Early History of the Ford Motor Company

Everyone knows the first car was made by Henry Ford and was the Model A. But do you know the full early history of the Ford Motor Company?

Henry Ford was 40 years old when he founded the Ford Motor Company in 1902. The company was launched with cash from twelve investors including John and Horace Dodge that went on to found their own car company. The Ford brand is one of the largest and most profitable brands in the world. Ford has been in continuous family control for over 100 years and is the largest family controlled company in the world.

The Ford company produced vehicles designated alphabetically from the Model A in 1903 to the Model K, the first six cylinder model, in 1907. The Model T was introduced in 1908 and only a few cars a day were built in the rented factory in Detroit. By 1913 the basics of assembly line and mass production were developed. Ford's moving assembly line reduced chassis assembly time from 12.5 hours to 1 hour and 33 minutes. By 1920 the Ford factory was turning out over one million cars a year.

At first these production practices led to a high turnover in employees. High turnover meant delays, extra costs for training and slow workers. In 1914 Ford solved the turnover problem by doubling pay, cutting shifts to 8 hour days and a 5 day work week, and started hiring practices that identified the best workers including disabled people that other companies found unemployable. The cost per vehicle actually decreased with these improvements and Ford employees could afford to buy the product they made with only saving four month's salaries. Ford was roundly criticized for treating the employees too well and paying them too much.

Ford began to expand internationally in 1904 with Ford of Canada, but it wasn't until 1911 that it expanded overseas. Assembly plants were developed from 1911 to 1925 in England, France, Denmark, Germany, Austria, Argentina, South Africa and Australia. By the end of 1919 50% of all cars in the United States and 40% of British were Ford. By developing assembly line production Ford transformed the industry. Car manufacturers went bankrupt if they did not change.

Before the assembly line was instituted the Model T had been available in a variety of colors, but not black. After the assembly line the only color it was available in was black because only Japan Black dried fast enough. Not until Duco lacquer in 1926 would other colors be available.

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