Disappointments and Debts

The Ford Motor Company was founded on 16th June of 1903 with a capital of $150,000. Henry Ford became Vice-President and also assumed the post of Chief Engineer and General Manager. Among the shareholders were the Dodge brothers, ex-mechanics, who had opened a workshop in Detroit after having for some years manufactured bicycles which used ball bearings of their own design.

John and Horace Dodge were manufacturing transmissions for Eli Olds factory when Ford offered them shares in his company. Despite the dissuasion of all their friends – who thought the new company was too much of a risk – the Dodges accepted Ford's offer – 10 per cent of the shares in return for providing the machine tools for the factory he was building and for beginning the production of Ford engines in their own workshop.

The beginning was not easy. There was strong competition from such established companies as Cadillac, Oldsmobile, Reo and Packard. Ford distinguished his models in a way which was unique in those days when other manufacturers were applying names intended to impress the public with the power of their engines or with some other characteristic that would appeal to the motorist's taste. He gave them single letters. This in itself was typical of his guiding philosophy in al things – simplicity. The first Ford cars, however, did not reflect his personality; there were too many fingers in the pie, particularly of ex-craftsmen, each of whom brought his own prejudies and preferences to bear. Model 'A' of 1904 and model' B' of 1905 fall into this category, though the latter had aesthetic merit. Model 'C was also produced in 1905, and showed some originality; it had two rear seats which could be fitted or removed at will, and suspension by full elliptical leaf springs, which was unusual at that time.

Several more two and four-cylinder models followed until, in 1906-1907 Ford produced the 'K' which was a foray into the luxury field. It was a six-cylinder machine and sold for $2,400, even though it cost much more than this to produce. It is evident that Ford was still hesitating, still not committing himself to the policy of mass manufacture. It should be said, however, that the 'K' – with its 7,040 cc engine, two speeds and reverse gearbox, had several virtues, including its appearance. It was distinctly comparable with the best English and French vehicles of the time.

Commentaries

1 (Ransom) Eli Olds – (Рэнсом) Эли Олдс (1864–1950), американский конструктор-бизнесмен, изготовил несколько трехколесных па­ровых повозок, наладил в Америке производство дешевых автомоби­лей «Олдсмобиль».

Low Price, Mass Market

Model ‘N’ was also produced in 1906 and represented Ford's first attempt to enter the mass market. Its price was as low as $600, which was the direct competition with the single-cylinder cars of other manufacturers (the ‘N’ was a four-cylinder). It was well accepted by the public but was not a commercial success. Ford had not yet introduced those productive techniques which were to allow him to reduce manufacturing costs so considerably, as he did with the later model ‘T’. The 'N' exhibited certain typical characteristics which later were to give the name 'spider' to the ‘T’– large wheels set well apart, small coachwork and a high ground clearance.

The 'R' and 'S' followed in 1907 and the beginning of 1908 and represented Ford's ranging on to his target of the ideal popular car he wished to produce. In general they were both similar to the 'N' and the same commercial policy of low price was followed with growing success. Certain technical details were improved, particularly those regarding front and rear suspension. At last we come to 1908, the year that introduced one of the most famous cars ever, the Ford model ‘T’, the 'Lizzie' for millions of Americans – the tin Lizzie, as it was called by rivals in its early days, until its great commercial success made such criticism ridiculous. Its official birthday was 1st October, 1908. That date represented the culmination of months and months of hard work by everyone in the organisation. This time the 'boss' had decided that not only would the new model be technically perfect but that it would be the product of a manufacturing and commercial organisation completely geared to mass production and volume sales.

Thus, before the birth of that historic vehicle (over 15,000,000 were made in all) there were frantic efforts to study new materials and rational works layout to reduce production times. Ford saw that he had the finest assembly lines possible, and did much to ensure the closest collaboration with suppliers and subcontractors. Ford's preferred policy was to buy them out in order to avoid unpleasant surprises from possible underhand manoeuvre by one of his competitors. There were many people in those days wanting to make war on Ford, because he represented a great challenge even at that early stage.