Henry Ford: Raising A Nation

Before Henry Ford, arrived on the scene cars were not seen primarily as a mode of transport. It was a device that defined social classes. The fact that a person owned a car meant that he had a certain standing in society. Henry Ford decided to change all that by making the car accessible to everyone. Even to the workers that built it. There was a question as to how would the workers at his factory be able to afford a car. The solution was simple. He doubled their wages!

Ford invented the dealer-franchise system to sell and service cars. He ensured that he had an army of dealers and service engineers to take care of the Ford car anywhere in America. He invented the assembly line system of manufacturing. The world’s first conveyor belt was seen in a Ford plant. It could manufacture a car in 93 minutes. Since he had the capacity to manufacture so many cars in such a short period of time, he successfully pushed for the construction of gas stations everywhere. His efforts to get better roads for his cars led to the creation of one of the world’s best interstate highway system. It was as if one man was kick starting America’s Industrial Revolution. He then went on to ruffle a lot of feathers by doubling the minimum wage per day to $5 and reducing the working hours per day. He even created a "Sociological Department" to ensure that the workers do not spent the excess money on alcohol and cigarettes. He was a strong proponent of exports and his cars were selling in 33 countries during a time when most manufacturers were more than happy with the domestic market.

By the late 1920’s Ford owned rubber plantations in South America, fleet of ships, a railroad, coal & iron-ore mines, and thousands of acres of timberland. His leadership style was of a paternalistic dictator but he did manage to raise and rear the American middle class. There were more than 100,000 workers in the Ford plant itself.

Like all great stories, Ford’s beginnings were very modest. Henry Ford was born July 30, 1863 in Wayne county, Michigan. He was the son of Irish immigrants, William and Mary Ford, who had settled on a farm in Dearborn. However, Ford disliked both school and farm life, and at age 16, he walked all the way to Detroit in search of employment. One of Ford’s best friends was the inspirational scientist Thomas Alva Edison. Edison tried but was unsuccessful at building an electric storage battery for the legendary black Model T. This car was the most poignant symbol of the destruction of the concept that the ownership of a car meant that the individual had a certain standing in society. When it was rolled out in 1908, it was affectionately called America's Everyman car.

However Ford’s dictatorial tendencies led to a series of problems that created havoc with the company. He refused any kind of innovation with his prized Model T. He even made a famous statement "the customer can go to hell, he can have any color as long as it's black." His devotion to Adolf Hitler caused a lot of embarrassment in American political circles and completely alienated the Jews as a market. His stubbornness ensured that the Alfred Sloan led consortium of companies, better known as General Motors was eating into his market share. Although When General Motors and Chrysler signed contracts with the United Automobile Workers, Ford refused to comply. He employed spies and company police to prevent his workers from unionization. He was sued by his shareholders for diverting company profits into expansion without consulting them. It suddenly seemed that the Ford Motor Co. was neck deep in trouble.

But then came World War II and the chance for Ford to make B-24 bombers and jeeps. This kick started the innovation process at Ford. Newer improved models were launched and the competition with GM and Chrysler intensified. Ford's only child Edsel had been named president in 1919; but his father remained in total control. Edsel died in 1943, and Ford resumed the presidency. But two strokes had taken its toll and in 1945 he handed over the company to his grandson, Henry Ford II. Henry Ford died at his Fair Lane mansion on April 7, 1947. He was 83.