Ford Motor Company: The Pride of Michigan

The Ford Motor Co. is a well-known internationallimited work days up to Friday.
player in the automotive industry. It is noted forFord's tactics worked. Employee turnover
models such as the Lincoln and Mercury, as wellsignificantly dropped, and production increased
as the Jaguar and Land Rover automobiles.significantly. Sales also increased, which meant
The company is based in Dearborn, Michigan. TheFord can now sell more units at lower prices. Ford
company was first established in June 16, 1903 byalso established the Ford brand name more by
Henry Ford. It has been controlled by Ford'scoming up with a system of dealers that
descendants for over a century since its founding.franchised the Ford name.
Early YearsThe Ford Motor Co. officially expanded
Ford began his venture into the automotiveinternationally when it established Ford of Canada
industry with only US$28,000 as capital, which hein 1904. Seven years later, in 1911, Ford opened
gleaned from several investors. Interestingly, theseveral plants in Europe and in Australia. By 1920,
founders of the Dodge Brothers Motor VehicleHenry Ford's firm controlled 50% of the market
Co. - John and Horace Dodge -contributed toshare with its Model T cars. Henry Ford himself
Ford's capital.contributed to the rising fame of his brand name
Ford gave his products a designation of letters,by joining other pacifists in 1915 when they tried
with the first one designed Model A in 1903. Ford'sto stop the First World War in Europe.
first six-cylinder car was designated as Model K,Developments During and After World War I and
which had a price of US$2800. The Ford modelWorld War II
was the most expensive automobile at that time,Although he had earlier stated that he did not
as its rivals sold for prices significantly lower thanwant to make profits from war, the Ford Motor
that. For example, the Success automobile soldCo. eventually handled production of the B-24
for a very low US$250.Liberator bomber for the war effort, prompting it
Ford did not have his own factory when heto build the Willow Run plant in April 1941.
produced his first automobiles. He soon acquiredBeginning August 1943, Ford's assembly lines
his own factory in Piquette Avenue in Michigan,worked 24 hours a day to roll off one complete
from which he produced about 18,000 units ofand functional B-24 in just an hour, with pilots
Model T automobiles in 1909. High demand for thewaiting for takeoff in costs while the bombers
Model T prompted Ford to move his operationswere rolled off the production line.
to a larger plant in Highland Park, from which overThe stress of the situation would ultimately lead
69,000 units of the Model T were made and soldto the death of Edsel Ford, who was named as
to buyers.Henry Ford's successor in 1919, in the spring of
Ford also came up with a moving assembly line in1943. Henry once again assumed control of the
1913, the first of its kind in the whole world. Fordcompany during these trying times.
had his engineers build up on the basic techniquesIn 1956, Ford went public under the leadership of
of assembly line and mass production in a bid toHenry Ford II, the son of Edsel and Eleanor Ford,
increase production and make improvements towho was appointed president in 1945 by Henry
assembly processes. Because it now only took 2Ford himself. Despite being public, the Ford family
hours and 40 minutes to assemble a chassis, theacquired enough Special B preferred stocks to
company was able to output more than 200,000keep a controlling interest of 40% in the
units of the Model T in 1913.company.
Workforce Problems and Rise to FameCurrent Years
Ford's improvements to the assembly line causedThe Ford family still controls 40% of the
high turnovers within his factory workforce,company through the preferred stocks, and about
because it became strenuous to the employees5% of the ordinary shares of the company.
who were used to the earlier processes to adjustThe company is currently under restructuring. In
to the faster-paced assembly line processes.fact, the company had announced the mortgaging
However, Ford found a way by increasing theof all of its assets in 2006 in order to earn about
workers' pay to twice the original sum, andUS$23.4 billion to refinance the rehabilitation until
cutting down on work hours by an hour. He also2009.