In 1891, Ford became an
engineer with the
Edison Illuminating Company of Detroit. After his promotion to Chief Engineer in 1893, he had enough time and money to devote attention to his experiments on
gasoline engines. These experiments culminated in 1896 with the completion of a self-propelled automobile, which he named the
Ford Quadricycle. He test-drove it on June 4. After various test drives, Ford brainstormed ways to improve the Quadricycle. Also in 1896, Ford attended a meeting of Edison executives, where he was introduced to
Thomas Edison. Edison approved of Ford's automobile experimentation. Encouraged by Edison, Ford designed and built a second automobile, completing it in 1898. Backed by the capital of Detroit
lumber baron William H. Murphy, Ford resigned from the Edison Company and founded the
Detroit Automobile Company on August 5, 1899.. (1909)
Transmission Patent In 1909, Ford applied for a patent on his new
transmission mechanism. It was awarded a patent in 1911.
Model T The
Model T debuted on October 1, 1908. It had the
steering wheel on the left, which every other company soon copied. The entire engine and
transmission were enclosed; the four cylinders were cast in a solid block; the
suspension used two semi-elliptic springs. The car was simple to drive, easy and inexpensive to repair. It was so inexpensive at $825 in 1908 ($ today), with the price falling every year, that by the 1920s, a majority of American drivers had learned to drive on the Model T. Ford created a huge publicity machine in Detroit to ensure every newspaper carried stories and ads about the new product. Ford's network of local dealers made the car ubiquitous in almost every city in North America. As independent dealers, the franchises grew rich and publicized not just the Ford but also the concept of car local
motor clubs sprang up to help new drivers and encourage them to explore the countryside. Ford was always eager to sell to farmers, who looked at the automobile as a commercial device to help their business. Sales skyrocketed—several years posted 100% gains on the previous year. In 1913, Ford introduced
moving assembly belts into his plants, which enabled an enormous increase in production. Although Ford is often credited with the idea, contemporary sources indicate that the concept and development came from employees
Clarence Avery,
Peter E. Martin,
Charles E. Sorensen, and
C. Harold Wills. (See
Ford Piquette Avenue Plant.) Sales passed 250,000 in 1914. By 1916, as the price dropped to $360 for the basic touring car, sales reached 472,000. By 1918, half of all cars in the United States were Model Ts. All new cars were black; as Ford wrote in his autobiography, "Any customer can have a car painted any color that he wants so long as it is black." Until the development of the assembly line, which mandated black because of its quicker drying time, Model Ts were available in other colors, including red. The design was fervently promoted and defended by Ford, and production continued as late as 1927; the final total production was 15,007,034. This record stood for the next 45 years, and was achieved in 19 years from the introduction of the first Model T (1908). Henry Ford turned the presidency of Ford Motor Company over to his son
Edsel Ford in December 1918. Henry retained final decision authority and sometimes reversed the decisions of his son. Ford started another company, Henry Ford and Son, and made a show of taking himself and his best employees to the new company; the goal was to scare the remaining holdout stockholders of the Ford Motor Company into selling their stakes to him before they lost most of their value. (He was determined to have full control over strategic decisions.) The ruse worked, and Henry and Edsel purchased all remaining stock from the other investors, thus giving the family sole ownership of the company. In 1922, Ford also purchased
Lincoln Motor Co., founded by Cadillac founder
Henry Leland and his son Wilfred during World War I. The Lelands briefly stayed to manage the company, but were soon expelled from it. Despite this acquisition of a premium car maker, Henry displayed relatively little enthusiasm for luxury automobiles in contrast to Edsel, who actively sought to expand Ford into the upscale market. The original
Lincoln Model L that the Lelands had introduced in 1920 was also kept in production, untouched for a decade until it became too outdated. It was replaced by the modernized
Model K in 1931. By the mid-1920s,
General Motors was rapidly rising as the leading American vehicle manufacturer. GM president
Alfred Sloan established the company's "price ladder" whereby GM would offer an automobile for "every purse and purpose", in contrast to Ford's lack of interest in anything outside the low-end market. Although Henry Ford was against replacing the Model T, now 16 years old, Chevrolet was mounting a bold new challenge as GM's entry-level division in the company's price ladder. Ford also resisted the increasingly popular idea of payment plans for cars. With Model T sales starting to slide, Ford was forced to relent and approve work on a successor model, shutting down production for 18 months. During this time, Ford constructed a massive new assembly plant at River Rouge for the new Model A, which launched in 1927. In addition to its price ladder, GM also quickly established itself at the forefront of automotive styling under
Harley Earl's Arts & Color Department, another area of automobile design that Henry Ford did not entirely appreciate or understand. Ford would not have a true equivalent of the GM styling department for many years.
Model A and Ford's later career By 1926, flagging sales of the Model T finally convinced Ford to make a new model. He pursued the project with a great deal of interest in the design of the engine, chassis, and other mechanical necessities, while leaving the body design to his son. Although Ford fancied himself an engineering genius, he had little formal training in mechanical engineering and could not even read a blueprint. A talented team of engineers performed most of the actual work of designing the Model A (and later the flathead V8), with Ford supervising them closely and giving them overall direction. Edsel also managed to prevail over his father's initial objections in the inclusion of a sliding-shift transmission. The result was the
Ford Model A, introduced in December 1927 and produced through 1931, with a total output of more than four million. Subsequently, the Ford company adopted an annual model change system similar to that recently pioneered by its competitor General Motors (and still in use by automobiles today). Not until the 1930s did Ford overcome his objection to finance companies, and the Ford-owned
Universal Credit Corporation became a major car-financing operation. Henry Ford still resisted many technological innovations, such as hydraulic brakes and all-metal roofs, which Ford automobiles did not adopt until 1935–1936. For 1932, however, Ford dropped a bombshell with the
flathead Ford V8, the first low-price eight-cylinder engine. The flathead V8, variants of which were used in Ford automobiles for 20 years, was the result of a secret project launched in 1930, and Henry had initially considered a radical X-8 engine before agreeing to a conventional design. It gave Ford a reputation as a performance make well-suited for hot-rodding. Also, at Edsel's insistence, Ford launched Mercury in 1939 as a mid-range make to challenge Dodge and Buick, although Henry also displayed relatively little enthusiasm for it. Ford astonished the world in 1914 by offering a $5 daily wage ($ in ), which more than doubled the rate of most of his workers. A
Cleveland, Ohio newspaper editorialized that the announcement "shot like a blinding rocket through the dark clouds of the present industrial depression". The move proved extremely profitable; instead of constant employee turnover, the best mechanics in Detroit flocked to Ford, bringing their
human capital and expertise, raising productivity, and lowering training costs. Ford announced his $5-per-day program on January 5, 1914, raising the minimum daily pay from $2.34 to $5 for qualifying male workers. Detroit was already a high-wage city, but competitors were forced to raise wages or lose their best workers. Ford's policy proved that paying employees more would enable them to afford the cars they were producing and thus boost the local economy. He viewed the increased wages as profit-sharing linked with rewarding those who were most productive and of good character. It may have been
James Couzens who convinced Ford to adopt the $5-day wage. Real profit-sharing was offered to employees who had worked at the company for six months or more, and, importantly, conducted their lives in a manner that Ford's "Social Department" approved. They frowned on heavy drinking, gambling, and on what are now called
deadbeat dads. The Social Department used 50 investigators and support staff to maintain employee standards; a large percentage of workers were able to qualify for this "profit-sharing". Ford's incursion into his employees' private lives was highly controversial, and he soon backed off from the most intrusive aspects. By the time he wrote his 1922 memoir, he spoke of the Social Department and the private conditions for
profit-sharing in the past tense. He admitted that "paternalism has no place in the industry. Welfare work that consists of prying into employees' private concerns is out of date. Men need counsel and men need help, often special help; and all this ought to be rendered for decency's sake. But the broad workable plan of investment and participation will do more to solidify the industry and strengthen the organization than will any social work on the outside. Without changing the principle, we have changed the method of payment."
Five-day workweek In addition to raising his workers' wages, Ford also introduced a new, reduced workweek in 1926. The decision was made in 1922, when Ford and Crowther described it as six 8-hour days, giving a 48-hour week, but in 1926 it was announced as five 8-hour days, giving a 40-hour week. The program apparently started with Saturday being designated a workday, before becoming a day off sometime later. On May 1, 1926, the Ford Motor Company's factory workers switched to a five-day, 40-hour workweek, with the company's office workers making the transition the following August. Ford had decided to boost productivity, as workers were expected to put more effort into their work in exchange for more leisure time. Ford also believed decent leisure time was good for business, giving workers additional time to purchase and consume more goods. However, charitable concerns also played a role. Ford explained, "It is high time to rid ourselves of the notion that leisure for workmen is either 'lost time' or a class privilege." He thought they were too heavily influenced by leaders who would end up doing more harm than good for workers, despite their ostensible good motives. Most wanted to restrict productivity as a means to foster employment, but Ford saw this as self-defeating because, in his view, productivity was necessary for economic prosperity to exist. He believed that productivity gains that obviated certain jobs would nevertheless stimulate the broader economy and grow new jobs elsewhere, whether within the same corporation or in others. Ford also believed that union leaders had a
perverse incentive to foment perpetual socio-economic crises to maintain their power. Meanwhile, he believed that smart managers had an incentive to do right by their workers, because doing so would maximize their profits. However, Ford did acknowledge that many managers were basically too bad at managing to understand this fact. But Ford believed that eventually, if good managers such as he could fend off the attacks of misguided people from both left and right (i.e., both socialists and bad-manager reactionaries), the good managers would create a socio-economic system wherein neither bad management nor bad unions could find enough support to continue existing. To forestall union activity, Ford promoted
Harry Bennett, a former
Navy boxer, to head the Service Department. Bennett employed various intimidation tactics to quash union organizing. On March 7, 1932, during the
Great Depression, unemployed Detroit auto workers staged the
Ford Hunger March to the
Ford River Rouge Complex to present 14 demands to Henry Ford. The
Dearborn police department and Ford security guards opened fire on workers, leading to over sixty injuries and five deaths. On May 26, 1937, Bennett's security men beat members of the
United Automobile Workers (UAW), including
Walter Reuther, with clubs. While Bennett's men were beating the UAW representatives, the supervising police chief on the scene was Carl Brooks, an alumnus of Bennett's Service Department, and Brooks "did not give orders to intervene". makes clear that Ford's purpose in putting Bennett in charge was to make sure no agreements were ever reached. The Ford Motor Company was the last Detroit automaker to recognize the UAW, despite pressure from the rest of the U.S. automotive industry and even the U.S. government. A sit-down strike by the UAW union in April 1941 closed the
River Rouge Plant. Sorensen recounted that a distraught Henry Ford was very close to following through with a threat to break up the company rather than cooperate. Still, his wife, Clara, told him she would leave him if he destroyed the family business. In her view, it would not be worth the chaos it would create. Ford complied with his wife's ultimatum and even agreed with her in retrospect. Overnight, the Ford Motor Company went from the most stubborn holdout among automakers to the one with the most favorable UAW contract terms. The contract was signed in June 1941.
Ford Airplane Company Like other automobile companies, Ford entered the aviation business during
World War I, building
Liberty engines. After the war, it returned to auto manufacturing until 1925, when Ford acquired the
Stout Metal Airplane Company. Ford's most successful aircraft was the
Ford 4AT Trimotor, often called the "Tin Goose" because of its corrugated metal construction. It used a new alloy called
Alclad that combined the corrosion resistance of aluminum with the strength of
duralumin. The plane was similar to
Fokker's V.VII–3m. The Trimotor first flew on June 11, 1926, and was the first successful U.S. passenger airliner, accommodating about 12 passengers in a rather uncomfortable fashion. Several variants were also used by the
U.S. Army. The
Smithsonian Institution has honored Ford for changing the aviation industry. 199 Trimotors were built before it was discontinued in 1933, when the Ford Airplane Division shut down because of poor sales during the
Great Depression. In 1985, Ford was posthumously inducted into the
National Aviation Hall of Fame for his impact on the industry. and supported causes that opposed
military intervention. Ford became highly critical of those who he felt financed war, and he tried to stop them. In 1915, the pacifist
Rosika Schwimmer gained favor with Ford, who agreed to fund a
Peace Ship to Europe, where World War I was raging. He led 170 other peace activists. Ford's Episcopalian pastor, Reverend Samuel S. Marquis, accompanied him on the mission. Marquis headed Ford's Sociology Department from 1913 to 1921. Ford talked to President Woodrow Wilson about the mission, but had no government support. His group went to neutral Sweden and the Netherlands to meet with peace activists. A target of much ridicule, Ford left the ship as soon as it reached Sweden. In 1915, Ford blamed "German-Jewish bankers" for instigating the war. According to biographer Steven Watts, Ford's status as a leading industrialist gave him a worldview that warfare was wasteful folly that retarded long-term economic growth. The losing side in the war typically suffered heavy damage. Small businesses were especially hurt, for it takes years to recuperate. He argued in many newspaper articles that a focus on business efficiency would discourage warfare because, "If every man who manufactures an article would make the very best he can in the very best way at the very lowest possible price, the world would be kept out of war, for commercialists would not have to search for outside markets which the other fellow covets." Ford admitted that munitions makers enjoyed wars, but he argued that most businesses wanted to avoid wars and instead work to manufacture and sell useful goods, hire workers, and generate steady, long-term profits. Ford's British factories produced
Fordson tractors to increase the British food supply, as well as trucks and warplane engines. When the U.S. entered the war in 1917, Ford went quiet on foreign policy. His company became a major supplier of weapons, especially the Liberty engine for warplanes and
anti-submarine boats. In 1918, with the war on and the
League of Nations a growing issue in global politics, President
Woodrow Wilson, a Democrat, encouraged Ford to run for a Michigan seat in the U.S. Senate. Wilson believed that Ford could tip the scales in Congress in favor of Wilson's proposed
League. "You are the only man in Michigan who can be elected and help bring about the peace you so desire," the president wrote Ford. Ford wrote back: "If they want to elect me, let them do so, but I won't make a penny's investment." Ford did run, however, and came within 7,000 votes of winning, out of more than 400,000 cast statewide. He was defeated in a close election by the Republican candidate,
Truman Newberry, a former
United States Secretary of the Navy. Ford remained a staunch Wilsonian and supporter of the League. When Wilson made a major speaking tour in the summer of 1919 to promote the League, Ford helped fund the attendant publicity.
World War II era and controversies Ford opposed the United States' entry into World War II and continued to believe that international business could generate the prosperity that would head off wars. Ford "insisted that war was the product of greedy financiers who sought profit in human destruction". In 1939, he went so far as to claim that the torpedoing of U.S. merchant ships by German submarines was the result of conspiratorial activities undertaken by war-financier makers. The financiers to whom he was referring were Ford's code for Jews; he had also accused Jews of fomenting the First World War. In the run-up to World War II and when the war erupted in 1939, he reported that he did not want to trade with belligerents. Like many other businessmen of the Great Depression era, he never liked or entirely trusted the Franklin Roosevelt Administration and thought Roosevelt was inching the U.S. closer to war. Ford continued to do business with
Nazi Germany, including the manufacture of war
materiel. In early 1940, he boasted that Ford Motor Company would soon be able to produce 1,000 U.S. warplanes a day, even though it did not have an aircraft production facility at that time. Ford was a prominent early member of the
America First Committee against World War II involvement, but was forced to resign from its executive board when his involvement proved too controversial. Beginning in 1940, with the requisitioning of between 100 and 200 French
POWs to work as slave laborers,
Ford-Werke contravened Article 31 of the 1929
Geneva Convention.
Willow Run Before the U.S. entered the war, responding to President Roosevelt's call in December 1940 for the "Great Arsenal of Democracy", Ford directed the
Ford Motor Company to construct a vast new purpose-built aircraft factory at
Willow Run near Detroit, Michigan. Ford broke ground on Willow Run in the spring of 1941, B-24 component production began in May 1942, and the first complete
B-24 came off the assembly line in October 1942. At , it was the largest assembly line in the world at the time. At its peak in 1944, the Willow Run plant produced 650 B-24s per month, and by 1945, Ford was completing each B-24 in eighteen hours, with one rolling off the assembly line every 58 minutes. Ford produced 9,000 B-24s at Willow Run, half of the 18,000 total B-24s produced during the war. The company was controlled by a handful of senior executives led by
Charles Sorensen, an important engineer and production executive at Ford, and
Harry Bennett, the chief of Ford's Service Unit, Ford's paramilitary force that spied on and enforced discipline upon Ford employees. Ford grew jealous of the publicity Sorensen received and forced Sorensen out in 1944. Ford's incompetence led to discussions in Washington about how to restore the company, whether by wartime government fiat or by instigating a coup among executives and directors.
Forced out Nothing happened until 1945, when, with bankruptcy a serious risk, Ford's wife Clara and Edsel's widow Eleanor confronted him and demanded he cede control of the company to his grandson
Henry Ford II. They threatened to sell off their stock, which amounted to three-quarters of the company's total shares, if he refused. Ford was reportedly infuriated, but he had no choice but to give in. The young man took over and, as his first act of business, fired Harry Bennett. ==Antisemitism and
The Dearborn Independent==