History of the Ford Motor Company
A variety of cars was developed in the second half of the 19th century, but it was Henry Ford who took car manufacturing to the next level. He built cars on a small scale for several decades, but in 1903 he started the Ford Motor Company. According to Mark Foster, author of "A Nation on Wheels: The Automobile Culture in America Since 1945," the company played a significant role in changing the American way of life. Ford made automobiles available to the general public and started a production standard that rival companies tried to duplicate.
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Henry Ford: The Early Years
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Henry Ford, an engineer, designed self-propelled vehicles. With the city of Detroit, he helped form the Detroit Automobile Company from 1899 through 1901. In 1903, Ford started the Ford Motor Company. Ford was the vice-president and chief engineer. His goal was to produce cars that were affordable and efficient for consumers.
The Model T
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When the Model T came out in 1908, it cost $825. This price made it affordable to the masses, and the car had record-setting sales. Previously, automobile manufacturers catered to the rich. A few years later, Ford dropped the price of the Model T to $575, and sales soared even more. Ford's previous models went through the alphabet, starting with the Model A. The Model T was what Ford had been striving for. It was reliable, and almost anyone could afford it.
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The Assembly Line
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Ford was able to produce the Model T at such reasonable prices because he took the relatively new concept of the assembly line and perfected it. It was so efficient that the company was able to increase production dramatically, and in 1915, Ford sold 1 million cars and dropped the price of the Model T even further.
Wages
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Working at the new and efficient assembly line was tedious for employees, and there was a high turnover rate at the company. To stop losing so many employees, Ford announced, in 1914, that he would pay his workers $5 a day--double the average salary. It was unheard of at the time, and he was applauded as a good Samaritan. Ford also reduced his employees' work hours to eight a day, a decision that elicited an enthusiastic response and an increase in the number of applicants at the company. However, the eight-hour day also benefited Ford because he was able to operate three shifts in a 24-hour period instead of two. Production increased even more.
Henry Ford: The Later Years
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According to Foster, in the 1930s, and 1940s, the auto industry was changing. Henry Ford was owner of the Ford Motor Company, and at his side was Henry Bennett, head of the service department. The two were conservative men who didn't want to change with the demands of the industry. They stood fast against the idea of unionization. Despite its strong start, the company was losing ground to its competitors. Ford's son Edsel was president of the company. He wanted to introduce newer models that would appeal to a new generation of car consumers. He was constantly overruled by the two older men. Edsel died of cancer in 1943. In 1945, Edsel's son Henry Ford II became president. He aggressively went about making changes to the company and is credited with saving the Ford Motor Company in the post-WWII years and bringing the company into a new era.
The Ford Company: Current Day
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The Ford Company has remained one of the top car manufacturers in the world. In the 1960s, Ford began building cars in Germany and England for the European market. It also put a 7 percent stake in the financially troubled Mazda Motor Corporation in 1979, which led to a lucrative partnership that continues to this day. Many of Ford's vehicles have held their value, and out of the top five most successful cars in history Ford holds two spots--one for the Model T and one for its F-series of trucks.
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- Photo Credit vintage ford image by charles taylor from Fotolia.com
