Henry Ford - A Great Innovator

The 'Mechanical' Journey of Ford Contd...

During the next few years, Ford focused on making further improvements to his passenger vehicles.¹⁷ 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.

Ford – The Master Craftsman of Automobile

By the end of 1903, the Ford Co. had 125 employees and had sold 1,708 cars in three different models. These automobiles were fitted with two cylinders and had a capacity of 8 HP. Ford and his team of engineers developed 19 models during the period 1903-1908 and named them each after a letter of the alphabet from 'Model A' to 'Model S.' During the same period, Ford himself introduced five models – Models A, B, C, F and K.

Occasionally, the company developed multiple models at the same time. For example, between 1904-05, Ford manufactured the 'Model C Runabout' (priced at $800), the 'Model F Touring Car' (priced at $1,000), and the 'Model B' (priced at $2,000). However, some of these models were experimental and were not released to the public. In 1906, Ford introduced 'Model N,' a new, economical model with a low profit margin. The 'Model N' – a small four-cylinder driven car, priced at $500 – went on to become popular. In the winter of 1906, with the assistance of some of his colleagues, Ford began work on Model T.

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

Case Details

Case Code : LDEN025
Themes: Corporate Social Responsibility, Entrepreneurship
Case Length : 13 Pages
Period : 1903
Organization : Ford Motor Corporation
Pub Date : 2003
Teaching Note : Not Available
Countries : USA
Industry : Automobile

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