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AUTOMOBILE INDUSTRY

LINCOLN

LINCOLN COMPANY’S LUXURIOUS VEHICLES SPEAK FOR ITS ROYALTY

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When the automobile industry started expanding, most of the companies aimed at making low-cost car designs. This was a revolution that started to make sure every people of the nation can afford one of them. For example, we know that Volkswagen started manufacturing Volkswagen Beetle which became famous as The People’s Car. But, many companies were also inclined towards producing luxury vehicles. Back in the early 1900s, the demand for personal luxury vehicles also existed. Some people loved the tinge of royalty that led to its mass production. Lincoln Motor Company, a division of the American automobile company, Ford specializes only on luxury vehicles. Henry M. Leland founded the company in August 1917 which gradually came under the acquisition of Ford.

Henry M. Leland

Henry is one of the most famous American automotive entrepreneurs who founded two major companies, Lincoln and Cadillac. He was born in 1843 and was the youngest among his eight siblings. Born into Vermont, Henry grew up in Barton. Later, he went to Brown & Sharpe Plant where he learned engineering and precision machining. His growing knowledge landed him a job in the firearms industry.

In the upcoming years, he served in many companies and also invented the electric barber clippers. In 1902, Henry started working for Ford. And, under his guidance, many changes were made in the engineering of its vehicles. Five years after founding Lincoln Motor Company, Henry was struggling to keep the company altogether and thus sold it to Ford. He sold Cadillac to General Motors.

Henry also took a very active part in politics to set his country free from corrupt politicians. He died on 26th March 1932.

What led to the founding of a new company?

Henry already founded Cadillac went to established Lincoln Motor Company. He came into a heated argument with William C. Durant, President of General Motors. So, he left the company in 1917 and planned to build a new company. He decided to name the company after Abraham Lincoln, as Henry cast his first-ever vote for him.

Henry founded the company with a capital investment of $10 million. He was focused on making Liberty V12 aircraft engines and he bought many parts from companies like Buick, Cadillac, and Packard. Due to World War I the production came to a halt. But, before it took place, the company produced 6,500 units of such engines.

After the acquisition by Ford Motor Company

Ford acquired the Lincoln Motor Company on 4th February 1922 for $8 million. Ford noticed that after General Motors bought Cadillac, they made an entire division for luxury cars. So, they did the same thing with Lincoln Motor Company and gave a tough competition to GM. Lincoln witnessed many changes after the acquisition.

In 1933, Lincoln became the first company to manufacture luxury vehicles with an exclusive V12 engine. The company introduced many models during this time. Some of them are Lincoln Model K (1931), Lincoln Zephyr (1940), Lincoln Continental (1948), etc. The company ended the production of Continental after producing 5,322 units. In the 1950s, Lincoln launched Continental Mark II as its model line. During this time, this model became the most expensive car in the automobile market in America.

The recession economy                     

Due to the global recession in the 1950s, Lincoln was forced to consolidate its model lineup to a single model line. Moreover, the model cycle of Lincoln witnessed an extension of nine years from three years. But, in the next decade, Ford decided to come up with a new model as the successor of Continental Mark II. So, in the last 1960s, Continental Mark III was released in the market.

During the 1980s, the company redesigned and launched the new Continental thus making it the lightest model in its history after World War II.

A new century

After entering the 21st century, the company ended the production of Mark series and started producing Navigator SUV. In 2006, the company released the redesigned Lincoln Zephyr which became the smallest sedan Lincoln ever produced. 2020 will witness a series of new models which includes Lincoln Aviator Black Label, Lincoln Corsair, Lincoln MKZ, and many more. The company has a very huge market in South Korea apart from introducing the Lincoln Navigator model. The company has stopped importing in Japan since 2016. Other markets where the company is available are Oman, Saudi Arabia, Canada, Mexico, United States, etc.

Fiat Chrysler Automobiles

Fiat Chrysler Automobiles – New beginning of two firms towards fully-integrated global automaker

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There are many examples all around the world that showed how a powerful company with its powerful strategies can dominate any sector. But what if two powerful companies come together? Well, in this case, it may lead to a new beginning that would be powerful than imagined ever. So, we can say that exactly happened with Fiat Chrysler Automobiles. Two independent automobiles firms, Fiat and Chrysler merged together and set the new beginning as a fully-integrated global automaker. Today, several leading brands in the automobile industry came under its portfolio. Includes, Alfa Romeo, Dodge, Jeep, Maserati, Fiat, and the list continues with many other brands. Presently, it is one of the automakers on the planet that are dominating this sector.

The Backstory Of Foundation

Established in the late 19th century, Fiat is one of the old automakers on the earth. With several up-downs, the firm became a successful automobile company as well, its rise as dominating automakers in the world. Six years ago (in 2014), the new phase of Fiat automobiles had been started with acquiring the Chrysler group’s ownership. Now it is renamed as FCA, stands for Fiat Chrysler Automobiles. Currently, its two main branches FCA Italy and FCA US handle all-important automotive operations needed to fulfill the requirements of the mass-market.

Both corporate and financial headquarters of the firm are stated in Amsterdam and London respectively.

What leads to the merging of two leading firms?

Though these two firms merged in 2014, it has a long story behind the integration. It started in 2009, it was a tough time for Chrysler. Because the firm was going through bankruptcy reorganization. That time, Fiat owned 20% stakes of Chrysler which later on grew more than 50% in 2012. In 2014, Fiat purchased the remaining stakes and own the firm with 100% stakes. However, the firm was previously known as a SPA Fiat that became FCA on August 1, 2014.

Recently, it signed a combination agreement with PSA related to creating a leading global mobility company. Also, it operates in four international markets NAFTA, LATAM, APAC, and EMEA.

Leading automobile Brands under FCA

As said earlier, several leading brands come under FCA including American, and Italian based automobiles brands. In fact, Maserati is a well-known luxury brand. Here is the list of brands based on the region.

Italian Based Brands- Fiat, Alfa Romeo, Abarth, Lancia, Fiat Professional, and VM Motori.

America based brands- Ram Trucks, Chrysler, Jeep, and Dodge.

Exploring the business

After integration with Chrysler in 2014, FCA announced five years plan for exploring the business. As per that, the firm focused on increasing sales to seven million units. However, this plan then updated in 2016. Also, FCA focused more on brand Jeep for the global growth of the firm. While Alfa Romeo will compete with Mercedes, Audi, and BMW. The crown brand of the company, Maserati has prepared to compete with other Ultra Luxury brands around the world. However, Ram Trucks remained the same.

 FCA’s Achievements

It is known as a unique automobile firm that earlier also manufactured other vehicles rather than its famous luxurious cars. For example, military vehicles, railway engines, as well as aircraft. Apart from that, the firm also had a Ski Resort in the Alps Mountain. Presently, it is the eighth largest automaker on the planet. Also, several brands under the FCA manufactured dominating sports cars.

Moreover, it is also active in the field of advertising and print media. In fact, the firm was a stakeholder in the creation of the largest media group of Italy known as GEDI Gruppo Editoriale. Additionally, it owns industrial subsidiaries Teksid and Comau.

Bottom Line

Last year FCA made several announcements to explore its business further. It includes investment in Michigan for increasing manufacturing units that will create 6000+ jobs. Also, the firm invested in Detroit for its Jeep Manufacturing unit in 2019. Recently, it signed a combination agreement with PSA in 2019. Currently, several leading brands in the automobile industry came under its portfolio such as Alfa Romeo, Dodge, Jeep, Maserati, Fiat, and the list includes many dominating brands. Presently, it is one of the automakers on the planet that are dominating this sector. In March 2020, the firm took the big step to fight against coronavirus outbreaks by shutting down its manufacturing units on a basis of rotation. Shutting down major manufacturing units is considered a great step amid the corona pandemic.

Opel logo

THE RISE OF OPEL IN AUTOMOBILE INDUSTRY

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The history of Opel dates back to the mid-1800s. For more than 150 years, it has served its customers throughout the entire world, except North America, UK, and Oceania. Adam Opel, a German businessman founded the company, Opel Automobile GmbH. Opel operated under the leadership of General Motors till 2017. In 2017, Groupe PSA, a French multinational company acquired Opel.

About Adam Opel 

Born into a family in Russelsheim in 1837, Adam was the son of Wilhelm. Adam’s father was a locksmith and he studied to become the same until he turned twenty. He received a travel pass in 1857 which permitted him to work as a locksmith. But, something else caught his interest when he moved to Paris. He started learning the new technology of the sewing machine and asked his brother to do the same.

In 1862, Adam returned to his hometown with a business idea to make his sewing machines. His uncle helped him set the business and eventually, his younger brother gave him an extra hand. In 1867, Adam decided to build a factory for the production but unfortunately, his father passed away. In the meantime, Adam married Sophie and he set up the Opel plant with the dowry he received.

The production increased rapidly and by 1899 more than half a million machines were produced. In 1911, a devastating fire destroyed the major portion of the plant. This is when Adam decided to drop the sewing machine production and move to bicycles and automobiles. Adam, Sophia, and their five sons devoted themselves wholeheartedly to the new business. They made way more profit than from selling sewing machines.

At the end of 1887, Opel becomes the best company for innovative designs of cycles in Germany. Adam died in 1895 much before his industry started producing automobiles. Sophie and her sons took over the business but experienced a lot of ups and downs. They sold the company to General Motors Corporation in 1929.

Before the first acquisition 

After Adam died, Sophie and her sons struggled very much to keep the company stable. They started making cars for the first time in 1898 with the help of Friedrich Lutzmann, a locksmith. He was in this industry for some time and the partnership led to the production of Opel’s first car in 1899. But, the designs of the car weren’t good enough to attract either investors or customers. So, Opel dissolved the partnership after a couple of years.

In 1901, the company came to a joint partnership with Automobiles Darracq France. The company started producing vehicles under the brand name Opel Darracq but the production ceased in 1907. After the fire, a new company was established. And, by 1920s Opel became German’s first company to pull out mass production in automobiles. In 1924, a new model, Laubfrosch was released and became a big hit. The company caught the sight of General Motors and by 1929 it acquired 80% of Opel which turned to 100% in 1931.

Post-acquisition and World War II

After the acquisition, a new plant was built in 1935 in Brandenburg. This year the company becomes the first German Company to produce 100,000 units in a single year. The first plant of Opel ranked seventh worldwide in terms of mass production. The automobile production came to a halt in 1940. And, within a couple of years, Opel was busy manufacturing aircraft parts and tanks.

During the post-war years, the second plant was transported to the Soviet Union. So, they built their first Opel Blitz Truck in the Russelsheim plant.

Present-day

Other than Opel, GM’s Vauxhall gave a very tough competition in the market as well. But, in the 1990s, it was Opel that brought major profit in the house. With this profit, GM started expanding its Asian market. But, the profits declined and the company almost sold out during the global financial crisis. To cut-off price and lay low, Opel closed its Belgium plant in 2010. In 2012, Opel announced a major partnership with PSA Peugeot Citroen where GM took 7% of the company’s share. This alliance was made to save around $2 billion in costs per year. But, the company was still running in loss, losing around $257 million in a year. In March 2017, PSA acquired Opel and Vauxhall for $2.2 billion. Next year, Opel made an income of €859 million. This was a big success for the company after a long time.