to organize the production of cars with an engine of this type.
Model B 1932
When America began hostilities, all the efforts of the company were directed to the production of military products. The concern produced bombers, aircraft engines, tanks, anti-tank guns, trucks and jeeps, and other military equipment.
In September 1945, 82-year-old Henry Ford resigned as head of the corporation and transferred the business to his grandson. Two years later, on April 7, 1947, he dies on his estate. At that time, his fortune was equal to $ 199 billion, adjusted for inflation.
Fairlane
In 1948, the first Ford F-Series from a series of full-size pickups was released. The car has become the most popular pickup truck and one of the best-selling in the world. More than 34 million copies of this series have been sold.
F-100 1948
In the 60s, Ford, following the sporting and youth trend that prevailed in America, switched to the production of inexpensive sports cars. In 1964, one of the best cars of the company appears - Mustang, named after the famous American aircraft P-51. Equipped with a new engine, with a bright and stylish design, the car was a huge success. After 1.5 years, a million copies were sold. It is still a cult car.
Mustang first generation. Read all about the Ford Mustang on the site pro-mustang.ru
Following the Mustang, the production of a commercial ford car transit. Since 1965, more than 6 million cars have been sold in seven generations.
In 1968, the production of the Ford Escort, one of Ford's most successful passenger cars, began. Over 35 years of production, almost 20 million pieces have been sold.
Escort 1968-1973
1976 was marked by the release of the B-class model - Ford Fiesta. It is still produced with success in many countries around the world. Its circulation is more than 13 million units in 6 generations.
Since 1998, the Ford Focus, a popular sedan, has been produced. Today, the model is already in its third generation. More than 9.2 million cars sold. The car is popular in Russia, where it has been assembled since 1999. In 2010 Focus was the best-selling foreign car in our country.
Focus 1998
Logo evolution
The oval badge known today did not appear on Ford cars immediately.
The history of the logo dates back to 1903. The first emblem featured the inscription “Ford Motor Co.”, made in an outlandish font and framed by an oval.
Three years later, the inscription was reduced and made "flying". It was supposed to symbolize the rapid movement of the company forward. The emblem existed until 1910.
The Ford trademark was registered with the US Patent Office in 1909.
In 1912 the logo takes new form- a bizarre triangle, on the sides of which wings are spread. As conceived by the designers, the design of the emblem meant elegance and reliability, and with them speed and lightness.
The prototype of the current sign appeared in 1927 - a blue oval with the inscription Ford inside. Until the 70s, it was not installed on all cars of the brand.
Since 1976, an oval with a blue background and a familiar silver lettering has been placed on the radiator and rear door of all cars manufactured by the corporation.
In 2003, on the eve of the centenary of the corporation, the logo was added with subtle features of the original emblems. The iconic oval badge is still easily recognizable and represents the high quality and reliability of the famous brand.
"The color of the car can be any, provided that it is black".
There is an opinion that this phrase about the black color is not mentioned by him by chance. All "T" models were in the same color. Ford chose to paint them black only because that color was the cheapest.
To the journalist's question: "Which car do you consider the best?", the great designer replied:
"The best car is a new car!"
"I never say, 'I need you to do this.' I say, "I wonder if you can do it."
“More often people give up than they fail.”
"Only two incentives make people work: the desire for wages and the fear of losing it."
The current state of the company and its prospects
The corporation is still one of the leading automakers in the world. Apart from cars, trucks and buses under the Ford brand, which are sold worldwide, the concern's portfolio includes the brands Lincoln and Troller (Brazil). He also owns shares in Kia Motors Corporation and Mazda Motor Corporation.
In the early 2000s, the company's crisis was significant. However, after Alan Mulally came to the leadership of the corporation, the activities of the giant automaker began to make a profit again. Restructuring carried out, transition to new strategy corporations for the production of cars, uniform for all markets.
Alan Mulally
Financial position
At the end of 2017, Ford's net profit increased by 65% and reached $ 7.6 billion, revenue increased by 3% and equals almost $ 157 billion. Profit for the last quarter amounted to 2.4 billion dollars, a year earlier there were losses.
According to the forecasts of American experts in 2018, the company's profit is expected to decline. Revenue is projected at $142 billion.
In Russia, there has been an increase in credit purchases of crossovers and SUVs, especially the Ford Explorer and Ford Kuga. In 2017, their share in the company's sales increased to 31%, which provided the Ford Sollers JV, which represents Ford's interests in Russia, with a 16% increase in sales. In 2017, Ford commercial vehicles were sold 68% more than last year.
explorer
The company expects further growth in SUV sales. It is planned to increase production at the enterprises of Tatarstan with the simultaneous updating of some models. The firm lays great expectations to strengthen positions in the segment of light commercial vehicles.
Plans
This year, the concern plans to introduce 23 new models to the international market. In general, the company has a strategy to reduce
number of car models. The main focus will be on the development of new trucks and SUVs.
The corporation's mission is to continuously improve the company's products to meet the needs of our customers, to enable the company to prosper and to provide profit to its shareholders and owners.
Ford Motor Company is an American automobile company specializing in the production of passenger cars of the Ford, Mercury, Lincoln brands, trucks, various agricultural machinery. Ford owns Jaguar. The headquarters is located in Dearborn (Michigan), near which was once the farm of Henry Ford's parents.
The company was founded by Henry Ford in 1903 and, according to the idea of its creator, was immediately intended for the production of a mass cheap car. Initially, this was the "A" model, in 1908 it was replaced by the "T" model, dubbed "tin Lizzy" by cartoonists. The success of the new model was so great that the ever-expanding Ford factories could not cope with orders. In the first year of production of this model, 10,660 cars were sold, which broke all records in the automotive industry of that time.
At Ford Motor in 1913, for the first time in the world, a method of standardizing interchangeable parts of products and a conveyor technology for assembling automobiles were introduced in production, which made it possible to raise labor productivity by 40-60% in just one year. At the same time, the wages of workers and employees increased so that they exceeded the industry average twice. Enterprises are introducing an eight-hour working day. By the middle of 1914, 500,000 Model Ts had been produced; by 1923, every second car in America was made at Ford Motor factories.
In the 1920s and 1930s, Ford Motor actively opened branches in many countries of the world, including cooperating with Soviet Russia (creating GAZ and AMO plants). Although Henry Ford was sharply negative about the October Revolution, he nevertheless believed that Russia had a great future if it embarked on the path of industrial development.
In 1922 Ford Motor acquired the Lincoln Company, which was entrusted to Edsel Ford. The older Ford's authoritarian management style becomes a favorite target of the leftist press, and Ford's refusal to tolerate unions in his factories sparks a campaign of real bullying. However, by the end of the 1920s, Americans were tired of the monotonous “T” model. Competitors from General Motors are breaking ahead, Ford Motor responds with the Ford A model, the popularity of which still lags behind Chevrolet and Buicks.
The Great Depression of 1929 dramatically reduced car sales. Wages are cut in half.
In 1932, the beginning of mass production of V-shaped 8-cylinder engines. Ford Motor Company becomes the first company to produce a monolithic eight-cylinder block. It will be many more years before Ford's competitors can mass-produce reliable V-8 engines. In the meantime, the Ford car and its reliable engine have become a favorite of practical Americans. An assembly plant was opened in Cologne.
Comparatively successful was the Mercury line of cars, launched in 1938. The company is nominally run by Edsel Ford, but his authority cannot be compared to that of his father. Business begins to stagnate, which lasted until the outbreak of World War II, when military orders improved things.
From 1942 to 47, the production of civilian vehicles stopped abruptly, because. the company directed all its efforts to military needs. The gigantic wartime program started by Edzel Ford produced 8,600 four-engine V-24 Liberator bombers, 57,000 aircraft engines, and more than a quarter of a million tanks, anti-tank mounts, and other military equipment in less than 3 years.
After the brief reign of old Ford (Edsel died in 1943), in 1945 power passed to Henry Ford II, who breathed new life into the company.
Ford Jr. reorganizes the recruitment system, uses brainstorming methods known to him from the war to develop the firm's strategy, inviting a group of system analysts.
In 1949 Ford Motor Company sells approximately 807,000 vehicles, increasing its profit from $94 million (the previous year) to $177 million and reaching its highest sales since 1929. Henry Ford II's post-war reorganization program quickly restored the company's health. The result was the construction of 44 manufacturing plants, 18 assembly plants, 32 parts depots, two huge test sites and 13 engineering and research laboratories in the USA.
The launch of the Thunderbird series in 1955 and the now classic Mustang strengthened Ford Motor's financial position. The attractive 1965 4-seater Mustang became America's darling. In the first 100 days, 100,000 of these cars were sold. Total sales for the year were 418,812 vehicles, generating $1 billion in profits for the company.
In 1968, the first 1.6-litre Escort Twin Cam launched its racing career, successfully opening the season and winning circuits in Ireland, the Danish Tulip, the Austrian Alps, the Acropolis and the Scottish Rally for eight weeks. By the end of its first season, the Escort had won the famous 1000 Lakes Rally in Finland, helping Ford secure a strong position in the World New Car Rally Championship. Implementation of an electronic vehicle speed control system. Models with the Twin Cam Escort design continued to win worldwide in 1969 and 1970.
The Western European model Ford Taunus / Cortina was very common in the 1970s and 1980s. The production of the station wagon (Kombi) Ford Taunus / Cortina family began back in 1970 (in Germany, models called Taunus have existed since the 63rd). The car was produced in almost all of the then European Ford plants, and the name Cortina was given to the English version with "right-hand drive". In January 1976, the second-generation Taunus/Cortina model, substantially redesigned, went into production.
Since 1976, with the start of production of Ford Econoline bonneted passenger-and-freight models E-series new generations began to use chassis elements, engines and transmissions similar to SUVs and pickups of the F series. In 1992, a new range of comfortable 7-, 8-, 12- and 15-seater all-metal minibuses and four-door vans with a body was introduced to the market.
The Fiesta family has existed for over 20 years - the first generation appeared back in 1976. The life path of the current generation models, which began at the Geneva Motor Show-89, is nearing sunset. For 11 years, the Fiesta family has undergone a serious restyling twice (in 1995 and 1999), thanks to which it remains quite modern to this day.
Crown Victoria is one of the most popular models in the USA (in the police, taxi, rental, in the secondary market). Manufacturing in Canada. The debut of the model took place in 1978. The new generation of the car was released in December 1990. Appearance update - 1998.
The 1980 Bgonco full-size station wagon was an all-wheel drive pickup truck with a shortened base. The cross-country ability turned out to be quite high, so the model remained popular for a long time (in particular, in Alaska), even after the appearance of more modern models. In the first half of the 1990s, Vgopso became one of the leaders in the Russian market among used cars of this type. In 1990, the Vgopso models were replaced by more practical five-door Ford station wagons explorer.
Ford Escort It is produced in the USA and Europe, as well as in Argentina in three body styles: a five-seater sedan, a five-door station wagon and a ZX2 coupe. A generation of front-wheel drive European Ford Escort (Mod. 80) with a transverse engine was introduced in August 1980. Production of the American Ford Escort and Mercury Lynx continued until the summer of 1990. They were replaced by models developed on the platform of the Japanese Mazda 323. In January 1995, the design of the car was improved, a 4x4 version with a 1.6 liter engine appeared (in 1997, the production of the 4x4 model was discontinued). In 1998, a convertible was introduced.
In September 1982, models of the rear-wheel drive Sierra family with five-door hatchback and station wagon bodies (Kombi) appeared on sale, and the start of production of a three-door all-wheel drive model(XR4x4) with a 2.8-liter V6 engine was postponed until September 1983.
In November 1986, the launch of the 4x4 version of the Ford Scorpio. At the very end of 1991, the presentation of the roomy station wagon Scorpio Turnir took place. In the summer of 1998, the production of Scorpio was stopped, and the European branch of Ford decided to make the Mondeo model the flagship of the company.
Since the mid-1980s, Taurus has been produced. This model was named Car of the Year 1986, and in 1987 it became a bestseller in America. The streamlined, futuristic-looking cars, beautifully named Taurus and Sable, were a major milestone in Ford's transition to a new generation of 1980s cars that were economical (in full compliance with the regulations set by Congress), high-tech and aesthetically perfect.
In the same year, the purchase of a 75% stake in Aston Martin-Lagonda took place.
The purchase of the Jaguar company in 1990 further increases the range of Ford models, which in terms of comfort are in no way reminiscent of the “tin Lizzy”, and a year later, Ford Galaxy was created for the production of a multi-purpose car. joint venture with the German corporation Volkswagen.
The company is open to innovation and change; it is interesting that Ford Motor, a pioneer in the introduction of the conveyor, is the first among large corporations and abandoned it, since modern workers are more productive in doing work in which there is an element of independent creativity.
Ford Explorer, which debuted in January 1990, is between the competing Blazer and Tahoe models in size and has been the best-selling SUV in the North American market for many years (about 400,000 a year). The debut of the new generation Explorer in 2001 model year.
In 1993, the model was released Ford Mondeo which immediately set new safety standards in its class. Already in next year this car was recognized as the Car of the Year in Europe and became a favorite among buyers. For 1994, the Windstar minibus was also new. In the same year, the purchase of the remaining shares of Aston Martin-Lagonda took place.
Ford Windstar was first shown in January 1994. In 1998, the model was restyled. Produced in Canada.
The first show of the Ford EUROPE Galaxy took place in February 1995 in Geneva. At the Geneva Motor Show 2000 was presented modernized model with updated design.
In 1996, the 250 millionth car rolled off the assembly line of the company. The implementation of the Ka model has begun.
The Ford EUROPE Puma, a small sports coupe based on the Ford Fiesta, was first introduced at the Geneva Motor Show in March 1997.
FORD Focus, for a long tradition bearing the name of Turnier. The European premiere of the hatchback took place in early 1998 in Geneva.
In 1998, Ford Motor Company becomes the 2nd largest car and truck manufacturer in the world in terms of total.
In 2000, an international jury of 126 automotive journalists, summing up the results of the unprecedented competition "Car of the Century" ("Car of the Century"), chose the legendary Ford T. Tin Lizzie ("Tin Lizzie") became the "Machine of all times and peoples" car, the assembly of which was established on the assembly line on a massive scale. The new method made it possible to start large-scale production of machines, improve their quality and sharply reduce the cost. It was the conveyor assembly that made the car a means of transportation accessible to everyone. And the first in a row really production cars was a Ford model.
Compact Ford SUV The Escape was first shown as a prototype in January 2000 in Detroit. The development was carried out jointly with Mazda. Car production is carried out at a plant in Kansas City.
Ford EUROPE Maverick, compact all-wheel drive SUV, the European equivalent of the Ford Escape. Since 2000, it has been produced jointly with Mazda on the basis of the Mazda Tribute. New Ford Maverick combines the characteristics of an SUV and a road car.
2001 - the company presents a fundamentally new Ford Mondeo model. Its appearance can be considered a revolutionary event. This car, developed by the European division of Ford Motor Company, was created on the basis of fundamentally new design technologies. The essence of this technical revolution is in a powerful software product called SZR, which is a complex of computer design systems, computer-aided design and an extensive information database.
Today, Ford Motor Company has its own production, assembly and sales centers in 30 countries around the world. The company annually produces millions of cars, trucks and tractors and is a leader automotive sales outside of North America. Ford Motor Company sells over 70 various models machines around the world, manufactured under ford brands, Lincoln, Mercury, Jaguar and Aston Martin. The company also has a stake in Mazda Motor Corporation and Kia Motors n.Corporatio
In the "big three" of the American automotive business"Ford Motor" takes an honorable second place in terms of sales.
