In 1920 there were eight million cars in America. During the 1920s, over one million Model T. Ford's were produced each year. By 1930 America had enough cars - about 23 million - to squeeze every American into one. The Automobile industry was the most important in the U.S.A by 1930. The jobs of over 4 million people depended on it. Henry Ford's fist factory was at Highland Park in Detroit. His favourite quote was: "You can have any colour you like as long as its black." The Model T became cheaper so more were sold The car industry boom also helped other industries. 20% of US steel was used in the manufacture of car and truck bodies and their engines. 75% of US glass was used in the manufacture of car windows. 65% of US leather was used in the manufacture of car windows. 80% of US rubber was used in the manufacture of tyres and inner tubes. A large quantity of gasoline was used for fuel. New jobs were created to service the motor industry in building roads, constructing parking lots, manufacturing road signs and traffic lights. Cars needed to be repaired and serviced and supplied with fuel. Gas stations, motels and restaurants sprang up all over America.
It was cheap; mass production(source 15) had dropped its price to just $295 in 1928. The same car had cost $1200 in 1909. By 1928, just about 20% of all Americans had cars. The impact of Ford meant that others had to produce their own cheap car to compete. The benefits went to the consumer. Hire-purchase made cars such as these very affordable. But there were major spin-offs from this one industry as 20% of all American steel went to the car industry; 80% of all rubber; 75% of all plate glass and 65% of all leather. 7 billion gallons of petrol were used each year and, of course, motels, garages, restaurants etc. All sprung up and all these outlets employed people and these people got paid..By standarising the car giving it only one colour and one enginge type the company were able to cut costs more. The car changed lives because most American benfitted gaining jobs with good wages which meant people had more money leading to better lifestyles.