Henry Ford - A Great Innovator

The 'Mechanical' Journey of Ford Contd...

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."¹³ 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."¹⁴

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."¹⁵ 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."¹⁶

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

14] As quoted in the book Giants of Enterprise, by Richard S. Tedlow, HarperBusiness, 2001, page 150.

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

16] As quoted in the book Giants of Enterprise, by Richard S. Tedlow, HarperBusiness, 2001, page 154.

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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