Category: Automotive History
History of the Ford Motor Company. The Ford Motor Company is an automaker of America and it is the fifth biggest automaker of the world, derived from global vehicle sales. It is a Dearborn-based business in Michigan, in which Dearborn is a village of Detroit. The company was founded on 16th of June 1903 by Henry Ford, and it would continue to turn out to be one among the biggest and most lucrative businesses in the world. Being one among the few businesses to live in the Great Depression, this company is the biggest family-controlled business in the world, with the continuous family control for more than 110 years. Currently, the Ford Motor Company includes two products, such as Lincoln and Ford. Once the Ford has possessed five luxury products, such as Land Rover, Volvo, Jaguar, Mercury and Aston Martin. However, in due course, these products were put up for sale to other businesses and the Mercury product was discontinued.
The initial venture of Henry Ford into the manufacturing of automobiles was the Detroit Automobile Company, which was established in the year 1899. The business struggled, and it was modernized as the Henry Ford Company in 1901. Subsequent to falling out with his monetary backers in March 1902, Henry Ford left the business with the privileges to his name and $ 900.
The Ford Motor Company was integrated on the 16th of June 1903, with 12 shareholders owning a sum of 1000 shares. Henry Ford and Alexander Y. Malcomson, who is a coal dealer, jointly held 51% of the new business in exchange for their previous investments. When the overall stock ownership was charted, shares in the business were:
· 255 shares held by Alexander Y. Malcomson.
· 255 shares held by Henry Ford.
· 105 shares held by John S. Gray.
· 50 shares held by Horace Rackham.
· 50 shares held by John W. Anderson.
· 50 shares held by Horace E. Dodge.
· 50 shares held by Charles T. Bennett.
· 50 shares held by John F. Dodge.
· 50 shares held by Vernon C. Fry.
· 25 shares held by James Couzens.
· 50 shares held by Albert Strelow.
· 10 shares held by Charles J. Woodall.
At the opening stockholder meeting held on 18th June, John S. Gray was elected as president, Hendry Ford as vice-president, and James Couzens as the secretary of the Ford Motor Company. In spite of the misgivings of John S. Gray, immediately the Ford Motor Company was lucrative, with earnings of approximately $37,000 by 1st October 1903. A share of 10% was compensated that October, an extra bonus of 20% at the commencement of 1904, and one more dividend of 68% during June 1904. Two payments of 100% each during June and July 1905 fetched the total investor earnings to almost 300% in just in excess of 2 years, and in 1905, the total earnings were approximately $300,000.
However, there were domestic frictions in the business that Gray was supposedly responsible. The majority of the shareholders, including Gray and Malcomson, had their individual businesses to deal with, and only Couzens and Ford worked around the clock in the business. The problem came to a head when the major shareholders, Malcomson and Ford, disagreed about the future course of the business. Gray was on the side of Ford, and Malcomson was successfully frozen from the Ford Motor Company by early 1906, and in May, Malcomson sold his shares to Ford. Unexpectedly, John S. Gray expired in 1906, and his designation as the company’s president was assumed by Hendry Ford himself soon after that.
Thereof, the business was subject to court cases or threats early in its history from the Association of Licensed Automobile Manufacturers. The Association demanded for patent rights to nearly all gasoline-powered vehicles. After a number of years of the legal struggle, finally, the Association withdrew its case against the Ford Motor Company in 1911.
The Ford Motor Company starts manufacturing vehicles and in 2014, the Ford Mustang commemorates 50 years of manufacture with the introduction of its 6th generation. Then, the 2015 F-150 is unveiled, featuring an aluminum-concentrated body design.
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