Question
Here is the question : WHICH AUTOMAKER MADE A PROFIT IN EVERY YEAR OF THE GREAT DEPRESSION?
Option
Here is the option for the question :
- Ford
- Chrysler
- General Motors
- Mercedes
The Answer:
And, the answer for the the question is :
Explanation:
Even though sales of new automobiles plunged by 75% between 1929 and 1932, two manufacturers in particular achieved success by shifting their focus from high-end to more reasonably priced models. While GM made a profit every year over this time period, Chrysler saw its market share grow by 19% but posted a deficit just once. The company’s most expensive vehicles were discounted by as much as 70 percent so that General Motors could stay in business.
During the Great Depression, many businesses struggled to survive due to the economic downturn. However, there was one automaker that managed to make a profit every year during this difficult time: General Motors.
General Motors, or GM, was founded in 1908 and quickly became one of the largest automobile manufacturers in the world. During the 1920s, GM continued to grow and expand, thanks in part to the leadership of its CEO, Alfred P. Sloan. Sloan believed in a decentralized management structure, where different divisions of the company were given more autonomy to operate independently. This allowed GM to be more agile and responsive to changes in the market.
When the Great Depression hit in 1929, many businesses were forced to close their doors. However, GM was able to weather the storm and continue to turn a profit. There were several reasons for this.
First, GM had a diverse product line. They offered a range of cars at different price points, which allowed them to appeal to a wide range of consumers. This meant that even as people tightened their belts and cut back on spending, GM still had options for those who were looking for a more affordable car.
Second, GM was able to innovate and adapt to changing consumer needs. For example, they introduced the first automatic transmission in 1938, which made driving easier and more accessible. They also introduced the first car with power steering in 1951, which made it easier to maneuver larger vehicles.
Third, GM had a strong dealer network. They had dealerships all over the country, which meant that they could reach customers in even the most remote areas. This allowed them to maintain sales even as other companies struggled to find customers.
Finally, GM was able to take advantage of government programs that were designed to stimulate the economy. For example, the Federal government implemented the National Industrial Recovery Act in 1933, which provided loans and subsidies to businesses that were struggling. GM was able to take advantage of these programs and use them to their advantage.
General Motors was able to make a profit every year during the Great Depression due to a combination of factors. They had a diverse product line, were able to innovate and adapt to changing consumer needs, had a strong dealer network, and were able to take advantage of government programs. These factors allowed them to weather the storm and come out on top, even during one of the most challenging economic times in American history.