Henry Ford and the Advent of American Mass Production

 

Henry Ford was perhaps the most influential entrepreneur of the early twentieth century. Raised on a farm near Detroit, Michigan, Ford disliked farm work and went to work as a machinist in his teens. In the 1870s, Ford began experimenting with steam engines and by the mid-1880s was working on early internal combustion engines. 1887 saw the completion of a four-cycle engine of his own design. This was followed by a two-cylinder motor in 1890. Ford, in his autobiography, said he completed his first automobile in 1892. It was powered by a two-cylinder, four horsepower engine and could travel at speeds up to twenty miles per hour. It rode on four bicycle wheels with rubber tires and was dubbed the “quadricycle.” He eventually built three of these vehicles, each an improvement upon its predecessor.

Ford had gone to work for Thomas Edison’s Edison Illuminating Company of Detroit in 1891 as an engineer. He became chief engineer in 1893 and his work with powered automobiles drew Edison’s personal interest. The famous inventor approved of Ford’s work and encouraged him to continue his efforts. Ford’s work drew other interested parties as well and, in 1899, he received capital investments from several local businessmen and founded the Detroit Automobile Company. The company was unsuccessful for several reasons, including poor quality, and it folded in 1901.

Ford, however, was not deterred, and he began building racecars. His success once again attracted investors and the Henry Ford Company was founded with Ford himself as the chief engineer. Disputes over control of the company led to Ford’s resignation the next year, after which he returned to the world of racing. In 1902, he produced an eighty-horsepower car which won a local race and attracted yet another investment group. After a series of ups and downs, which included an association with John and Horace Dodge, the Ford Motor Company was founded on June 16, 1903.

 Ford quickly took another step toward dominance in the automobile market when he built a new race car with which he set the world land speed record, prompting a prominent race car driver to take the vehicle, dubbed the “999,” on a nationwide tour, providing valuable marketing exposure for the new company. By the end of the tour, the Ford brand was known across the country.

An often-overlooked event in the early stages of the Ford Motor Company was its battle against the Selden patent. George Selden, a Pennsylvania patent lawyer and amateur inventor, had developed a rudimentary internal combustion engine in 1878 and managed to secure a patent on it. He then sat on the patent for 25 years waiting for the technology to develop by which such engines could be profitably manufactured. Selden asserted a wide-ranging claim on internal combustion engines designed for automobiles, but companies such as Ford disputed his claim and flouted the patent’s authority. Selden sued and, in 1903, named Ford Motor Company as the defendant to test his claim.

Ford was delighted, as he had offered $1,000.00 to Selden’s attorneys if they would sue him since he believed the publicity would prove a boon to his business. Ford continued production during the legal process and sales indeed boomed. In the end, Ford prevailed in court and Selden’s patent, at least to the extent he claimed it, was not upheld. Henry Ford became a hero against monopoly and his victory opened the door for widespread automobile manufacturing in the United States, as well as imports from Europe.

Despite his success in racing, Henry Ford claimed that he never had much interest in the sport and turned his attention to producing a quality vehicle at an affordable price. The result was the legendary Model T, which debuted in 1908. At a price of $825.00, it was priced within the reach of most Americans and the price fell annually for the next several years. By 1916, the price had dropped to $360.00 while Ford reaped record profits from nationwide sales.

The reasons behind the price reduction and the profit increases were rooted in Ford’s genius for mass production and his understanding of human motivation. Ford is often credited with the development of the assembly line, though, in truth, he perfected an idea that had been around for some time. Intensive experimentation with division of labor, work speed and conditions, and standardization of parts and processes allowed Ford to reduce the assembly time for a Model T from five hours to one and a half. The reduction of the labor cost to assemble a car was passed on to the consumer.

Then, in 1914, Ford shocked the industry and the nation by introducing profit sharing with his work force and increasing the daily pay of the lowest paid workers from $2.34 to $5.00. While his workers were overjoyed, many were alarmed, fearing that workers nationwide would demand a similar increase and run many companies out of business. Ford also announced an expansion of his workforce by five thousand men, causing near riots as prospective employees from across the country descended on Detroit looking for work at the Ford factory. Some wondered if Ford could sustain such a thing, but Ford himself later said that the five-dollar day was “one of the finest cost-cutting moves we ever made.”

The five-dollar day raised morale, reduced absenteeism, and increased efficiency. Combined with the by-now all-but-perfected assembly line, production took off and sales increased by as much as fifty percent. The system, for all its achievements, however, did not lack its critics. Ford was castigated for the dehumanizing aspect of assembly line work and the fact that it had no use for craftsmen or experience. Ford taught their employees to do one job over and over with no variety. For their part, the majority of Ford workers had no such reservations. Henry Ford had set out to build an automobile that his own employees could afford, and he succeeded.

In 1927, the long production run of the Model T came to an end. Sales were suffering as newer models rolled off the lines of General Motors, prompting Ford to finally give in and evolve, a decision he put off as long as he could. The Model T was succeeded by the popular Model A, a modern vehicle available in several configurations which carried Ford into the 1930s, when it led the way with new designs such as the flathead V8 engine.

Henry Ford and the Ford Motor Company were at the forefront of automobile and industrial innovation for the first three decades of the twentieth century. Perhaps the most famous accolade came in a personal letter to Ford from Clyde Barrow during his and Bonnie Parker’s famous 1934 crime spree:

Dear Sir:-

 

While I still have got breath in my lungs I will tell you what a dandy car you make. I have drove Fords exclusively when I could get away with one. For sustained speed and freedom from trouble the Ford has got ever (sic) other car skinned and even if my business hasn’t been strickly (sic) legal it don’t hurt enything (sic) to tell you what a fine car you got in the V8.

 

Yours truly

 

Clyde Champion Barrow

 

Some claim the letter is a hoax, but no one has been able to demonstrate that for certain, so I choose to believe it’s genuine.

 

Sources:

 

Greenleaf, William, and David L. Lewis, Monopoly on Wheels: Henry Ford and the

Selden Automobile Patent. Detroit: Wayne State University Press, 2011. ProQuest Ebook Central - Detail page (liberty.edu).

 

 “Letter from Clyde Barrow to Henry Ford Praising the Ford V8Car, 1934.” The Henry

Ford.  Letter from Clyde Barrow to Henry Ford Praising the Ford V-8 Car, 1934 - The Henry Ford.

 

Levinson, William A., et al. The Expanded and Annotated My Life and Work: Henry

Ford's Universal Code for World-Class Success, Productivity Press, 2013. ProQuest Ebook Central - Detail page (liberty.edu). 


New York Times, “Henry Ford Explains Why He Gives Away $10,000,000.” New York

Times January 11,1914. HENRY FORD EXPLAINS WHY HE GIVES AWAY $10,000,000: Declares That He Is Dividing Profits with His Employes, Not Paying Them Higher Wages, and That Workers as Partners Will Give Increased Efficiency. HENRY FORD EXPLAINS WHY HE GIVES AWAY $10,000,000 - ProQuest.

 

Smith, Sherwin D., “50 years Ago – Henry Ford Thought of a Way to Assemble a Cut in

1 ½ Hours, Instead of Over 5.” New York Times February 16, 1964. 50 Years Ago --: Henry Ford thought of a way to assemble a cut in 1 1/2 hours, instead of over 5. - ProQuest.

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