Good performance and an attractively low price of £165 led to the entire batch of Model T cars being sold out within just three days. The flurry of sales telegrams from various distributors was now piled high on the desk of General Manager Minoba.
Observing the stack of telegrams, Minoba summoned the production supervisor, Delaspa, into his office. "How is our capacity expansion coming along?" he inquired.
"The new equipment has been arriving progressively and is currently being set up in our newly-built factory. We've also recruited an additional 5,000 workers who are undergoing training. They can only start once the equipment setup is complete. With these updates, we should be able to produce 10,000 Model T cars per month, which ought to alleviate our current production bottleneck," Delaspa explained.
Minoba, hands on hips, responded, "That's still insufficient, Delaspa. Based on the production capacity you've described, our current orders will take us half a year to fulfill. That is absolutely unacceptable. I have already instructed our teams to continue purchasing more equipment and to further expand our workforce. I estimate that an additional 10,000 workers will be necessary to meet our needs."
Delaspa, slightly embarrassed by Minoba's assertive stance, replied, "We've nearly exhausted the pool of qualified candidates in the vicinity of Constanta. We might need to start recruiting from other regions."
Minoba dismissively waved off the concern. "Do whatever it takes," he commanded.
While Volkswagen was aggressively expanding production, a serious discussion was taking place at the headquarters of Renault in France. The Renault brothers—Louis, Marcel, and Fernand—were deliberating the impact of the Model T on their own operations.
Louis Renault, born into a prosperous merchant family in Paris in 1877, had been fascinated by motor vehicles from a young age. At 21, he famously converted a De Dion motorbike into a car and drove it to a Christmas Eve party, which quickly made him a notable figure in Parisian society.
"The whole of Europe is buzzing about the Model T. I haven't met Henry Ford personally, but I admire what he's accomplished. He has revolutionized car production," Louis remarked.
Fernand, more focused on the immediate implications, countered, "Admiration won't help us now. We need to develop a car that can compete with the Model T. Otherwise, we'll lose our footing in the low-end market. They sold 3,000 cars in just three days; we don't even sell that many in a month!"
Louis, who was always deeply involved in the technical aspects, added, "Developing a competitive product will take time. Remember our last attempt with the trucks? We failed miserably against Volkswagen's Dongfeng trucks."
The memory of that failure made Marcel and Fernand wince. Previously, Renault had attempted to compete with Volkswagen's successful Dongfeng trucks by designing a similar model priced at £250. The venture flopped, and if not for a last-minute purchase by the French government, Renault would have faced significant financial losses.
After a moment of reflective silence, Fernand spoke up, "We need to develop a car for the masses, regardless of profit margins. If we can't compete in the economy segment, we'll eventually be edged out of the market."
Louis nodded thoughtfully. "I agree. We need to develop an affordable car right here in France. I'll make sure we keep the costs down."
Marcel, supporting the consensus, added his agreement.
Meanwhile, in Germany, Karl Benz was also discussing the Model T with his wife, Bertha. "I never expected someone like Henry Ford to come along with such a business-savvy approach—producing a high-performance car at such a low price."
Bertha, curious about her husband's intentions, asked, "You've delegated the day-to-day management of the company. Are you thinking of stepping back in?"
"This situation is different," Karl explained. "Volkswagen sold 3,000 Model T cars in just three days. Have we ever seen such sales figures before?"
Bertha understood Karl's concern. As the founder of Mercedes-Benz, which focused on luxury and sports cars, Karl was wary of how this new, affordable Model T might disrupt the market.
At Mercedes-Benz, the general manager and his assistant were also discussing the Model T. "This car is revolutionary. It's expanded the entire market," the manager noted.
The assistant, sensing an opportunity, suggested, "Should we also develop a similar model? I've heard that many manufacturers are now aiming to compete with the Model T."
The manager, known as Little Benz, scoffed at the idea. "Competing on cost is key for the economy segment. To achieve a competitive price, we'd need massive industrialization to reduce costs. Volkswagen is planning to employ over 20,000 workers just for their cars. That's a monumental undertaking."
In Romania, where Volkswagen had a significant presence, the company had rapidly expanded its workforce and facilities, relying initially on the success of their Dongfeng trucks and now the Model T. The sales manager, Francisco, reported to Edel, the company's strategic leader, "Your Highness, our factory in Constanta is now prioritizing the Model T. We've even scaled back on trucks and buses to meet demand. Currently, we're producing 15,000 Model T cars a month, and it's still not enough. Dealers are literally waiting at our gates."
Francisco continued, detailing the operational scale, "We now have 26,000 workers, with 10,000 new recruits in training. Additionally, 35 suppliers are supporting our production."
Listening to the report, Edel realized the transformative power of such large-scale industrialization. He knew that understanding and replicating this model was simple in theory but capital-intensive in practice.
This was how Edel had seized the opportunity with the Model T, a move that would shape the automotive industry for years to come. As more capital entered the market, Volkswagen's share would inevitably decrease, but for now, they were the undisputed leaders, setting a benchmark that others could only aspire to reach.