Henry Ford, (born July 30, 1863, Wayne county, Michigan, U.S.—died April 7, 1947, Dearborn, Michigan), American industrialist who revolutionized factory production with his assembly-line methods. Ford spent most of his life making headlines, good, bad, but never indifferent. Celebrated as both a technological genius and a folk hero, Ford was the creative force behind an Industry of unprecedented size and wealth that in only a few decades permanently changed the economic and social character of the United States. When young Ford left his father’s farm in 1879 for Detroit , only two out of eight Americans lived in cities; when he died at age 83, the proportion was five out of eight. Once Ford realized the tremendous part he and his Model T automobile had played in bringing about this change, he wanted nothing more than to reverse it, or at least to recapture the rural values of his boyhood. Henry Ford, then, is an apt symbol of the transition from an agricultural to an industrial America.
Early Life
Henry Ford was one of eight children of William and Mary Ford. He was born on the family farm near Dearborn , Michigan, then a town eight miles west of Detroit. Abraham Lincoln was president of the 24 states of the Union, and Jefferson Davis was president of the 11 states of the Confederacy. Ford attended a one-room school for eight years when he was not helping his father with the harvest. At age 16 he walked to Detroit to find work in its machine shops. After three years, during which he came in contact with the internal -combustion engine for the first time, he returned to the farm, where he worked part-time for the Westinghouse Engine Company and in spare moments tinkered in a little machine shop he set up. Eventually he built a small “farm locomotive,” a tractor that used an old mowing machine for its chassis and a homemade steam engine for power. Ford moved back to Detroit nine years later as a married man. His wife, Clara Bryant, had grown up on a farm not far from Ford’s. They were married in 1888, and on November 6, 1893, she gave birth to their only child, Edsel Bryant. A month later Ford was made chief engineer at the main Detroit Edison Company plant with responsibility for maintaining electric service in the city 24 hours a day. Because he was on call at all times, he had no regular hours and could experiment to his heart’s content. He had determined several years before to build a gasoline-powered vehicle, and his first working gasoline engine was completed at the end of 1893. By 1896 he had completed his first horseless carriage, the “Quadricycle,” so called because the chassis of the four-horsepower vehicle was a buggy frame mounted on four bicycle wheels. Unlike many other automotive inventors, including Charles Edgar and J. Frank Duryea, Elwood Haynes , Hiram ,Percy ,Maxim and his Detroit acquaintance Charles Brady King, all of whom had built self-powered vehicles before Ford but who held onto their creations, Ford sold his to finance work on a second vehicle, and a third, and so on. During the next seven years he had various backers, some of whom, in 1899, formed the Detroit Automobile Company (later the Henry Ford Company), but all eventually abandoned him in exasperation because they wanted a passenger car to put on the market while Ford insisted always on improving whatever model he was working on, saying that it was not ready yet for customers. He built several racing cars during these years, including the “999” racer driven by Barney Oldfield , and set several new speed records. In 1902 he left the Henry Ford Company, which subsequently reorganized as the Cadillac Motor Car Company. Finally, in 1903, Ford was ready to market an automobile. The Ford Motor Company was incorporated, this time with a mere $28,000 in cash put up by ordinary citizens, for Ford had, in his previous dealings with backers, antagonized the wealthiest men in Detroit.
Control Of The Company
During its first five years the Ford Motor Company produced eight different models, and by 1908 its output was 100 cars a day. The stockholders were ecstatic; Ford was dissatisfied and looked toward turning out 1,000 a day. The stockholders seriously considered court action to stop him from using profits to expand. In 1909 Ford, who owned 58 percent of the stock, announced that he was only going to make one car in the future, the Model T. The only thing the minority stockholders could do to protect their dividends from his all-consuming imagination was to take him to court, which Horace and John Dodge did in 1916 The Dodge brothers, who formerly had supplied chassis to Ford but were now manufacturing their own car while still holding Ford stock, sued Ford for what they claimed was his reckless expansion and for reducing prices of the company’s product, thereby diverting money from stockholders’ dividends. The court hearings gave Ford a chance to expound his ideas about business. In December 1917 the court ruled in favour of the Dodges; Ford, as in the Selden case, appealed, but this time he lost. In 1919 the court said that, while Ford’s sentiments about his employees and customers were nice, a business is for the profit of its stockholders. Ford, irate that a court and a few shareholders, whom he likened to parasites, could interfere with the management of his company, determined to buy out all the shareholders. He had resigned as president in December 1918 in favour of his son, Edsel, and in March 1919 he announced a plan to organize a new company to build cars cheaper than the Model T. When asked what would become of the Ford Motor Company, he said, “Why I don’t know exactly what will become of that; the portion of it that does not belong to me cannot be sold to me, that I know.” The Dodges, somewhat inconsistently, having just taken him to court for mismanagement, vowed that he would not be allowed to leave. Ford said that if he was not master of his own company, he would start another. The ruse worked; by July 1919 Ford had bought out all seven minority stockholders. (The seven had little to complain about: in addition to being paid nearly $106,000,000 for their stock, they received a court-ordered dividend of $19,275,385 plus $1,536,749 in interest.) Ford Motor Company was reorganized under a Delaware charter in 1920 with all shares held by Ford and other family members. Never had one man controlled so completely a business enterprise so gigantic.
The planning of a huge new plant at River Rouge , Michigan , had been one of the specific causes of the Dodge suit. What Ford dreamed of was not merely increased capacity but complete self-sufficiency. World War I, with its shortages and price increases, demonstrated for him the need to control raw materials; slow-moving suppliers convinced him that he should make his own parts. Wheels, tires, upholstery, and various accessories were purchased from other companies around Detroit . As Ford production increased, these smaller operations had to speed their output; most of them had to install their own assembly lines. It became impossible to coordinate production and shipment so that each product would arrive at the right place and at the right time. At first he tried accumulating large inventories to prevent delays or stoppages of the assembly line , but he soon realized that stockpiling wasted capital. Instead he took up the idea of extending movement to inventories as well as to production. He perceived that his costs in manufacturing began the moment the raw material was separated from the earth and continued until the finished product was delivered to the consumer. The plant he built in River Rouge embodied his idea of an integrated operation encompassing production, assembly, and transportation . To complete the vertical integration of his empire, he purchased a railroad, acquired control of 16 coal mines and about 700,000 (285,000 hectares) acres of timberland, built a sawmill, acquired a fleet of Great Lakes freighters to bring ore from his Lake Superior mines, and even bought a glassworks.
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