Henry Ford

Henry Ford (founder of Ford Motors)

Intro.
Who Was Henry Ford?
Henry Ford was born July 30, 1863, on a farm in Greenfield Township, Michigan.
Henry Ford was an American industrialist and a business magnate, the founder of the Ford Motor
Company, and the sponsor of the development of the assembly line technique of mass production.
Henry Ford was an industrialist who revolutionized assembly line production for the automobile, making
the Model T one of America’s greatest inventions.

A new age of businessmen had dawned and Henry Ford would emerge one at the top. He was very
different from the others as his vision was not that of acquiring power or wealth, but he was driven by
the cries of the common people just like himself.

ECONOMICALLY

Young entrepreneur Henry Ford has created a new kind of car. Cars were seen as a luxury, and he spent
years making his car for the common man. Fords application is rejected and Ford challenges the owner
of the country’s largest car company to a race. Ford has never raced a car before, yet he still wins. His
win makes him famous, and he raises $700k to build his car company. He is producing 15 cars a day
with prices low enough for the average American. The car company sues him over their patent for the
automobile. A panel of Federal judges decides whether or not Ford can continue to sell his cars. Ford
continues building and selling his cars, and pays his workers a livable rate. Ford creates the assembly
line, and Standard Oil is broken up.

He built the Ford automobile which was affordable. He got opposition from various sides but did not
waver in his goals. Ford Motors went on to manufacture thousands of cars. He also brought change in
the manufacturing business as his assembly line is adopted by many different industries. Workers began
earning better wages and mass production became easier and faster.

As a result, Ford sold millions of cars and became a world-famous business leader. The company later
lost its market dominance but had a lasting impact on other technological development, on labor issues
and on U.S. infrastructure. Today, Ford is credited for helping to build America's economy during the
nation's vulnerable early years and is considered one of America's leading businessmen.

Model T
The Model T was introduced on October 1, 1908. It had the steering wheel on the left, which every other
company soon copied. The entire engine and transmission were enclosed; the four cylinders were cast in
a solid block; the suspension used two semi-elliptic springs. The car was very simple to drive, and easy
and cheap to repair. It was so cheap at $825 in 1908 ($23,010 today) (the price fell every year) that by
the 1920s, a majority of American drivers had learned to drive on the Model T

Ford assembly line, 1913

Sales passed 250,000 in 1914. By 1916, as the price dropped to $360 for the basic touring car, sales
reached 472,000.[16] (Using the consumer price index, this price was equivalent to $7,828 in 2015
dollars.)

Inventions
In 1890, Ford was hired as an engineer for the Detroit Edison Company. In 1893, his natural talents
earned him a promotion to chief engineer.

All the while, Ford developed his plans for a horseless carriage. In 1892, Ford built his first gasoline-
powered buggy, which had a two-cylinder, four-horsepower engine. In 1896, he constructed his first
model car, the Ford Quadricycle.

In the same year, he attended a meeting with Edison executives and found himself presenting his
automobile plans to Thomas Edison. The lighting genius encouraged Ford to build a second, better
model.

Henry Ford's Assembly Line

In 1913, Ford launched the first moving assembly line for the mass production of the automobile. This
new technique decreased the amount of time it took to build a car from 12 hours to two and a half,
which in turn lowered the cost of the Model T from $850 in 1908 to $310 by 1926 for a much-improved
model.

In 1914, Ford introduced the $5 wage for an eight-hour workday ($110 in 2011), more than double what
workers were previously making on average, as a method of keeping the best workers loyal to his
company.

More than for his profits, Ford became renowned for his revolutionary vision: the manufacture of an
inexpensive automobile made by skilled workers who earn steady wages and enjoyed a five-day, 40-
hour work week.
POLITICALLY
Ford was also widely known for his pacifism during the first years of World War I, and for promoting
antisemitic content, including The Protocols of the Elders of Zion, through his newspaper The Dearborn
Independent and the book The International Jew, having an alleged influence on the development of
Nazism and Adolf Hitler.

Henry Ford was an American manufacturer, industrialist, and a sponsor of the development of the
assembly line technique that allowed for mass production. Contrary to popular belief, Ford did not
invent the automobile nor did he invent the assembly line, but he was the first to develop and
manufacture an affordable automobile for middle class Americans. By achieving this, Ford converted the
automobile from a relatively unknown invention into an innovation that profoundly impacted the
landscape of the twentieth century. His introduction of the Model T revolutionized transportation and
the landscape of American industry. As the owner of the Ford Motor Company, he became one of the
richest and best-known people in the world. He was committed to lowering costs and creating a
franchise system that put Ford dealerships throughout most of North America, and in major cities on six
continents. Ford left most of his vast wealth to the Ford Foundation and arranged for his family to
control the company permanently. He was born July 30, 1863, on a farm in Greenfield Township,
Michigan. Not particularly interested in running the family farm, in 1879, Ford left home to work as an
apprentice machinist. In 1882, he returned to Dearborn to work on the family farm to help his parents,
and became quite proficient at operating the Westinghouse portable steam engine.

THE MOVING ASSEMBLY LINE: THE CONTRIBUTION OF HENRY FORD IN MANUFACTURING

The moving assembly line is a key contribution of Henry Ford in manufacturing. Note that this
manufacturing process involves assembling several parts in a step-by-step fashion. Each part moves
from workstation to workstation and with every movement, several parts were assembled together until
they become whole. In other words, parts are added or assembled in sequence until a final assembly is
produced.

In his autobiography “My Life and Work” first published in 1922, Ford mentioned that there are three
principles of assembly. The first one involve placing tools and workers in sequence of the operation so
that each part travels the least possible distance while in the process of finishing.
The second principle involves using work slides or some other form of carrier so that when a worker
completes his or her operation, he or she drops the semi-finished assembly always in the same place.
The third principle is about using sliding assembling lines by which the parts to be assembled are
delivered at convenient distances.

A key advantage of the moving assembly line is that it allows faster assembly with less labour compared
to having workers carry parts to a single and central workstation. It also takes advantage of
compartmentalised work through division of labour within the workforce. Ford Motor was able to
inexpensively produce larger outputs using this manufacturing process.

Note that there were several small automakers that emerged in the U.S. between 1890 and 1910. Ford
Motor competed with these manufacturers. However, through the implementation of the assembly line
in its manufacturing process, the company was able to outcompete other automakers.

Ford Motor introduced the Model T in 1908. This was a remarkable vehicle. It was simple and light but
durable enough to drive on primitive roads. The moving assembly line made this vehicle more popular.
Because the novel manufacturing process allowed cost-effective and time-efficient mass production, the
company was able to lower the unit price of Model T and make it affordable for the average consumer.

FORDISM: THE SOCIOECONOMIC CONTRIBUTIONS OF HENRY FORD IN THE UNITED STATES

The moving assembly line immediately became a manufacturing norm around the world. During the
20th century, manufacturers were able to lower the cost of their operation while maintaining desired
production levels. It also standardised mass production.

In the United States, this manufacturing process improved the profitability of manufacturers, thus
allowing them to expand their operation, hire more workers, raise salaries, and lower the price of goods.
The greater impact was economic growth driven by industrialisation.

Henry Ford and other manufacturers fuelled the American economy by improving productivity. They
also raised standards of living by creating more high-paying jobs. It is important to highlight the fact that
Ford employed a concept that revolved around mass production of inexpensive goods and high wages
for workers. Other manufacturers followed suit. Observers called this concept Fordism.

Fordism is a notable contribution of Ford in the American society and economy because it led to the
emergence of novel business practices and considerations that affected the social and economic profile
of the U.S.

The 1998 documentary “People’s Century: On The Line” produced by WGBH Boston illustrated the
socioeconomic impacts of Fordism. For example, the opening of a Ford factory in Detroit during the
1900s resulted in a population boom as workers and their families migrated to grab the available job
opportunities.

In addition, the social composition of Detroit and other similar cities changed as people from different
ethnic backgrounds and cultural heritage became part of the larger workforce. Note that a typical Ford
factory employed white Americans, African-Americans, and migrant Germans and Italians, among
others.
Mass consumption also became a norm. The 20th century American industrialisation also marked the
emergence of the American consumer society. Companies such as Ford granted workers with buying
power enough for them to consume non-necessity goods. Ford workers could actually buy a Ford
vehicle.

FINANCIALLY
Henry Ford net worth: Henry Ford was an American entrepreneur, founder of Ford Motor
Company, who had a net worth of $200 billion dollars (adjusted for inflation).

CLOSING
Businessmen were now producing products for the masses that up to date are
still in use and continue to be made better. Without Rockefeller’s gasoline to fuel
engines, Carnegie’s steel build the cars and electricity to power factories, Henry
Ford and many other businessmen would not have succeeded in their businesses.
America would not be a super power in the eyes of the world. There is a lot to be
learned from them on what do’s and don’ts in business.

Ford died on April 7, 1947, of a cerebral hemorrhage at the age of 83, near his
Dearborn estate, Fair Lane.