Henry Ford: A Great Innovator

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Themes: Entrepreneurship
Period : 1903
Organization :Ford Motor Corporation
Pub Date : 2003
Countries : USA
Industry : Automobile

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Case Code : LDEN025
Case Length : 13 Pages
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Henry Ford: A Great Innovator | Case Study

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Ford sometimes displayed 'startling ignorance' in relation to world events. His quote "History is more or less bunk" was widely publicized, and gave people the feeling that he was ignorant of everything outside his own narrow field. In 1919, The Chicago Tribune published an editorial titled "Ford Is an Anarchist." This prompted Ford to file a suit for $1,000,000 in damages. The editorial said he was an "an ignorant idealist" and an "anarchist enemy of the nation," who was "so incapable of thought that he cannot see the ignominy of his own performance." This was largely because of his antagonism to America's involvement in World War I. Ford was not in favor of labour unions in his company. He rejected the formation of unions outright. Ford made this very clear to his employees, saying, "We'll never recognize the United Automobile Workers Union or any other union."34 During the 1930s, Ford unleashed a 'reign of terror' against employees who sympathized with unions. His henchmen assaulted the United Auto Workers (UAW) in 1937, in what came to be known as the 'Battle of the Overpass,' for distributing pamphlets in support of unions. In an interview to The Associated Press in February 1937, Ford insisted that all his workers should "stay out of unions."

He also rejected the signing of automobile code of the National Recovery Administration (NRA),35 which laid down that employees enjoyed the right to organize and strike. In May 1937, the National Labor Relations Board charged Ford with practicing unfair labor practices. An ex-UAW President, said, "Old Man Ford was a fascist. Those were the terrible old days. He fought us every step of the way, but in the end, his opposition generated a tremendous amount of sympathy for the union."36 Some analysts considered Ford’s industrial relations policies paternalistic.37 Wayne State University's, Christopher Johnson said Ford practiced "racist paternalism." When he recruited black workers, he recommended discrimination in education, marriage and housing facilities for them, and used racial innuendos in his literatures. In the late 1930s, when unions fought against the company, Ford hit back by resorting to the use of black workers to break the strike. Ex-Detroit Mayor, Coleman Young, wrote in his autobiography, Hard Stuff, "Ford knew damn well that the black workers were his strike insurance. The white workers had to think twice about forming a union and walking out on their jobs when the old man had thousands of hungry blacks at his beck and call."38 In spite of the above criticisms, analysts felt that Ford's place as a pioneer in automobile engineering was indisputable. His contributions in this and related fields will be remembered forever. As Sheryl James puts it, "Henry Ford is famous for his enormous accomplishments. He was the man who put America on wheels, the creator of the first automobile assembly line, one of the world's first billionaires. His name is synonymous with success."39 Even after Ford’s death in April 1947, the company he founded made significant progress, The Ford company has introduced many successful cars after 'Model T' (Refer Table II)) and had emerged as the second largest automobile manufacturer in the world.

Table II
Ford's Car Models
Year of Launch Ford Model
1908 Model T
1932 V8 and Roadster
1940 Lincoln Continental
1948 F1 Pickup
1949 Ford
1955 Thunderbird
1965 Mustang
1966 GT40 Race car
1981 Escort
1986 Taurus
1991 Explorer
Source: www.freep.com.


34] As quoted in the article, "Henry Ford," posted on www.rotten.com.
35] NRA is an administrative bureau, established under the National Industrial Recovery Act of 1933. It is engaged primarily in formulating industrial codes.
36] As quoted in the article, "A Century of Vision: Fords Built City, Changed the World," by Bill McGraw, Detroit Free Press, March 12, 2003.
37] A policy or practice of treating or governing people in a fatherly manner, especially by providing for their needs without giving them rights or responsibilities.
38] As quoted in the article, "A Century of Vision: Fords Built City, Changed the World," by Bill McGraw, Detroit Free Press, March 12, 2003.
39] As quoted in the article, "Henry Had the Dream," by Sheryl James, Detroit Free Press, March 27, 2003.