Ford

Henry Ford returned to Detroit and joined the Edison Illuminating Company, where he had access to metalworking tools. With these, he built an internal combustion engine using metal scraps and electrical parts. Ford's interest in automobiles attracted others, including George Cato, James Bishop, and Edward Huff, and together they set out to construct a motorcar. In 1896, they built the engine's cylinders from old steam engine pipes and used gravity to feed fuel from a tank above the engine, with a chain transferring power to the wheels.

Ford's Quadricycle, completed in 1896, was a lightweight vehicle that could reach speeds over 20 mph. Its first test run was nearly stopped when it couldn't fit through the shed door, but Ford quickly solved the problem by widening the door. Although it broke down soon after, Ford's persistence led to improvements, and eventually, an 8-mile trip to Dearborn was achieved.

Despite an $86,000 financial setback, William Murphy and William Maybury maintained their faith in Henry Ford and the burgeoning automobile industry. Their support was crucial when Ford decided to build a race car for an upcoming event on October 10, 1901. With Maybury's backing, Ford crafted a lightweight, innovative 26-horsepower vehicle with an induction coil and a porcelain-encased spark plug, a forerunner to modern spark plugs, thanks to team members Edward Huff and Dr. W. Sandborn.

The Detroit race drew a crowd of over 8,000, but only two cars, Ford's and Alexander Winton's, competed after a third broke down. Despite Winton's early lead, Ford won when Winton's car encountered mechanical issues. Ford's victory, emphasizing reliability over power, led to the incorporation of the Henry Ford Company on November 30, 1901. Murphy and other investors, convinced by the race's outcome, backed Ford with $10,000 each. However, disagreements soon led to Ford's exit and the company's transformation into Cadillac, which later joined General Motors.

In 1902, Henry Ford and coal dealer Alex Malcomson formed a partnership named Ford & Malcomson Ltd. to create a passenger car, with financial responsibilities delegated to Malcomson's chief clerk, James Couzens. The partnership, which would later become the Ford Motor Company, focused on developing a car with a new engine designed by Ford and C. Harold Wills, featuring vertically set cylinders for reduced wear and increased power. Wills, a draftsman, also created the company's iconic logo. The Model A Ford was assembled with parts from subcontractors, including the Dodge Brothers and the C.R. Wilson Carriage Company.

In 1904, the Ford Motor Company, in its second year, introduced three new models: the Model B, C, and F. The Model C and F were upgraded versions of the Model A, while the Model B was a larger, heavier, and more expensive design. The Model C was priced at $800, the Model F at $1,000, and the Model B at $2,000. A contentious debate arose within the company, with Malcomson advocating for high-end vehicles for the wealthy, and Ford pushing for affordable cars in larger volumes.

Despite Malcomson's influence, smaller shareholders sided with Ford, and Couzens, who had worked in Malcomson's coal-yards, also supported Ford. To marginalize Malcomson, the Ford Manufacturing Company was incorporated on November 22, 1905, with a capital of $100,000, taking over the production of mechanical components previously done by the Dodge Brothers. Malcomson, who had no shares in the new company, could not dictate prices.

Henry Ford and James Couzens, having gained full control of their company, set an ambitious goal in 1906 to manufacture 10,000 Model N Fords, aiming to revolutionize the automobile industry with mass production principles. Although they fell short, selling 8,243 units, it was a significant achievement, generating over $4.7 million in gross revenues and marking the company's first annual profit exceeding $1 million.

Concurrently, Ford was developing the Model T, which introduced several technical innovations and became a symbol of the company. Launched in October 1908, the Model T saw over 10,000 units sold in its first year, generating $9 million in gross revenues. Amidst these successes, Ford faced a contentious patent dispute with George Selden, who had filed a U.S. patent on the automobile and formed an association charging royalties.

By the close of 1915, the Ford Motor Company had become immensely wealthy, distributing around $52 million in dividends, with Henry Ford receiving over $30 million. At that time, dividends were not taxed, enhancing the financial benefits. Ford also made a notable foray into politics, attempting to avert World War I through a peace mission to Europe, which ultimately failed. Despite this, Ford shifted gears, readying to produce war materials like tanks, airplanes, and even proposing a one-man submarine.

The company went on to manufacture various war supplies, including steel helmets and airplane engines. Concurrently, Ford planned a mega factory for a more efficient production line, aiming to surpass the output of his Highland Park plant, which was already the world's largest factory complex, producing 250,000 Model T’s annually.

The Ford Motor Company experienced significant changes in the 1920s. After regaining full control of the company, Henry Ford focused on increasing Model T production, which saw over a million units produced annually in the early 1920s. The Model T evolved, with electric starters added in 1919 and other improvements over time. However, by 1920, sales slowed, and Ford faced financial challenges due to investments in the new Rouge plant and resource development. To address this, Ford cut Model T prices and adopted a strategy of selling cars with mandatory optional extras, which proved successful.

During the Great Depression, Ford Motor Company, under Henry Ford's leadership, initially responded by reducing vehicle prices and increasing employee wages. Despite this, the economic downturn impacted Ford's primary market, the average working man, leading to declining sales. Despite the challenges, Ford invested in a new engineering project, the V8 engine, and utilized cash reserves to purchase new production machinery. The V-8's launch in 1932 coincided with labor disputes at the Ford factory, reflecting the workforce's frustration with the Depression.

Henry Ford's son, Edsel, exerted influence over the company's operations, although Henry Ford's directives were followed. As Henry aged, tensions grew, such as when Henry ordered the firing of the accounting department, and Edsel redistributed the staff to maintain operations. On his 75th birthday in 1938, Henry Ford's acceptance of an award from a German official fueled rumors of Nazi sympathies. When the U.S. entered World War II, Ford declared his readiness to offer his manufacturing enterprise for the government's use, but he initially refused to produce equipment for foreign nations. The company manufactured jeeps, armored cars, trucks, and tanks for the U.S. Army.

Henry Ford's simple accounting method involved comparing the bank balance at the beginning and end of each month. Post-war, Ford's company saw profits skyrocket from $2,000 in 1946 to $64.8 million in 1947, and over $160 million by 1949. Ford passed away on April 7, 1947, at 83, with over 100,000 people honoring him at his funeral. Despite his business success, Ford was indifferent to personal wealth, with lawyers discovering $26.5 million in an unused personal bank account after his death. Ford had strategically divided his company's stock into Class A and Class B shares, with only Class B holding voting rights, enabling the Ford family to retain control even after selling Class A shares.