During the mid-1920s Alfred P. Sloan instituted a number of innovation
s de signed to provide the operating divisions at General Motors with
more accurate and more timely information regarding final consumer dem
and. These innovations have not received much attention in attempts to
explain General Motors' remarkable rise to dominance of the U.S. dome
stic automobile industry. The present article reviews these events and
provides statistical tests affirming the success of these innovations
at the same time as General Motors' increases in profitability and ma
rket share.