Henry Ford was an American business industrialist famously recognized for creating the Ford Motor Company and championing the advancement of the assembly line large-scale manufacturing techniques. Henry held the idea that everyone across America should be able to afford a car, and to realize the idea, he revolutionalized the car manufacturing process. His innovations changed the car-making business and assisted America’s 20th-century middle class take off.
Early Life Story
Henry Ford was born on the family’s farm outside Dearborn, Michigan, on 30th July, 1863, to William Ford and Mary Litogot Ahern (Bellis, 2020). The US was facing the Civil War when Henry Ford was born. Ford attended the Scottish Settlement School and the Miller School, both one-room schools, from first to eighth grade. During the 1873 summer, Henry saw for the first time a steam engine (self-propelled road machine) that was generally employed in the stationary way to power a sawmill or threshing machine. However, Fred Reden, its operator, had modified it to be fitted on wheels with a drive conveyor belt attached to the steam engine. Henry was intrigued by the machine, and Reden trained him how to launch and run it over the following year. Ford later claimed that the incident showed him that he was, by nature, an engineer. At 12, his father had gifted him a pocket watch. Henry brought his interest in mechanics back home. He established a name as a watch repairman by the age of fifteen, having dismantled as well as reassembled friends’ and neighbors’ timepieces multiple times.
Young Henry was heartbroken following his mother’s death in 1876. Henry’s father wanted him to assume the family land in the future, but he detested agricultural labor. Ford had little incentive to stay on the farm when his mother died. He later commented that he never had any great affection for the property. Rather, it was his mother on the farm who he adored. He moved to Detroit, Michigan, in 1879 to serve as an assistant machinist, initially with James F. Flower & Brothers and then with the Detroit Dry Dock Company. However, he could not find a job that paid him enough to pay his bills, so he ended up taking a night cleaning and fixing watches job with a jeweller. As a result, he moved back to Dearborn in 1882 to operate on the family farm. He worked for a neighbor in 1882, operating Westinghouse portable steam engine, where he honed his skills. Henry was so great at it that the company hired him to run and fix engines manufactured and sold throughout Michigan and northern Ohio during the summers (1883 to1884).
Henry encountered Clara Jane Bryant in December 1885 at a New Year’s Eve ceremony, and the two wedded on 11th April, 1888. Edsel Bryant Ford would later be their son and only child. Henry kept working on the farm as his father had given him some land, but his passion was engineering. He was definitely thinking about starting a company. Henry is believed to attend Goldsmith, Bryant & Stratton Business University in Detroit during the winters of 1888 and 1890, where he most likely studied handwriting, accountancy, mechanical drawing, and basic business procedures. Henry was certain that he could build a horseless vehicle by the early 1890s. However, he had inadequate knowledge of electricity, hence went to work for the Edison Illuminating Company in Detroit in September 1891. Henry was appointed chief engineer after the birth of Edsel, his first and only son, on 6th November, 1893. Thomas Edison became Henry Ford’s lifetime friend and mentor.
The Quadricycle and Detroit Automobile Company
Henry started his profession as an automobile manufacturer in the 1893 winter after building a modest one-cylinder gasoline reproduction moved by his expertise in internal combustion engines (Bellis, 2020). At Henry’s house in Detroit, the original Henry engine flashed to life. He finished the “Quadricycle” in 1896, which comprised of a light metal structure with four bicycle wheels and was driven by a two-cylinder, four-horsepower gasoline engine (a later edition of his previous engine) (Bellis, 2020). Henry was aiming to advance on his prototype, and he, therefore, sold the Quadricycle to fund the development of a better model and continue creating other vehicles. For the next seven years, Henry acquired funding from a number of investors, a few of whom went on to create the Detroit Automobile Company in 1899. Henry left the Edison Illuminating Company a few days later. The delivery wagon, created by Henry, was introduced as the Detroit Automobile Company’s first commercial automobile on 12th January, 1900. However, rather than selling automobiles, Henry continued to enhance the design, and the firm soon went bankrupt. To demonstrate the superiority of his ideas, he raced his automobile against those of other manufacturers. On 10th October, 1901, Henry personally raced one of his vehicles to victory in a contest against Alexander Winton, a well-known automotive builder. To the surprise of the financiers, Ford kept working on his race vehicle in 1902. They desired a high-end production vehicle, so they enlisted the help of Henry M. Leland to design a passenger automobile that could be sold. Henry resigned as a result of his power being overrun. Later, the corporation was renamed Cadillac Motor Car Company.
Building His Company-Ford Motor Company
In 1903, Henry formed the Ford Motor Company alongside eleven other partners with 28,000 dollars in money. Henry held a demonstration where the car travelled a mile on Lake St. Clair’s ice in 39.4 seconds, establishing a new land speed record. Impressed by this accomplishment, legendary Barney Oldfield, race driver, who christened the new Ford model “999” in recognition of the day’s racing locomotive, drove the vehicle all across the country, establishing the Ford brand. Ford was also a supporter of the Indianapolis 500 event from the beginning.
Ford’s Philosophy on Labor
Ford’s ideology was based on self-sufficiency and vertical integration. The River Rouge Plant that began in 1927 grew to become the world’s leading industrial development, able of generating its own steel. Ford wished to manufacture a car from scratch, with complete independence from outside sources. He established a massive plant that received raw materials from Ford-owned mines, moved them through freighters and a Ford-owned train, and then exported finished autos. As a result, manufacturing continued without being hampered by supplier inefficiencies or the cost of stockpiling.
Henry Ford pioneered “welfare capitalism” that focused on improving his employees’ lifestyle and especially increasing employees’ retention, which saw many departments sign up 300 men yearly to fill 100 vacancies. Hiring plus retaining the finest personnel was vital to achieve competence. Ford bewildered the world when he unveiled his five-dollar a day initiative on 5th January, 1914. The groundbreaking initiative called for a decrease in workday duration from 9 to 8 hours, a five-day workweek, and an increase in minimum daily wage for skilled workers from 2.34 dollars to five dollars (Ford, 2015). The pay was granted to men with more than 22 years who had served at the firm for at least six months and, more significantly, lived in a way that Ford’s “Sociological Department” endorsed. Gambling and heavy drinking were disapproved. The Sociological Department deployed 150 inspectors and support personnel; a substantial number of employees were eligible for the program.
Wall Street criticized Ford for launching this initiative. The move, on the other hand, proved to be extremely profitable. In addition to increased employee retention, the eminent mechanics within Detroit migrated to Ford, bringing in their human capital and understanding, increasing productivity while reducing training expenses (Batchelor, 1994). The method was labelled “wage motivation” by Ford. Furthermore, paying people more allowed them to afford the automobiles they were making, which was beneficial for the economy.
Ford remained a strong opponent of labor unions at his factories. He appointed Harry Bennett, an ex-Army fighter, to lead the service department in order to avoid union action. Bennett used a variety of intimidation methods to prevent unionization. The most notable episode occurred in 1937, when business security guards and organizers engaged in a deadly confrontation that became recognized as “The Battle of the Overpass.”
Ford had for years rejected the United Auto Workers (UAW) union becoming the last Detroit automaker to recognize it. The River Rouge Plant was shuttered in April 1941 due to a peaceful protest strike. Ford ultimately consented to collective bargaining at Ford factories following persuasion from Edsel and his wife, Clara, and the first agreement with the UAW was endorsed in June 1941.
The Model T
On 1st October, 1908, the Model T was unveiled. It included a number of significant improvements, including the steering wheel on the left hand that was rapidly mimicked by his competitors in the industry. The engine and transmission remained totally enclosed, while the four cylinders were spread in a monolithic block with two semi-elliptic springs for suspension. The automobile was easy to operate and, more importantly, simple and inexpensive to fix (Long, 2016). The Model T was so inexpensive in 1908 (at $825) that by the 1920s, a vast number of American drivers had trained to drive on it, leaving millions of people with good recollections. Ford established a vast PR company in Detroit to guarantee that reports and advertising concerning the new vehicle surfaced in each newspaper.
Ford’s extensive local dealers’ network ensured that the automobile was available in practically every city in North America. The franchises flourished as self-governing dealers, making known not just the Ford but also the notion of “automobiling.” Local motor clubs popped up to assist novice drivers and enjoy the rural areas. Ford was inclined to supply to farmers, who viewed the car as a commercial tool that would aid their undertakings. Sales escalated, and for many years, they increased by more than 100percentage points over the preceding year. Ford, who was always looking for ways to improve efficiency and cut costs, added moving assembly belts to his assembly line in 1913, allowing for a massive boost in output. In 1914, sales moved past 250,000 pieces. The basic touring automobile sales hit 472,000 by 1916, following the price reduction to 360dollars (Bellis, 2020).
By 1918, Model Ts accounted for half of all automobiles in the US. The Model was accessible in various colors until the invention of the assembly line that necessitated black for its faster drying time. Ford commented that any client might have a car painted whatever color he likes as long as it is black. He vigorously supported and maintained the design, and manufacturing lasted until 1927, with a total output of 15,007,034. This was a world record that stood for 45 years.
President Woodrow personally invited Ford to compete for the Senate as a Democrat from Michigan in 1918. Ford campaigned as a peace contender and a staunch advocate of the projected League of Nations despite the country being at war. He, however, handed over the leadership of Ford Motor Company to his son Edsel Ford in December 1918. Nevertheless, Henry held final decision-making power and occasionally overruled his son. All remaining shares were acquired from other investors by Henry and Edsel, granting the exclusive family ownership of the corporation. Due to increased competition, Model T sales started falling in the mid-1920s. Other automakers provided payment plans for customers to purchase their vehicles, which often contained more current technical features and design than the Model T. Ignoring Edsel’s urgings, Henry was adamant about not introducing new features to the Model T or establishing a consumer credit scheme.
Model A, V8
By 1926, Henry had been persuaded to create a new model automobile due to the Model T’s declining sales. Henry put his technical talents to work on the engine, chassis, along with other mechanical needs of the project, delegating the exterior plan to his son. Edsel also rose above his father’s concern regarding the sliding-shift gearbox installation. The outcome was the well-liked Ford Model A, which was debuted in December 1927 and manufactured until 1931, producing more than four million cars (Casey, 2010). Following that, the corporation implemented a yearly model change scheme similar to what manufacturers use today. Ford maintained his dislike to finance businesses up to the 1930s when the Ford-owned Universal Credit Company introduced a significant vehicle lending enterprise.
Ford turned the car industry by storm with the innovative flathead Ford V8, the very first low-cost eight-cylinder engine, as the company’s design modification for 1932. For the next 20 years, variations of the flathead V8 would be employed in Ford automobiles. Its power and durability made it a popular choice among hot-rod enthusiasts as well as car collectors.
Ford declined to provide armaments during both world wars because he was a lifelong humanitarian, although he did build engines for airplanes, jeeps, as well as ambulances. “Tin Goose,” or the Ford Tri-Motor, was the basis of early aviation passenger service throughout the late 1920s and early 1930s and was manufactured by the Ford Airplane Company. Even though only 199 were ever manufactured, Ford’s all-metal construction, 15-passenger size planes fulfilled the demands of practically all pioneer airlines until modern, bigger, and faster planes from Douglas and Boeing were attainable.
Impacts on Society and Markets
Despite being most famous for the Model T, Ford was indeed a dynamic guy with a slew of side interests. Among his most successful inventions was the Fordson farm tractor that he started designing in 1906. It was powered by a Model B engine and had a big water tank instead of a radiator. He had created functioning prototypes by 1916, and by the time World War I broke out, he was producing them all across the world. The Fordson was manufactured in the US until 1928, and during World War II, his workshops in Ireland, Cork, England, and Dagenham, produced Fordsons.
In World War I, Henry designed the “Eagle,” a steam-powered submarine chaser. It was equipped with a sophisticated submarine detecting system. By 1919, sixty had been placed into service, but the construction expenses had exceeded expectations. Ford also developed hydroelectric facilities, eventually building 30 of them, two of which were for the US government: New York and Minnesota. Ford Estates was his endeavor, in which he would acquire homes and renovate them for different uses. In 1931, he purchased the 18th-century mansion Boreham House in Essex, England, as well as 2,000 land acres around it. Boreham House was established as an Institute of Agricultural Engineering to teach people new agricultural methods, although he never resided there. A further Ford Estates initiative was cooperative agricultural holdings in rural locations across the United States and the United Kingdom, where individuals lived in cottages while raising crops and animals. Following the 1941 Japanese assault on Pearl Harbor, Ford turned into a significant military contractor in the United States, supplying engines, planes, jeeps, as well as tanks during WWII.
Later Career and Edsel’s Death
In May 1943, Ford’s son Edsel, the company’s president at the time, died of cancer, forcing the old and ill Henry Ford to take over. With Henry serving until the conclusion of World War II, Ford Motor Company deteriorated dramatically, losing over $10 million monthly. With his health deteriorating, Ford retired in September 1945 and handed the company’s president to Henry Ford II, his grandson. Henry Ford died of a brain haemorrhage at his Fair Lane house in Dearborn, Michigan, on 7th April, 1947, at the age of 83.
Peace Trip
In 1915, Ford paid for himself and roughly 170 other renowned peace advocates to travel to Europe, where World War I was unfolding. He talked about the trip with President Wilson, receiving no administration help. His mission travelled to the Netherlands as well as neutral Sweden to speak with peace campaigners. Ford claimed that war financiers orchestrated the shipwreck of the RMS Lusitania in order to persuade America to join the conflict. Ford’s efforts, on the other hand, were met with scorn and mockery, and he departed the ship as soon as it arrived in Sweden. The endeavor as a whole was a flop.
Anti-Semitism
Ernest G. Liebold, Ford’s close aide and personal secretary, acquired The Dearborn Independent, an insignificant weekly newspaper, in 1918 to allow Ford to propagate his beliefs. The publication became vehemently anti-Semitic by 1920. It released “Protocols of the Learned Elders of Zion,” a fabrication that was subsequently exposed.
The Worldwide Jew: The World’s Foremost Problem was released in the early 1920s by The Dearborn Independent. The book was extensively circulated and had a significant impact, even on Nazi Germany. Adolf Hitler, who was captivated with autos, displayed a photograph of Henry Ford on his wall and intended to model the Volkswagen on the Model T. Ford closed the Independent in December 1927 as a result of a lawsuit filed by a San Francisco attorney Aaron Sapiro in reaction to anti-Semitic statements. President Wilson led other prominent Americans in a declaration rebuking Ford and others for their anti-Semitic crusade before leaving office early in 1921 (Long, 2016). Ford’s choice to close the daily was influenced by a protest of Ford products by liberal Christians and Jews
International Business
Ford was a firm believer in his company’s international integration. He believed that global commerce and collaboration would lead to world peace, and he demonstrated this through the Model T assembly line technique and manufacturing. In 1911, Ford constructed assembly ventures in the UK as well as Canada, and he rapidly turned the dominant automaker in both nations. Ford joined with Fiat to construct the first Italian automobile production facility in 1912. The initial plants within Germany were erected in the 1920s with Herbert Hoover’s backing. He concurred with Ford’s idea that worldwide trade was necessary for world peace. Ford also developed factories in India, France and Australia in the 1920s, and by 1929, he had thriving franchises on six continents.
Ford explored a commercialized rubber plantation named Fordlândia in the Amazon jungle, but it was among his few disasters. In 1929, Ford agreed to establish a model factory (NNAZ, presently GAZ) at Gorky, eventually called Nizhny Novgorod, at Stalin’s suggestion. Ford Motor Company aimed to run a business in each country with which the United States had diplomatic ties. Ford produced one-third of all autos in the world by 1932. Ford also got into the business of making plastic from agricultural goods, particularly soybeans (Batchelor, 1994). All through the 1930s, Ford vehicles employed soy-based plastic.
Long-Lasting Effect he had on Today’s Businesses
After his death, Henry Ford left a lasting impact. Ford was a prominent inventor, receiving 161 patents in the United States. He grew into one of the world’s richest and most recognized individuals as the sole proprietor of the Ford Motor Company. The “Model T” car, which he brought in, changed transportation in addition to American industry. The Model T revolutionized American society by giving regular individuals access to transportation that had previously been reserved for the wealthy. The motor supplanted the horse-drawn carriage quickly, generating change in agriculture, transportation system demands (surpassing mass transit rail systems with privately owned cars operating on a wide-ranging roadway system) and urbanization processes.
He is recognized for “Fordism,” or the mass manufacture of inexpensive vehicles utilizing the assembly line, as well as high remuneration for his workers, including the $5.00 per day pay scale implemented in 1914. Despite his lack of education, Ford had a global outlook, seeing consumption as the route to peace. His relentless drive to cut costs led to a slew of technical and financial breakthroughs, including a franchising structure that put a dealer throughout every town in North America, as well as significant cities across six continents. The Ford Foundation, a nonprofit organization, located in New York City, was established to finance initiatives that promote democracy, eliminate poverty, enhance global cooperation, and improve human accomplishment. Ford gave the majority of his immense wealth to the Ford Foundation.
References
Batchelor, R. (1994). Henry Ford, mass production, modernism, and design (Vol. 1). Manchester University Press.
Bellis, M. (2020). Biography of Henry Ford, American Industrialist and Inventor. Retrieved, 31st March 2022 from https://www.thoughtco.com/henry-ford-biography-1991814
Casey, B. (2010). John & Horace Dodge. Henry Ford and Innovation.
Ford, H. (2015). My Life and Work: Top Biography (Vol. 5). 谷月社.
Long, D. (2016). Henry Ford: Industrialist. Cavendish Square Publishing, LLC.
Muldoon, J. (2020). Henry Ford and his legacy: an American Prometheus. The Palgrave Handbook of Management History, 521-544.
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