Die Enzyklopädie Of Trading Strategien Katz Pdf

Automobilindustrie Die Wende des zwanzigsten Jahrhunderts erlebte die Dämmerung der Automobilindustrie. Basteln mit dem Fahrrad, Motorrad, Buggy und Maschinenunternehmer in Europa und den Vereinigten Staaten führten zu den ersten Prototypen von Automobilen im späten neunzehnten Jahrhundert. Die französischen Holzbearbeitungsmaschinen Rene Panhard und Emile Levassor bauten ihr erstes Auto im Jahre 1890 mit einem Motor, der in Deutschland von Gottlieb Daimler und Wilhelm Maybach entworfen wurde. Armand Peugeot, ein französischer Fahrradmacher, lizenzierte den gleichen Motor und verkaufte seine ersten vier leichten Autos im Jahre 1891. Der deutsche Maschinist Carl Benz folgte dem nächsten Jahr mit seinem vierrädrigen Auto und im Jahre 1893 bauten Charles und Frank Duryea das erste Benzinfahrzeug in den Vereinigten Staaten. Ransom Olds wird als erster Massenproduzent von Benzin-angetriebenen Automobilen in den Vereinigten Staaten gutgeschrieben, was 425 x201C Curved Dash Olds x201D im Jahr 1901. Das erste Benzin-powered japanischen Auto wurde im Jahre 1907 von Komanosuke Uchiyama gemacht, aber es war nicht bis 1914 Dass Mitsubishi Massenproduktion Autos in Japan. Jede Region in der Triade x2014 Nordamerika. Europa und Asien x2014 hat im Laufe des zwanzigsten Jahrhunderts bedeutende Beiträge zu Prozess, Produkt und Organisation geleistet. Diese Innovationen haben gemeinsam die Wettbewerbsstruktur der Automobilindustrie geprägt, die heute existiert. Die Organisation der Produktionseingänge x2014 wie Arbeit und Lieferanten von Komponenten und Materialien x2014 sowie die Konfiguration von Vertriebskanälen sind auch wichtige Dimensionen des Wachstums und der Entwicklung der Branche. Darüber hinaus bilden verschiedene Kräfte außerhalb der Industrie Industriestruktur und - strategien: Der Handel fließt regionale und internationale Kapitalverkehrsregionen regionale und globale Politik auf Handel, Umweltregulierung und geistiges Eigentum, vor allem in Schwellenländern und die Infusion von Informationstechnologie während der Beschaffung, Produktion Und Verteilungssystemen. Die Automobilindustrie ist dynamisch und gewaltig und macht rund zehn Arbeitsplätze in den Industrieländern aus. Die Entwicklungsländer sehen sich oft auf ihre lokale Automobilbranche für Wirtschaftswachstumschancen, vor allem wegen der engen Verknüpfungen, die die Automobilindustrie auf andere Sektoren ihrer Wirtschaft hat. Die Automobilindustrie hat mehrere Stufen durchlaufen: (1) Handwerksfertigung (1890-1908), in der Dutzende von kleinen Unternehmen wetteifern, um ein Standardprodukt und - prozeß (2) Massenproduktion (1908-1973) zu etablieren, gefällt von Henry Ford x2019 (1973 x2013 anwesend), die ursprünglich in Toyota unter der Leitung von Taichi Ohno in den 1950er Jahren entwickelt wurde und die einen revolutionären Managementprozess eingeführt hat Produktentwicklung und Produktion. Die Mechanisierung der Automobilproduktion wurde auch im vergangenen Jahrhundert umgesetzt, angeführt von der Notwendigkeit einer schnelleren und kostengünstigeren Produktion auf der Angebotsseite der Branche. Ford x2019 s Massenproduktionssystem basierte auf standardisierten Designs, um den Bau von Montageanlagen zu ermöglichen, die vollständig automatisiert wurden und austauschbare Autoteile verwendet wurden. In seiner Blütezeit, zwischen 1908 und 1920, Ford gestrafft die Montage bis zu dem Punkt, wo es dauerte nur über eineinhalb Stunden, um ein Auto zu produzieren. Die Festlegung des Industriestandards für die Produktion ermöglichte es Ford, die Marktführerschaft zu übernehmen, aber es führte auch zu einer selbstgefälligen Denkweise, die Innovation behinderte. In den 1920er Jahren verbesserte General Motors den Ford x2019 s Fließbandprozess, indem er Flexibilität in das Produktionssystem einführte und so schnellere Umstellungen von einem Modell zum nächsten ermöglichte. Allerdings dauerte es ein halbes Jahrhundert, nachdem Ford die Massenproduktion von Modell T x2019 s im Jahr 1927 für ein weiteres Produktionsparadigma als Standard in der globalen Automobilindustrie aufgab. Toyota x2019 s schlanke Produktionssystem x2014, die seine Anfänge im Jahr 1953 x2014 trieb die Produktivität zu neuen Höhen durch den Austausch der x201C push x201D-System mit einem x201C ziehen x201D-System. Anstatt produzieren Massenmengen von Fahrzeugen und drückte sie bis hin zu Händler, um an Kunden zu verkaufen oder als Vorräte zu halten, zog das schlanke System Fahrzeuge durch den Produktionsprozess auf der Grundlage der unmittelbaren Nachfrage, Minimierung der Vorräte bei Lieferanten, Monteuren und Händlern. Just-in-Time-Produktion gab auch eine größere Verantwortung für Produktdesign, Qualität und Lieferung an Montagearbeiter und Lieferanten als das Massenproduktionssystem. Lieferanten wurden nicht vertikal in Auto-Assembler-Operationen integriert, sondern über die langfristigen Verträge mit den Monteuren vernetzt. Dieses Gesamtsystem der Kostenminimierung und Reaktionsfähigkeit auf Kundenanforderungen revolutionierte die Automobilherstellung weltweit, obwohl das Modell an die regionalen Gegebenheiten angepasst wurde. Produktinnovation in der Automobilindustrie ist vor allem eine Antwort auf Kundenanforderungen, obwohl Produktpositionierung eine kritische strategische Variable für Autohersteller ist. Seitdem General Motors anfing, verschiedene Arten von Fahrzeugen für verschiedene Produktsegmente zu produzieren und damit die Herrschaft von Ford x2019 s preiswerten, monochromatischen Modell T zu beenden, war die Fähigkeit, Produkte auf mehreren Dimensionen zu variieren, die wichtigste strategische Variable der Automobilhersteller. U. S. Autohersteller haben vor allem reagiert auf Kunden x2019 Wünsche für Komfort, Geschwindigkeit und Sicherheit, und haben robuste Antriebsstränge, Plüsch Suspensionen und Innenräume und stilvolle Chassis und Körper entwickelt. Im Gegensatz dazu haben die europäischen Automobilhersteller ihre Aufmerksamkeit auf Leistungsmerkmale und Beweglichkeitsmerkmale von Fahrzeugen, wie z. B. Stahlgürtel-Radialreifen, Scheibenbremsen, Kraftstoffeinspritzung und Turbo-Dieselmotoren, konzentriert. Für japanische Produzenten bestimmen die Miniaturisierungskultur und die Knappheit von Treibstoff, Material und Raum weitgehend die Spezifikationen von Autos. Organisatorische Innovationen sind auch im vergangenen Jahrhundert aufgetreten. Im Einklang mit der Einführung von Massenproduktionstechniken kam die vertikale Organisation von Produktionsprozessen. Auto Assemblers verinnerten die Produktion von kritischen Komponenten in dem Bemühen, Transaktionskosten im Zusammenhang mit verspäteten Lieferungen und Produkten, die nicht nach genauen Spezifikationen produziert wurden, zu minimieren. Zum Beispiel sank der Anteil der von externen Lieferanten bezogenen Komponenten gegenüber dem Großhandelspreis eines amerikanischen Autos von 55 Prozent im Jahr 1922 auf 26 Prozent im Jahr 1926. Während der Großen Depression. Diese Neigung, die Produktion zu verinnerlichen, erleichtert, wobei die Lieferanten Unabhängigkeit und Bedeutung im Ersatzteilmarkt gewinnen. Autohersteller fanden heraus, dass eine sehr vertikale Organisationsstruktur die Flexibilität in den für die Produktinnovation notwendigen Operationen nicht gestattete. In den 1930er Jahren weicht die vertikal integrierte und zentral gesteuerte Organisationsstruktur von Ford x2019 der multidisziplinären Organisationsstruktur, die von Alfred Sloan bei General Motors Corporation (GM) umgesetzt wurde. Sloan x2019 s dezentralisierte Konfiguration von GM förderte ein unabhängiges Umfeld für die Entwicklung, Produktion und Vertrieb von einer Vielzahl von Fahrzeugen. Mit der schlanken Produktion Revolution kam die Einführung der organisatorischen Reform als das erweiterte Enterprise-System bezeichnet. Obwohl die japanischen Automobilhersteller in der gesamten Branche effiziente Mechanismen des Supply Chain Managements etabliert und verbreitet haben, wird die Chrysler Corporation mit der erfolgreichen Umsetzung dieser Innovationen im amerikanischen Veranstaltungsort gutgeschrieben. Rivalität zwischen den Monteuren in der Automobilindustrie, die einmal in den nationalen Grenzen enthalten war, hat sich zum globalen Wettbewerb entwickelt. Erste Macher etablierten Marktdominanz in den frühen 1900er Jahren, und ihre Marken sind immer noch die am meisten von den Verbrauchern heute anerkannt. Die Tatsache, dass Auto-Produzenten wählen Marktstrategien auf, was ihre Rivalen tun, zeigt, dass dies eine oligopolistische Industrie ist. Was hier interessant ist, ist, dass die Marktführerschaft dynamisch bleibt: Es ist nicht gegeben, dass General Motors oder Toyota oder DaimlerChrysler der Marktführer von morgen sein wird. Bevor Industrie-Standards für Produkte und Produktion etabliert wurden, gab es Hunderte von Autoherstellern, die jeweils wetteifern, um einen Strandkopf in der Branche zu etablieren. In den USA zum Beispiel, im Jahr 1909 sah die größte Anzahl von Autoherstellern in Betrieb in einem bestimmten Jahr x2014 272 Unternehmen. Es wird geschätzt, dass in den ersten zwanzig Jahren der Industrie x2019 Existenz, über fünfhundert Firmen in die Industrie in den Vereinigten Staaten allein betreten. Die 1920er Jahre brachten eine Welle von steilen Ausgängen von Automobilherstellern, mit vielen Firmen, die in profitable Unternehmen verschmelzen. In den 1930er Jahren wurde General Motors zum Marktführer, mit Ford, der wegen einer einjährigen Umstellung in der Produktion vom Modell T zum Modell A auf den zweiten Platz schlug. Bis 1937 General Motors, Ford und Chrysler x2014 lange als Big Three x2014 bezeichnet Hatte 90 Prozent des Gesamtumsatzes auf dem US-Markt und bildete ein dominant-faches Oligopol (General Motors entfielen 44,8, Chrysler 25 und Ford 20.5). In den sechziger Jahren blieben nur sieben heimische Autohersteller. In den späten 1990er Jahren übernahmen japanische Automobilhersteller mehr als ein Viertel des US-Marktes, und Big Three Marktanteile gingen unter 70 Prozent. Heute gibt es nur noch zweieinhalb U. S. Autohersteller x2014 General Motors, Ford und DaimlerChrysler x2014, die gemeinsam 58,7 Prozent des US-Marktes erfassen. GM hat immer noch den größten Anteil am US-Markt (27,3), aber Toyota x2019 s Marktanteil in den Vereinigten Staaten ist nur ein Prozentpunkt unterhalb von Chrysler x2019 s (13). Weltweit ist die Marktkonzentration seit Mitte der 80er Jahre ebenfalls rückläufig, wobei die Teilnehmer wie HyundaiKia den kollektiven Marktanteil der dominanten Autohersteller verdünnen. Markt-Rivalität in der Auto-Industrie konzentriert sich auf zwei strategische Variablen: (1) Produktvielfalt und Qualität, und (2) Transaktionen Preis, der manipuliert wird, um den Umsatz zu steigern. Die Spannungen zwischen den Anliegen der Aktionäre über die kurzfristige Rentabilität und ein Unternehmen x2019 s Wunsch nach langfristiger Rentabilität ist fühlbar. Autohersteller müssen eine solide Kundenbasis anziehen und pflegen, die Treue zum Markennamen aufbauen, um das Ergebnis langfristig zu maximieren. Die Erhaltung hoher Kundenrückkaufquoten ist entscheidend für die langfristige Profitabilität in der Branche. Deshalb versuchen Autohersteller, Kunden vom Kauf ihres ersten Autos in ihren späten Teens bis zum Ruhestand und danach zu gewinnen und zu halten. Die Produktvielfalt aller großen Autohersteller umfasst das gesamte Spektrum von kleinen bis großen Autos, obwohl einige Autohersteller in bestimmten Marktnischen besser bekannt sind. Zum Beispiel, Mercedes, BMW, Lexus, Infiniti und Acura fangen ein Drittel des gehobenen Marktes in den Vereinigten Staaten, während Buick, Ford, Mercury und Toyota für ihre Familie-Stil traditionellen Autos bekannt sind. Schlüsselfertige Zuverlässigkeit ist das Markenzeichen der japanischen macht, während Ford, Chevrolet und Toyota an Käufer von kleinen oder sportlichen Fahrzeugen ansprechen. Das am schnellsten wachsende Marktsegment in den USA in den letzten Jahren war Sport Utility Vehicles (SUVs). In den frühen 2000er Jahren eroberten SUVs 55 Prozent des Fahrzeugverkaufs. Auto-Produzenten haben verschiedene Mittel verwendet, um eine ganze Reihe von Produktangeboten für ein breites Spektrum von Kunden zu entwickeln. Zum Beispiel hat GM historisch Akquisition oder Beteiligungen verwendet, um eine Vielzahl von Marken x2014 einschließlich Chevrolet, Oldsmobile, Pontiac, Buick, GMC und Cadillac anzubieten. In den späten 1970er Jahren, GM gekauft Aktien in Suzuki und Isuzu subcompacts und importiert diese Fahrzeuge, zum Teil zu erfüllen Corporate Average Fuel Efficiency Anforderungen. In den letzten Jahren hat Ford-Mercury-Lincoln auch sein Portfolio durch den Erwerb von Volvo und Jaguar diversifiziert. Toyota, Honda und Nissan haben in den 1980er Jahren ein cleveres Marketing-Trick eingeleitet, das auf den Verkauf von Luxusfahrzeugen in den USA ausgerichtet ist: Sie nannten ihre Luxusmarken Lexus, Acura und Infiniti, obwohl diese Autos auf denselben Plattformen wie sie sind Andere Fahrzeuge. Die Produktqualität hat sich im Laufe der Zeit konvergiert. Erst 1998 hatten europäische und japanische Flugzeuge in den ersten Monaten auf der Straße weniger Fahrzeugdefekte als der Durchschnitt für Autos, während die U. S.- und die koreanischen Autos mehr Mängel als den Durchschnitt hatten. Bis 2004 waren Fahrzeuge aus allen vier Regionen innerhalb von zehn Mängeln pro hundert Fahrzeugen des Durchschnitts, die von 176 auf 119 Mängel pro hundert Fahrzeuge gefallen waren. Interessanterweise übertrafen sowohl die japanischen als auch die südkoreanischen Newcomer die U. S.- und europäischen Fahrzeuge auf dieser Qualitätsskala. Um Kunden zu einer Marke zu locken, werden kleine Autos manchmal als Verlustführer verwendet, das ist, ein Unternehmen wird ihr Low-End-Fahrzeug zu einem Preis unterhalb der Rechnung verkaufen, während er große Renditen auf SUVs, Luxusmarken und Spezialautos erholt. Eine weitere Preisstrategie, die oft von Autoherstellern verwendet wird, um Vorräte zu löschen und den Kunden in die Tür zu bringen, ist Diskontierung. Zu bestimmten Zeiten des Modelljahres (das typischerweise im Oktober beginnt und im September des folgenden Jahres endet) werden direkte Assembler-to-Customer-Rabatte sowie Dealer-to-Customer-Rabatte verwendet, um die Transaktionspreise auf Ebbs und Flows in der Nachfrage anzupassen . Wenn das revolutionäre Pull-System in der Automobilindustrie durchdringt, könnte die Notwendigkeit, die Bestände durch End-of-Model-Jahr-Diskontierung zu verwalten, obsolet werden. Allerdings wird die Produktpositionierung weiterhin eine wichtige Wettbewerbsvariable für Autohersteller sein, da demografische Attribute die Bedürfnisse und Wünsche der Kunden treiben. Automobilzulieferer gewinnen in der Automobilindustrie weltweit an Bedeutung und übernehmen die Hauptverantwortung für Produktentwicklung, Engineering und Fertigung für einige kritische Systeme im Automobil. In der ersten Entwicklungsstufe bestand die Automobilindustrie aus Auto-Assemblern, die die Teileproduktion in das Unternehmen integrierten. Unabhängige Autoteilehersteller lieferten vor allem Ersatzteile. Im Laufe des zwanzigsten Jahrhunderts wurde diese vertikal integrierte Struktur innerhalb der Monteure durch eine netzwerkorientierte Tierstruktur ersetzt. Hier koordinieren die Monteure Design - und Produktionsbemühungen mit erstklassigen Zulieferern, während diese Lieferanten für die globale Koordination der Versorgung ihrer Baugruppen und für die Koordination der Produktion durch Sub-Tier-Teilehersteller verantwortlich sind. So haben erstklassige Zulieferer Autohersteller in der Marktmacht und im Anteil der Wertschöpfung zu jedem gegebenen Fahrzeug konkurrieren. Während es zu diesem Zeitpunkt unwahrscheinlich erscheint, dass sich diese Lieferanten zu kompletten Fahrzeugherstellern entwickeln werden, verlagert sich der Gewinn, der durch den Verkauf eines Fahrzeugs erwirtschaftet wird, auf den Lieferanten und weg von dem traditionellen Assembler. Autohersteller sehen sich daher von anderen Autoherstellern und von marktbeherrschenden Lieferanten steif rivalisieren. Nur ein paar wenige Anbieter haben x201C echte globale Kompetenz x201D in der Produktion von Automobilsystemen erreicht, aber der Branchentrend zeigt in diese Richtung. Das x201C Intel Inside x201D Phänomen gesehen mit Computern x2014, in denen der Anbieter x2019 s Marke Identität ist entscheidend für den Verkauf des Endprodukts x2014 hat noch nicht die Automobilindustrie übernommen, obwohl x201C Hemi Inside x201D könnte ein auftauchendes Beispiel sein. Als sich die Fertigungsmomentum in Richtung Auto-Teile-Lieferanten verschoben, so auch der Anteil der Arbeit. Seit den frühen 1960er Jahren liegt die Gesamtbeschäftigung in der US-amerikanischen Automobilindustrie zwischen 700.000 und knapp über 1 Million Arbeitnehmern. Bis Mitte der 80er Jahre beschäftigten die Auto-Assembller die Mehrheit dieser Arbeiter, aber von da an war der Beschäftigungsanteil für Automobilzulieferer in den Vereinigten Staaten konsequent größer als der Anteil der Arbeiter an Montagewerken. Zwischen 1987 und 2002 sank der Anteil der Automobilbranche an den Montagewerken von 44 Prozent auf 36 Prozent, während der Anteil der Arbeiter bei Automobilzulieferern von 46 Prozent auf 54 Prozent anstieg. Hinzu kommt der Zustrom von meist nicht gewerkschaftlich organisierten Transplantationen (ausländische Zulieferer und Monteure), das Outsourcing von Teilen und die Montage in ausländische Nationen sowie die allgemeine sektorale Verlagerung von der Fertigung zum Dienstleistungssektor, und es ist klar, dass die 1980er Jahre Markierte einen Wendepunkt für die Arbeit in der US-Autoindustrie. Gewerkschaften, die Autoren in den Vereinigten Staaten vertreten, mussten im Jahr 1935, als die United Auto Workers (UAW) gegründet wurde, eine Vielzahl von Wellungen in den häuslichen Geschäftszyklen bewältigen. (Andere Gewerkschaften, die Autoarbeiter in den Vereinigten Staaten repräsentieren, sind die Internationale Vereinigung der Maschinisten und Luftfahrtarbeiter Amerikas, der United Steelworkers of America und der Internationalen Bruderschaft der Elektroarbeiter.) Letzte Änderungen in der Organisation der Automobilindustrie und in der Das Eigentum an inländischen Firmen stellt jedoch eindeutig gewaltige Herausforderungen für die Gewerkschaftsstärke dar. Zunächst wird die Umsetzung der schlanken Fertigungstechniken und der Antrieb, um weltweit wettbewerbsfähige Preise, Qualität und Lieferstandards zu erreichen, voraussichtlich Jobkürzungen auslösen, da die Anbieter die Produktivität steigern. Zweitens erlauben nur wenige Automobil-Transplantationen in den USA den Gewerkschaftsstatus x2014, nämlich NUMMI (GM-Toyota), Diamond Star (Chrysler-Mitsubishi) und Auto Alliance (Ford-Mazda), die alle Joint Ventures mit US-Unternehmen sind . Dennoch steigt die Beschäftigung im Gesamttransplantat an: Zwischen 1993 und 2003 stieg die Beschäftigung bei Transplantationen in den USA von 58.840 auf 93.408. Die UAW bemüht sich weiterhin darum, Arbeit bei Transplantationen zu organisieren und zielt auf Lieferantenparks in der Nähe von gewerkschaftlich organisierten Monteuren ab, um die Standortkontrolle zu beherrschen. Drittens verringert das Outsourcing der Produktion in einer kontinuierlich globalisierenden Industrie die Verhandlungsmacht der Gewerkschaften nicht nur in den USA, sondern auch in Europa. Viertens, Auto-Assemblers und Lieferanten erhöhen ihre Auslastung von Leiharbeitnehmern. In Deutschland hat BMW einen Pool von Leiharbeitnehmern, die je nach Bedarf in verschiedenen Fabriken genutzt werden können, und in den Vereinigten Staaten beschäftigen sich die Automobilhersteller zunehmend mit Vertragspersonal, um die Kosten zu senken. Die Globalisierung der Automobilindustrie scheint den Status quo für die Arbeit in traditionellen Regionen der Fahrzeugproduktion herauszufordern. Da sich die Beschäftigung in der Industrie in Richtung des Zuliefersektors und in die aufstrebenden Volkswirtschaften verlagert, ist der Versuch, gute Löhne bei traditionellen Werken zu halten, für Autoren von größter Bedeutung. Die stündlichen Arbeitskosten bei GM und Ford für 2005 wurden auf 65,90 geschätzt, mit 35,36 Lohn - und 30,54-Leistungen, Gesundheits - und Rentenkosten. Andere Schätzungen für 2004 zeigen Einnahmen von Produktionsmitarbeitern bei Montagewerken bei 1.217 pro Woche, während Arbeiter in Teilen Pflanzen 872 wöchentlich verdienen, und die Arbeiter in allen verarbeitenden Industrien machen durchschnittlich 529 pro Woche. Autoworkers x2014 vor allem diejenigen, die in Montagewerken in den entwickelten Ländern arbeiten x2014 sicherlich sehr viel auf dem Spiel stehen, wie die Industrie weiterhin globalisiert. Im Gegensatz zur Arbeit ist die Macht, die Händler auf Assemblers ausüben, historisch minimal. Das Push-System der Produktion bedeutete, dass Händler die Repositories für die Inventar-Überläufe von Auto-Assemblers waren. Auch bis in die 1960er Jahre konnten Händler von Autoherstellern gesetzlich kontrolliert werden. Deshalb, Autohändler verdienen die Mehrheit ihrer Gewinne aus Aftermarket Verkauf von Teilen, Zubehör, Lieferungen und Service, die alle ein kleiner Teil ihres Geschäfts sind. Mit der Bewegung zu einem Pull-System der Produktion könnten Händler in der Automobilindustrie eine wichtige Rolle spielen. Allerdings ist die gegensätzliche Bedrohung für Händler die Internet-basierte Verkäufe, eine Innovation, die die Marktmacht der Händlern gegenüber den Automobilherstellern abnimmt. Die Worldwide Big Drei Autohersteller sind General Motors, Toyota Motor Corporation und Ford Motor Company. Im Jahr 2004 hatten diese Unternehmen weltweit Marktanteile von 13 Prozent, 11 Prozent und 10 Prozent und Produktionsanteile, die diese Zahlen genau spiegelten. Interessanterweise ist das Geocenter der Automobilproduktion der asiatisch-pazifische Raum, mit über 23 Millionen Einheiten im Jahr 2004 produziert. Japan war der dominierende Produzent, mit China eine ferne Sekunde in der Hälfte von Japan x2019 s Ausgabe in diesem Jahr. Westeuropa und Nordamerika rangierten im Jahr 2004 einen Fern - und Drittel der weltweiten Produktion und produzierten zwischen 16 und 17 Millionen Fahrzeugen. Deutschland ist der dominierende Produzent in Westeuropa, während die USA den Löwenanteil der Fahrzeuge im Norden produzieren Amerika. Die größten Verbraucher von Fahrzeugen sind Nordamerikaner, mit asiatischen pazifischen und westeuropäischen Kunden eine enge zweite und dritte. Obwohl das Pro-Kopf-Eigentum an Fahrzeugen in China sehr klein ist (1,5 Fahrzeuge pro 100 Haushalte im Vergleich zu 50 Fahrzeugen pro 100 Haushalte in Japan im Jahr 2001), fiel die Zahl der Fahrzeuge, die im Jahr 2004 in China verkauft wurden, nur wenige hunderttausend knapp Fahrzeugverkäufe in Japan. Darüber hinaus war die Wachstumsrate des Umsatzes in Japan zwischen 2003 und 2004 knapp 0,1 Prozent, während China in diesem Zeitraum einen Anstieg des Fahrzeugumsatzes um 17,2 Prozent verzeichnete. Die anderen Länder mit über einer Million Autoverkäufen pro Jahr, die im Jahr 2004 auch ein zweistelliges Wachstum der Fahrzeugverkäufe hatten, waren Russland (24 Prozent), Indien (18,2), Brasilien (17), Mexiko (11,8) und Spanien (10,2 ). Marktchancen in diesen Ländern sind in hohem Maße von makroökonomischer Leistung und Politik abhängig. Daher verfolgen Autohersteller einen Portfolio-Ansatz für Produktion und Marketing, angesichts der Zerbrechlichkeit des Wirtschaftswachstums in diesen Regionen. Seit den 1960er Jahren haben sich die Auto-Analysten auf wenige Regionen für neue Produktionskapazitäten konzentriert: Osteuropa, Lateinamerika. Indien und China. Bis 1980 stagnierte jedoch die osteuropäische Automobilindustrie, und in den 80er Jahren führten schwere wirtschaftliche und politische Unruhen zu einem zunehmenden Wachstum in den lateinamerikanischen Automobilsektoren. In den 1990er Jahren trat die Liberalisierung der Handels - und Investitionspolitik allmählich in Indien und China auf. Heute hat China die Aufmerksamkeit als Standort für neue produktive Produktionskapazitäten erobert. Beginnend mit Volkswagen x2019 s Investition im Jahr 1985 haben alle großen Autohersteller Produktionskapazitäten in China durch Joint-Venture-Beziehungen mit lokalen Autoherstellern etabliert. Mitte der 1970er Jahre war die Pkw-Produktion in China praktisch nicht vorhanden. Dreißig Jahre später waren die Umsatz - und Ertragsraten gestiegen, obwohl die Kapazitätsauslastung gering ist (zwischen 50 und 60) und die Lagerbestände gegenüber ihren japanischen, europäischen und US-Konkurrenten hoch sind. Wenn China seinen Weg von der zentral geplanten Wirtschaft zur bescheidenen Vermarktung fortsetzt und weiterhin in die Weltwirtschaft integriert wird, wird sich die heimische Automobilindustrie höchstwahrscheinlich stetig ausbauen. Die Automobilindustrie ist ein wichtiger Sektor der Gesamtwirtschaft, vor allem in den Industrieländern. Zum Beispiel ist das Automobil an zweiter Stelle nur zu einem Haus im Kaufwert für den durchschnittlichen amerikanischen Haushalt. Der durchschnittliche Fertigungsauftrag im Automobilsektor zahlt 60 Prozent mehr als der durchschnittliche US-Job. Es wird geschätzt, dass die Branche 10.4 Arbeitsplätze für jeden Arbeitnehmer, der direkt in der Automobilherstellung und Support-Dienstleistungen (ohne Autohändler) in den Vereinigten Staaten beschäftigt ist, generiert. Beschäftigungsspillovers werden in der Fertigungs - und Non-Manufacturing-Industrie gesehen, einschließlich Einzelhandel und Dienstleistungen. In den neununddreißig größten Industriekonzernen, einschließlich Pharmazeutika und Arzneimitteln, Halbleitern und anderen elektronischen Bauteilen, Kommunikationsgeräten und Computern, stiegen in den neunundzwanzigsten Industriekonzernen in den Kraftfahrzeugen und Ausrüstungen (Bauherren und Zulieferer) die Ausgaben für Forschung und Entwicklung (RampD) Zubehör. Kraftfahrzeuge sind auch ein wichtiger Bestandteil des internationalen Handels und der ausländischen Direktinvestitionen zwischen den Ländern. Im Jahr 2000 betrug der Anteil der Automobilprodukte im Welthandel 9,4 Prozent, unverändert von seinem Anteil ein Jahrzehnt früher. Westeuropa, Nordamerika und Asien in absteigender Reihenfolge sind die weltweit führenden Anbieter von Exporten und Importen. Während Westeuropa und Asien sind Netto-Exporteure von Fahrzeugen, nordamerikanischen Importe weit übertreffen Exporte. In Nordamerika sind die Exporte seit den 80er Jahren relativ flach geblieben, während die Importe ratcheted sind. Nordamerika, Osteuropa, Mittlerer Osten. Und Afrika sind alle Nettoimporteure von Automobilprodukten. Intraregionale Handelszahlen zeigen, dass intra x2013 westeuropäischen Handel der größte Wert auf fast US200 Milliarden in diesem Jahr war, intra x2013 nordamerikanischen Handel an zweiter Stelle bei US87,7 Milliarden, und intra-asiatischen Handel war der niedrigste bei US19,6 Milliarden. Interessanterweise sank der intra x2013 nordamerikanische Handel um 10 Prozent gegenüber 1990. Der am schnellsten wachsende Region-zu-Region-Handel war Nordamerika x2019 s Handel mit seinen europäischen und lateinamerikanischen Partnern. Von Zeit zu Zeit wurden rund um den Globus Barrieren errichtet, um lokale Automobilsektoren zu schützen. Zum Beispiel haben die Länder in Nordamerika und Europa in den vergangenen zwanzig Jahren Tarif - und nichttarifäre Barrieren errichtet, die speziell für den Handel mit Automobilen gelten. Zwischen 1981 und 1988 vereinbarten die Vereinigten Staaten und Japan x201C freiwillig x201D eine feste Anzahl von Fahrzeugeinheiten, die Japan in die Vereinigten Staaten exportieren würde. Die Europäische Union und Japan haben auch zwischen 1990 und 1999 einen freiwilligen Exportvertrag (VER) eingegangen, da die japanischen Einfuhren nach Europa anfingen zu stürzen. In beiden Fällen waren die VERs teilweise für eine Zunahme der Transplantatproduktion verantwortlich, da die japanischen Automobilhersteller über die Handelsbarrieren sprangen, um Produktionsstätten in den USA und Europa zu errichten. Obwohl die Transplantationen zu einem kritischen Bestandteil der lokalen Produktionslandschaft geworden sind, werden die Arbeitsplätze und Exporte, die sie generieren, gegen ihre Dämpfungseffekte auf die Löhne und die Kosten gewichtet, die einige Kommunen dazu veranlassen, ausländische Firmen in ihre Region zu locken. In den Entwicklungsländern gelten Handels - und Investitionsbeschränkungen im Automobilsektor in Form von lokalen Inhaltsregeln, Tarifen und Quoten. Der Impuls hinter diesen protektionistischen Maßnahmen besteht darin, den lokalen Produzenten eine Chance zu geben, sich vor dem Wettbewerb von Weltklasse-Automobilherstellern zu entwickeln, die produktiver sind und daher geringere Stückkosten aufweisen. In den letzten Jahrzehnten wurden regionale Handelspakte umgesetzt, die viele dieser lokalen Inhalte, Investitionen und Handelsbeschränkungen liberalisieren. Das 1994 eingeführte nordamerikanische Freihandelsabkommen (NAFTA) ist ein wichtiges Beispiel. Als die Vereinigten Staaten und Kanada Mexiko in ihrem Freihandels-Pakt über den Handel mit Automobilen und Teilen einschlossen, reduzierte Mexiko die Tarife für ihre nördlichen Partner und erhöhte die Beschränkungen für lokale Investitionen für alle ausländischen Unternehmen, was den Inlandsstatus für die Transplantationstätigkeit ermöglichte. Eine der kritischen Determinanten der Lage der Montagewerke und ihrer zugehörigen Lieferanten sind die Herstellungskosten. Produktionskosten und Marktchancen sind die Hauptgründe, warum sich die Arbeitsplätze von den traditionellen geografischen Zentren der Fahrzeugproduktion verschieben. Gleichzeitig verlagert die Umsetzung des Lean Production Paradigmas das operative Zentrum der Fahrzeugproduktion zu erstklassigen Lieferanten mit globalen Fähigkeiten. Variable Kosten der Produktion x2014 Kosten, die abhängig von der Anzahl der produzierten Fahrzeuge x2014 gehören Aufwendungen für Materialien und Arbeit. In der Automobilindustrie liegen die Materialkosten zwischen 22 und 50 Prozent, während die Arbeitskosten von 10 bis 20 Prozent reichen. Weil diese Kosten je nach Region und Produktprodukt variieren, sind Auto Assemblers und Zulieferer aktiv in Assessments und Anpassungsprozesse involviert, die zu Änderungen in der Konfiguration und dem Betrieb ihrer Anlagen führen. Dennoch hat die Entwicklung der nordamerikanischen, europäischen, asiatischen und südamerikanischen Handelsblöcke erhebliche Auswirkungen auf die geografische Gestaltung der Produktions - und Handelsströme. Während es ein wichtiger Faktor bleibt, ist der komparative Vorteil nicht allein die Handelsstrategie in der Automobilindustrie. Auto-Industrie-Analysten erwarten große organisatorische und geografische Veränderungen in der globalen Auto-Industrie als Reaktion auf Innovationen in Auto-Herstellung Techniken, Rekonfigurationen in den Loci der Nachfrage nach Fahrzeugen und wachsende Umweltbelange. Ein neues Modell der Arbeitsnutzung wird sich als Zulieferer entwickeln und Autohersteller sich an flexible Fertigungspraktiken und die Globalisierung ihrer Operationen anpassen. Ab 2007 wird die Überkapazität in der globalen Automobilindustrie auf 20 Millionen Einheiten geschätzt, was etwa ein Drittel der weltweiten jährlichen Produktion oder die Produktionskapazität der westeuropäischen Autohersteller beträgt. Mit einer minimal effizienten Produktionsabläufe in einer Baugruppe, die auf 200.000 Fahrzeuge geschätzt wird, dürften Dutzende von Montagewerken schließen, da Autohersteller ihre Profitabilität verbessern wollen. Kapazitätsintegration von etwa 75 Prozent ist der Kipppunkt, unter dem Autohersteller in Gefahr sind, finanzielle Verluste zu erleben. Überkapazität hat daher Fusionen, Akquisitionen und Netzwerk-Allianzen ausgelöst. Auto-Unternehmen konsolidieren und vereinfachen die Kontroll - und Entwicklungsfunktionen und versuchen, neue Investitionsinitiativen zu minimieren, die Anzahl der einzigartigen Teile in ihren Fahrzeugen, die Anzahl der verwendeten Konstruktions - und Fertigungswerkzeuge, die Anzahl der im Haus befindlichen Komponenten und die Anzahl der Direkte Lieferantenbeziehungen. Assemblers nutzen auch Modularisierung, um die endgültigen Montageprozesse zu vereinfachen, und sie experimentieren mit verschiedenen organisatorischen Entwürfen als Teil des Restrukturierungsprozesses. Autohersteller und Zulieferer nutzen vertikale und horizontale strategische Allianzen mit der Erwartung, dass sie die Entwicklung neuer Produkte und die Verbreitung der produktiven Produktionskapazitäten in neue geografische Regionen erleichtern werden. Diese Ventures werden aber auch neue Konkurrenten schaffen, vor allem in Schwellenländern. Allerdings hat sich die Konsolidierung nicht als Allheilmittel zur Optimierung der Produktionskapazitäten in der Branche erwiesen. Mergers sind typischerweise zwischen Unternehmen aufgetreten, die komplementäre Produktlinien haben und daher die Chancen für den Ausscheiden einiger Anlagen vermindert sind. Effektive Rationalisierung bringt Arbeitsplatzverluste. Dennoch haben Fusionen zwischen Unternehmen aus verschiedenen Ländern (wie z. B. Deutschland x2019 s Daimler-Benz und Chrysler in den USA) in der Regel keine Kapazitätsreduktion gebracht, weil politische Kräfte sich darum bemühen, häusliche Arbeitsplätze zu erhalten. Analysten gehen davon aus, dass sich die Produktion von den traditionellen Regionen in Nordamerika, Europa und Ostasien nach Brasilien, China, Indien und den Ländern Südostasiens verlagert. Trade liberalization will facilitate this geographical shift in production, as well as increased commonilization x2014 the sharing of principal components and platforms x2014 although consumer tastes will militate against the full introduction of a homogeneous x201C world car x201D from each automaker. Commonilization x2014 coupled with the differentiation of products based on regional tastes x2014 is already practiced by Ford and Honda, and other automakers are also adopting this practice. There is no clear evidence, however, that automakers are converging on one comprehensive paradigm of production. Economic growth in East and South Asia is also expected to influence the locational decisions of auto producers. For example, economic and political developments in China during the past decade have had considerable influences on global sourcing and production decisions of German, American, and Japanese automakers. Growing disposable income among middle-and upper-income citizens, burgeoning industrial development in coastal regions, and the periodic liberalization of personal finance markets are driving demand for passenger cars and commercial vehicles in China. Given these trends and the size of the market, automakers anticipate good returns from their productive capacity in the Far East. Yet, exuberance over the potentially hot auto market in China is tamed from time to time by the prospect that the underpinnings of that market rests importantly on government fiat. The automobile industry will also need to continue to address a range of environmental concerns related to carbon dioxide levels and other health risks. While estimates vary widely as to the impact that vehicle emissions have on the global environment, automakers have made emissions and safety adjustments to their automobiles over time. In the United States, rules and guidelines that originated in the 1970s x2014 such as the Corporate Average Fuel Efficiency Standards (CAFE) and federal safety regulations x2014 have brought about significant emission reductions. Thirty years since CAFE standards were put in place, new cars in the United States emit approximately 1 percent of the smog-producing compounds emitted by new cars in the 1970s. This progress is not solely the result of government regulations, however. The Alliance of Automobile Manufacturers x2014 a trade association of nine automakers from the United States, Germany, and Japan x2014 has identified clean energy technologies as a means to further economic growth in the industry. It is important to note, however, that increased use of vehicles and persistent use of vehicles with old technology mitigate some of these important strides. Automakers around the globe are also engaged in developing new technologies and products, such as electronic fuel cells, navigational systems that manage congestion problems, and x201C telematics x201D (telecommunications capabilities). Information technology networks will be fully integrated into the RampD, procurement, manufacturing, and distribution functions of the enterprise structure. The Internet and Web-based communications are expected to drive the next transformation in the automobile industry. The next frontier in distribution channels is fully to implement a build-to-order system. While dealerships might not become obsolete, the efficiency of the pull system will reduce their inventories and associated costs. Implementing a system similar to the Dell Direct model could mean significant cost reductions in the distribution and purchasing functions of firms in the industry. SEE ALSO Ford Motor Company General Motors Automotive News. 2005. Automotive News Market Data Book 2005 . autonews . Boyer, Robert, Elsie Charron, Ulrich J xFC rgens, and Steven Tolliday, eds. 1998. Between Imitation and Innovation: The Transfer and Hybridization of Productive Models in the International Automobile Industry . Oxford: Oxford University Press. Dassbach, Carl H. A. 1994. Where Is North American Automobile Production Headed Low-Wage Lean Production. Electronic Journal of Sociology 1 (1). sociology. orgcontentvol001.001dassbach. html . Easterbrook, Gregg. 2006. Case Closed: The Debate about Global Warming Is Over. Governance Studies 3 (June). Brookings Institution Working Paper. Washington, DC: Brookings Institution. Federal Trade Commission. 1939. Part 1. General Investigations: Motor-Vehicle Industry. Annual Report of the Federal Trade Commission . Washington, DC: Federal Trade CommissionGovernment Printing Office. Fine, Charles H. and Daniel M. G. Raff. 2000. Internet-Driven Innovation and Economic Performance in the American Automobile Industry. MIT Sloan School of Management and International Motor Vehicle Program Working Paper. Cambridge, MA: IMVPMIT Press. Fine, Charles H. and Daniel M. G. Raff. 2001. Innovation and Economic Performance in the Automobile Industry over the Long Twentieth Century. In Technological Innovation and Economic Performance . eds. Benn Steil, David G. Victor, and Richard R. Nelson, 416-432. Princeton, NJ: Princeton University Press. Freyssenet, Michel, and Yannick Lung. 2000. Between Globalization and Regionalization: What Is the Future of the Automobile Industry In Global Strategies and Local Realities: The Auto Industry in Emerging Markets . eds. John Humphrey, Yveline Lecler, and Mario Sergio Salerno, 72-94. New York: St. Martin x2019 s Press. Freyssenet, Michel, Andrew Mair, Koichi Shimizu, and Giuseppe Volpato, eds. 1998. One Best Way Trajectories and Industrial Models of the World x2019 s Automobile Producers . Oxford: Oxford University Press. Freyssenet, Michel, Koichi Shimizu, and Giuseppe Volpato, eds. 2003. Globalization or Regionalization of the American and Asian Car Industry New York: Palgrave-Macmillan. Fulton, George A. Donald R. Grimes, Lucie G. Schmidt, et al. 2001. Contribution of the Automotive Industry to the U. S. Economy in 1998: The Nation and Its Fifty States . Prepared by the Institute of Labor and Industrial Relations, University of Michigan Office for the Study of Automotive Transportation, University of Michigan Transportation Research Institute and Center for Automotive Research, Environmental Research Institute of Michigan. Ann Arbor: University of Michigan Press. Holweg, Matthias, Jianxi Luo, and Nick Oliver. 2005. The Past, Present, and Future of China x2019 s Automotive Industry: A Value Chain Perspective. International Motor Vehicle Program Working Paper, for UNIDO x2019 s Global Value Chain Project. Cambridge, MA: IMVPCenter for Competitiveness and InnovationMIT Press. Katz, Harry C. John Paul MacDuffie, and Frits K. Pil. 2002. Autos: Continuity and Change in Collective Bargaining. In Collective Bargaining in the Private Sector . eds. Paul F. Clark, John T. Delaney, and Ann C. Frost, 55-90. Ithaca, NY: Cornell ILR Press. Klepper, Steven. 2002. The Capabilities of New Firms and the Evolution of the U. S. Automobile Industry. Industrial and Corporate Change 11 (4): 645-666. Klepper, Steven, and Kenneth L. Simons. 1997. Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes. Industrial and Corporate Change 6 (2): 379-460. Langlois, Richard N. and Paul L. Robertson. 1989. Explaining Vertical Integration: Lessons from the American Automobile Industry. Journal of Economic History 49 (2): 361-375. Laux, James M. 1992. The European Automobile Industry . New York: Twayne Publishers. Luo, Jianxi. 2005. The Growth of Independent Chinese Automotive Companies. International Motor Vehicle Program Working Paper. Cambridge, MA: IMVPMIT Press. McAlinden, Sean P. Kim Hill, and Bernard Swiecki. 2003. Economic Contribution of the Automotive Industry to the U. S. Economy x2014 An Update. Ann Arbor, MI: Center for Automotive Research. McAlinden, Sean P. and Bernard Swiecki. 2005. The Contribution of the International Auto Sector to the U. S. Economy: An Update. Ann Arbor, MI: Center for Automotive Research. Ohno, Taiichi. 1988. Toyota Production System: Beyond Large-Scale Production . Cambridge, MA: Productivity Press. Saripalle, Madhuri. 2005. Competing through Costs versus Capabilities: Organizational Transformation of the Indian Automobile Industry. Department of Agricultural and Resource Economics, University of Connecticut Working PaperInternational Motor Vehicle Program Working Paper. Cambridge, MA: IMVPMIT Press. Sturgeon, Timothy, and Richard Florida. 2000. Globalization and Jobs in the Automotive Industry. Final Report to the Alfred P. Sloan Foundation. Cambridge, MA: IMVPMIT Press. U. S. Department of Labor, Bureau of Labor Statistics. 2005. The 2006-2007 Career Guide to Industries: Motor Vehicle and Parts Manufacturing. Bulletin 2601. Washington, DC: Bureau of Labor StatisticsGovernment Printing Office. White, Lawrence J. 1971. The Automobile Industry since 1945 . Cambridge, MA: Harvard University Press. Wibbelink, R. P. and M. S. H. Heng. 2000. Evolution of Organizational Structure and Strategy of the Automobile Industry. Faculty of Economics, Vrije Universiteit Amsterdam, Research Memorandum 2000-12. ftp:zappa. ubvu. vu. nl20000012.pdf. Womack, James P. Daniel T. Jones, and Daniel Roos. 1990. The Machine That Changed the World . New York: Rawson Associates. Kaye Husbands Fealing UAW (International Union, United Automobile, Aerospace and Agricultural Implement Workers of America) Private Company x2014 Labor Union Founded: 1935 Employees: 200 (est.) Operating Revenues: 325 million (2003) NAIC: 813930 Labor Unions and Similar Labor Organizations The UAW (International Union, United Automobile, Aerospace and Agricultural Implement Workers of America) remains one of the most influential labor union in the United States. although its power has waned since its peak in the 1970s. The union now has about 700,000 active members belonging to more than 950 local unions, as well as over 500,000 retired members. The Detroit, Michigan-based organization negotiates contracts for its members and also offers them education and training programs. Over the course of its history, the UAW has won a number of contract concessions now taken for granted, such as employer-paid health insurance and cost-of-living allowances. In more recent years, however, as economic conditions have changed, the UAW has devoted much of it energy fighting a rearguard action to hold onto the gains achieved in previous decades, while learning how to adapt to life in a global economy. Long allied with the Democratic party, the UAW has always been a politically active organization, not just relating to economic issues but social issues as well, such as civil rights legislation, the Fair Housing act, Medicare and Medicaid legislation, the Occupational Safety and Health Act, and the Family and Medical Leave Act. Rise of the Auto Industry in the Early 1900s When the automobile industry began to establish itself in the early years of the 20th century, it relied mostly on craftsmen: cabinetmakers, upholsterers, molders, foundrymen, and others skilled in the metal and woodworking trades. Even as late as 1910, three out of every four autoworkers were skilled. However, as demand for cars increased, automakers were hard pressed to find skilled workers, resulting in escalating wages. In response, the manufacturers turned to labor-saving machinery that could be operated by semi-skilled or unskilled workers, who would accept lower wages than skilled employees. It was because of its location on the Great Lakes and accessibility by rail and road that Detroit became a magnet for automakers and workers alike. The citys skilled workers had long been members of strong craft unions, but automakers fought hard to make Detroit an open shop city, where unions had a difficult time taking root and collective bargaining was rare. Automation in car manufacturing reached a new level in 1913 when the Ford Motor Company introduced the continuously moving assembly line. As a result, an increasing number of autoworkers simply tended machines and could be trained to do their job within a week, sometimes in mere hours. By the mid-1920s, 85 percent of autoworkers were unskilled and easily replaced. Younger workers, many earning probationary rates, were preferred, since the assembly line could be speeded up as needed and what was now valued was strength and stamina not skill. Led by Henry Ford. automakers paid their workers more than other manufacturers, but this was mitigated by seasonal layoffs, so that during the 1920s autoworkers earned only slightly higher incomes than manual workers. Moreover, many were victimized by unscrupulous foremen, who had the power to hire and fire, resulting in a building resentment among workers that was to fuel militancy during the 1930s. AFL Forms Autoworkers Union in the Mid-1930s There were occasional attempts to form unions in the auto industry but they failed, solidifying Detroits reputation as the graveyard of organizers. The American Federation of Labor (AFL) tried twice during the 1920s to unionize autoworkers along craft lines rather than as a industrial union. The auto industry thrived in the late 1920s, but after the 1929 stock crash ushered in the Great Depression of the 1930s, demand for new cars plummeted leading to mass layoffs and creating fertile ground for labor unrest. A number of strikes broke out in Detroit in 1933, achieving little, but in June of that year the new Roosevelt administration passed the National Recovery Act, which included a provision that guaranteed workers the right to organize and bargain collectively, leading to increased efforts to organize autoworkers. The AFL continued to take a craft union approach to the auto industry, although unskilled production workers clearly had no trade. The AFL began signing up workers but it was not until August 1935 that it formed the United Automobile Workers union under its auspices. The organization was poorly led and ineffective, but that would change with the rising influence of one of its members, Walter Phillip Reuther, who would build and lead the UAW for decades and rise to the highest ranks in the labor movement. Reuther was born in Wheeling, West Virginia. in 1906, the son of a German-born brewery-wagon driver who was a staunch trade unionist and Socialist. A high school dropout, Reuther, along with his brothers Roy and Victor, moved to Detroit in 1927, took a job at the Ford plant and became a supervising die maker. During the early 1930s, he became more of an activist, joining the Auto Workers Union, formed years earlier by the AFL and taken over by Communists in 1925 as part of their effort to organize Detroit. Reuther was laid off at Ford x2014 in his mind, at least, because of his union activities x2014 then in 1933 traveled to the Soviet Union. where he and Victor worked in the Gorki auto works, which needed workers experienced with the Ford equipment it had acquired. Reuther returned to the United States at a pivotal time in the labor movement: in 1935 Congress passed the Wagner Act which stated that if a majority of employees at a company voted to be represented by a union, then it became the bargaining agent for all. Although it would be another two years before the United States Supreme Court confirmed the Wagner Acts constitutionality, labor organizers were given a shot in the arm. Later in 1935, Reuther attended the AFL convention in Atlantic City, where the organization remained conflicted over the industrial union issue. Reuther returned to New York. and despite having no job he procured a union card and in early 1936 became a member of small UAW Local 86, soon becoming its president. In April, he was a delegate at the UAW convention, where not only would the organization elect its first president, it would essentially declare its independence from the AFL. Reuther quickly established himself in the union and was elected to the general executive board. As the president of the amalgamated Local 174, covering all of Detroits west side, Reuther, aided by his brothers, began launching strikes against parts factories and assembly plants. Although he was not a major factor in the 1937 sit-down strike at Flint, Michigan, resulting in General Motors recognizing the UAW, his brothers were involved, and the Reuther name benefited from the victory and solidified his reputation. Of more importance to the building of his image was the Battle of the Overpass that took place on May 26, 1937. In front of the Ford River Rouge plant, Reuther and other UAW organizers, who had permits to distribute leaflets, were surrounded and severely beaten by a group of 40 Ford hirelings. A Detroit News photographer won a Pulitzer Prize for the pictures he took of the encounter, and the image of the bloodied Reuther only served to elevate his status. Although the UAW failed to organize Ford on this attempt, with the help of the surrounding controversy it succeeded in swelling its membership ranks to about 300,000 by the end of 1937. However, even as the UAW was taking on the auto industry, it had to contend with internal conflict over who was going to control the union. In 1938, an uneasy coalition fell apart, resulting in a split, with UAW president Homer Martin a year later taking a splinter group into the AFL, leaving the rest of the union under the auspices of the Congress of Industrial Organizations (CIO). R. J. Thomas was installed as president, and he quickly appointed Reuther director of the General Motors Department, essentially a paper organization at the time. Reuther took on GM at a weak point, concentrating on its tool and die makers, building on the successful strikes of more militant shops to build a walkout against all of GMs tool and die makers. Unable to retool for 1940 models, the company had no choice but to recognize the UAW as the bargaining agent for GMs tool and die makers, the first in a series of dominoes that were to fall. Next, GM production workers were brought into the fold, leading to other industry victories, with Ford finally capitulating in 1941. It was also during this period that the UAW began organizing aircraft workers, competing against the AFLs machinist union. Later, in the 1950s, the Farm Equipment Workers union would be brought into the fold, resulting in the present-day combination and the unions official name: The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America. At the same time that he was becoming the automakers chief antagonist, Reuther was solidifying his power in the UAW. Finally, in 1946, he defeated Thomas in a tight election, then over the course of the next year gained control of the other national offices. He purged the organization of all opposition and entrenched himself in power, no doubt making enemies along the way. In April 1948, he survived an assassination attempt, suffering a shotgun wound that crippled his right arm. The crime was never solved. Company Perspectives: The UAWs commitment to improve the lives of working men and women extends beyond our borders to encompass people around the globe. Despite his sympathy with socialism, Reuther quit the Socialist Party in 1939, then in the 1940s became a leading member of the anti-Communist Left, purging Communists from the ranks of the UAW as well as the CIO. He supported Roosevelts New Deal legislation, but it was not until Harry Trumans victory in 1948 that he finally embraced the Democratic party as labors only viable champion in government. He and the UAW became a force in Democratic politics, leading to the unions pivotal role in electing John F. Kennedy to the presidency in 1960s and influencing civil rights and welfare legislation during Lyndon Johnsons Great Society initiative. Post-World War II Victories Pre-eminent among his abilities as a labor leader was Reuthers keen aptitude for collective bargaining. He developed the concept of Pattern Bargaining, targeting one of the Big Three automakers for a strike and relying on the zeal of its competitors to take advantage of the situation to drive the company to the bargaining table. Once a deal was struck, it established a pattern and the other automakers fell in line. As a result, the UAW won a string of significant victories, resulting in higher wages and improved benefits. In 1948, a settlement with GM established the concept of an annual wage increase tied to a cost-of-living adjustment. A deal with Chrysler in 1950 brought with it employer-funded pensions, and in that same year medical insurance was granted by GM. In addition to his role at the UAW, Reuther became president of the CIO in 1952 and was instrumental in finding common ground with the AFL, leading to the 1955 merger that resulted in the AFL-CIO. But the more progressive Reuther and conservative AFL-CIO president George Meany would eventually fall out during the 1960s. Reuther became disenchanted with the war in Vietnam. while Meany maintained loyal to the administration. Moreover, Reuther believed the labor movement was failing to stay current and not connecting with new reform moments, such as peace, minority rights, and the environment. The rupture between the two men culminated in 1968 when the UAW left the AFL-CIO, but no other unions followed its lead. The UAW would not return to the AFL-CIO until 1981. Reuther and his wife were killed in a plane crash in 1970. He left his successor, Leonard Woodcock, in charge of one of Americas strongest labor unions (along with the United Steel-workers of America). Woodcock remained loyal to Reuthers vision during the seven years he headed the UAW, and during his tenure the union reached its high water mark in a number of ways. Its last national strike, against Ford, took place in 1976, and membership peaked in 1979 around 1.5 million. Woodcock was replaced in 1977 by Douglas A. Fraser, considered the last of the 1930s firebrands that established the UAW. In addition to his challenges as a union leader, Fraser had to contend with issues beyond the control of the automakers. Earlier in the decade, the OPEC oil cartel rocked the United States economy with price increases. A second round of increases was launched in 1978, leading to a greater demand on the part of auto buyers for Japanese imports and a significant drop-off in the sale of U. S.-made cars. The UAW joined forces with the Big Three to fend off the Japanese threat and offered wage concessions to improve competitiveness. Fraser even took a set on Chryslers board of directors, ostensibly to serve as a watchdog, but when Chrysler cut employment by 57,000, closing ten plants, the UAW was complicit in the decisions, and the locals had no choice but to capitulate. The UAW was not alone in experiencing a decline in power. The steel industry and its workers were devastated by cheap steel imported or produced by the new domestic mini-mills. Arguably, the recession of 1981 to 1982 brought a close to the golden era of the U. S. labor movement. After President Ronald Reagan hired replacement air traffic controllers, all unions became hard pressed to keep the gains they had made during the previous decades, let alone attempt to secure better terms from employers. Key Dates: 1935: The United Automobile Workers (UAW) is formed by American Federation of Labor. 1937: General Motors recognizes the UAW. 1946: Walter Reuther is named president of the union. 1950: The UAW wins pension and medical insurance benefits. 1968: The UAW leaves the AFL-CIO. 1970: Reuther dies in an airplane accident. 1979: Membership peaks around 1.5 million. 1985: Canadian autoworkers secede from the UAW. 1995: Stephen P. Yokich is named president. 1999: Membership increases for first time in ten years. 2001: Ronald A. Gettelfinger is named president. Fraser, who retired, was replaced as the UAWs president in 1983 by Owen F. Bieber, more an administrator than a visionary. He maintained that because the Big Three were rebounding, the union would no longer agree to givebacks. He was also committed to organizing the Japanese auto plants cropping up in the Southeast, but these efforts ended in failure. In addition, under his watch the Canadian section of the union, angry over concessions made to the Big Three, seceded from the UAW in 1985. As a result of the split, automakers would now be able to threaten the union with moving jobs to Canada. where labor costs were cheaper. Many U. S. members were also displeased with their leaderships non-adversarial approach, resulting in the rise of a dissident faction under the New Directions banner. Nevertheless, Bieber retained his post until his retirement in 1995. He was replaced by a more truculent president, Stephen P. Yokich, a third generation UAW member, who first walked a picket line at the age of 22 months in a stroller pushed by his mother, a GM worker. In 1989, he was put in charge of relations with GM and was successful in launching strikes against parts-making and car assembly plants that resulted in GM meeting the unions demands. At the same time, he proved to automakers that behind the scenes he was willing to cooperate to help employers become more efficient and thus more competitive. One of his greatest challenges was in the auto-parts sector, where the union had experienced its greatest loss of membership in recent years. During the late 1970s, close to 70 percent of auto parts workers were UAW members, but that number had fallen to less than 25 percent. The independent auto-parts makers paid well below UAW scale, putting Big Three operations at a competitive disadvantage. In order to maintain wages and benefits with the Big Three, Yokich had to organize the suppliers, lest the Big Three simply opt to outsource the supply of auto parts. Under Yokich, the UAW also looked to restore some of its clout in the labor movement by merging with the International Association of Machinists and the United Steelworkers. The idea was floated in 1995 but in 1999 the Machinists dropped out and the merger with the Steelworkers, scheduled to occur in 2000, petered out as well. Yokich enjoyed some success launching sudden local strikes, but again it was on ground determined by the automakers, as the union fought to hang onto earlier gains and stem the erosion of its membership. Although it enjoyed a bump in membership in 1999, the first increase in a decade, the ranks continued to thin. Moreover, younger members were less active in the union. Unlike previous generations that were determined to hold onto a good-paying job for life, new blue collar workers shared a similar attitude of many white collar workers, who periodically changed jobs to advance their careers. The new generation of autoworkers all but assumed that high-paying jobs would eventually go overseas and took steps, or at least expected, to eventually move into a new career. Following Yokichs retirement in 2002, Ronald A. Gettelfinger was elected the UAWs president. Not only did he have to contend with outsourcing and technological efficiencies that eliminated jobs, but he was also confronted with the UAWs continued inability to organize foreign-operated auto plants. Gettelfinger soon proved, however, that he was a worthy adversary for automakers. Like Reuther before him, he zeroed in on a weakness, in this case automakers increasing dependence on just-in-time ordering of parts. He launched sudden two-day strikes against factories that made interior parts for some of General Motors and Chryslers most popular vehicles. The workers lost little in the way of income, while the automakers were forced to shut down production on bestselling SUVs Chevy Trailblazer and Jeep Liberty. The automakers then applied pressure on their suppliers to come to terms with the UAW. The master plan was to reunionize the parts sector. At the same time, Gettelfinger proved willing to adapt to changing times and eschew traditional bargaining techniques. In 2003, rather than singling out one of the Big Three in an attempt at pattern bargaining, he worked out an agreement with all three automakers simultaneously. This move was indicative that both management and labor were feeling competitive pressures. From the unions point of view, a quick and peaceful settlement might give it a better chance at finally organizing the U. S. operations of foreign auto makers. The effort to revitalize the UAW was complicated by the George W. Bush administration, and the Republican-majority National Labor Relations Board was far from sympathetic to its cause, especially after the UAW backed Senator John Kerry during the 2004 presidential election. The unions difficult situation was highlighted in 2004 by the adoption of cost-cutting measures, which included the cutting of its work force at headquarters and in regional offices by 15 percent, to be achieved by attrition. Although still a force not to be taken lightly in the U. S. auto industry, the UAW faced a challenging future succeeding in a global economy. For years the union had talked about operating transnationally, and now more than ever it appeared that the UAW would have to find a way to take its place on the world stage or face the prospect of receding into irrelevance. Further Reading Ball, Jeffrey, Lee Hawkins, Jr. and Sholnn Freeman, Big Three, UAW Show Rare Unity, Wall Street Journal . September 8, 2003, p. A2. Barnard, John, Walter Reuther and the Rise of the Auto Workers . Boston: Little, Brown and Company, 1983, 236 p. Bluestone, Irving, Working-Class Hero x2014 Walter Reuther, Time . December 7, 1998, p. 157. Bradsher, Keith, U. A.W. Is Just Trying to Hold Its Ground with Detroit, New York Times . September 13, 1996, p. D1. Burkins, Glenn, Picket Lines Next Generation Shows UAW Weakness, Problems, Wall Street Journal . June 26, 1998, p. B1. Davis, Bob, Neal Templin, and Brandon Mitchener, Wall Street Journal . March 25, 1996, p. A11. Lichtenstein, Nelson, The Most Dangerous Man in Detroit: Walter Reuther and the Fate of American Labor . New York: BasicBooks, 1995, 575 p. Lowell, Jon, Hard Times for the UAW, Wards Auto World . September 1985, p. 67. Muller, Joann, Has the UAW Found a Better Road, BusinessWeek . July 15, 2002, p. 108. x2014 Ed Dinger AUTOMOBILE INDUSTRY AUTOMOBILE INDUSTRY became the worlds largest form of manufacturing by the middle of the twentieth century, making more money and employing more people than any other industry. In the United States, the automobile industry changed how business was conducted and how Americans lived automobiles were more popular in America than anywhere else in the world. Origins of the Industry It was in America that the first three important steps toward automobile manufacture were taken, two of them by Oliver Evans of Philadelphia. During the last two decades of the 1700s, he created an automated flourmill. It took in unprocessed grain and used conveyor belts and screws to transport the grain from step to step, through chaffing, grinding, and packaging, without human intervention. The mill was powered by a steam engine. Evans had not quite invented the assembly line Henry Ford would later use to change how the world manufactured almost everything, but the basic ideas were present: stations for each step in the flour-making process and machines doing the physically strenuous work. Evanss other significant contribution was the worlds first amphibious, fully functioning automobile. In 1805, he completed work on a machine that could be stored on land, driven to the shoreline, and then paddled through the water. It was a dredge for keeping waterways clear. With its steam engine chugging away, Evans automobile made a great deal of noise as it was driven down to the docks on four large wheels. Once in the water with the paddle wheel attached, the machine could paddle about for several hours. It was the first clear demonstration that a mechanically powered transport could function for hours at a time without falling apart and do practical work. The other important American in the history of the automobile from Evanss day was Eli Whitney of Connecticut. He developed the concept of interchangeable parts and showed that the concept could be put to practical use: in 1798, he was contracted by the United States government to produce 10,000 muskets that would be identical to each other. In the 1830s, Charles Goodyear discovered that sulphur mixed with boiling natural rubber created a material that was not prone to melting under friction this breakthrough would lead to the tires that automobiles would use. In 1832, Walter Hancock of Britain made a steam carriage for personal use. His ideas would quickly evolve into busses that ran regular routes in England, but the English government would outlaw most uses of mechanical power for transportation, dropping England out of the competition for producing practical automobiles. In 1860, in France, tienne Lenoir invented a rival to the steam engine, the first practical internal combustion engine. Its advantage over the steam engine was its compactness: it was smaller and lighter. The German engineer Nikolaus Otto refined the internal combustion engine, making it more powerful and more efficient. In 1876, he introduced his four-stroke-cycle compression engine. A compression engine mixes air and fuel, draws the mixture into a chamber, a piston compresses it, and then it is ignited by a spark. Ottos engine would become the foundation for most internal combustion engines. Almost immediately, it was put to use in automobiles. In some, it generated electricity rather than powering a drive shaft the electric cars needed no gearshifts and gained or lost power smoothly when in use. These electric cars would be competitive with automobiles with direct drives into the 1920s. Another German, Wilhelm Maybach, invented the carburetor that, by squirting a spray of fuel into air to form the mixture the piston would compress, made possible the use of gasoline in Ottos engine. In 1879, New Yorker George Baldwin Selden applied for a patent for what he called a road locomotive. It was the frame of a buckboard with a compression engine underneath the front seat, above the front axel. Selden quickly discovered that the technology of the time needed to catch up to him the tools for manufacturing his machine were not in general use, so he delayed the patent process until he had financial backing and a market for his device. He and his backers claimed the patent rights to every motor vehicle that used a compression engine, and they made millions of dollars from the manufacturers of cars until they pushed Henry Ford too hard he took them to court and won in January 1911, breaking their monopoly. In 1894, the French firm Panhard and Levassor produced an automobile with a V-engine, a water-cooling system, a gearshift transmission, springs under the passengers to cushion the ride, and brakes fitted to wheel hubs. This state-of-the-art automobile was crafted piece by piece, rather than with interchangeable parts, but it is the first automobile to pull together most of the major ingredients of the modern automobile. In 1899, a visionary American, Ransom E. Olds, made the necessary leap of thought to the idea of using interchangeable parts for the purpose of producing automobiles for the masses and soon out produced every other automobile manufacturer in the world in 1901, he produced the Oldsmobile. Elsewhere in 1899, Henry Ford helped form the Detroit Automobile company. Ford had an idea for a simple-to-maintain automobile that would appeal to farmers. His first effort was taken over by his financial backers, becoming Cadillac. In 1903, Buick Motor Company was founded in Flint, Michigan, while Ford formed the Ford Motor Company in Detroit, Michigan. Henry Ford and Mass Production Henry Ford did not invent the automobile, but he did coin the phrase mass production, and he found a way to excel beyond Olds efforts by creating a process whereby goods could be made so fast, and in such great quantities, that they could be sold for a tiny profit and still earn millions for their manufacturer. In 1903, he produced his first Model A (there was another in 1927). He tried new designs, working up the alphabet until he reached T in 1908. In 1908, he tried reorganizing his factory it took twelve-and-a-half hours to produce one car, and he realized that he had just about reached the limit for speeds using old, craftsman techniques of fitting parts to automobiles. His ambition was to sell a car to every American home, and he needed to speed up the process of production. Two of his innovations began the mass-production revolution. One had to do with small parts. At the time, automobile manufacturers used wood for many of their parts because steel was so soft it would warp when heated during the manufacturing process. It took workers many hours to hammer such parts back into shape and to file them until they fit each other. Ford took advantage of a new kind of steel that was hardened during production and therefore would not warp during the manufacturing of an automobile or while the automobile was in use. Ford combined this development with manufacturing-to-gauge: that is, he assigned an exact set of specifications for every part, and all the parts were to be made exactly to those specifications so they did not need to be hammered or filed to fit a particular car the idea was that if the parts of cars were all mixed together, workers would be able to build the cars while randomly selecting their pieces. Ford was obsessed with manufacturing-to-gauge, and brought his zeal to the work floor of his factory. With parts made of hardened steel that were universally interchangeable, he was able to effect his other great innovation. He had chassis of his automobiles hitched to ropes and towed the length of his factory. Workers would walk alongside the chassis to piles of parts each pile was a station where the chassis would stop and the workers would add the parts. In 1908, this dropped the production time for a single automobile to under six hours, and his company became the worlds largest annual producer of cars. The Model T became popular. At a little over 900 dollars, it was within the financial reach of middle-class Americans. Even so, Ford wanted the car to be within reach of anyone earning a living wage this meant faster production and lower overhead. In 1913, he introduced the assembly line, as it would be known even into the twenty-first century. Instead of having workers move to piles of parts, he had the parts moved to them each station had a worker or a small team of workers who performed one function over and over throughout their long work day. The time to produce one Model T dropped to one-and-a-half hours. In 1914, the price for one Model T dropped to 490 dollars and Ford produced forty-five percent of Americas automobiles. Fords business practices were considered insane by most manufacturers: in 1915, he shook the manufacturing world. He promised customers that if he sold 300,000 Model Ts during the year he would send each purchaser a rebate when sales exceeded 300,000 he rebated fifty dollars per car. More disturbing to other companies was his doubling the minimum wage of his workers from 2.50 a day to 5.00 a day. It became possible for a Ford worker who stayed on the job for several years to own his own home and automobile and to build a sizeable savings. Ford would go on to advocate shorter working hours and fewer work days, because, he said, mass production enabled a company to meet all of its market demands with shorter work times in the 1930s, he advocated a thirty-hour work week. In 1917, he bought out his stockholders for 105,250,000, and then he could experiment even more. He did what he did partly out of idealism and partly because of his memories of being young and poor. Further, he wanted to build worker loyalty he wanted his workers to have jobs for life with his company. In addition, he wanted to build brand loyalty he wanted his customers to remember that Ford gave them a fair deal. Not all of his efforts worked. His implementation of the assembly line changed how workers viewed their jobs. No longer craftsmen who would learn how everything in the factory worked, Fords workers learned only about the function of their specific work stations status came not from skill but from seniority, and status was not rewarded with increasing responsibilities for the manufacturing process but by moving to the work stations that required the least amount of physical effort. Workers became more like interchangeable parts of the manufacturing process. When Dodge began production in 1915, the lesson became clear: assembly-line workers could easily move to another factory and stand at workstations doing what they had done before. There was another dark side to Fords achievements: while long-term workers benefited from their loyalty to Ford, on average, a worker lasted three months on the assembly line. The tedium was over-whelming assembly lines were dangerous and losing limbs was a risk workers took what came to be known as repetitive motion injuries could cripple workers. Automobile manufacturers managed to cover up many of these problems well into the 1920s, but they were a constant tax on production. By 1920, the automobile industry was shaking down to a small number of competitors. A recession in 1921 caught small manufacturers without enough cash on hand to operate their factories. During the 1920s, the big two manufacturers were Ford and General Motors (GM), with a young Chrysler Motor Corporation, established in 1925, gaining ground. In 1920, the luxury car maker Dusenberg introduced four-wheel brakes and a straight-eight engine. In 1924, Hudson introduced an enclosed sedan as a standard release, costing the same as its open car, 895.00. Further, ethylene glycol antifreeze was invented. These two innovations meant that manufacturers could produce all-weather cars that could withstand cold and shelter their drivers. In 1925, the last strong challenge to the internal combustion engine ended when the versatile Stanley Steamer ceased being manufactured. Journalists had been predicting the saturation of the automobile market for over a decade, claiming automobile sales had to decline once everyone who wanted a car had a car they had long been wrong. In 1925, Alfred P. Sloan, Jr. who ran GM, suggested that the time was coming when the saturation of the market would have to be dealt with, and he suggested what would later be called planned obsolescence as the solution. Change the style every year to make older styles seem out of date. By 1927, GMs Chevrolet division was outselling Ford. Meanwhile, Chrysler bought out Dodge and in 1928, launched Plymouth and De Soto. It was in 1928 that automakers began to make planned obsolescence a reality, but in the early 1930s, the industry was hit hard by the Great Depression. From 1931 to 1932, nine thousand auto dealerships went out of business, although neither Ford nor GM lost even one. Because of its virtues of being inexpensive and durable, the Ford Model A, introduced in 1927, helped Ford re-take its lead in sales in a much diminished market. In 1933, Chrysler introduced aerodynamic designing, but its futuristic offering did not fit public tastes in hard times. Unionization hit the industry in the 1930s. Ford was outraged, viewing his workers as ungrateful, but his reaction was mild compared to the violence GM used to discourage unionization of its plants. Even so, the major automakers eventually signed collective bargaining agreements with the United Auto Workers. In 1942, the automotive industry almost came to a stop because the United States had entered World War II. The government ordered the automobile companies to produce war supplies, and this they did. The Ford Motor Company had been taken over by Henry Ford II, grandson of the founder, and he was beginning to reshape the company in 1941. During the war, Ford applied its mass production principles to manufacturing heavy bombers. By the end of the war, it was producing a B-24 bomber every sixty-three minutes. To GM fell the manufacturing of tanks. The GM management rethought their manufacturing process, introducing teams of workers who ran their work stations and a new whole chassis welding process that encouraged workers to be their own quality managers. In 1945, Henry Kaiser founded Kaiser-Frazer Corporation and began manufacturing innovative automobiles. In 1954, Nash and Hudson merged to form American Motors. The big three in automobile production were GM, first, Chrysler, second, and Ford, third. At the time, about seventeen percent of American-made automobiles were sold in foreign countries. Ford was especially well positioned for sales in Europe with factories in England and elsewhere on the continent. The Big Three did not seem to care about what was happening in Japan during the 1950s. The Japanese were listening to American management consultant W. Edwards Deming, who told them they should produce high-quality, durable products, and stand behind their quality with warranties in order to sell their wares internationally. Not all Japanese manufacturers believed Deming, but some invested everything they had into Demings ideas. One such company was Toyota, who developed the Toyota Production System. They encouraged worker suggestions for improving products as well as procedures and they created teams of workers who were responsible for the quality of their workstations performances, which they called kaizen. During the 1950s and 1960s, planned obsolescence governed the American auto industry the fiasco in 1957 of the Ford Easel came about in part because it was not at all innovative in performance or design. Meanwhile, the world and Americans were changing fast. By the end of the 1960s, people who had never been in a coalmine were dying of black lung disease in polluted cities such as New York and Los Angeles. In the early 1970s, the United States Congress mandated cleaner burning automobile engines and set standards for automobile safety. The Japanese were ready with cars that met the standards the Americans were not. Then in 1973, the Organization of Petroleum Exporting Countries (OPEC) cut back steeply on exports, gasoline prices rose steeply, and Americans had to wait in long lines at gas stations because of gasoline shortages. Since the 1920s, automobile manufacturers knew that Americans preferred big cars over small ones. A forty-miles-per-gallon automobile, the Crassly Hotshot, had been produced in the 1940s but had disappeared because of poor sales. In the 1970s, Americans wanted small, gas efficient cars. The Japanese had them. In 1977, more American automobiles were recalled because of faulty parts or construction than were actually built during the year. In 1979, Chrysler almost went bankrupt, and only earnest pleas for help from charismatic company president Lee Iacocca won the federal loan guarantees the company needed in order to continue operations. Meeting the Japanese Challenge In 1980, Americas automakers lost 1.8 billion dollars. In 1980, Japanese automobiles outsold American automobiles worldwide for the first time. Yet, in that year, American automobile companies invested seventy billion dollars to reconstruct their plants. They were putting computers into their cars to manage fuel, the shifting of gears, and other aspects of cars, to make driving them more efficient and with less wear and tear. The Texaco Controlled-Combustion System, invented in the 1940s, allowed automobiles to burn almost any fuel efficiently, and engines that ran on methanol, coal dust, and natural gas were created. Meanwhile, Japanese manufacturers ran into problems. The most important one was their dependence on foreign imports of raw materials. Another problem was the saturation level: they were running out of markets for their small cars, and without high volume sales, it was hard to earn profits making them. Thus, Japanese manufacturers began to shift toward making more expensive large automobiles with luxury features they could make a higher profit per car for the large ones than for the smaller ones. Further, the Japanese yen had been strong against the American dollar for many years, helping make Japanese cars cheaper than American ones. By 1985, the yen had dropped against the dollar, adding two thousand dollars to the price of a Japanese automobile in America. In 1987, Chrysler bought out American Motors and showed its renewed financial strength by paying back its loans early. GM showed that there was still life in the idea of worker participation in quality management by beginning, in June 1982 (but publicly announced in 1983), a new car division for the Saturn, the first of which was manufactured 15 September 1984. The car depended on its reputation for high quality to succeed in the American market. In Japan, automobile manufacturers depended heavily on robots to man their workstations, whereas American companies did not. What seemed to make economic sense in the 1980s, proved a money pit for the Japanese. They discovered that while they saved money from laying off workers who were replaced by robots, they were spending extra money on the people who maintained the robots and programmed the robots computers. Plus, kaizen was disappearing as the workers who could have made constructive suggestions were laid off. The result was that by 1995, American automobile makers regained their dominant position in the marketplace. BIBLIOGRAPHY The Arsenals of Progress. The Economist (US) 330, no. 7853 (5 March 1994): M57. De Camp, L. Sprague, and Catherine C. De Camp. The Story of Science in America. New York: Charles Scribners Sons, 1967. Grove, Noel. Swing Low, Sweet Chariot. The Automobile and the American Way. National Geographic (June 1983): 235. Hapgood, Fred. Keeping It Simple. Inc. 18, no. 4 (19 March 1996): 6670. Ingrassia, Paul J. and Joseph B. White. Comeback: The Fall and Rise of the American Automobile Industry. New York: Simon amp Schuster, 1994. Kerson, Roger. Ending the Bends. Technology Review 89 (April 1986): 6. Showalter, Williamm Joseph. The Automobile Industry: An American Art That Has Revolutionized Methods of Manufacturing and Transformed Transportation. National Geographic 44, no. 4 (October 1923): 337414. Sloan, Alfred P. Jr. My Years with General Motors. New York: Doubleday, 1972. Smith, Philip Hillyer. Wheels within Wheels: A Short History of American Motor Car Manufacturing. New York: Funk amp Wagnalls, 1968. By someone who actually lived the history. Toyotas New Bombshell. World Press Review 42, no. 6 (June 1995): 33. Womack, James P. Daniel T. Jones, and Daniel Roos. The Machine That Changed the World: How Japans Secret Weapon in the Global Auto Wars Will Revolutionize Western Industry. New York: Maxwell Macmillan International, 1990. See also Air Pollution Assembly Line Ford Motor Company General Motors Mass Production Steam Power and Engines United Automobile Workers of America and vol. 9: Ford Men Beat and Rout Lewis . Cite this article Pick a style below, and copy the text for your bibliography. Gale Encyclopedia of U. S. Economic History COPYRIGHT 2000 The Gale Group Inc. AUTOMOBILE INDUSTRY Few industries have had a larger impact on the U. S. economy as the automobile industry. The development of the motor vehicle brought significant changes in twentieth century U. S. culture and society. The auto industry provided progressively easier and faster travelling and shipping and it spurred the development of elaborate highway systems linking cities and states. It also stimulated the creation of suburbs around major cities. The average person could now afford to travel easily from city to city and to commute to work from an outlying area. Owning an automobile became an indicator of financial success some type of vehicle was within the reach of all but the poorest citizens. Autos were also one of the first products available for purchase on a payment plan, a financial arrangement that became a marketing mainstay of the U. S. economy. In the cities buses allowed large numbers of people to move easily from place to place at a low price. It also became commonplace to bus children to schools. The automobile also sparked the development of other industries such as petroleum and steel, as well as other support businesses such as gas stations, repair shops, and automobile dealerships. Emergency systems also depended on automobiles for getting people to hospitals and for putting out fires. Not all of these improvements, however, met with success. For example, tractors and harvesters eventually became so sophisticated and expensive (including improvements that made the work less onerous, like air conditioning and tape players) that it ran many farmers out of business. In general, farm implement technology based on internal combustion reduced the overall cost of harvesting crops such as corn or wheat by using machinery that did the work of several farmers in a fraction of the time. This, however, drove farm families off of their small farms and into the city. The development of the automobile in the late nineteenth century had its foundations in the invention of the steam engine a century earlier. By the middle of the nineteenth century certain types of farm equipment had utilized the steam engine as a source of propulsion. Inventor Sylvester H. Roper developed and tested several steam carriages, which were shown in the East and the Midwest. In addition to the steam engine, other inventors tested electric and gasoline powered engines. Frank and Charles Duryea tested a gasoline-powered wagon in 1893. The development of these vehicles grew out of the carriage industries. Many bicycle companies also became involved in this process of improving automotive technology by providing parts such as ball bearings, wheels, and tires. By the early part of the twentieth century, the gasoline internal combustion engine became the favorite choice for providing power to carriages, especially after the 1912 Cadillac combined the engine with the ease of an electric self starter. While electric and steam-powered motor vehicles remained popular for a while longer in the East, the Midwest became the home for many of the producers of gasoline powered autos. Ranson E. Olds (1864 x2013 1950) of Lansing, Michigan. switched from steam engines to the gasoline engine by the late 1890s, building the first in 1896. Production of his cars was limited until 1899, when Olds Motor Works was formed, a company that eventually became known as General Motors Oldsmobile Division. Olds expanded production and in 1904 about 5000 were assembled, an impressive feat for the time. Many Olds employees, machinists and parts suppliers eventually left to form their own companies, such as Maxwell, the Reo Company, Hudson, Cadillac, and Dodge. By 1903 the Ford Motor Company emerged as a rival to Olds by creating a sturdy but low-priced car which became very popular. The Model T, sold from 1908 through 1927, became one of the most famous cars of all time. With Fords utilization of the moving assembly line, (c 1913 x2013 1914,) automobile yearly production soared to numbers in the millions by the 1920s. World War I (1914 x2013 1918) caused a shortage in the materials used to produce automobiles, but production resumed in full as soon as the war ended. However, the bottom fell out of the automobile market as the country entered a depression era (1920 x2013 1923). Many independent or smaller automobile companies went out of business. Larger companies struggled as well. Maxwell and Chalmers became part of a new company named Chrysler Corporation in 1925. In 1928 the Dodge Company also became a part of Chrysler. By the late 1920s most smaller companies had either disappeared or had been absorbed into one of the three major companies: Ford, General Motors, and Chrysler, known as The Big Three. General Motors, a leader of the industry during this time, developed some very successful managerial and marketing strategies, such as improvements in offering consumers installment credit, producing models in various price ranges that encouraged car owners to trade in for a more expensive model, and changing car designs yearly. Ford fell behind by holding on to the Model T until it had been long outdated the company continued to struggle until the 1950s. Chrysler remained a strong second place to General Motors throughout the 1930s. In the later 1930s automobile workers x2014 both skilled and unskilled workers x2014 turned to unions to protect their jobs. By the early 1940s the industry was fully unionized, but not without several violent confrontations. From 1937 to 1941 a bitter war of sorts was waged between the Ford Motor Company and the United Auto Workers. Several acts of violence occurred, fostering the animosity between auto workers and the large corporations. During World War II (1939 x2013 1945) automotive factories were put to use producing vehicles, airplanes, airplane engines, and other related items for use in the war. At the end of the war consumer production was again booming as buyers replaced their aging autos. The Big Three continued to dominate automobile production throughout the mid-twentieth century. During the 1960s and 1970s laws were passed to improve safety, including the requirement of seat belts and a reduction in allowable automobile emissions. Fuel efficiency soon became an important issue because of the jump in gasoline prices in the mid-1970s. The automotive industry tried to break its habit of producing big cars and turned to the design and manufacture of smaller economy cars. By the late 1950s foreign automobile manufacturers began to export cars such as Volkswagens, Hondas, Toyotas, and Datsuns. These cars became popular because of their efficient fuel consumption, contemporary design, and quality of construction. They soon became a threat to U. S. manufacturers. By 1980 Japan had become the primary producer of automobiles for the entire world. U. S. auto makers rose to the challenge, revamping, restructuring, modernizing, downsizing and even giving concessions to the auto companies in the effort to protect jobs. The restructuring of the U. S. auto industry meant more machines and fewer workers, a prescription, which led to layoffs. Moreover, U. S. automobile companies bought into the foreign competition and thus became morally implicated in the erosion of the U. S. middle class standard of living. The final decade of the twentieth century found the major automobile companies striving to please a demanding American consumer while asking for concessions from its unions and trying to compete with the foreign competition. New innovations included: the development and successful marketing of the sport utility vehicle (a lighter version of the truck that could be used both on and off the road), air conditioner coolant that would not pollute, and plans by General Motors to produce an electric car. At the end of the 1990s it remained to be seen whether these innovations would revitalize the U. S. automotive industry. See also: Assembly Line, Walter Chrysler, Chrysler Corporation, Henry Ford, Ford Motor Company, General Motors, Model T, Alfred Sloan, United Auto Workers FURTHER READING Comptons Encyclopedia and Fact Index, Ani-Az . Chicago. Comptons Learning Co. 1985, s. v. Automobile Industry. Encyclopedia of American Business History and Biography . New York. Bruccoli Clark Layman, 1990, s. v. The Automotive Industry, 1896 x2013 1920. Encyclopedia of American Business History and Biography . New York: Bruccoli Clark Layman, 1989, s. v. The Automotive Industry, 1920 x2013 1980. Foner, Eric, and John A. Garraty, eds. The Readers Companion to American History . Boston: Houghton Mifflin Co. 1991, s. v. Automobiles. Hillstrom, Kevin, ed. Encyclopedia of American Industries, Volume 1: Manufacturing Industries . New York: Gale Research, Inc. Johnston, James D. Driving America: Your Car, Your Government, Your Choice . Washington, D. C. AEI Press, 1997. Scharchburg, Richard P. Carriages Without Horses: J. Frank Duryea and the Birth of the American Automobile Industry . Warrendale, PA: Society of Automotive Engineers, 1993. St. Clair, David James. The Motorization of American Cities . New York: Praeger, 1986. Wolf, Winfried. Car Mania: A Critical History of Transport . Chicago, IL: Pluto Press, 1996. Cite this article Pick a style below, and copy the text for your bibliography. UNITED AUTOMOBILE WORKERS OF AMERICA UNITED AUTOMOBILE WORKERS OF AMERICA (UAW) was the largest and most politically important trade union during the heyday of the twentieth-century labor movement. Although the UAW held its first convention in 1935, its real founding took place the next year, when it became one of the key unions within the new Committee for Industrial Organization. After a dramatic, six-week sit-down strike at General Motors during the winter of 1937, the UAW won union recognition from that company, then the nations largest corporation. Chrysler and numerous supplier plants followed within a few months, after which it took four difficult years to organize workers at the Ford Motor Company, an intransigent union foe. By 1943, the UAW had organized more than a million workers in the auto, aircraft, and agricultural equipment industries. The UAW was a uniquely democratic and militant union for three reasons. First, under conditions of mass production, supervisors and unionists fought bitterly and continuously over the pace of production, the distribution of work, and the extent to which seniority would govern job security. Second, the UAW enrolled hundreds of thousands of Poles, Hungarians, Slavs, Italians, African Americans, and white Appalachian migrants for whom unionism represented a doorway to an engaged sense of American citizenship. Finally, the founders and officers of the UAW were a notably factional and ideological cohort, among which socialists, communists, Catholic corporatists, and Roosevelt liberals fought for power and office. Homer Martin, who served as union president from 1936 until 1939, was a former Protestant minister whose maladroit leadership nearly wrecked the union during the sharp recession of 1938. He was followed by R. J. Thomas, who tried to straddle the rivalry that made the former socialist Walter Reuther and his right wing faction the bitter enemies of Secretary Treasurer George Addes and Vice President Richard Frankensteen and their communist supporters. Reuther won the union presidency in 1946, and his anticommunist caucus, which nevertheless embodied the radicalism of many shop militants and progressive unionists, took full control of the UAW the next year. Reuther served as president until 1970, when he died in an airplane crash. During its first quarter century, the UAW established the template that defined much of modern U. S. unionism. In bargaining with the big three auto corporations, the union raised and equalized wages between plants, regions, and occupations. It established a grievance arbitration system that limited the foremans right to hire, fire, and discipline, and it won for its members a wide array of health and pension fringe benefits when it became clear that the unions and their liberal allies could not expand the U. S. welfare state. The real income of automobile workers more than doubled between 1947 and 1973. But the UAW was thwarted in many of its larger ambitions. During World War II, the union sought a role in administering the production effort and sharing power with corporate management. Immediately after the war, Reuther led a 113-day strike against General Motors not only to raise wages but also to pressure both that corporation and the administration of President Harry Truman to limit any subsequent rise in the price of cars, thus enhancing the purchasing power of all workers. The defeat of the UAW on both of these issues paved the way for a midcentury accord with most of the big auto firms. The union abandoned most efforts to challenge management pricing or production prerogatives, in return for which the corporations guaranteed autoworkers a slow but steady increase in their real pay. But this industryUAW accord was not peaceful. Individual UAW locals struck repeatedly to humanize working conditions and to defend unionists victimized by management. At the company wide level, both sides probed for advantage. Thus, long strikes occurred at Chrysler in 1950 and 1957, at Ford in 1955 and 1967, and at General Motors in 1964 and 1970. Politically, the UAW was a liberal presence in national Democratic politics and in those states, such as Michigan, Missouri, Ohio, Illinois, New York, Iowa, California, and Indiana, where it had a large membership. Until 1948, many in the UAW leadership supported forming a labor-based third party, but after Trumans unexpected victory, the UAW sought a liberal realignment of the Democrats. The union pushed for aggressive Keynesian fiscal policies to lower unemployment, fought for an expanded welfare state, and favored dtente with the Soviets. The UAW funded numerous civil rights activities in the 1960s, despite or perhaps because its role in Detroit municipal politics and in numerous auto and aircraft factories was an equivocal one on racial issues. The UAW did not break with President Lyndon Johnson over Vietnam. But it withdrew from the AFL-CIO from 1968 to 1981, because of what Reuther considered the conservative posture and stolid anticommunism of that union federation and of George Meany, its longtime president. In 1972 the UAW vigorously supported the presidential candidacy of George McGovern. Until the late 1970s, UAW membership fluctuated between 1.2 and 1.5 million, but the back-to-back recessions of the late 1970s and the early 1980s combined with automation, the deunionization of the auto parts sector, and the closing of many older factories slashed UAW size to about 750,000. When Chrysler verged on bankruptcy in 1980 and 1981, the union agreed to a series of contract concessions that for the first time in forty years broke wage parity among the major auto firms. The UAW eventually reestablished the industry wage pattern and won employment guarantees for many of its remaining members, but the concession bargaining of the early 1980s spread rapidly across industrial America with devastating results for millions of workers. After the mid-1980s, the UAW no longer played the vanguard role within the labor movement once hailed by Reuther. Until 1983 it was led by Leonard Woodcock and Douglas Fraser, both union pioneers and labor spokesmen of national stature. The UAW voice was more muted during the subsequent presidencies of Owen Beiber and Steven Yokich. The union cooperated with the auto industry to dilute government-mandated fuel efficiency standards and to stanch Japanese imports. But when foreign firms built assembly and parts plants in the United States, the union could not organize the workers. For more than a decade the UAW accommodated management efforts to deploy team production and employee involvement schemes, which often eroded work standards and eviscerated union consciousness. By the early twenty-first century the UAW was the nations fifth largest union. BIBLIOGRAPHY Boyle, Kevin. The UAW and the Heyday of American Liberalism, 19451968. Ithaca, N. Y. Cornell University Press, 1995. Halpern, Martin. UAW Politics in the Cold War Era. Albany: State University of New York Press, 1988. Jefferys, Steve. Management and Managed: Fifty Years of Crisis at Chrysler. New York: Cambridge University Press, 1986. Lichtenstein, Nelson. The Most Dangerous Man in Detroit: Walter Reuther and the Fate of American Labor. New York: Basic Books, 1995. Moody, Kim. Workers in a Lean World: Unions in the International Economy. London: Verso, 1997. See also American Federation of LaborCongress of Industrial Organizations Automobile Industry Labor Sitdown Strikes Strikes and vol. 9: Ford Men Beat and Rout Lewis . The Columbia Encyclopedia, 6th ed. Copyright The Columbia University Press automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. By allowing consumers to commute long distances for work, shopping, and entertainment, the auto industry has encouraged the development of an extensive road system, made possible the growth of suburbs and shopping centers around major cities, and played a key role in the growth of ancillary industries, such as the oil and travel businesses. The auto industry has become one of the largest purchasers of many key industrial products, such as steel. The large number of people the industry employs has made it a key determinant of economic growth. Although ancient Chinese writers described steam-powered vehicles, and both steam - and electric-powered cars competed with gas-powered vehicles in the late 19th cent. Frenchman Jean Joseph 201tienne developed the first practical internal-combustion engine (1860), and later in the decade several inventors, most notably Karl Benz and Gottlieb Daimler, produced gas-powered vehicles that ultimately dominated the industry because they were lighter and less expensive to build. French companies set the design of the modern auto by placing the engine over the front axle in the 1890s and U. S. manufacturers made important advances in the mass production of the auto by introducing cars with interchangeable machine-produced parts (one such car was created by Ransom E. Olds in 1901). In 1914 Henry Ford began to mass produce cars using assembly lines. In addition, his practice of providing loans to consumers to buy cars (1915) made the Model T affordable to the middle class. In the 1920s, General Motors further changed the industry by emphasizing car design. The company introduced new models each year, marketed different lines of cars to different income brackets (the Cadillac for the rich the Chevrolet for the masses), and created a modern decentralized system of management. U. S. auto sales grew from 4,100 in 1900 to 895,900 in 1915, to 3.7 million in 1925. Sales dropped to only 1.1 million in 1932 and during World War II, the auto factories were converted to wartime production. The Modern Industry After 1945, sales once again took off, reaching 6.7 million in 1950 and 9.3 million in 1965. The U. S. auto industry dominated the global market with 83 of all sales, but as Europe and Japan rebuilt their economies, their auto industries grew and the U. S. share dropped to about 25. Following the OPEC oil embargo in 1973, smaller, fuel-efficient imports increased their share of the U. S. market to 26 by 1980. In the early 1980s, U. S. auto makers cut costs with massive layoffs. Throughout the 1990s, imports8212particularly from Japan8212took an increasing share of the U. S. market. Beginning in the early 1980s, Japanese and, later, German companies set up factories in the United States by 1999, these were capable of producing about 3 million vehicles per year. That year, 8.7 million vehicles were sold in the Untied States. Since then, domestic production by U. S. companies has continued to decline, so that they now produce somewhat more than half of all light motor vehicles sold in America (and many of their vehicles contain a significant percentage of foreign parts as determined by dollar value). In 2007, over 440 billion worth of motor vehicles and parts were produced in the United States by U. S. and foreign companies employing more than 902,000 workers. The credit crisis that began in 2008 and the associated recession resulted in significant losses for most automobile manufacturers. The U. S. industry was especially hard hit, losing sales as well from late 2007 to mid-2008 as customers sought more energy-efficient cars as gasoline prices skyrocketed, and in late 2008 U. S. automotive companies sought government financial aid. Subsequently, the government forced Chrysler and General Motors to declare bankruptcy (2009) and reorganize in an attempt to create viable companies. The U. S. and Canadian governments, Italys Fiat (which purchased a majority stake in Chrysler), and the United Auto Workers owned much of the new companies. In 2014, Fiat announced plans to purchase all of Chryslers shares and incorporate in the Netherlands as Fiat Chrysler Automobiles NV the new company will be based in Great Britain. Complaints about auto pollution, traffic congestion, and auto safety led to the passage of government regulations beginning in the 1970s, forcing auto manufacturers to improve fuel efficiency and safety. Auto companies are now experimenting with cars powered by such alternative energy sources as natural gas, electricity, hydrogen fuel cells, and solar power. See R. Sobel, The Car Wars (1984) J. Fink, The Automobile Age (1988) J. A. C. Conybeare, Merging Traffic: The Consolidation of the International Automobile Industry (2004) B. Vlasic, Once Upon a Car: The Fall and Resurrection of Americas Big Three Automakers (2011). Cite this article Pick a style below, and copy the text for your bibliography. United Auto Workers Gale Encyclopedia of U. S. Economic History COPYRIGHT 2000 The Gale Group Inc. UNITED AUTO WORKERS The United Auto Workers (UAW) was created in 1936 to protect the rights of workers in Americas largest industry, automobile manufacturing. Unionizing auto workers was a formidable task. Management was staunchly anti-union, harassing workers suspected of union activity and even employing spies to report on employee activities. Workers were subjected to capricious firings and bullying from foremen, and could not appeal management decisions. Because the American Federation of Labor (AFL) was not concerned with the needs of unskilled workers, a group of radical labor leaders emerged to advocate for their rights. John L. Lewis (1880 x2013 1969) of the United Mine Workers, David Dubinsky (1892 x2013 1982) of the International Ladies Garment Workers, and Sidney Hillman (1887 x2013 1946) of the Amalgamated Clothing Workers formed the Committee of Industrial Organization (CIO), a committee within the AFL. The CIO worked on organizing unskilled labor into huge industry-wide unions. The UAW, with Homer Martin as its first president, became the auto workers union. Workers, intimidated by managements hostility, were reluctant at first to join the UAW. They needed proof that the union could succeed against the biggest and most powerful industry in the country. To confront these industry giants, organizers adopted a new tactic. They staged sit-down strikes at several plants, forcing companies to stop production. This strategy was so damaging to business that the auto companies were finally forced to accept the union as labors legitimate bargaining agent. The recognition of the UAW was a landmark in the struggle for labor rights. It signaled the emergence of a new generation of labor leaders who were ready to push hard for the rights of unskilled labor. And workers responded enthusiastically. UAW membership rose from 98,000 in early 1937 to 400,000 by mid-year. During the 1930s and 1940s, the UAW fought for and obtained significant improvements for its members, especially under the leadership of Walter Reuther (1907 x2013 1970), who served as UAW president from 1946 to 1970. The union successfully bargained for such measures as cost-of-living adjustments, wage increases, and pensions. In 1955, auto workers won a guaranteed annual wage. At the same time, however, the UAW grew increasingly bureaucratized in the years after World War II (1939 x2013 1945). Abandoning its more democratic roots, the UAW became a fiercely authoritarian and anti-Communist organization. Power was concentrated within the central administration, the autonomy of local chapters destroyed, and accusations or patronage abounded. Though the UAW continued to win concrete labor benefits, it imposed contracts on membership without their input and stifled internal debate. By the 1960s, workers grew increasingly alienated from the union, which had not brought a national strike against General Motors since 1945 x2013 1946. When disgruntled workers finally staged wildcat strikes in 1970, UAW officials broke up picket lines to force strikers back to work. By the 1990s the UAW had modified many of its positions. Though power was still centrally concentrated, the UAW at the end of the twentieth century was one of the most democratic unions in the United States. Unlike many unions, such as the Teamsters, the UAW has been relatively free of corruption charges and maintains a good reputation for its efforts. See also: Automobile Industry, Labor Movement, Labor Unionism, Sit-Down Strikes Cite this article Pick a style below, and copy the text for your bibliography. Thomas Bulkowski8217s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30 years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at Support this site Clicking the links (below) takes you to Amazon. If you buy ANYTHING, they pay for the referral. Bulkowskis Books Book Corrections Below, if you click on a book picture, it will take you to Amazon for browsing and buying. Anything purchased at Amazon through this website (by clicking on a book link) helps support this site. Which Book Should I Buy I am often asked what is the difference between my books, and which one should I buy first Heres the answer. Focus: Shows how stocks typically behave after a chart pattern appears. My book, Encyclopedia of Chart Patterns is to human anatomy as Chart Patterns: After the Buy is to human behavior. Chart Patterns: After the Buy shows how a stock acts after a chart pattern appears, so we can use that knowledge before buying to boost the odds of trading success. It covers chart patterns, but from a different perspective than all of my other books. Read an excerpt on double bottoms from the book (pdf: 1.58 mb). This book is meant as a reference. Encyclopedia of Candlestick Charts Focus: Candlesticks and their performance. This book is the definitive reference book covering 103 candlestick patterns. This is one of the few candlestick books that tests each candle pattern and reports on that performance in a clear and concise manner. Encyclopedia of Chart Patterns. Focus: The internals of chart patterns. This is a definitive (and popular) reference book on chart patterns, reviewing 53 chart and 10 event patterns packed with performance information, identification guidelines, failure rates, breakout statistics, size and height stats, volume stats, trading tactics, and more. It peaked at 5 in Australia at Amazon. Fundamental Analysis and Position Trading: Evolution of a Trader Focus: Value investing. A primer about value investing (PE and PSR ratios, book value, cash flow, dividends, and so on) and adding market timing to a buy-and-hold strategy using position trading. I test each of the fundamentals to see how they perform. The book tells what to look for when selecting stocks to double your money and to find 10-baggers (stocks that rise by 10 times the investment). Getting Started in Chart Patterns Focus: Chart pattern information and trading the stock market for beginners. This book is a popular, low cost choice for both the novice and expert trader wishing to tune-up the basics. Written as a narrative (not a reference book), it discusses chart patterns and includes details on many of my trades, so you can get a feel for how I use chart and event patterns. This book is more advanced than the Visual Guide to Chart Patterns described below. Swing and Day Trading: Evolution of a Trader . Focus: Swing and day trading. The book explains how to use chart patterns to swing and day trade, including major reversal times for day traders, plus the opening range breakout and opening gap setups. This book zeros in on the shorter time scales. It also includes a chapter on horror stories, which is an interesting read all by itself. I interview traders and discuss their botched trades. Trading Basics: Evolution of a Trader . Focus: Information youll need when trading or investing in the stock market. This book covers subjects like how much money youll need for tradinginvesting, position sizing, scaling in and out of positions, leverage, dollar cost averaging, portfolio composition, how long to hold a stock, with entire chapters dedicated to stop placement, and support amp resistance. It has a chapter on 45 tips every trader should know. This book tests each idea to see how well it performs and provides an in-depth look at what you need to invest and trade stocks. Trading Classic Chart Patterns. Focus: a scoring system for chart patterns. The book introduces a scoring system to help you select the most popular chart patterns that lead to big gains. Visual Guide to Chart Patterns Focus: A beginners guide to chart patterns This book is an entry level guide to chart patterns, taking you from how to recognize them, what are minor highs and lows, constructing trendlines (Part I), and into the many varieties of chart patterns (part II), ending with buy setups (part III) and sell signals (part IV). This narrative book has lots of color charts and also includes quizzes, which are difficult but fun to take. One Testimonial Heres a testimonial thats worth reading not for what he says about my books (which is nice) but about his success trading the markets. Dear Mr. Bulkowski, Im a 22-year old college student and an options trader. For the last year and four months, before June, I virtually traded options at real time, turning one hundred thousand into five million. Then, at the beginning of the summer, I opened my first real money account, and have made a little less than 1,200 on my account, never having more than 30 of my entire account invested at one time, never having more than 15 in one stock (now no more than 10, eventually Ill get it down to having no more than 5). I got started in charts with Getting Started in Chart Patterns . I followed that book with Encyclopedia of Chart Patterns . and followed that with Trading Classic Chart Patterns . with the recommendations listed on Dan Zangers site. I loved those books so much that I bought Encyclopedia of Candlestick Charts . since Im a fan of charts. I was amazed at how much I had already figured out. You put names to what I was just observing and statistics that made me even more profitable. I keep both your encyclopedias next to my computer while I go over my stocks ever night, and I see a break out. My parents are mad at you because now they cant claim me on their taxes this year. Just kidding, I bought my dad the boat he always wanted because they matched my account which gave me a few extra dollars to play with. I hope your trading is doing well and your doing well. Thank You So Much. Your Books Are Awesome. Chart Patterns: After the Buy I looked at thousands of chart patterns to discover how they behaved after placing a trade. Then I used that knowledge to help predict which chart patterns would outperform. The book covers the most popular chart patterns but also other seldom-discussed patterns, too. View a chapter excerpt on double bottoms (pdf: 1.58 mb) by clicking the link, courtesy of John Wiley amp Sons. Chart Patterns: After the Buy Table of Contents Heres what Amazon has to say. Chart Patterns: After the Buy goes beyond simple chart pattern identification to show what comes next. Author and stock trader Thomas Bulkowski is one of the industrys most respected authorities in technical analysis for this book, he examined over 43,000 chart patterns to discover what happens after you buy the stock. His findings are detailed here, to help you select better buy signals, avoid disaster, and make more money. Bulkowski analyzed thousands of trades to identify common paths a stock takes after the breakout from a chart pattern. By combining those paths, he discovered the typical routes a stock takes, which he calls configurations. Match your chart to one of those configurations and you will know, before you buy . how your trade will likely perform. Now you can avoid potentially disastrous trades to focus on the big winners. Each chapter illustrates the behavior of a specific pattern. Identification guidelines help even beginners recognize common patterns, and expert analysis sheds light on the period of the stocks behavior that actually affects your investment. Youll discover ideal buy and sell setups, how to set price targets, and more, with almost 370 charts and illustrations to guide you each step of the way. Coverage includes the most common and popular patterns, but also the lesser-known ones like bad earnings surprises, price mirrors, price mountains, and straight-line runs. Whether youre new to chart patterns or an experienced professional, this book provides the insight you need to select better trades. Identify chart patterns Select better buy signals Predict future behavior Learn the best stop locations Knowing the pattern is one thing, but knowing how often a stop will trigger and how often you can expect a stock to reach its target price is another matter entirely-and it impacts your trade performance immensely. Chart Patterns: After the Buy is the essential reference guide to using chart patterns effectively throughout the entire life of the trade. Getting Started in Chart Patterns, Second Edition Chart pattern analysis is not only one of the most important investing tools, but also one of the most popular. Filled with expert insights and practical advice from one of the best in the business, Getting Started in Chart Patterns, Second Edition helps new and seasoned traders alike profit by tracking and identifying specific chart patterns. Substantially revised and expanded, this new edition of the popular guide now includes additional charts for ETFs and mutual funds. It introduces more than 40 key chart formations, as well as trading tactics that can be used in conjunction with them. It supplies actual trades (with dollar amounts), along with author Thomas Bulkowskis frank discussion of how trading behavior can affect the bottom line. Interwoven throughout the technical presentations are fascinating anecdotes drawn from the authors quarter-century as a professional trader that vividly demonstrate how one of the best in the business leverages the power of chart patterns. Getting Started in Chart Patterns, Second Edition Table of Contents Preface to First and Second Editions Acknowledgments Testimonial I started out in late 2003 with 123,000 in our multiple IRA accounts. My results, focusing exclusively on the Precious Mining Junior Exploration Companies, really took off AFTER I read your Getting Started in Chart Patterns book. By March 2006, our IRA accounts had exceeded 1,000,000. Your explanations of Support amp Resistance Fibonacci retracements and High, Tight Flag formations really paid off -- email from Rich K. of California Endorsements (from the book cover): When it comes to chart reading, Thomas Bulkowski can be categorized as a sui generis (constituting a class alone). Combining objective analysis with a fictional element has resulted in a highly entertaining read, one that any trader will benefit from. Jayanthi Gopalakrishnan, Editor of Technical Analysis of Stocks amp Commodities magazine. Nobody explains the nuts and bolts of how - exactly - to use chart patterns to make real money in trading like Tom Bulkowski. I always do better in my own trading after reading a Bulkowski book. This is the practical, down-to-earth guidance you have been looking for in books on technical analysis. Bulkowski doesnt give you platitudes - he gives you live examples. Even better, he admits that patterns dont always deliver what we expect and he quantifies both success and failure rates for the top moneymaking patterns. Nobody writes about chart work better than Bulkowski. - Barbara Rockefeller, independent trader and advisor (rts-forex), author of Technical Analysis for Dummies. In Getting Started in Chart Patterns, Bulkowski offer easy-to-apply advice for looking at charts and making them work more effectively for you in your trading. It is his passion it probably also will become yours after reading this book. A must for budding technicians - Gail Osten, Executive Editor of Stocks, Futures amp Options (SFO) magazine. Trading Basics: Evolution of a Trader The three books in the Evolution of a Trader series were written for people unfamiliar with the inner workings of the stock market, but will curl the toes of professionals, too. Research is used to prove the ideas discussed, but is presented in an easy to understand and light-hearted manner. You will find the books to be as entertaining as they are informative and packed with moneymaking tips and ideas. Use the ideas presented here to hone your trading style and improve your success. Whether you are a novice who has never purchased a stock but wants to, or a professional money manager who trades daily, these books are a necessary addition to any market enthusiasts bookshelf. Trading Basics The first book in the Evolution of a Trader series begins with the basics, creating a solid foundation of terms and techniques. Although you may understand market basics, you will learn from this book. How do I know Take this quiz. If you have to guess at the answers, then you need to buy this book. If you get some of them wrong, then imagine what you are missing. Answers are at the end of the quiz. From Chapter 2, Money Management 1. True or false: Trading a constant position size can have disastrous results. 2. True or false: A market order to cancel a buy can be denied if it is within two minutes of the Nasdaqs open. 3. True or false: Dollar cost averaging underperforms. From Chapter 3: Do Stops Work 1. True or false: Fibonacci retracements offer no advantage over any other number as a turning point. 2. True or false: A chandelier stop hangs off the high price. 3. True or false: Stops cut profit more than they limit risk. From Chapter 4: Support and Resistance 1. True or false: Peaks with below average volume show more resistance. 2. True or false: Support gets stronger over time. 3. True or false: The middle of a tall candle is no more likely to show support or resistance than any other part. From Chapter 5: 45 Tips Every Trader Should Know 1. True or false: Fibonacci extensions are no more accurate than any other tool for determining where price might reverse. 2a. True or false: Only bullish divergence (in the RSI indicator) works and only in a bull market. 2b. True or false: Bullish divergence (in the RSI indicator) fails to beat the market more often than it works. 3. True or false: Price drops faster than it rises. From Chapter 6: Finding and Fixing What Is Wrong 1. True or false: The industry trend is more important than the market trend. 2. True or false: Holding a trade too long is worse than selling too early. 3. True or false: Sell in May and go away. The answer to every statement is true. Trading Basics Table of Contents Chapter 1: How to Retire at 36 Chapter 2: Money Management Trading: How Much Money, Honey Order Types: Read The Fine Print Position Sizing: My Story Position Sizing by Market Condition: Bull or Bear How Many Stocks to Hold A Better Way Portfolio Composition Hold Time: How Long is Long Enough Hold Time: My Trades The Money Management Matrix Should You Scale Into Positions Averaging Down: Throwing Away Money or Smart Choice Scaling Out of Positions: A Profitable Mistake Dollar-Cost-Averaging: Good or Bad Using Leverage: An Expensive Lesson Leverage Guidelines Checklist Chapter 3: Do Stops Work What Is Hold Time Loss Mental Stop: For Professionals Only Minor High or Low Stop: A Good Choice Squaring Off Round Numbers Chart Pattern Stop: Too Costly Stopped by a Moving Average The Truth about Trendlines Fundamental Analysis and Position Trading: Evolution of a Trader The three books in the Evolution of a Trader series were written for people unfamiliar with the inner workings of the stock market, but will curl the toes of professionals, too. Research is used to prove the ideas discussed, but is presented in an easy to understand and light-hearted manner. You will find the books to be as entertaining as they are informative and packed with moneymaking tips and ideas. Use the ideas presented here to hone your trading style and improve your success. Whether you are a novice who has never purchased a stock but wants to, or a professional money manager who trades daily, these books are a necessary addition to any market enthusiasts bookshelf. Fundamental Analysis This book explains and describes the test results of various fundamental factors such as book value, price-to-earnings ratio, and so on, to see how important they are to stock selection and performance. The Fundamental Analysis Summary chapter provides tables of fundamental factors based on hold times of one, three, and five years that shows which factor is most important to use for those anticipated hold times. The tables provide a handy reference for buy-and-hold investors or for other trading styles that wish to own a core portfolio of stocks based on fundamental analysis. Chapters such as How to Double Your Money, Finding 10-Baggers, and Trading 10-Baggers put the fundamentals to work. The chapter titled Selling Buy-and-Hold helps solve the problem of when to sell long-term holdings. Position Trading The second part of the book explores position trading. It introduces market timing to help remove the risk of buying and holding a stock for years. Have you heard the phrase, Trade with the trend How often does a stock follow the market higher or lower The section titled, What is Market Influence on Stocks provides the answer. This part of the book looks at how chart patterns can help with position trading. It discloses the 10 most important factors that make chart patterns work and then blends them into a scoring system. That system can help you become a more profitable position trader when using chart patterns. Six actual trades are discussed to show how position trading works and when it does not. Consider them as roadmaps that warn when the road is bumpy and when the market police are patrolling. Fundamental Analysis and Position Trading Table of Contents Chapter 1: Introduction to Buy and Hold What Is Buy and Hold Swing and Day Trading: Evolution of a Trader The three books in the Evolution of a Trader series were written for people unfamiliar with the inner workings of the stock market, but will curl the toes of professionals, too. Research is used to prove the ideas discussed, but is presented in an easy to understand and light-hearted manner. You will find the books to be as entertaining as they are informative and packed with moneymaking tips and ideas. Use the ideas presented here to hone your trading style and improve your success. Whether you are a novice who has never purchased a stock but wants to, or a professional money manager who trades daily, these books are a necessary addition to any market enthusiasts bookshelf. Swing Trading The last book of the three covers Swing and Day Trading: Evolution of a Trader . The first part of the book highlights swing trading techniques, explains how to use chart patterns to swing trade, swing selling, event patterns (common stock offerings, trading Dutch auction tender offers, earnings releases, rating changes, and so on) and other trading setups. It tears apart a new tool called the chart pattern indicator. The indicator is not a timing tool, but a sentiment indicator that is great at calling major market turns. Day Trading Day trading reviews the basics including home office setup, cost of day trading, day trading chart patterns, and the opening range breakout. It discusses research into the major reversal times each day and what time of the day is most likely to set the days high and low-valuable information to a day trader. An entire chapter discusses the opening gap setup and why fading the gap is the best way to trade it. Another chapter discusses the opening range breakout setup and questions whether it works. Ten horror stories from actual traders complete the series. They have been included to give you lasting nightmares. Swing and Day Trading Table of Contents Chapter 1: Introduction to Swing Trading Visual Guide to Chart Patterns Visual Guide to Chart Patterns is a concise and accessible visual guide to identifying, understanding, and using chart patterns to predict the direction and extent of price moves. Packed with visual learning enhancements and exercises, this innovative book helps savvy investors and professionals alike master the essential skills of chart pattern recognition. Follow along as chart pattern expert Thomas Bulkowski teaches you to recognize important peaks and valleys that form patterns-footprints of the smart money. Nearly 200 color charts assist in providing a step-by-step approach to finding those footprints, interpreting them, and following them. Popular patterns such as head-and-shoulders, double tops and bottoms, triangles, gaps, flags, and pennants are just a few of the many patterns explored throughout the book. For the sophisticated trader or investor, the book also provides statistical research to support the claims of pattern behavior, trading signals, and setups, in an easy to understand way. Discusses chart pattern identification guidelines, psychology, variations, failures, and buy and sell signals Covers the most popular and common chart patterns as well as lesser-known ones like throwbacks, pullbacks, and busted patterns Incorporates quizzes, step-by-step exercises, enhanced graphics and video tutorials (e-book only) to immerse the reader in the world of chart patterns Designed for use by investors and traders, from beginners to experts looking for a practical, easy-to-use guide, comprehensive reference, Bloomberg Visual Guide to Chart Patterns provides a sophisticated introduction to the world of chart patterns. The following is a detailed table of contents that lists major topics covered in the book. This was taken from my manuscript and not from the published text. Some of the content may be different in the published version. Visual Guide to Chart Patterns Table of Contents Part 1: The Basics Chapter 1: Pattern Recognition Made Easy Encyclopedia of Candlestick Charts Before I get to the slick marketing message, let me give you a few examples of how I use the information in my Encyclopedia of Candlestick Charts book. Imagine that price has been trending upward for 5 bars and you see a bearish engulfing candle pattern. Looking up the candle in the book, you read that it acts as a bearish reversal 79 of the time (page 308), and that 74 of the time (page 312) price reaches its price target (the height of the candle projected downward). If you then see price begin to falter, like it is thinking of reversing, you can exit the trade ahead of everyone else. Before I make a trade, I look at the probability of the candle acting as a reversal or continuation, and how far price can be expected to move once I am in the trade (based on the candle height). That information is in my book, and it is well worth the cost of it. Let me give you another example. For Apple stock (AAPL) on November 13, 2007, I found an above the stomach candle. The book says (page 89) that the candle acts as a bullish reversal 66 of the time. The upward target is 183.39 with a 61 probability of reaching 191.33 (page 93). A downward target is 139.84 with a 53 probability of reaching 130.28. The current close is 169.96. After a bumpy start, the stock moved up in a straight-line run to 187.70 on November 30, 2007 before pausing for a few days. That is the kind of information you can get from my book, and that is how I put it to good use. It gives me an edge over other traders that do not have such information. In short, it helps me make money. Here is the slick marketing message: Candlestick patterns are footprints of the smart money and deciphering those footprints properly can bring traders and investors riches. Encyclopedia of Candlestick Charts takes an in-depth look at 103 candlesticks, from identification guidelines, to statistical analysis of their behavior, to detailed trading tactics. Never before has a book combined a comprehensive list of candlesticks with a statistical review of their performance. until now. This easy to read and use reference book follows the same format as the best-selling Encyclopedia of Chart Patterns. In each chapter of Encyclopedia of Candlestick Charts youll find: Behavior and Rank shows how each candle is theoretically supposed to work and how it actually does, with rankings against other candlesticks plus the psychology behind the pattern. Identification Guidelines describe what to look for. Statistics include the following tables: general statistics, height statistics, volume stats, reversal rates, and performance indicators. Trading Tactics discuss strategies to increase profits and minimize risk Sample Trade walks you through a hypothetical or actual trade using real data. For Best Performance is a quick reference table of selection tips to boost performance Encyclopedia of Candlestick Charts also includes chapters covering important findings, a statistics summary, glossarymethodology, and a visual index to make candlestick identification easy. Endorsements (from the book cover): Great research, great organization, and a wealth of information. Not only does Tom identify the best formations, he shows the practical way to trade each one. And, he puts the best results right in front, rather than playing hide-and-seek with the reader. You dont need to be a chartist to get value from this book. I highly recommend it. -- Perry Kaufman, author of New Trading Systems and Methods, Fourth Edition Man cannot live on bread alone, and according to Tom Bulkowskis research, one cannot trade by candlesticks alone. Toms intensive statistical work seeks out the truth in the frequency and reliability of trading with candlestick charts. His exhaustive and thorough research will give the reader an eye opener to help guide them in their trading decisions. This is a must-read edition of a high-caliber piece of trading literature for every trader who uses candlecharts. -- John Person, author of Candlestick and Pivot Point Trading Triggers and President of Nationalfutures. When I wrote the Third Edition of Candlestick Charting Explained . I believed I had thoroughly covered every aspect of this respectable analysis technique. Tom has written a solid reference that can easily be used in coordination with other books in this exciting field. The Encyclopedia of Candlestick Charts is a reference that every technical analyst will want to own. -- Gregory L. Morris, Senior Portfolio Manager, PMFM, Inc, and author of Candlestick charting explained, third edition and The Complete Guide to Market Breadth Indicators. Encyclopedia of Chart Patterns, Second Edition In this revised and expanded second edition of the bestselling Encyclopedia of Chart Patterns . Thomas Bulkowski updates the classic with new performance statistics for both bull and bear markets and 23 new patterns, including a second section devoted to ten event patterns. Bulkowski tells you how to trade the significant events -- such as quarterly earnings announcements, retail sales, stock upgrades and downgrades -- that shape todays trading and uses statistics to back up his approach. This comprehensive new edition is a must-have reference if youre a technical investor or trader. From the Inside Flap The Encyclopedia of Chart Patterns . recognized as the premier reference on chart pattern analysis, extends its lead with this Second Edition. This definitive text includes new bull and bear market statistics, performance sorted by volume shape and trend, more than a dozen additional chart patterns, and a new section covering ten event patterns. Significant events-such as earnings announcements, stock upgrades and downgrades-shape todays trading, and Bulkowski gives readers the best information on what happens after those events occur. He also shows you how to trade them and uses reliable statistics to back it all up. In each chapter of Encyclopedia of Chart Patterns . Second Edition youll learn the following about each pattern: Results Snapshot - A statistical summary of pattern behavior, including its performance rank, break even failure rate, average rise or decline-all separated by breakout direction and market type (bull or bear) Tour - A broad introduction to the pattern Identification Guidelines - Characteristics to look for Focus on Failures - What failed patterns look like, why they failed, and how to avoid them Statistics - The numbers and what they tell you, separated into bullbear markets and breakout direction, including average rise or decline, failure rates, volume shapes, performance by size, and busted pattern performance Trading Tactics - Strategies to increase profits and minimize risk Sample Trade - Puts it all together, showing the chart pattern in action, with hypothetical or actual trades using real data For Best Performance - A table of selection tips to boost performance Encyclopedia of Chart Patterns . Second Edition also includes summary tables ranking chart - and event-pattern performance for easy reference a glossary a chapter on methodology explaining what each statistical table entry means and how it was calculated and a visual index to make chart pattern identification a snap. The result is todays most comprehensive and valuable technical analysis reference-one that will save you critical time in identifying chart patterns and increase your likelihood of buying near the price bottom and selling near the top. This book was named one of the years top investment books in 2003 by Stock Traders Almanac 2003 (page 98). The Encyclopedia of Chart Patterns has been cited in Candlesticks, Fibonacci, and Chart Pattern Trading Tools by Robert Fischer and Jens Fischer ( pages 88-89, 107), Technical Analysis for Dummies by Barbara Rockefeller ( pages 154 - 165), Advanced Options Pricing Models, by Jeffrey Katz and Donna McCormick (page 382) and many other titles (Amazon has the full list). The Encyclopedia of Chart Patterns is available in Orthodox Chinese and German, Russian, French and Simplified Chinese translations are pending. Amazon has a 8220search inside the book8221 where you can look at the table of contents, view an excerpt, and do a search. Endorsements (from the book cover): The most complete reference to chart patterns available. It goes where no one has gone before. Bulkowski gives hard data on how good and bad the patterns are. A must-read for anyone thats ever looked at a chart and wondered what was happening. -- Larry Williams, trader and author of Long-Term Secrets to Short-Term Trading. Chart patterns are the basics behind most trading methods, and this book is a great achievement in a highly useful format. Bulkowski has taken an intelligent and thoughtful approach to producing a practical guide to understanding and trading chart formations. -- Perry Kaufman, author of New Trading Systems and Methods, Fourth Edition and A Short Course in Technical Trading. Praise for the first edition Not since Edwards and Magee has someone put together so comprehensive an assemblage of market behavior expressed graphically. No chartist should be without this book. -- John Sweeney, Interim Editor Technical Analysis of Stocks amp Commodities. Encyclopedia of Chart Patterns . is a valuable contribution to the existing literature on charting and should be considered an indispensable reference by any serious chart trader. -- Edward D. Dobson, President, Traders Press, Inc. Meticulously researched, complete, and insightful, the Encyclopedia has earned a permanent place on my trading desk as a highly valued resource. -- Thomas A. Bierovic, Manager, Strategy Testing amp Development, Omega Research, Inc. Trading Classic Chart Patterns Trading Classic Chart Patterns is a combination narrative and reference book (mostly reference). This book was named 8220The best investment book of the year8221 by Stock Traders Almanac 2003 (see page 94 of that book). Trading Classic Chart Patterns has been cited in Candlesticks, Fibonacci, and Chart Pattern Trading Tools by Robert Fischer and Jens Fischer (Wiley 2003, pages 88-89). Translations into Simplified Chinese and German are pending. In his follow-up to the well-received Encyclopedia of Chart Patterns, Thomas Bulkowski gives traders a practical game plan to capitalize on established chart patterns. Written for the novice investor but with techniques for the professional, Trading Classic Chart Patterns includes easy-to-use performance tables, vivid case studies, and a scoring system that makes trading chart patterns simple. This comprehensive guide skillfully gives investors straightforward solutions to profitably trading chart patterns. Trading Classic Chart Patterns also serves as a handy reference guide for favorite chart patterns, including broadening tops, head-and-shoulders, rectangles, triangles, and double and triple bottoms. Filled with numerous techniques, strategies, and insights, Trading Classic Chart Patterns fits perfectly into any pattern traders arsenal. From the Inside Flap From the author of the Encyclopedia of Chart Patterns comes his latest work, Trading Classic Chart Patterns, a groundbreaking primer on how to trade the most popular stock patterns. Written for the novice investor but containing techniques for the seasoned professional, this comprehensive guide includes easy-to-use performance tables supported by statistical research. By using a simple scoring system, youll learn how to predict the performance of a chart pattern almost by looking at it. If youre new to chart patterns, technical analysis, or to stock market investing itself, the Getting Started section provides new ideas on trendlines, support and resistance, placing stops, and avoiding common investment mistakes. As your trading knowledge and experience increase, the Trading Classic Chart Patterns section will serve as a handy reference guide for your favorite chart patterns, including broadening tops, head-and-shoulders, rectangles, triangles, and triple tops and bottoms. Youll quickly learn about the Adam-and-Eve combinations of double tops and bottoms, and how to select the best performers while avoiding the losers. How to use the price trend leading to a chart pattern as a gauge of future performance Why breakout gaps often improve performance-but by less than you think How tall formations perform substantially better than short ones What a partial decline is and how to buy in early for a larger profit Whether high breakout volume really improves performance How to identify horizontal consolidation regions that may stop prices dead in their tracks A new tool, called the horizon failure rate, to assess performance over time The scoring system makes trading chart patterns simple. Use the performance tables to score your stock pattern, then add up the scores. If they total above zero, the stock is an investment candidate if they are below zero, youll know to avoid that particular stock. Its that easy Trading Classic Chart Patterns is a traders reference thats destined to become a classic. This book is an invaluable resource that provides the obvious answer-Yes-for every investor who has wondered if trading chart patterns can be profitable. Endorsements (from the book cover): No one -- not even the pioneers of technical analysis like Dow, Schabacker, Edwards, and Magee -- has ever published such an in-depth and objective research on chart patterns as Thomas Bulkowski has in his Encyclopedia of Chart Patterns and his new book, Trading Classic Chart Patterns. Bulkowski sees farther, not only because he stands on the shoulders of those giants, but also because he has the creativity necessary to develop new methods of quantifying the performance of chart patterns and the tenacity required to carry out the laborious research. Highly recommended -- Thomas A. Bierovic, author Playing for Keeps in Stocks amp Futures: Three Top Trading Strategies That Consistently Beat the Markets Book Corrections The publisher corrects the books as new printings occur (in theory). If you find a mistake, then contact me, Tom Bulkowski. Chart Patterns: After the Buy The following figures have incorrect figure references. For example, Figure 1.18 refers to figures in chapter 2 when it should refer to chapter 1. Heres a list of the figures that need correction: 1.18, 2.18, 3.20, 4.23, 5.18, 6.15, 8.14, 9.20, 10.15, 15.21, 17.10, 18.10, 22.24, 23.26, 24.21 Encyclopedia of Candlestick Charts Page 11: Change chart patterns to candlesticks in the first paragraph, second sentence: The percentage of chart patterns with breakouts within a third of the designated. should read, The percentage of candlesticks with breakouts within a third of the designated. Fix the last two paragraphs by swapping the phrases, overhead resistance with underlying support. Find: Gaps in an uptrend (rising window): Price finds overhead resistance and replace with: Gaps in an uptrend (rising window): Price finds underlying support In the last paragraph, find, Gaps in a downtrend (falling window): Price finds underlying support and replace with, Gaps in a downtrend (falling window): Price finds overhead resistance Page 182, two lines below Behavior and Rank heading: Change 60 of th time to Change 60 of the time Page 407: change the Figure 46.2 caption from bearish to bullish harami cross. Encyclopedia of Chart Patterns, 2nd Edition Page 28: Short-term bearish reversal should be Short-term bullish continuation Page 29: Short-term bearish continuation should be Short-term bearish reversal Page 111: Table 6.8 under Trade the trend lines. In the first sentence, change broad to tall so it should read If the formation is especially tall. Page 111: Find Trade the trend lines stops. highlighted near the bottom of the page. Change wide, to tall, so it should read If the formation is especially tall. Page 138: Second line at the top. Change 30 and 60 to 30 degrees and 60 degrees. It should read, The slope of the price trend line should rise from about 30 degrees at the start to 60 degrees or higher. Page 143, under Width. Replace the word tall with wide as in Narrow patterns perform better than wide ones in a bull market. Page 196. Change Surprising Findings to Throwbacks hurt performance and so do breakout day gaps. Page 197. Change Surprising Findings to Pullbacks hurt performance and so do breakout day gaps. Page 235. Third paragraph from the top, find only 15 times in this study and change it to 18 times. Change 383 in the following sentence to 371. Page 248, Table 15.1, Breakout volume. Change Heavy to Light as in Light breakout volume is best. Page 248, bottom of page, Breakout volume. Change the sentence to read, Look for light breakout volume but do not discard an EADB just because the breakout occurs on above-average volume. Two changes were made to the sentence, the words heavy to light and below to above. Page 253, in Average formation length, change a month to 2 months. Page 268, in Formation end to breakout. Change Measured from the left bottom to Measured from the right bottom Page 347, Text for the example says the winloss ratio is 4.75 to 1 but its actually less because of the entry price (the bottom of the flag). That lowers the profit potential and raises the risk, so the ratio is narrower. If you forget about the ratio, the method of calculating a price target (the measure rule) is correct. Page 369, under Percentage closed. Change as do downward breakouts in a bear market to bull market. Page 376 to 388, even numbered pages, the header should read Head-and-Shoulders Bottoms not Heads. Page 379, line 4 down from the top. Change by signal sooner to buy signal sooner. Page 406 to 436, even numbered pages, the header should read Head-and-Shoulders not Heads. Page 515 under Reversal or continuation in the Statistics section. Change pattern on exit to pattern or exit. Page 532, third line down from the top. Change about a week shorter to about a week longer. Page 627, Table 41.1, Width. Change trend to tend as in Scallops tend to be wider. Page 668. Change 5 to 10 in the line, With a breakout price of 21.11 and a target of 19, is a 5 decline. Page 693. Swap Wide and narrow in the paragraph that begins Width. Wide patterns perform better than narrow ones. Page 731. Change higher to lower in surprising findings table as in Heavy breakout volume helps push prices LOWER. Page 756: swap 164 and 197 in Table 49.2. It should read: 197 R and 164 C Page 761, Table 49.8, measure rule. Change highest high to breakout price as in . add the difference to the breakout price or for downward breakouts. Page 902: Table 59.5 is wrong. Here is the corrected table. Page 950, page bottom: Short-term bearish continuation should be Short-term bearish reversal Page 970. Break-even failure rate rank for Rectangle Bottoms, down breakout. Rank should be 14, not 15. And change Rectangles to Rectangle. Overall Rank changes from 12 to 11 and the others move up by 1 through Island Reversals, down breakout (which has an overall rank of not 21 but 20). Page 972, about a third of the way down. Change Cup with Handdle to Cup with Handle. Getting Started in Chart Patterns Page 23, second bullet item down from the top. Should read Expect a larger price rise not decline. Page 218, Broadening Formation, Right-Angled and Ascending picture in the lower left. Ignore the arrow. Page 219, Table 9.3. Change -50 to 50. Page 219, Paragraph immediately below Table 9.3. Change downward breakouts, to upward breakouts, Trading Classic Chart Patterns Page 63, Table 3.3. Change Percentage above Breakout Price to Percentage above or below Breakout Price Page 164, Table 8.15. Third column, Adam amp Adam should be Eve amp Adam Written by and copyright copy 2005-2017 by Thomas N. Bulkowski. Alle Rechte vorbehalten. Haftungsausschluss: Sie allein sind für Ihre Anlageentscheidungen verantwortlich. See PrivacyDisclaimer for more information. 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