[Model T's coming off the assembly line at the Highland Park plant]

Henry Ford built his first automobile, which he called a quadricycle, at his home in Detroit in 1896. His first company called Detroit Automobile Company, founded in 1899 but failed soon. On June 16, 1903, the Ford Motor Company was incorporated. During its early years, the company produced a range of vehicles designated, chronologically, from the Ford Model A (1903) to the Model K and Model S of 1907. In 1908, Henry Ford introduced the Model T. By 1913, Ford introduced the world's first moving assembly line that year, which reduced chassis assembly time from 12 1⁄2 hours in October to 2 hours 40 minutes (and ultimately 1 hour 33 minutes), and boosted annual output to 202,667 units that year. By 1920, production exceeds one million a year. Turnover of workers was very high. In January 1914, Ford solved the problem by doubling pay to $5 a day, cutting shifts from nine hours to an eight-hour day. It increased sales: a line worker could buy a T with less than four months' pay, and instituting hiring practices that identified the best workers, including disabled people, considered unemployable by other firms. Employee turnover plunged, productivity soared, and with it, the cost per vehicle plummeted. Ford cut prices again and again and invented the system of franchised dealers who were loyal to his brand name. Wall Street had criticized Ford's generous labor practices when he began paying workers enough to buy the products they made.

Industrial Revolution, in modern history, the process of change from an agrarian and handicraft economy to one dominated by industry and machine manufacturing. These technological changes introduced novel ways of working and living and fundamentally transformed society. This process began in Britain in the 18th century and from there spread to other parts of the world. Although used earlier by French writers, the term Industrial Revolution was first popularized by the English economic historian Arnold Toynbee (1852–83) to describe Britain’s economic development from 1760 to 1840. Since Toynbee’s time the term has been more broadly applied as a process of economic transformation than as a period of time in a particular setting. This explains why some areas, such as China and India, did not begin their first industrial revolutions until the 20th century, while others, such as the United States and western Europe, began undergoing “second” industrial revolutions by the late 19th century.