WEBVTT - General Motors Gets Up To Speed

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<v Speaker 1>Welcome to tech Stuff, a production from I Heart Radio.

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<v Speaker 1>Hey there, and welcome to tech Stuff. I'm your host,

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<v Speaker 1>Jonathan Strickland. I'm an executive producer with iHeart Radio and

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<v Speaker 1>a love of all things tech, and previously on tech

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<v Speaker 1>Stuff before we had the unintended break due to my

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<v Speaker 1>lack of WiFi, I covered the founding of General Motors,

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<v Speaker 1>which officially began as a company in nineteen o eight.

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<v Speaker 1>I talked about how WILLIAMS. C. Durant, founder of GM,

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<v Speaker 1>acquired companies like Buick, Oldsmobile, Oakland, which was later known

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<v Speaker 1>as Pontiac and Cadillac. I explained that his acquisition DASH

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<v Speaker 1>made his investors nervous, to say the least, and how

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<v Speaker 1>they responded by removing Durant as head of GM in

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<v Speaker 1>nineteen ten, and then how Durant went and co founded

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<v Speaker 1>a new car company called cheval Lay, bought up shares

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<v Speaker 1>of General Motors with his earnings, got the backing of

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<v Speaker 1>the DuPont family as well, and eventually returned to GM

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<v Speaker 1>in nineteen sixteen. So today we're going to learn a

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<v Speaker 1>bit more about the early days of GM, and then

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<v Speaker 1>we'll cover some more of its evolution. Now, originally I

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<v Speaker 1>had planned on just kind of covering a little bit

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<v Speaker 1>more about the early history of GM and then skipping

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<v Speaker 1>forward like nearly a century to talk about what led

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<v Speaker 1>it to get into financial trouble in the two thousand's.

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<v Speaker 1>But as it turns out, there's a lot more interesting

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<v Speaker 1>history and important stuff in the automotive industry and the

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<v Speaker 1>the labor movement as well that took place in the

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<v Speaker 1>early decades of General Motors. So we're gonna be sticking

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<v Speaker 1>with a little longer than I had intended. Al Right,

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<v Speaker 1>So one thing I won't be doing. I will not

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<v Speaker 1>be covering every single car that was produced off of

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<v Speaker 1>General Motors assembly lines. That would just be ludicrous. I

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<v Speaker 1>might mention a couple of standouts, but I'm not going

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<v Speaker 1>to go through each and every car making model. That

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<v Speaker 1>would just it would be ludicrous. Now, one thing I

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<v Speaker 1>did not go into detail in the last episode was

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<v Speaker 1>to talk about what was going on at GM between

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<v Speaker 1>nineteen ten and nineteen sixteen during Durant's first exile when

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<v Speaker 1>he was off founding you know, or co founding Chevrolet

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<v Speaker 1>and plotting his revenge, i mean return. Well, the banks

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<v Speaker 1>helped keep the company afloat while the various acquired car

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<v Speaker 1>companies were manufacturing automobiles, and even with all those acquisitions,

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<v Speaker 1>General Motors was still well behind the Ford Motor Company

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<v Speaker 1>when it came to the largest automakers in the United States.

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<v Speaker 1>Ford was focused on producing one type of car, the

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<v Speaker 1>Model T, and it would do so for another more

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<v Speaker 1>than another decade. Now. A big thing to come out

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<v Speaker 1>during Durant's first exile was the trick starter. This was

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<v Speaker 1>a huge development, and it helps if we go back

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<v Speaker 1>to something I talked about in the previous GM episode.

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<v Speaker 1>So in that episode I described the four stroke process

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<v Speaker 1>with car engines, in which a piston in a cylinder

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<v Speaker 1>draws in air and gasoline in a little mixture, compresses

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<v Speaker 1>that mixture. Then a spark plug strikes a spark that

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<v Speaker 1>ignites that mixture, which pushes the piston outward and provides

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<v Speaker 1>the energy needed to make the car move. And then

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<v Speaker 1>the piston comes back up through the cylinder and pushes

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<v Speaker 1>out the exhaust and the whole process starts again. But

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<v Speaker 1>how does that process get started? I mean that once

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<v Speaker 1>you get it going, it can sustain itself for as

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<v Speaker 1>long as you have fuel and you're operating the engine.

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<v Speaker 1>But how do you get it started in the first place. Well,

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<v Speaker 1>these days, internal combustion engines have ignition starters that engage

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<v Speaker 1>an electric motor to turn a flywheel. That fly wheel

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<v Speaker 1>is in turn connected to the c inank shaft of

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<v Speaker 1>the engine, and that electric motor provides the force needed

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<v Speaker 1>to turn the crank shaft and get those pistons moving,

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<v Speaker 1>and that starts that process of pulling in air and fuel,

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<v Speaker 1>assuming you've got the throttle open and you can get

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<v Speaker 1>the combustion cycle going that way. But in the early

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<v Speaker 1>days that was not an option. So in the old

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<v Speaker 1>old old days, the earliest automobiles had what was called

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<v Speaker 1>a crank wheel, and the crank wheel connected to the

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<v Speaker 1>crank shaft of the automobile, and the ones I've seen

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<v Speaker 1>were horizontal wheels that were mounted on the engine, and

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<v Speaker 1>the engine was typically mounted on the back of the vehicle.

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<v Speaker 1>So giving the crank wheel a spin manually, as in,

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<v Speaker 1>you know, actually gripping it with your hands and turning

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<v Speaker 1>it in the correct direction would rotate the crank chaft.

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<v Speaker 1>This was not necessarily easy to do. By the way,

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<v Speaker 1>the piston in the cylinder is typically a single cylinder

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<v Speaker 1>engine connects to the crank shaft, so as the crank

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<v Speaker 1>shaft turns, it provides the the energy needed, the force

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<v Speaker 1>needed rather to move the piston up and down, because

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<v Speaker 1>the piston is connected to the crank shaft and that

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<v Speaker 1>rotation uh motion of the crank shaft gets converted into

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<v Speaker 1>the reciprocal motion of a piston going up and down

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<v Speaker 1>inside the cylinder. So spinning the wheel at the right

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<v Speaker 1>speed could get the crank shaft spinning and move the

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<v Speaker 1>piston and start the process similar to what it described

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<v Speaker 1>a second ago with the electric motor, except in this

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<v Speaker 1>case you're doing it by hand. The piston begins to

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<v Speaker 1>draw air into the cylinder, but that's obviously not enough

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<v Speaker 1>for ignition. To ignite an engine, you also have to

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<v Speaker 1>prime it a bit by allowing that mix of air

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<v Speaker 1>and fuel into the piston. It can't just be air,

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<v Speaker 1>or it would be like striking a match in a

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<v Speaker 1>normal room. You don't get explosions, assuming you're not filling

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<v Speaker 1>that room with you know, explosive fumes or something. So

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<v Speaker 1>in order to do that, you do have to have

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<v Speaker 1>the throttle open just a little bit, not necessarily all

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<v Speaker 1>the way open, but a little open to allow fuel

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<v Speaker 1>to go into the piston as well as air. You

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<v Speaker 1>also typically would have something called the choke that you

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<v Speaker 1>needed to open when. As the name suggests, the choke

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<v Speaker 1>controls whether or not air can flow into the system

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<v Speaker 1>through the carburetor. UH. These old vehicles had carburetors. This

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<v Speaker 1>creates a mix that can then be ignited once you're

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<v Speaker 1>ready to actually start the vehicle. So with the handbrake on,

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<v Speaker 1>which is a very important step with these old cars,

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<v Speaker 1>you would engage the method for the spark plugs to spark. UH.

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<v Speaker 1>Many early automobiles had a control kind of like a

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<v Speaker 1>lever to advance the frequency of the spark plugs sparking,

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<v Speaker 1>sometimes called a spark advance. Interesting thing is that because

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<v Speaker 1>this was not an automated system, it wasn't all working together.

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<v Speaker 1>You had to manually changed the spark advance. So once

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<v Speaker 1>you've got an engine running, you would actually need to

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<v Speaker 1>move the spark advance a bit to kind of find

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<v Speaker 1>a sweet spot where the spark frequency is hitting it

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<v Speaker 1>just the right point in the four stroke process. And

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<v Speaker 1>you could tell you could just hear it in the

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<v Speaker 1>engine when it hit that that sweet spot, because otherwise

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<v Speaker 1>it was kind of chugging along and it did mean

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<v Speaker 1>that you were actually manually adjusting how frequently the spark

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<v Speaker 1>plugs were sparking. But where did the electricity come from

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<v Speaker 1>to create those sparks. Well, again, in the early days,

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<v Speaker 1>you were typically talking about a magneto, which isn't just

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<v Speaker 1>a villainous mutant in the Marvel universe, although it's that too.

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<v Speaker 1>A magneto works on the principles of electro magnetic interactions,

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<v Speaker 1>something I've talked about a lot on episodes of tech Stuff.

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<v Speaker 1>A magneto is kind of like an electro magnet in reverse.

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<v Speaker 1>But here's the gist. Let's say you take a conduct

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<v Speaker 1>of material, typically we're talking about copper wire, and you

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<v Speaker 1>wrap that copper wire around an iron core, and then

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<v Speaker 1>you pass that copper wire around the core through a

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<v Speaker 1>magnetic field. Well, passing it through that magnetic field would

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<v Speaker 1>mean that the field would induce a current to flow

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<v Speaker 1>through the copper wire, but this would only last a

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<v Speaker 1>moment as the copper wire encountered this magnetic field, as

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<v Speaker 1>long as there was some sort of fluctuation there. If

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<v Speaker 1>you put copper wire into a magnetic field and then

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<v Speaker 1>just let it stay, you sit in the stable magnetic

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<v Speaker 1>field that flow of current would stop. You would have

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<v Speaker 1>a kind of equilibrium. But if you were to change

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<v Speaker 1>the magnetic field, if you were to create a fluctuating field,

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<v Speaker 1>you could continue to induce current to flow in the

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<v Speaker 1>copper wire and make it even change direction. Now, changing

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<v Speaker 1>the magnetic field is not actually that hard. If you

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<v Speaker 1>flip a magnet so that the north and south poles

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<v Speaker 1>of the magnet change position over and over and over again,

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<v Speaker 1>that's enough to do the trick. So if you have

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<v Speaker 1>a spinning permanent magnet and you put that spinning permanent

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<v Speaker 1>magnet next to a coil of copper wire wrapped around

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<v Speaker 1>an iron core, you're going to induce an electric current

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<v Speaker 1>to flow through that copper wire. So if you set

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<v Speaker 1>up a system in which you either rotate a coil

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<v Speaker 1>of wire between the poles of a permanent magnet, or

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<v Speaker 1>you rotate magnets around a stationary coil of wire. There

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<v Speaker 1>are systems that use one of the two ways and

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<v Speaker 1>others that use the other way. But the system will

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<v Speaker 1>subject that coil to a fluctuating magnetic field when the

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<v Speaker 1>apparatus is in motion, and that induces current to flow

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<v Speaker 1>through it. Now, ignition magnetos and early automobiles were a

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<v Speaker 1>bit more complicated than this, just as a you know,

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<v Speaker 1>kind of reverse electro magnet. That's because to create a

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<v Speaker 1>spark you need a really high voltage. So the analogy

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<v Speaker 1>everyone uses when they talk about voltage is with plumbing.

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<v Speaker 1>Voltage is kind of like water press. Sure, a spark

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<v Speaker 1>plug is essentially a pair of electrodes that are separated

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<v Speaker 1>from one another with a little air gap in between them. Now,

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<v Speaker 1>the voltage in a spark plug is high enough, meaning

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<v Speaker 1>the electric potential between those two electrodes becomes great enough,

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<v Speaker 1>there will be a brief electric arc connecting those two electrodes.

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<v Speaker 1>That's the spark. So it's electricity that can travel a

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<v Speaker 1>short distance through the air. You know, the air is

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<v Speaker 1>not a really good conductor of electricity, which is honestly

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<v Speaker 1>a pretty good thing. At least the air down where

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<v Speaker 1>we live is not a good conductor of electricity. If

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<v Speaker 1>you go out to the ionosphere, it's a different story.

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<v Speaker 1>So you have to get the voltage high enough to

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<v Speaker 1>allow this to happen. But if it's not high enough,

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<v Speaker 1>then you don't get any spark. So your standard magneto

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<v Speaker 1>actually doesn't produce enough voltage to do this all on

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<v Speaker 1>its own. So to manage this, the ignition magneto first

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<v Speaker 1>uses two coils of copper wiring. The first coil, or

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<v Speaker 1>a primary coil, tends to be thicker copper wire wrapped

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<v Speaker 1>around an iron core a certain number of times or turns.

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<v Speaker 1>We call it turns of copper wire. So let's say

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<v Speaker 1>it has just for the sake of argument, it's got

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<v Speaker 1>ten turns, and the secondary coil is typically thinner copper

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<v Speaker 1>wire that's wound many many many more times than the

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<v Speaker 1>primary coil. So for the sake of this example, let's

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<v Speaker 1>say it's got a thousand turns. So you have ten

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<v Speaker 1>of the thicker copper wire and a thousand of the

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<v Speaker 1>thinner one. Now, if you know about transformers, not the

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<v Speaker 1>robots in disguise, but electrical transformers, this is all going

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<v Speaker 1>to start to sound really familiar, because if you induce

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<v Speaker 1>current to flow through one coil of a conductive wire

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<v Speaker 1>wrapped around an iron core, you also create a magnetic field.

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<v Speaker 1>This is an electro magnet. If you ever made one

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<v Speaker 1>of these in school, I remember wrapping a piece of

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<v Speaker 1>copper wire around uh an iron nail, for example, and

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<v Speaker 1>then connecting the copper wire to a battery and then

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<v Speaker 1>using the nail to pick up like iron filings and stuff.

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<v Speaker 1>That's your basic electro magnets. So, in other words, just

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<v Speaker 1>as a magnetic field induces current to flow through a conductor,

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<v Speaker 1>current flowing through a conductor produces a magnetic field. So

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<v Speaker 1>let's say you're using alternating current, being the direction of

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<v Speaker 1>the current changes many times a second through a coil

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<v Speaker 1>of copper wire wrapped around an iron core. The changing

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<v Speaker 1>direction of the current also means the polls of the

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<v Speaker 1>magnetic field are switching many times a second as well,

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<v Speaker 1>So you're creating a fluctuating magnetic field by using alternating

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<v Speaker 1>current through a coil of wire. If you were to

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<v Speaker 1>bring a second coil of copper wire within that fluctuating

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<v Speaker 1>magnetic field that was generated by current flowing through the

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<v Speaker 1>primary coil of copper wire, then that magnetic field will

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<v Speaker 1>induce electric current to flow through the secondary coil. There

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<v Speaker 1>doesn't need to be any connection between the two copper

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<v Speaker 1>wires in this case, so you've got electric current flowing

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<v Speaker 1>through primary coil or coil number one. You bring coil

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<v Speaker 1>number two close enough to be within the magnetic field

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<v Speaker 1>that's generated as a result, Now you're going to have

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<v Speaker 1>a current flowing through coil number two because of induction.

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<v Speaker 1>What's more, the ratio of the number of turns or

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<v Speaker 1>coils between the primary and the secondary coil determines the

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<v Speaker 1>change in voltage from one to the other. The thickness

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<v Speaker 1>of the conductor wire also matters, but we're just gonna

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<v Speaker 1>focus on turns for now. So if the secondary coil

0:13:34.880 --> 0:13:38.320
<v Speaker 1>has more turns than the primary coil, the voltage in

0:13:38.320 --> 0:13:41.719
<v Speaker 1>that secondary coil will be stepped up compared to the

0:13:41.760 --> 0:13:44.880
<v Speaker 1>primary coil, So you can increase the voltage this way.

0:13:44.920 --> 0:13:49.960
<v Speaker 1>That's what transformers do. They change the voltage of transmission

0:13:50.000 --> 0:13:53.199
<v Speaker 1>by using these different coils. But if the secondary coil

0:13:53.240 --> 0:13:57.640
<v Speaker 1>has fewer turns than the primary coil does, the voltage

0:13:57.640 --> 0:14:00.960
<v Speaker 1>gets stepped down. So trans rumors are why the world

0:14:01.000 --> 0:14:05.000
<v Speaker 1>adapted to alternating current for the purposes of transmitting electricity

0:14:05.040 --> 0:14:08.520
<v Speaker 1>great distances. You could use a transformer to boost the

0:14:08.559 --> 0:14:12.720
<v Speaker 1>voltage way up and thus push the electricity much further

0:14:12.800 --> 0:14:15.720
<v Speaker 1>out from the point of generation, and then once it

0:14:15.760 --> 0:14:17.480
<v Speaker 1>got to where it needed to be, you could step

0:14:17.640 --> 0:14:21.200
<v Speaker 1>down the voltage using another transformer and then feed that

0:14:21.240 --> 0:14:24.960
<v Speaker 1>electricity into homes. And businesses. But I'm getting off track

0:14:25.040 --> 0:14:27.920
<v Speaker 1>and I know it, and I'm sorry for our purposes.

0:14:28.760 --> 0:14:31.400
<v Speaker 1>This pairing of windings meant that there was a step

0:14:31.520 --> 0:14:35.000
<v Speaker 1>up effect going on with ignition magnetos. But there are

0:14:35.040 --> 0:14:37.640
<v Speaker 1>also a couple of other components at play, with a

0:14:37.680 --> 0:14:41.440
<v Speaker 1>control unit that consists of a breaker and a capacitor.

0:14:41.920 --> 0:14:45.000
<v Speaker 1>That's the job of this control unit to disrupt the

0:14:45.040 --> 0:14:48.520
<v Speaker 1>magnetic field and to channel the electric current from the

0:14:48.560 --> 0:14:51.800
<v Speaker 1>magneto to the spark plug. The capacitor is kind of

0:14:51.840 --> 0:14:55.080
<v Speaker 1>like a temporary storage for electric charge. It releases an

0:14:55.080 --> 0:14:59.040
<v Speaker 1>electric charge all at once, unlike a battery, which is

0:14:59.200 --> 0:15:03.200
<v Speaker 1>a constant, steady source of electric charge as long as

0:15:03.200 --> 0:15:06.600
<v Speaker 1>the battery still has you know, electrochemicals reactions going on

0:15:06.640 --> 0:15:09.880
<v Speaker 1>inside of it. Capacitors are used for all sorts of purposes,

0:15:09.920 --> 0:15:13.280
<v Speaker 1>like the flash bulb and a classic camera flash. Also,

0:15:13.320 --> 0:15:16.080
<v Speaker 1>I should mention that capacitors can hold onto electric charge

0:15:16.160 --> 0:15:19.400
<v Speaker 1>even if the device that they're part of isn't attached

0:15:19.400 --> 0:15:22.440
<v Speaker 1>to a battery or plugged in or whatever. That's why

0:15:22.760 --> 0:15:26.480
<v Speaker 1>you should never just bust up an old CRT television set.

0:15:26.880 --> 0:15:29.840
<v Speaker 1>You could get a serious shock because of capacitors in there.

0:15:29.960 --> 0:15:31.960
<v Speaker 1>Now to get the whole operation of spark plugs and

0:15:32.000 --> 0:15:35.600
<v Speaker 1>magnetos would really take a long time for me to

0:15:35.720 --> 0:15:38.600
<v Speaker 1>describe in detail. It's complicated by the fact that this

0:15:38.680 --> 0:15:41.640
<v Speaker 1>is obviously an audio podcast. I can't really illustrate what

0:15:41.680 --> 0:15:44.120
<v Speaker 1>I'm talking about. But the important thing to remember is

0:15:44.120 --> 0:15:47.920
<v Speaker 1>that with this system there wasn't necessarily a need for

0:15:47.960 --> 0:15:51.600
<v Speaker 1>a battery, although many early cars would also have batteries.

0:15:52.040 --> 0:15:54.960
<v Speaker 1>The magneto ignition is used in lots of stuff today,

0:15:55.000 --> 0:15:58.080
<v Speaker 1>including power and lawnmowers, so it's not like it's an

0:15:58.120 --> 0:16:02.800
<v Speaker 1>obsolete technology now. A rotor connected to the engine provided

0:16:02.840 --> 0:16:06.200
<v Speaker 1>the rotational force to operate the magneto, so turning a

0:16:06.280 --> 0:16:09.800
<v Speaker 1>crank wheel or a crank handle would mean the magneto

0:16:10.040 --> 0:16:12.680
<v Speaker 1>would spin as well as you know the piston going

0:16:12.720 --> 0:16:15.800
<v Speaker 1>up and down. So with enough voltage built up and

0:16:15.840 --> 0:16:19.880
<v Speaker 1>the engine primed, the spark plugs could spark and get

0:16:19.920 --> 0:16:24.520
<v Speaker 1>things going. Later vehicles replaced the crank wheel with a

0:16:24.560 --> 0:16:28.000
<v Speaker 1>hand crank that one would insert into the vehicle, typically

0:16:28.000 --> 0:16:30.600
<v Speaker 1>near the front of the automobile. It engaged with the

0:16:30.600 --> 0:16:34.240
<v Speaker 1>crankshaft and served the same purpose as the older crank wheels.

0:16:34.280 --> 0:16:38.000
<v Speaker 1>Both types of manual starters had major drawbacks. For one,

0:16:38.160 --> 0:16:41.200
<v Speaker 1>they required a good deal work and could be pretty

0:16:41.240 --> 0:16:45.120
<v Speaker 1>exhausting for those who weren't, you know, all musk lely

0:16:45.240 --> 0:16:48.520
<v Speaker 1>and stuff. If you've ever tried to start a stubborn

0:16:48.680 --> 0:16:51.960
<v Speaker 1>poll start lawnmower, you kind of know the feeling of

0:16:52.000 --> 0:16:54.880
<v Speaker 1>trying to get one of those to turn over and engage.

0:16:55.280 --> 0:16:59.520
<v Speaker 1>For another, Sometimes engines kick back, and that kind of

0:16:59.520 --> 0:17:02.160
<v Speaker 1>means that the rank shaft immediately turns in the opposite

0:17:02.160 --> 0:17:05.800
<v Speaker 1>direction with a very sudden and powerful motion. This could

0:17:05.800 --> 0:17:08.440
<v Speaker 1>happen if the fuel mixture in the cylinder ignited before

0:17:08.440 --> 0:17:11.080
<v Speaker 1>the piston had reached the top of its stroke, which

0:17:11.119 --> 0:17:14.439
<v Speaker 1>is a classic backfire situation. The piston goes down and

0:17:14.480 --> 0:17:18.760
<v Speaker 1>reverses the rotational direction of the crank shaft. It's like

0:17:19.160 --> 0:17:22.480
<v Speaker 1>it suddenly got thrown into reverse. And that would mean

0:17:22.920 --> 0:17:26.160
<v Speaker 1>that suddenly that very heavy hand crank that someone had

0:17:26.200 --> 0:17:30.840
<v Speaker 1>been turning a particular direction changes direction and could potentially

0:17:30.880 --> 0:17:33.800
<v Speaker 1>injure the person doing the cranking, like you could break

0:17:33.800 --> 0:17:37.960
<v Speaker 1>a risk that way. Another drawback was that until engineers

0:17:38.000 --> 0:17:40.960
<v Speaker 1>started building in systems that would disconnect the crank from

0:17:41.000 --> 0:17:44.719
<v Speaker 1>the crank shaft upon ignition, started engine might start spinning

0:17:44.720 --> 0:17:48.240
<v Speaker 1>that hand crank pretty darn quickly once things got going.

0:17:48.880 --> 0:17:52.120
<v Speaker 1>Engineers did develop safety systems to disengage the handle from

0:17:52.160 --> 0:17:55.159
<v Speaker 1>the crank shaft upon starting an engine. But the development

0:17:55.160 --> 0:17:58.640
<v Speaker 1>of an electric starter, where all this work shifted over

0:17:58.680 --> 0:18:02.240
<v Speaker 1>to an electric mode her made the hand crank stuff

0:18:02.480 --> 0:18:05.320
<v Speaker 1>moot over time, but did take a while. A lot

0:18:05.320 --> 0:18:08.320
<v Speaker 1>of early cars actually had both an electric starter and

0:18:08.440 --> 0:18:11.240
<v Speaker 1>a backup hand crank system in case the electric starter

0:18:11.520 --> 0:18:14.560
<v Speaker 1>wasn't working. Also, I should mention that while GM began

0:18:14.640 --> 0:18:18.680
<v Speaker 1>introducing cars with electric starters in nineteen twelve, the invention

0:18:18.720 --> 0:18:22.440
<v Speaker 1>of the electric starter predated GM's use of it. Still,

0:18:22.640 --> 0:18:25.560
<v Speaker 1>the design GM created would lead to a second Dwar

0:18:25.720 --> 0:18:29.040
<v Speaker 1>trophy for pushing the automotive industry forward. If you listen

0:18:29.080 --> 0:18:31.960
<v Speaker 1>to my first episode, you know the company had previously

0:18:32.040 --> 0:18:36.280
<v Speaker 1>earned one for having interchangeable parts. Now, that's a lot

0:18:36.280 --> 0:18:39.520
<v Speaker 1>about starters, and we've only just begun. When we come back,

0:18:39.560 --> 0:18:41.800
<v Speaker 1>we'll talk a bit more about what happened as William

0:18:41.840 --> 0:18:45.440
<v Speaker 1>Durant made his return to General Motors. But first let's

0:18:45.480 --> 0:18:56.080
<v Speaker 1>take a quick break. All right, we're back, So, as

0:18:56.080 --> 0:18:59.920
<v Speaker 1>I mentioned in the previous GM episode, William Durant's investor

0:19:00.240 --> 0:19:03.320
<v Speaker 1>didn't like how Durant was spending truckloads of cash buying

0:19:03.400 --> 0:19:06.439
<v Speaker 1>up various car companies to become part of GM, and

0:19:06.520 --> 0:19:09.919
<v Speaker 1>thus amassing a huge amount of debt in the process.

0:19:10.320 --> 0:19:13.960
<v Speaker 1>Depending on the source. GMS holding company ended up bringing

0:19:14.000 --> 0:19:17.400
<v Speaker 1>in between twenty and thirty companies in just those first

0:19:17.440 --> 0:19:21.080
<v Speaker 1>two years. But buying stuff costs money, and Durant was

0:19:21.119 --> 0:19:23.840
<v Speaker 1>spending cash he didn't actually have then, not for the

0:19:23.880 --> 0:19:27.080
<v Speaker 1>first time. His pre automobile carriage business kind of started

0:19:27.119 --> 0:19:30.800
<v Speaker 1>out the same way, so he had a method, is

0:19:30.840 --> 0:19:33.840
<v Speaker 1>what I'm saying. The company had accrued somewhere around a

0:19:33.880 --> 0:19:36.479
<v Speaker 1>million dollars of debt in nineteen ten, which would be

0:19:36.480 --> 0:19:39.359
<v Speaker 1>closer to about twenty eight million dollars of debt in

0:19:39.400 --> 0:19:43.040
<v Speaker 1>today's money once we had just for inflation. So he

0:19:43.080 --> 0:19:45.919
<v Speaker 1>gets the boot. The banks essentially take over GM for

0:19:45.920 --> 0:19:48.480
<v Speaker 1>the time being. And I talked about last time about

0:19:48.480 --> 0:19:51.720
<v Speaker 1>how Durant co founded the Chevrolet car company. He used

0:19:51.720 --> 0:19:53.879
<v Speaker 1>that wealth that he built up to buy shares of

0:19:53.920 --> 0:19:57.440
<v Speaker 1>General Motors, and he essentially bought his way back into

0:19:57.440 --> 0:20:01.000
<v Speaker 1>the company around nineteen fifteen or nineteen six exteen. Now

0:20:01.000 --> 0:20:03.600
<v Speaker 1>I get wishy washy with the dates, because different sources

0:20:03.600 --> 0:20:06.399
<v Speaker 1>have slightly different accounts of this, and I have no

0:20:06.480 --> 0:20:09.800
<v Speaker 1>magical way of deciding which one is the most accurate,

0:20:09.880 --> 0:20:13.399
<v Speaker 1>so I like to give ranges. In that case, the

0:20:13.440 --> 0:20:17.760
<v Speaker 1>company reorganized and reincorporated. It became General Motors Corporation. At

0:20:17.800 --> 0:20:21.919
<v Speaker 1>that point. Durant oversaw the acquisition of Chevrolet into General

0:20:21.920 --> 0:20:24.919
<v Speaker 1>Motors a couple of years later, and sure enough it

0:20:25.080 --> 0:20:29.359
<v Speaker 1>was right back into acquisitions for Durant, which meant accruing

0:20:29.640 --> 0:20:34.160
<v Speaker 1>more debt again. See William C. Durant was a man

0:20:34.240 --> 0:20:37.000
<v Speaker 1>who could really learn from his mistakes because he could

0:20:37.000 --> 0:20:41.440
<v Speaker 1>repeat them almost exactly. I stole that joke, by the way,

0:20:41.560 --> 0:20:46.000
<v Speaker 1>from Peter Cook. In nineteen seventeen, the United States entered

0:20:46.080 --> 0:20:49.400
<v Speaker 1>World War One. Of course, back then people didn't call

0:20:49.440 --> 0:20:51.400
<v Speaker 1>it World War One. They called it the Great War,

0:20:51.480 --> 0:20:54.120
<v Speaker 1>because to name something part one before there's a part

0:20:54.119 --> 0:20:58.680
<v Speaker 1>two is a bit fatalistic, though accurate. In this case, GM,

0:20:58.720 --> 0:21:02.080
<v Speaker 1>like many companies in the States, began to produce material

0:21:02.359 --> 0:21:05.760
<v Speaker 1>for war efforts, so they were supporting the war effort

0:21:05.800 --> 0:21:09.080
<v Speaker 1>for the United States. Now, according to the Encyclopedia of Detroit,

0:21:09.480 --> 0:21:13.560
<v Speaker 1>around of all of GM's truck production was dedicated to

0:21:13.560 --> 0:21:18.800
<v Speaker 1>wartime production. Despite this guaranteed revenue, things weren't going so

0:21:18.920 --> 0:21:22.640
<v Speaker 1>great over at General Motors. Durant, as I had mentioned,

0:21:22.640 --> 0:21:25.199
<v Speaker 1>received support from the DuPont family and his efforts to

0:21:25.200 --> 0:21:28.600
<v Speaker 1>regain control of General Motors. The DuPonts made their fortune

0:21:28.640 --> 0:21:32.920
<v Speaker 1>a century earlier in the gunpowder business, which was really booming,

0:21:33.040 --> 0:21:36.920
<v Speaker 1>had explosive growth thanks to the Civil War. Yeah, those

0:21:37.119 --> 0:21:42.760
<v Speaker 1>those were gunpowder punts. But by nine this support from

0:21:42.800 --> 0:21:45.720
<v Speaker 1>the DuPonts had waned, and I assumed they had come

0:21:45.760 --> 0:21:49.600
<v Speaker 1>to the same conclusion as Durant's previous investors, that Durant

0:21:49.640 --> 0:21:54.560
<v Speaker 1>was overreaching his capabilities and the capabilities of the company

0:21:54.840 --> 0:21:58.600
<v Speaker 1>with these various acquisitions, and that maybe he was not

0:21:58.720 --> 0:22:03.520
<v Speaker 1>the responsible type that should oversee the operations of a company.

0:22:03.600 --> 0:22:06.919
<v Speaker 1>And so in nineteen twenty Durant was kicked out of

0:22:06.960 --> 0:22:12.000
<v Speaker 1>General Motors again. So the guy who founded the company

0:22:12.200 --> 0:22:15.840
<v Speaker 1>got removed from it twice. Now we'll stick with Durant

0:22:15.880 --> 0:22:18.600
<v Speaker 1>just a bit longer. His story is an interesting one.

0:22:19.000 --> 0:22:21.840
<v Speaker 1>He went on to found a new company. Some sources

0:22:21.880 --> 0:22:23.919
<v Speaker 1>say he did it the day after he got the

0:22:23.920 --> 0:22:26.800
<v Speaker 1>boot from GM, but others give a little bit more

0:22:26.880 --> 0:22:30.400
<v Speaker 1>time between his getting sacked and him picking himself back

0:22:30.480 --> 0:22:34.760
<v Speaker 1>up again. The new company was called Durant Motors. While

0:22:34.840 --> 0:22:37.520
<v Speaker 1>he was able to clause way back with the success

0:22:37.520 --> 0:22:40.879
<v Speaker 1>of Chevrolet earlier, the same could not be said of

0:22:40.960 --> 0:22:45.080
<v Speaker 1>Durant Motors. He had some initial interest because he had

0:22:45.119 --> 0:22:48.040
<v Speaker 1>really built a name for himself in the automotive industry.

0:22:48.080 --> 0:22:51.480
<v Speaker 1>But while Durant Motors produced several cars, I don't think

0:22:51.520 --> 0:22:54.800
<v Speaker 1>you would call any of them a household name today.

0:22:55.040 --> 0:22:58.120
<v Speaker 1>There was the Flint, the Star, which was also known

0:22:58.160 --> 0:23:01.119
<v Speaker 1>as the Rugby, and the Durant, as well as a

0:23:01.160 --> 0:23:05.080
<v Speaker 1>couple of others that Durant's engineers kind of design but

0:23:05.240 --> 0:23:08.840
<v Speaker 1>never actually put into production. The company did manufacture cars,

0:23:08.880 --> 0:23:12.120
<v Speaker 1>it wasn't just a company on paper, and there are

0:23:12.119 --> 0:23:15.560
<v Speaker 1>collectors out there who owned some of these very rare vehicles.

0:23:15.560 --> 0:23:18.320
<v Speaker 1>But it wasn't to last. The market at this point

0:23:18.440 --> 0:23:22.320
<v Speaker 1>was already too competitive, anchored by Ford, and of course

0:23:22.440 --> 0:23:28.680
<v Speaker 1>Durant's old company, General Motors by n Durant Motors was insolvent.

0:23:29.440 --> 0:23:34.240
<v Speaker 1>Durant himself was pretty much bankrupt by that time because

0:23:34.280 --> 0:23:36.679
<v Speaker 1>he lost all of his fortune in the fallout of

0:23:36.720 --> 0:23:40.000
<v Speaker 1>the stock market crash in nineteen nine, one of the

0:23:40.040 --> 0:23:43.520
<v Speaker 1>events that precipitated the Great Depression. The story goes that

0:23:43.640 --> 0:23:46.359
<v Speaker 1>after the stock market crashed, he poured even more money

0:23:46.400 --> 0:23:48.920
<v Speaker 1>into the stock market in an effort to try and

0:23:49.480 --> 0:23:54.320
<v Speaker 1>bolster Americans confidence in the stock market, but such a

0:23:54.359 --> 0:23:58.840
<v Speaker 1>move proved to be unwise. He declared bankruptcy in nineteen

0:23:58.880 --> 0:24:01.639
<v Speaker 1>thirty six. New York Times said that his fortune was

0:24:01.760 --> 0:24:05.760
<v Speaker 1>estimated at one twenty million dollars at its height before

0:24:05.760 --> 0:24:08.280
<v Speaker 1>the crash. That would be close to two billion dollars

0:24:08.280 --> 0:24:11.400
<v Speaker 1>in today's money, and he was left with around two

0:24:11.600 --> 0:24:16.960
<v Speaker 1>d and fifty dollars afterward. Yikes. Durant's former colleagues at

0:24:17.000 --> 0:24:20.920
<v Speaker 1>General Motors, including his replacement, Alfred P. Sloan, whom will

0:24:20.960 --> 0:24:24.280
<v Speaker 1>talk about a lot later in this episode, arranged for

0:24:24.400 --> 0:24:28.160
<v Speaker 1>Durant to receive a pension from General Motors, which helped

0:24:28.200 --> 0:24:31.840
<v Speaker 1>support him and his wife. In nineteen forty, Durant opened

0:24:31.920 --> 0:24:34.879
<v Speaker 1>up a bowling alley in Flint in Michigan. He envisioned

0:24:34.920 --> 0:24:37.840
<v Speaker 1>a world in which people would be enjoying prosperity and

0:24:37.920 --> 0:24:41.680
<v Speaker 1>looking for diversions, and he was right. It would take

0:24:41.720 --> 0:24:44.000
<v Speaker 1>a few more years after World War Two was over,

0:24:44.080 --> 0:24:47.520
<v Speaker 1>but the nineteen fifties and sixties proved him right, but

0:24:47.600 --> 0:24:50.399
<v Speaker 1>just a few years after he opened the Bowling Alley,

0:24:50.480 --> 0:24:53.800
<v Speaker 1>he had a debilitating stroke that left him partially paralyzed

0:24:53.840 --> 0:24:56.720
<v Speaker 1>and his health declined. He passed away in nineteen forty

0:24:56.800 --> 0:24:59.760
<v Speaker 1>seven at the age of eighty five. But let's get

0:24:59.800 --> 0:25:02.199
<v Speaker 1>back to General Motors. I figured we can finish up

0:25:02.200 --> 0:25:04.280
<v Speaker 1>the section of the episode with the major things that

0:25:04.280 --> 0:25:06.680
<v Speaker 1>happened to GM once it settled down after Durance Era

0:25:07.400 --> 0:25:10.640
<v Speaker 1>I mentioned Alfred P. Sloan became Durant's replacement, so it's

0:25:10.640 --> 0:25:15.600
<v Speaker 1>a good time to learn more about him a let's

0:25:15.600 --> 0:25:20.720
<v Speaker 1>be generous. A complicated figure in General Motors history, as

0:25:20.760 --> 0:25:24.159
<v Speaker 1>will become clear in this episode. Sloan was born in

0:25:24.320 --> 0:25:27.399
<v Speaker 1>eighteen seventy five. He was the son of a businessman

0:25:27.400 --> 0:25:30.919
<v Speaker 1>who imported coffee and tea to the United States. He

0:25:30.960 --> 0:25:33.840
<v Speaker 1>grew up in Brooklyn, New York. He attended m I

0:25:33.960 --> 0:25:37.320
<v Speaker 1>T and he earned a degree in electrical engineering. He

0:25:37.400 --> 0:25:41.320
<v Speaker 1>ran his first company, called Hyatt Roller Bearing Company, when

0:25:41.400 --> 0:25:43.520
<v Speaker 1>he was twenty six years old, so not that long

0:25:43.560 --> 0:25:46.960
<v Speaker 1>after graduating. It did help that his father had purchased

0:25:47.000 --> 0:25:51.359
<v Speaker 1>a major stake in Hyatt Roller Bearing company. The automotive

0:25:51.359 --> 0:25:53.840
<v Speaker 1>industry was a really big source of revenue for hyatt

0:25:53.880 --> 0:25:57.879
<v Speaker 1>roller bearing cars need bearings. After all, Oldsmobile was a

0:25:57.880 --> 0:26:02.040
<v Speaker 1>big early customer, and during one of Durant's acquisition runs

0:26:02.080 --> 0:26:05.399
<v Speaker 1>when he was head of General Motors, GM would actually

0:26:05.400 --> 0:26:08.679
<v Speaker 1>scoop up the hyatt roller bearing companies. Not all the

0:26:08.680 --> 0:26:11.840
<v Speaker 1>companies that GM bought were car companies, some of them

0:26:11.960 --> 0:26:16.120
<v Speaker 1>were manufacturing parts that cars used. Durant wanted to kind

0:26:16.119 --> 0:26:20.639
<v Speaker 1>of holistic approach to owning all the different parts to

0:26:20.960 --> 0:26:24.080
<v Speaker 1>have it be, you know, one big company, and that

0:26:24.200 --> 0:26:27.960
<v Speaker 1>is how Sloan transitioned over to working for General Motors.

0:26:28.440 --> 0:26:31.520
<v Speaker 1>In nineteen eighteen, Sloan became part of the executive committee.

0:26:31.760 --> 0:26:35.280
<v Speaker 1>He was a vice president at General Motors by nineteen twenty,

0:26:35.359 --> 0:26:38.439
<v Speaker 1>and when Durant was shown the door, Sloan would end

0:26:38.520 --> 0:26:41.439
<v Speaker 1>up becoming the operating vice president for the entire company,

0:26:41.640 --> 0:26:44.640
<v Speaker 1>and by n three he was the president and CEO

0:26:44.920 --> 0:26:48.520
<v Speaker 1>of General Motors. Now Durant had spent most of his

0:26:48.600 --> 0:26:52.040
<v Speaker 1>time acquiring companies to be part of General Motors, the

0:26:52.119 --> 0:26:55.800
<v Speaker 1>early era of Sloan's leadership focused on shaping these various

0:26:55.840 --> 0:27:05.040
<v Speaker 1>pieces into an organized business. He made five distinct automobile divisions, Cadillac, Buick, Oakland, Oldsmobile,

0:27:05.200 --> 0:27:08.640
<v Speaker 1>and Chevrolet. Now, the idea was that each division would

0:27:08.680 --> 0:27:12.320
<v Speaker 1>cater to a different subsection of the automotive market, with

0:27:12.520 --> 0:27:17.600
<v Speaker 1>various car lines offering a variety of features and price points.

0:27:17.600 --> 0:27:21.200
<v Speaker 1>So the goal was to target every potential car customer,

0:27:21.640 --> 0:27:25.320
<v Speaker 1>from those who had more modest means to purchase a vehicle,

0:27:25.800 --> 0:27:27.719
<v Speaker 1>all the way up to the upper crust who are

0:27:27.760 --> 0:27:32.520
<v Speaker 1>interested in a luxurious car experience. So from the least

0:27:32.640 --> 0:27:36.919
<v Speaker 1>to the most expensive those car brands would go Chevrolet

0:27:37.119 --> 0:27:42.280
<v Speaker 1>at the bottom end, Oakland, Oldsmobile, Buick, and then Cadillac,

0:27:42.600 --> 0:27:45.720
<v Speaker 1>so the Caddy was the most luxurious of the bunch,

0:27:46.240 --> 0:27:49.000
<v Speaker 1>and Sloan granted each division a lot of autonomy to

0:27:49.119 --> 0:27:52.200
<v Speaker 1>produce and sell cars in a way that made competitive sense.

0:27:52.840 --> 0:27:56.000
<v Speaker 1>So it was in some ways a decentralized approach to

0:27:56.040 --> 0:27:59.800
<v Speaker 1>production and marketing, which helped GM get a firmer foothold

0:28:00.000 --> 0:28:02.760
<v Speaker 1>in the market in general, But it also meant that

0:28:02.840 --> 0:28:05.520
<v Speaker 1>the car lines began to drift apart from each other

0:28:05.600 --> 0:28:09.639
<v Speaker 1>over time. There were bigger price gaps between say, the

0:28:09.800 --> 0:28:13.320
<v Speaker 1>entry model Chevrolets and then the Oakland line, like there

0:28:13.359 --> 0:28:16.679
<v Speaker 1>was a bigger jump between Chevrolet and Oakland than was intended,

0:28:17.320 --> 0:28:21.800
<v Speaker 1>and uh that gap represented lost customers. So GM then

0:28:21.840 --> 0:28:26.040
<v Speaker 1>introduced some new car brands or car lines to occupy

0:28:26.119 --> 0:28:30.879
<v Speaker 1>the gaps. These were called companion makes. So one of

0:28:30.920 --> 0:28:35.280
<v Speaker 1>these was the make Pontiac. This occupied a price point

0:28:35.320 --> 0:28:39.520
<v Speaker 1>between Chevrolet and Oakland. It was technically a companion to

0:28:39.640 --> 0:28:44.240
<v Speaker 1>the Oakland brand. The companion to Oldsmobile was called Viking,

0:28:44.840 --> 0:28:50.760
<v Speaker 1>Buick's companion was the Marquette, and Cadillac got the LaSalle line. Now,

0:28:50.800 --> 0:28:53.520
<v Speaker 1>out of all of those, the Pontiac line was the

0:28:53.600 --> 0:28:58.440
<v Speaker 1>only companion make that lasted beyond the nineteen forties. It

0:28:58.520 --> 0:29:01.880
<v Speaker 1>was distinct from all the other lines of cars. All

0:29:01.920 --> 0:29:06.640
<v Speaker 1>the rest got phased out, and Pontiac actually was selling

0:29:06.720 --> 0:29:11.520
<v Speaker 1>better than Oakland's the other companion like the the original

0:29:11.720 --> 0:29:16.600
<v Speaker 1>line of cars, so GM eventually decided that Pontiac would

0:29:16.600 --> 0:29:21.120
<v Speaker 1>replace the Oakland line of vehicles. So then your five

0:29:21.400 --> 0:29:26.360
<v Speaker 1>major brands under General Motors where Chevrolet, Pontiac, Oldsmobile, Buick,

0:29:26.520 --> 0:29:31.360
<v Speaker 1>and Cadillac. But let's backtrack just to touch Sloan's reorganization

0:29:31.400 --> 0:29:34.920
<v Speaker 1>efforts paid off big time. General Motors itself had some

0:29:35.000 --> 0:29:38.080
<v Speaker 1>guiding principles that applied to all five of the main

0:29:38.160 --> 0:29:42.200
<v Speaker 1>automotive divisions, and there was a substantial corporate office at

0:29:42.280 --> 0:29:45.680
<v Speaker 1>GM that oversaw the whole thing, but each branch still

0:29:45.720 --> 0:29:48.880
<v Speaker 1>had a decent amount of autonomy to respond nimbly to

0:29:48.960 --> 0:29:52.719
<v Speaker 1>changes in the market. Sloan also did not shy away

0:29:52.760 --> 0:29:56.400
<v Speaker 1>from acquisitions entirely either, though he didn't show the same

0:29:56.400 --> 0:30:00.400
<v Speaker 1>sort of relentless pursuit as Durant did. Sloan was head

0:30:00.400 --> 0:30:03.280
<v Speaker 1>of GM when the company acquired an English company called

0:30:03.400 --> 0:30:07.479
<v Speaker 1>Vauxhall in nineteen twenty five. That's spelled v a u

0:30:07.880 --> 0:30:11.880
<v Speaker 1>x h a l L. Originally I thought it was

0:30:11.880 --> 0:30:13.960
<v Speaker 1>gonna be vox Hall, but then I remembered, hey, wait,

0:30:14.000 --> 0:30:17.360
<v Speaker 1>we're talking English here. It's gotta be Vauxhall, And sure enough,

0:30:17.400 --> 0:30:19.920
<v Speaker 1>that's what it is. Out of all the companies that

0:30:19.960 --> 0:30:23.240
<v Speaker 1>were part of GM at that time, Vauxhall had the

0:30:23.320 --> 0:30:27.120
<v Speaker 1>longest history. It was older than any other part of

0:30:27.200 --> 0:30:30.320
<v Speaker 1>General Motors. It started out as a steam engine and

0:30:30.400 --> 0:30:34.760
<v Speaker 1>pump company founded by a guy named Alexander Wilson way

0:30:34.840 --> 0:30:38.760
<v Speaker 1>back in eighteen fifty seven. Their main business at the

0:30:38.760 --> 0:30:43.040
<v Speaker 1>time had been in producing engines for small boats and pumps.

0:30:43.760 --> 0:30:46.160
<v Speaker 1>Wilson found that it was hard to make a real

0:30:46.240 --> 0:30:49.320
<v Speaker 1>profit in this business, and his company, then called the

0:30:49.400 --> 0:30:54.200
<v Speaker 1>Alexander Wilson and Company, went bankrupt in eighteen ninety five.

0:30:54.520 --> 0:30:57.920
<v Speaker 1>Wilson had actually left the company the previous year, but

0:30:58.160 --> 0:31:02.120
<v Speaker 1>the business emerged from bankrupts. It was restructured into Vauxhall

0:31:02.240 --> 0:31:06.160
<v Speaker 1>iron Works Company, and the new leader, Fred Hodges, was

0:31:06.200 --> 0:31:10.160
<v Speaker 1>an automobile enthusiast, and he began to move the company

0:31:10.200 --> 0:31:13.160
<v Speaker 1>away from producing steam engines, which was what they had

0:31:13.200 --> 0:31:18.840
<v Speaker 1>been doing, and toward producing internal combustion engines, and eventually

0:31:19.120 --> 0:31:22.120
<v Speaker 1>he led the company to making its first automobiles in

0:31:22.160 --> 0:31:25.760
<v Speaker 1>the early twentieth century. In nineteen o seven, the company

0:31:25.840 --> 0:31:30.400
<v Speaker 1>changed names again and officially became Vauxhall Motors. At first,

0:31:30.560 --> 0:31:34.600
<v Speaker 1>Vauxhall mostly made luxury cars that only the wealthy among

0:31:35.000 --> 0:31:38.720
<v Speaker 1>the UK could could afford, and after World War One

0:31:39.000 --> 0:31:43.040
<v Speaker 1>the UK economy was in a pretty sad state. Vauxhall

0:31:43.280 --> 0:31:46.840
<v Speaker 1>consequently found itself in a tough financial situation and when

0:31:46.880 --> 0:31:49.640
<v Speaker 1>GM came along in nineteen twenty five with an offer

0:31:50.080 --> 0:31:54.400
<v Speaker 1>Vauxhall couldn't really refuse. In return, GM got a stronger

0:31:54.440 --> 0:31:57.280
<v Speaker 1>presence in the UK, where the Ford motor company had

0:31:57.320 --> 0:32:01.200
<v Speaker 1>been establishing a presence for around a deck eight. Vauxhall

0:32:01.320 --> 0:32:05.840
<v Speaker 1>changed strategies and began making economy priced cars priced at

0:32:05.920 --> 0:32:10.280
<v Speaker 1>levels that made the Vauxell brand more than competitive against Ford.

0:32:10.520 --> 0:32:14.040
<v Speaker 1>The story of Vauxhall itself is really darn interesting all

0:32:14.040 --> 0:32:16.400
<v Speaker 1>in its own right, but I'll have to save that

0:32:16.480 --> 0:32:19.800
<v Speaker 1>for another episode. Instead, I'm going to do the almost

0:32:19.960 --> 0:32:23.640
<v Speaker 1>criminal thing by jumping ahead and saying that Vauxhall and

0:32:23.680 --> 0:32:25.840
<v Speaker 1>another car company that I'm going to talk about after

0:32:25.880 --> 0:32:29.240
<v Speaker 1>the break called Opal would be part of General Motors

0:32:29.320 --> 0:32:32.960
<v Speaker 1>until twenty seventeen, at which point GM sold the divisions

0:32:33.000 --> 0:32:36.600
<v Speaker 1>off to another company called p S, a group formerly

0:32:36.640 --> 0:32:40.920
<v Speaker 1>known as Peugeot Citron. But for decades Vauxhall would be

0:32:41.080 --> 0:32:44.640
<v Speaker 1>part of GM's European division. The UK company would have

0:32:44.840 --> 0:32:47.920
<v Speaker 1>many of its own ups and downs, including a really

0:32:47.960 --> 0:32:52.880
<v Speaker 1>long period in which Vauxell wasn't really manufacturing passenger cars

0:32:52.880 --> 0:32:55.640
<v Speaker 1>at all. Rather, they were importing cars that have been

0:32:55.640 --> 0:32:59.920
<v Speaker 1>manufactured in other countries like Germany or Australia and then

0:33:00.000 --> 0:33:03.760
<v Speaker 1>effectively slapping a Vauxhall badge on them to make them

0:33:03.840 --> 0:33:06.840
<v Speaker 1>Vauxhall vehicles. But as I said, that's a story that

0:33:06.920 --> 0:33:09.960
<v Speaker 1>should have its own podcast. Now, when we come back,

0:33:10.000 --> 0:33:13.400
<v Speaker 1>i'll talk about the other European company that joined GM

0:33:13.440 --> 0:33:17.520
<v Speaker 1>and a big milestone for General Motors, as well as

0:33:17.520 --> 0:33:21.000
<v Speaker 1>some pretty major controversies. But before I get to that,

0:33:21.120 --> 0:33:33.240
<v Speaker 1>let's take a quick break. By all standards, ninety nine

0:33:33.280 --> 0:33:35.960
<v Speaker 1>was a big year. That was the year that the

0:33:36.000 --> 0:33:39.840
<v Speaker 1>stock market crashed and many companies around the world would

0:33:39.880 --> 0:33:43.920
<v Speaker 1>not survive the turmoil that followed. General Motors was in

0:33:44.000 --> 0:33:46.960
<v Speaker 1>better shape than a lot of other companies, though some

0:33:47.160 --> 0:33:51.360
<v Speaker 1>divisions within GM were struggling more than others. Vauxhall, for example,

0:33:51.560 --> 0:33:54.120
<v Speaker 1>might have gone under entirely if it had not been

0:33:54.160 --> 0:33:56.440
<v Speaker 1>for the fact that GM had acquired the company just

0:33:56.480 --> 0:34:00.760
<v Speaker 1>a few years earlier. But was also when two other

0:34:00.800 --> 0:34:04.080
<v Speaker 1>big things happened for GM. One was that for the

0:34:04.160 --> 0:34:07.800
<v Speaker 1>first time, General Motors took over the number one American

0:34:07.920 --> 0:34:12.719
<v Speaker 1>auto manufacturer spot from the Ford Motor Company and then

0:34:12.719 --> 0:34:16.400
<v Speaker 1>would hold onto it for decades. But let's illustrate the

0:34:16.400 --> 0:34:20.279
<v Speaker 1>difference between Ford and GM. At the time, GM was

0:34:20.320 --> 0:34:23.760
<v Speaker 1>a company that owned and operated five different major makes,

0:34:23.960 --> 0:34:26.319
<v Speaker 1>and each vehicle was aimed at different slices of the

0:34:26.360 --> 0:34:30.400
<v Speaker 1>overall market. Forward, by contrast, was making the model T

0:34:30.920 --> 0:34:35.479
<v Speaker 1>from nineteen o eight until nineteen twenty seven. Ford also

0:34:35.600 --> 0:34:39.200
<v Speaker 1>made trucks starting in nineteen seventeen, and it had also

0:34:39.200 --> 0:34:42.480
<v Speaker 1>acquired the Lincoln car brand in nineteen twenty two, which

0:34:42.520 --> 0:34:45.600
<v Speaker 1>was purchased from Henry Leland, who if you listen to

0:34:45.640 --> 0:34:48.760
<v Speaker 1>the last episode, you know had previously worked with GM,

0:34:48.800 --> 0:34:51.759
<v Speaker 1>but under the Ford brand. If it was a passenger

0:34:51.840 --> 0:34:54.879
<v Speaker 1>car from Ford, it was a Model T at least

0:34:54.960 --> 0:34:58.840
<v Speaker 1>until nineteen seven, that's when the company introduced the Model A.

0:34:59.600 --> 0:35:03.440
<v Speaker 1>The company actually shut down all the manufacturing facilities of

0:35:03.560 --> 0:35:07.839
<v Speaker 1>Ford for six months to retool the manufacturing process in

0:35:07.960 --> 0:35:11.440
<v Speaker 1>order to start churning out model as instead of Model TS.

0:35:11.440 --> 0:35:14.520
<v Speaker 1>So Ford was focused on mass production of a single

0:35:14.600 --> 0:35:18.600
<v Speaker 1>model of car to appeal to a broad market, whereas

0:35:18.680 --> 0:35:22.760
<v Speaker 1>GM was taking a more segmented approach to the market. Anyway,

0:35:22.760 --> 0:35:27.520
<v Speaker 1>in ninety nine, GM surpassed the Ford Motor Company, And

0:35:27.560 --> 0:35:30.719
<v Speaker 1>the other big thing that happened in nineteen nine was

0:35:30.800 --> 0:35:34.880
<v Speaker 1>that GM acquired a German automotive company called Opal o

0:35:35.160 --> 0:35:39.600
<v Speaker 1>pe L. Opal and Vauxhall would become almost like sister

0:35:39.760 --> 0:35:42.960
<v Speaker 1>companies over time, and the Opal story is also a

0:35:43.000 --> 0:35:46.880
<v Speaker 1>really interesting one. Maybe maybe I'll make a podcast about Vauxhall,

0:35:47.280 --> 0:35:50.360
<v Speaker 1>and I'll pair it with OPAL in the future because

0:35:50.360 --> 0:35:54.920
<v Speaker 1>those two companies have a very intertwined history together. But

0:35:55.040 --> 0:35:57.960
<v Speaker 1>one major departure for OPAL comes to us courtesy of

0:35:58.000 --> 0:36:01.719
<v Speaker 1>a conflict called World War Two. I'll cover that more

0:36:01.760 --> 0:36:05.040
<v Speaker 1>extensively in just a bit, because, as it turns out,

0:36:05.160 --> 0:36:09.520
<v Speaker 1>that story and GM's part in it, is really complicated.

0:36:10.000 --> 0:36:12.759
<v Speaker 1>But after the devastation of World War Two, I mean,

0:36:12.760 --> 0:36:18.680
<v Speaker 1>opal's manufacturing facilities were pretty much wiped out through the

0:36:19.080 --> 0:36:23.960
<v Speaker 1>bombing of Germany, and then subsequently some of those manufacturing

0:36:24.000 --> 0:36:27.600
<v Speaker 1>facilities were located in regions that became East Germany and

0:36:27.680 --> 0:36:33.320
<v Speaker 1>thus outside the administration of General Motors. But GM would

0:36:33.400 --> 0:36:36.200
<v Speaker 1>rebuild OPAL and over time it returned to being an

0:36:36.200 --> 0:36:39.880
<v Speaker 1>important component in GM's European strategy. But as I mentioned

0:36:39.920 --> 0:36:43.120
<v Speaker 1>with Vauxhall, Opel would also ultimately change hands to the

0:36:43.120 --> 0:36:45.919
<v Speaker 1>p s A Group in two thousands seventeen. And I'll

0:36:45.920 --> 0:36:48.960
<v Speaker 1>save all the details for that other podcast sometime in

0:36:49.000 --> 0:36:54.480
<v Speaker 1>the future. Let's get back to General Motors history. Alfred Sloan,

0:36:54.480 --> 0:36:59.400
<v Speaker 1>while excellent at streamlining processes and increasing efficiency and lowering

0:36:59.480 --> 0:37:05.600
<v Speaker 1>costs and maximizing profits, wasn't nearly so attentive towards the

0:37:05.680 --> 0:37:09.719
<v Speaker 1>more people oriented parts of running a business. In fact,

0:37:09.800 --> 0:37:13.839
<v Speaker 1>the outright opposed workers organizing and forming unions. He saw

0:37:13.960 --> 0:37:16.160
<v Speaker 1>unions as kind of a hit on profits and that

0:37:16.280 --> 0:37:20.640
<v Speaker 1>just didn't sit well with the extremely profit oriented capitalist.

0:37:21.280 --> 0:37:25.520
<v Speaker 1>He also opposed movements like FDR's New Deal program, and

0:37:25.600 --> 0:37:28.920
<v Speaker 1>he campaigned against it, at least by providing a significant

0:37:28.960 --> 0:37:32.400
<v Speaker 1>amount of money to organizations that opposed the New Deal.

0:37:33.160 --> 0:37:37.960
<v Speaker 1>And that's putting this in very mild terms. Some of

0:37:37.960 --> 0:37:43.040
<v Speaker 1>the organizations that Sloan helped fund in some cases, uh,

0:37:43.360 --> 0:37:46.240
<v Speaker 1>he even helped found a couple. Some of these were

0:37:46.640 --> 0:37:52.400
<v Speaker 1>anti Roosevelt and embraced some truly despicable philosophies, all in

0:37:52.440 --> 0:37:55.680
<v Speaker 1>an effort to undermine Roosevelt's authority and to try to

0:37:55.800 --> 0:37:59.960
<v Speaker 1>defeat him in the nineteen six election. So we're talking

0:38:00.200 --> 0:38:05.120
<v Speaker 1>about some organizations that championed racism, corded the ku Klux Klan,

0:38:05.920 --> 0:38:11.040
<v Speaker 1>they had some really anti Semitic messaging and more like

0:38:11.880 --> 0:38:16.919
<v Speaker 1>really awful stuff. Now, whether Sloan himself subscribed to these

0:38:16.960 --> 0:38:19.680
<v Speaker 1>same philosophies or he just thought of them as means

0:38:19.719 --> 0:38:23.120
<v Speaker 1>to an end is unclear to me. I'm not sure

0:38:23.160 --> 0:38:27.480
<v Speaker 1>it really makes that much difference, because just supporting those

0:38:27.560 --> 0:38:33.040
<v Speaker 1>kinds of organizations, particularly by providing significant funds, can lead

0:38:33.080 --> 0:38:37.880
<v Speaker 1>to immeasurable harm. The group's failed in their main purpose

0:38:37.920 --> 0:38:41.040
<v Speaker 1>because Roosevelt won re election in nineteen thirty six by

0:38:41.040 --> 0:38:44.880
<v Speaker 1>a landslide BacT. Some historians suggest that it was in

0:38:45.000 --> 0:38:48.359
<v Speaker 1>part thanks to groups like the American Liberty League, which

0:38:48.400 --> 0:38:52.400
<v Speaker 1>was funded by elite members of American society, including Sloan.

0:38:53.000 --> 0:38:56.080
<v Speaker 1>That was partly their impact that helped Roosevelt win. By

0:38:56.160 --> 0:39:00.680
<v Speaker 1>standing in as a sort of you know, antagonist, Roosevelt

0:39:00.719 --> 0:39:03.920
<v Speaker 1>could point at them and say, two citizens, this is

0:39:03.960 --> 0:39:08.200
<v Speaker 1>what I'm fighting against. Are these elite, wealthy people who

0:39:08.320 --> 0:39:11.920
<v Speaker 1>don't have the same problems that you have. In nineteen

0:39:11.960 --> 0:39:16.080
<v Speaker 1>thirty six, the brand new United Automobile Workers Union played

0:39:16.120 --> 0:39:19.560
<v Speaker 1>a major part in some historic workers strikes at several

0:39:19.600 --> 0:39:23.320
<v Speaker 1>GM manufacturing facilities in the United States, many of which

0:39:23.360 --> 0:39:26.400
<v Speaker 1>were in Flint, Michigan. In fact, the most famous of

0:39:26.440 --> 0:39:31.600
<v Speaker 1>the strikes occurred in Flint. Now, just the organizing process alone,

0:39:32.160 --> 0:39:35.799
<v Speaker 1>way before any strikes happened, just that was difficult. He

0:39:35.920 --> 0:39:40.000
<v Speaker 1>was reportedly employing lots of folks to act as as

0:39:40.080 --> 0:39:44.000
<v Speaker 1>essentially spies to find out what was going on. But

0:39:44.160 --> 0:39:47.640
<v Speaker 1>ultimately the organizers were able to actually meet with enough

0:39:47.680 --> 0:39:52.160
<v Speaker 1>workers to form an alliance and they carried out labor

0:39:52.200 --> 0:39:55.759
<v Speaker 1>strikes in late nineteen thirty six that stretched into February

0:39:55.800 --> 0:39:59.640
<v Speaker 1>of nineteen thirty seven, and these were sit down strikes.

0:39:59.640 --> 0:40:04.160
<v Speaker 1>So with to sit down strike employees occupied the manufacturing plans.

0:40:04.200 --> 0:40:09.320
<v Speaker 1>They didn't pick it outside the facility. Instead, they essentially

0:40:09.360 --> 0:40:13.919
<v Speaker 1>took control of the factories and kept management and thus

0:40:14.040 --> 0:40:17.000
<v Speaker 1>strike breakers out of the buildings. It was kind of

0:40:17.040 --> 0:40:22.160
<v Speaker 1>like being sieged by an army. The strikes were met

0:40:22.200 --> 0:40:26.200
<v Speaker 1>with force from Flint police officers. At least initially, that

0:40:26.360 --> 0:40:29.799
<v Speaker 1>was not a big surprise because General Motors was was

0:40:29.880 --> 0:40:34.000
<v Speaker 1>in pretty deep with local politics in Flint, Michigan. But

0:40:34.160 --> 0:40:37.680
<v Speaker 1>the strikers persevered and the governor of Michigan stepped in

0:40:37.800 --> 0:40:41.600
<v Speaker 1>and mediated the dispute, and that ended with General Motors

0:40:41.640 --> 0:40:45.680
<v Speaker 1>recognizing the U a W as the representative union for

0:40:45.760 --> 0:40:50.600
<v Speaker 1>General Motors employees. In subsequent strikes, the union was able

0:40:50.680 --> 0:40:54.440
<v Speaker 1>to negotiate better conditions for General Motors employees, including a

0:40:54.480 --> 0:40:57.239
<v Speaker 1>wage hike, though the deal reached was below what the

0:40:57.320 --> 0:41:01.960
<v Speaker 1>union originally was aiming for and Sloan must have hated

0:41:02.239 --> 0:41:06.640
<v Speaker 1>every second of it. Sloan also became chairman of General

0:41:06.680 --> 0:41:10.360
<v Speaker 1>Motors in nineteen thirty seven. He stayed on as CEO,

0:41:10.560 --> 0:41:13.560
<v Speaker 1>but replacing him as president of the company was a

0:41:13.560 --> 0:41:17.560
<v Speaker 1>man named William Knudsen, who was originally from Holland. As

0:41:17.600 --> 0:41:22.120
<v Speaker 1>I recalled, Knudson was only president of GM for three years.

0:41:22.400 --> 0:41:25.440
<v Speaker 1>He stepped down in nineteen forty. I'll talk about more

0:41:25.480 --> 0:41:29.200
<v Speaker 1>of that in a second. He was replaced by Charles E. Wilson.

0:41:29.560 --> 0:41:32.640
<v Speaker 1>And then there's the matter of World War Two, which

0:41:32.680 --> 0:41:37.600
<v Speaker 1>gets super duper complicated. For one thing, there are a

0:41:37.600 --> 0:41:40.320
<v Speaker 1>lot of different accounts as to what was actually going

0:41:40.400 --> 0:41:44.240
<v Speaker 1>on leading into World War Two regarding GMS various interests.

0:41:45.080 --> 0:41:48.880
<v Speaker 1>Remember they owned Opal in Germany, and just for the

0:41:48.880 --> 0:41:53.080
<v Speaker 1>sake of full disclosure, I don't really know where the

0:41:53.120 --> 0:41:57.279
<v Speaker 1>truth of the matter actually rests. But one way to

0:41:57.320 --> 0:42:00.839
<v Speaker 1>look at this is that General Motors would effectively manufacture

0:42:00.960 --> 0:42:04.640
<v Speaker 1>material for both sides of World War Two, the Allies

0:42:04.680 --> 0:42:08.080
<v Speaker 1>and the Access Powers. Though the company has repeatedly denied

0:42:08.520 --> 0:42:10.640
<v Speaker 1>that it really had any say in the matter as

0:42:10.640 --> 0:42:13.560
<v Speaker 1>far as the Access Powers are concerned, how true that

0:42:13.719 --> 0:42:16.759
<v Speaker 1>is is a serious matter of debate. Based on what

0:42:16.840 --> 0:42:20.480
<v Speaker 1>I've seen, it definitely appears as though Sloan was happy

0:42:20.520 --> 0:42:24.319
<v Speaker 1>to profit off of GM's interests in Germany until it

0:42:24.400 --> 0:42:28.640
<v Speaker 1>became politically impossible or at least impractical for the company

0:42:28.680 --> 0:42:32.560
<v Speaker 1>to keep doing it. Here are some facts about the matter.

0:42:32.840 --> 0:42:39.680
<v Speaker 1>Around ninety nine, General Motors senior executive James Mooney received

0:42:39.800 --> 0:42:43.920
<v Speaker 1>a medal from the German government ak the Nazis for

0:42:44.520 --> 0:42:49.120
<v Speaker 1>distinguished service to the Reich. That distinguished service was the

0:42:49.120 --> 0:42:52.840
<v Speaker 1>production of stuff like military vehicles and engines for planes,

0:42:53.360 --> 0:42:56.879
<v Speaker 1>many of which were being made in OPAL factories. While

0:42:57.000 --> 0:43:00.400
<v Speaker 1>Sloan would write in his memoirs that GMS for stilities

0:43:00.400 --> 0:43:04.760
<v Speaker 1>in Germany were nationalized, that is, the German government took

0:43:04.960 --> 0:43:10.040
<v Speaker 1>over those facilities and General Motors leadership was removed. There's

0:43:10.080 --> 0:43:13.000
<v Speaker 1>a distinct lack of paperwork that shows that this was

0:43:13.160 --> 0:43:15.040
<v Speaker 1>in fact the case, and there are a lot of

0:43:15.120 --> 0:43:19.440
<v Speaker 1>historians who argue that GM was much more involved, at

0:43:19.480 --> 0:43:23.920
<v Speaker 1>least in a managerial capacity, Like they were aware of

0:43:23.960 --> 0:43:27.040
<v Speaker 1>what was happening and we're still profiting from it to

0:43:27.160 --> 0:43:32.680
<v Speaker 1>some extent, but they took great strides to hide their involvement.

0:43:33.640 --> 0:43:36.040
<v Speaker 1>I don't know what the truth is I can tell

0:43:36.080 --> 0:43:38.880
<v Speaker 1>you that there are people on both sides of the

0:43:38.920 --> 0:43:45.120
<v Speaker 1>issue who argue passionately for their side. GM did build

0:43:45.120 --> 0:43:47.560
<v Speaker 1>plants in Germany leading up to World War Two, but

0:43:47.719 --> 0:43:50.480
<v Speaker 1>after the rise of Hitler, I mean that did happen.

0:43:50.600 --> 0:43:53.799
<v Speaker 1>There was one that was built in Brandenburg that ended

0:43:53.840 --> 0:43:56.480
<v Speaker 1>up producing trucks that were used by German forces in

0:43:56.480 --> 0:44:00.120
<v Speaker 1>the invasions of both Poland and France. It leads some

0:44:00.200 --> 0:44:04.560
<v Speaker 1>investigators to suggest that without General Motors businesses in Germany,

0:44:04.800 --> 0:44:07.160
<v Speaker 1>Hitler would have been unable to carry out the rapid

0:44:07.239 --> 0:44:10.319
<v Speaker 1>Blitz style warfare that gave him an early advantage in

0:44:10.360 --> 0:44:13.879
<v Speaker 1>World War Two. GM did business in Germany rather than

0:44:13.960 --> 0:44:18.080
<v Speaker 1>divest itself of its German interests, which really, when you

0:44:18.080 --> 0:44:20.920
<v Speaker 1>get down to it, does mean the General Motors efforts

0:44:21.080 --> 0:44:23.960
<v Speaker 1>helped Germany during those early days of World War Two.

0:44:24.600 --> 0:44:28.680
<v Speaker 1>Now again, General Motors maintains that all executives stepped down

0:44:28.960 --> 0:44:31.799
<v Speaker 1>once war broke out in nineteen thirty nine, but The

0:44:31.840 --> 0:44:36.080
<v Speaker 1>Washington Post published a lengthy article in nineteen that disputes this,

0:44:36.280 --> 0:44:39.160
<v Speaker 1>at least to a point. As late as nineteen forty one,

0:44:39.200 --> 0:44:43.920
<v Speaker 1>an American lawyer was overseeing General Motors interests in Germany,

0:44:44.000 --> 0:44:47.920
<v Speaker 1>and the bad stuff doesn't stop there. The manufacturing facilities

0:44:47.960 --> 0:44:51.520
<v Speaker 1>in Germany benefited from forced labor. If you listen to

0:44:51.600 --> 0:44:55.080
<v Speaker 1>my episodes about Volkswagen, you heard me talk about the

0:44:55.200 --> 0:44:58.560
<v Speaker 1>use of forced labor with that company, while the American

0:44:58.640 --> 0:45:03.720
<v Speaker 1>owned companies in Germany, like Ford and GM subsidiaries, also

0:45:03.800 --> 0:45:08.080
<v Speaker 1>made use of forced labor. Meanwhile, back in America, both

0:45:08.200 --> 0:45:12.280
<v Speaker 1>GM and Ford initially resisted calls from the US government

0:45:12.320 --> 0:45:16.760
<v Speaker 1>to produce war material for the Allied powers. GM told

0:45:16.800 --> 0:45:21.040
<v Speaker 1>shareholders that its assembly lines weren't adaptable to manufacturing stuff

0:45:21.080 --> 0:45:25.440
<v Speaker 1>like tanks and airplanes. Now, eventually the policies that these

0:45:25.440 --> 0:45:29.360
<v Speaker 1>companies changed. Knudsen, for example, when he was president of GM,

0:45:29.520 --> 0:45:32.400
<v Speaker 1>really wanted to support the American effort. They felt a

0:45:32.440 --> 0:45:35.000
<v Speaker 1>great sense of duty to the country where he had

0:45:35.040 --> 0:45:40.319
<v Speaker 1>found opportunity to succeed. So he defied Sloan's wishes and

0:45:40.360 --> 0:45:43.839
<v Speaker 1>committed General Motors towards the war effort, and GM would

0:45:43.920 --> 0:45:48.080
<v Speaker 1>end up producing tons of stuff for the American military.

0:45:48.120 --> 0:45:51.359
<v Speaker 1>But looking back on the history, it's definitely a dark

0:45:51.480 --> 0:45:55.520
<v Speaker 1>stain on corporate identity. Right. An American company that was

0:45:55.560 --> 0:45:58.719
<v Speaker 1>making equipment for Nazis leading up to World War Two,

0:45:58.800 --> 0:46:02.440
<v Speaker 1>and depending on some accounts, continuing to do so until

0:46:02.480 --> 0:46:05.520
<v Speaker 1>at least nineteen forty one, when the United States entered

0:46:05.560 --> 0:46:09.560
<v Speaker 1>the war. Was also the company that was resisting demands

0:46:09.600 --> 0:46:13.360
<v Speaker 1>to do the same thing back home in the United States.

0:46:14.000 --> 0:46:17.360
<v Speaker 1>As for Knudson, he left General Motors in nineteen forty

0:46:17.400 --> 0:46:20.320
<v Speaker 1>to join the US government as chairman of the Office

0:46:20.360 --> 0:46:23.839
<v Speaker 1>of Production Management. That job, by the way, paid one

0:46:24.040 --> 0:46:27.000
<v Speaker 1>dollar per year, so you could literally see where his

0:46:27.080 --> 0:46:31.880
<v Speaker 1>loyalties lie. By mid nineteen forty, General Motors was in

0:46:32.000 --> 0:46:35.880
<v Speaker 1>full production mode, and by nineteen forty two all of

0:46:35.880 --> 0:46:39.400
<v Speaker 1>the company's manufacturing facilities were geared towards producing for the

0:46:39.440 --> 0:46:43.799
<v Speaker 1>war effort. They were no longer producing vehicles for civilians

0:46:44.640 --> 0:46:47.120
<v Speaker 1>for the Allies. That is, that's what they were doing

0:46:47.120 --> 0:46:50.320
<v Speaker 1>for the Allies. According to The Guardian, General Motors ultimately

0:46:50.320 --> 0:46:54.440
<v Speaker 1>supplied around twelve billion dollars worth of materials for Allies,

0:46:54.840 --> 0:46:58.680
<v Speaker 1>which included tanks, trucks and airplanes. On a side note,

0:46:58.719 --> 0:47:01.200
<v Speaker 1>I just want to say it's very odd to do

0:47:01.320 --> 0:47:04.640
<v Speaker 1>research about all this because when you look at like

0:47:04.680 --> 0:47:09.040
<v Speaker 1>the first round of websites that give history about General Motors,

0:47:09.880 --> 0:47:13.000
<v Speaker 1>most of them kind of skip over World War Two entirely,

0:47:13.200 --> 0:47:16.480
<v Speaker 1>or maybe devote a sentence to what the company did.

0:47:17.040 --> 0:47:20.880
<v Speaker 1>It's like they say nine GM becomes the number one

0:47:20.920 --> 0:47:23.400
<v Speaker 1>automaker in the US, and then they jump to the

0:47:23.480 --> 0:47:27.160
<v Speaker 1>nineteen fifties and say that General Motors thrives in a

0:47:27.239 --> 0:47:30.800
<v Speaker 1>booming American economy. So I guess the complicated stuff in

0:47:30.840 --> 0:47:34.440
<v Speaker 1>the middle is pretty hard to summarize while also remaining,

0:47:34.640 --> 0:47:38.320
<v Speaker 1>you know, intellectually honest. And as I mentioned, I'm certain

0:47:38.360 --> 0:47:40.960
<v Speaker 1>I don't have access to the full story, and it's

0:47:40.960 --> 0:47:44.200
<v Speaker 1>impossible for me to judge how complicit General Motors may

0:47:44.280 --> 0:47:46.640
<v Speaker 1>or may not have been regarding the rise of the

0:47:46.680 --> 0:47:49.839
<v Speaker 1>Nazi powers in Germany. But it looks like they were

0:47:49.920 --> 0:47:55.280
<v Speaker 1>at least somewhat complicit in the early days, which is heavy,

0:47:55.600 --> 0:47:59.920
<v Speaker 1>heavy stuff. But that wraps up this chapter of General

0:48:00.000 --> 0:48:03.200
<v Speaker 1>Motors history. I didn't plan on doing this many episodes

0:48:03.200 --> 0:48:06.279
<v Speaker 1>about GM, but as I said, the company's history is

0:48:06.360 --> 0:48:11.160
<v Speaker 1>really fascinating, not just from a technological standpoint, but also political, social,

0:48:11.280 --> 0:48:14.600
<v Speaker 1>cultural standpoints and more. And many of the things we

0:48:14.640 --> 0:48:17.239
<v Speaker 1>saw around this era of GM's history would end up

0:48:17.280 --> 0:48:21.080
<v Speaker 1>shaping the automotive industry in the world in general. Forever.

0:48:21.560 --> 0:48:25.560
<v Speaker 1>For example, one thing that happened under Sloan's leadership was

0:48:25.600 --> 0:48:30.560
<v Speaker 1>the approach to restyling brands of cars every year. Because

0:48:30.840 --> 0:48:33.719
<v Speaker 1>in the old old days, you know, companies would just

0:48:33.760 --> 0:48:37.399
<v Speaker 1>design a car and stick with that design year after year,

0:48:37.680 --> 0:48:40.719
<v Speaker 1>which was easy enough to do. Factories had been optimized

0:48:40.719 --> 0:48:43.719
<v Speaker 1>to mass produce a specific style of vehicle. That's why

0:48:43.800 --> 0:48:47.360
<v Speaker 1>Ford made the Model T for nearly two decades. But

0:48:47.560 --> 0:48:51.400
<v Speaker 1>under Sloan's leadership, General Motors began to not just offer

0:48:51.520 --> 0:48:55.080
<v Speaker 1>different makes of cars for different types of customers, they

0:48:55.120 --> 0:48:59.040
<v Speaker 1>also changed the styling of each line of cars year

0:48:59.160 --> 0:49:03.759
<v Speaker 1>after year. This created another way to attract customers. New

0:49:03.840 --> 0:49:07.480
<v Speaker 1>cars looked new, not just because they were shiny and clean,

0:49:07.960 --> 0:49:10.759
<v Speaker 1>but because the style of the car was different from

0:49:10.800 --> 0:49:13.520
<v Speaker 1>the cars that had come out the year before. And

0:49:13.600 --> 0:49:16.600
<v Speaker 1>now this is standard in the automotive world. We take

0:49:16.640 --> 0:49:18.680
<v Speaker 1>it for granted. Every year we get treated to the

0:49:18.719 --> 0:49:22.360
<v Speaker 1>next year's models. I'll keep going down the path of

0:49:22.400 --> 0:49:25.600
<v Speaker 1>General Motors history in our next full episode. My plan

0:49:25.760 --> 0:49:29.600
<v Speaker 1>is really sincerely to close it out at that point,

0:49:29.640 --> 0:49:33.000
<v Speaker 1>to make Part three the end of General Motors story

0:49:33.160 --> 0:49:35.640
<v Speaker 1>so far. But there are a lot of big things

0:49:35.680 --> 0:49:39.600
<v Speaker 1>we'll need to talk about from controversial decisions to bankruptcy

0:49:39.760 --> 0:49:42.960
<v Speaker 1>to bail out and beyond, but we're gonna save that

0:49:43.040 --> 0:49:45.400
<v Speaker 1>for the next time. In the meantime, if you have

0:49:45.440 --> 0:49:48.520
<v Speaker 1>any suggestions for topics I should cover in future episodes

0:49:48.560 --> 0:49:51.000
<v Speaker 1>of tech Stuff. Maybe there's another big company you would

0:49:51.040 --> 0:49:54.360
<v Speaker 1>like to know the history about and how they became influential,

0:49:54.920 --> 0:49:57.440
<v Speaker 1>Or maybe there's just a technology you've always wanted to know.

0:49:57.719 --> 0:50:00.239
<v Speaker 1>How does this work? And does it mean let me no?

0:50:00.520 --> 0:50:03.080
<v Speaker 1>Reach out to me on Twitter. The handle is text

0:50:03.080 --> 0:50:06.040
<v Speaker 1>stuff h s W and I'll talk to you again

0:50:06.920 --> 0:50:15.000
<v Speaker 1>really soon. Yeah. Text Stuff is an I Heart Radio production.

0:50:15.239 --> 0:50:18.080
<v Speaker 1>For more podcasts from my Heart Radio, visit the i

0:50:18.200 --> 0:50:21.400
<v Speaker 1>Heart Radio app, Apple Podcasts, or wherever you listen to

0:50:21.480 --> 0:50:22.360
<v Speaker 1>your favorite shows.