HENRY FORD - A GREAT INNOVATOR

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THE 'MECHANICAL' JOURNEY OF FORD

In September 1891, Ford joined the Edison Illuminating Company (EIC) in Detroit as a night operating engineer at its sub-station at Woodward and Willis (Detroit) at a monthly salary of $45. In just a couple of years, he became the Chief Engineer, earning $100 per month. His responsibilities included ensuring uninterrupted electric supply in the city for all 24 hours in a day. The work schedule and timings were highly irregular, but this provided him the much-needed opportunity, time and finances to carry out his own experiments on internal combustion engines.

The chassis of the quadricycle was placed on the four bicycle wheels. Richard S. Tedlow (Tedlow), Harvard Business School professor, said, "Henry Ford had done what not one top automobile executive in the world could do today. He had built a complete car with his bare hands." [1] Commending the great invention of the quadricycle, another writer Sidney Olson[2] said, "To non-mechanical people, which mean most people, the natural question about his first car may be: What took him so long? Well, there was no such thing as a spark plug; it hadn't been invented. There was no such thing as a carburetor. There were no automobile wheels - only wagon wheels and buggy wheels. The front steering on wagons and buggies had to be adapted. Camshafts, crankshafts, push rods, bearings, piston rings, gears - everything had to be made from the ground up. Each tiny part was not one problem but a host of problems."[3] Ford later sold the quadricycle for $200 and invested the amount in his future experiments to build another car.

On August 5, 1899, the Detroit Automobile Company (DAC) was established by Detroit Mayor and few of his friends with an initial investment of $150,000. Ford was appointed as the mechanical superintendent of DAC. Meanwhile, at EIC, Ford was offered the post of General Superintendent on certain conditions. Ford was in a dilemma as to whether to choose the job or pursue his dream. He later said, "The Edison Company offered me the general superintendency of the company but only on the condition that I would give up my gas engine and devote myself to something really useful. I had to choose between my job and my automobile. I chose the automobile, or rather I gave up the job - there was really nothing in the way of a choice. For already I knew the car was bound to be a success."[4] Ford quit EIC in August 1899.

DAC was not a successful venture, and in January 1901 it was closed down. Some of the investors in DAC were, however, impressed with Ford and provided him the necessary financial support to start another company. The Henry Ford Company (HFC) was formed on November 30, 1901, with Ford as the engineer, holding a stock of $10,000 in the company.

Unfortunately, HFC's performance too was not satisfactory and Ford quit the company in March 1902, asking that its name be changed. In August 1902, the HFC renamed itself as the Cadillac Automobile Company. Ford thus faced failure twice as a businessman. However, failures never daunted him; as he once said, "We learn more from our failures than from our successes."[5]

Ford always dreamed of producing "a car for the common man." Describing this dream, Charles E. Sorenson, Ford's production chief, said, "Ford merely had the idea; he had no picture in his mind as to what the car would be like, or look like."[6] During the next few years, Ford focused on making further improvements to his passenger vehicles[7]. He even started designing racing cars. Among the racing cars he designed were the 'Arrow' and the '999 Racer,' which later established several new speed records. Both these cars had four cylinders and capacity of 80-100 HP. The '999 Racer' comprised four 7-by-7 inch cylinders with a capacity of 100 HP. The '999 Racer' was victorious in every race it competed in. The positive publicity gave Ford the standing to form his own company.

In December 1902, Ford entered into a partnership with Alexander Malcomson (Malcomson), a wealthy coal dealer in Detroit. Malcomson, and a few others including Harold Wills (Wills), extended Ford some financial assistance to enable him to build a passenger car in a shop at 81, Park Place in Detroit. The new car was christened 'Model A.' Wills suggested making the cylinders 'vertical' instead of 'horizontal.' Analysts believed that this was a "milestone in automotive technology." Malcomson helped Ford to start the Ford Motor Company (Ford Co.) by himself paying about $7,000 and gathering support from his associates and friends. The Ford Company finally started operations in June 1903, with an investment of $100,000. Of this, $28,000 was subscribed in stock by twelve investors, who also pledged a further $21,000. Ford was also extended a credit of $25,500 for machinery, patents, and contract. Ford and Malcomson held 255 shares of the company each, holding a combined stake of 51% in the company.

[1] As quoted in the book, Giants of Enterprise, by Richard S. Tedlow, Harper Business, 2001, page 149.

[2] Former Advisory Board Chairman of Quentin Burdick Center for Cooperatives (QBCC), which was set up in North Dakota (US) in 1992 to promote cooperative development.

[3]As quoted in the article, "Henry Had the Dream," by Sheryl James, Detroit Free Press, March 27, 2003.

[4]As quoted in the book Giants of Enterprise, by Richard S. Tedlow, Harper Business, 2001, page 150.

[5]As quoted in the article, "Henry Ford is dead at 83 in Dearborn," posted on www.nytimes.com, April 8, 1947.

[6]As quoted in the book Giants of Enterprise, by Richard S. Tedlow, Harper Business, 2001, page 154.

[7]Horseless carriages, gasoline powered vehicles, steam engines, turbines and the quadricycle.

FORD - THE MASTER CRAFTSMAN OF AUTOMOBILE

MODEL T - AN ASTOUNDING SUCCESS

ADDITIONAL READINGS & REFERENCES