History of Ford Motor Company
Content
History of Ford Motor Company
Henry Ford (ca. 1919)
Ford Motor Company is an American automaker and the
largest automaker based on worldwide vehicle sales.
in Dearborn, Michigan, a suburb of Detroit, the automaker
by Henry Ford, on June 16, 1903. Ford Motor Company
to become one of the largest and most profitable
the world, as well as being one of the few to survive
Depression. The largest family-controlled company in the
Ford Motor Company has been in continuous family
over 110 years. Ford now encompasses two brands: Ford
Ford once owned 5 other luxury brands, they were Volvo,
Jaguar, Aston Martin and Mercury. But over time those
sold to other companies and Mercury was discontinued.
world's fifth
Based
was founded
would go on
companies in
the Great
world, the
control for
and Lincoln.
Land Rover,
brands were
The Founding of Ford Motor
Company
Henry Ford's initial foray into automobile manufacturing was the Detroit Automobile Company, founded in 1899. The
company floundered, and in 1901 was reorganized as the Henry Ford Company. In March 1902, after falling out
with his financial backers, Ford left the company with the rights to his name and 900 dollars.
Henry Ford himself turned to an acquaintance, coal dealer Alexander Y. Malcomson, to help finance another
automobile company. Malcomson put up the money to start the partnership "Ford and Malcomson" and the pair
designed a car and began ordering parts. However, by February 1903, Ford and Malcomson had gone through
more money than expected, and the manufacturing firm ofJohn and Horace Dodge, who had made parts for Ford
and Malcomson, was demanding payment.[1]Malcomson, constrained by his coal business demands, turned to his
uncle John S. Gray, the president of the German-American Savings Bank and a good friend. Malcomson proposed
incorporating Ford and Malcomson to bring in new investors, and wanted Gray to join the company, thinking that
Gray's name would attract other investors. Gray was not interested at first, but Malcomson promised he could
withdraw his share at any time, so Gray reluctantly agreed. On the strength of Gray's name, Malcomson recruited
other business acquaintances to invest, including local merchants Albert Strelow and Vernon Fry, lawyers John
Anderson and Horace Rackham, Charles T. Bennett of the Daisy Air Rifle Company, and his own clerk James
Couzens.[1] Malcomson also convinced the Dodges to accept stock in lieu of payment.
On June 16, 1903, the Ford Motor Company was incorporated, with 12 investors owning a total of 1000 shares.
Ford and Malcomson together retained 51% of the new company in exchange for their earlier investments. When
the total stock ownership was tabulated, shares in the company were:Henry Ford (255 shares), Alexander Y.
Malcomson (255 shares), John S. Gray (105 shares), John W. Anderson (50 shares), Horace Rackham (50
shares), Horace E. Dodge (50 shares), John F. Dodge (50 shares), Charles T. Bennett (50 shares), Vernon C. Fry
(50 shares), Albert Strelow (50 shares), James Couzens (25 shares), and Charles J. Woodall (10 shares).[2]
At the first stockholder meeting on June 18, Gray was elected president, Ford vice-president, and James Couzens
secretary.[1] Despite Gray's misgivings, the Ford Motor Company was immediately profitable, with profits by October
1, 1903 of almost $37,000. A dividend of 10% was paid that October, an additional dividend of 20% at the beginning
of 1904, and another 68% in June 1904. Two dividends of 100% each in June and July 1905 brought the total
investor profits to nearly 300% in just over 2 years; 1905 total profits were almost $300,000. [1]
However, there were internal frictions in the company that Gray was nominally in charge of. Most of the investors,
both Malcomson and Gray included, had their own businesses to attend to; only Ford and Couzens worked full-time
at the company. The issue came to a head when the principal stockholders, Ford and Malcomson, quarreled over
the future direction of the company. Gray sided with Ford. By early 1906 Malcomson was effectively frozen out of
the Ford Motor Company, and in May sold his shares to Henry Ford.[1] John S. Gray died unexpectedly in 1906, and
his position as Ford's president was taken over by Ford himself soon afterward. [1]
Ford was subject to lawsuits or threats there of from the Association of Licensed Automobile Manufacturers early in
its history. The Association claimed patent rights to most gasoline-powered automobiles. After several years of legal
wrangling, the Association eventually dropped its case against Ford in 1911.
Early developments and assembly line[edit]
The first Ford factory on Bagley Street, Detroit.
During its early years, the company produced a range of vehicles designated, chronologically, from the Ford Model
A (1903) to the Model K and Model S (Ford's last right-hand steering model) [3] of 1907.[4] The K, Ford's first sixcylinder model, was known as "the gentleman's roadster" and "the silent cyclone", and sold for US$2800; [4] by
contrast, around that time, the Enger 40 was priced at US$2000,[5] the Colt Runabout US$1500,[6] the highvolume OldsmobileRunabout[7] US$650, Western's Gale Model A US$500,[8]and the Success hit the amazingly low
US$250.[7]
The first Ford assembly plant inLa Boca, Buenos Aires, c. 1921.
In 1908, Henry Ford introduced the Model T. Earlier models were produced at a rate of only a few a day at a rented
factory on Mack Avenue in Detroit, Michigan, with groups of two or three men working on each car from components
made to order by other companies (what would come to be called an "assembled car"). The first Model Ts were built
at the Piquette Road Manufacturing Plant, the first company-owned factory. In its first full year of production, 1909,
about 18,000 Model Ts were built. As demand for the car grew, the company moved production to the much
larger Highland Park Plant, and in 1911, the first year of operation there, 69,762[9] Model Ts were produced, with
170,211 in 1912.[10] By 1913, the company had developed all of the basic techniques of the assembly line and mass
production. Ford introduced the world's first moving assembly line that year, which reduced chassis assembly time
from 12 1⁄2 hours in October to 2 hours 40 minutes (and ultimately 1 hour 33 minutes), [10] and boosted annual output
to 202,667 units that year[10] After a Ford ad promised profit-sharing if sales hit 300,000 between August 1914 and
August 1915,[11] sales in 1914 reached 308,162, and 501,462 in 1915; [10] by 1920, production would exceed one
million a year.
These innovations were hard on employees, and turnover of workers was very high, while increased productivity
actually reduced labor demand.[10] Turnover meant delays and extra costs of training, and use of slow workers. In
January 1914, Ford solved the employee turnover problem by doubling pay to $5 a day [12] cutting shifts from nine
hours to an eight hour day for a 5 day work week (which also increased sales; a line worker could buy a T with less
than four months' pay),[10] and instituting hiring practices that identified the best workers, including disabled people
considered unemployable by other firms.[10] Employee turnover plunged, productivity soared, and with it, the
cost per vehicle plummeted. Ford cut prices again and again and invented the system of franchised dealers who
were loyal to his brand name. Wall Street had criticized Ford's generous labor practices when he began paying
workers enough to buy the products they made.[13]
Ford assembly line (1913).
While Ford attained international status in 1904 with the founding of Ford of Canada, it was in 1911 the company
began to rapidly expand overseas, with the opening of assembly plants in Ireland (1917), England and France,
followed by Denmark (1923), Germany (1925), Austria (1925), [10] and Argentina (1925),[14] and also in South Africa
(1924)[15] and Australia (1925) as subsidiaries of Ford of Canada due to preferentialtariff rules
for Commonwealth countries. By the end of 1919, Ford was producing 50 percent of all cars in the United States,
and 40% of all British ones;[10] by 1920, half of all cars in the U.S. were Model Ts. (The low price also killed
the cyclecar in the U.S.)[10] The assembly line transformed the industry; soon, companies without it risked
bankruptcy. Of 200 U.S. car makers in 1920, only 17 were left in 1940. [10]
Ford 1916 Model T Field Ambulance. This canvas on wood frame model was used extensively by the British & French as
well as the American Expeditionary Force in World War I. Its top speed was 45 mph (72 km/h), produced by a 4-cylinder
water-cooled engine
It also transformed technology. Henry Ford is reported to have said, "Any customer can have a car painted any color
that he wants so long as it is black." Before the assembly line, Ts had been available in a variety of colors, including
red, blue, and green, but not black. Now, paint had become a production bottleneck; onlyJapan Black dried quickly
enough, and not until Ducolacquer appeared in 1926 would other colors reappear on the T.[10]
In 1915, Henry Ford went on a peace mission to Europe aboard a ship, joining other pacifists in efforts to stop World
War I. This led to an increase in his personal popularity. Ford would subsequently go on to support the war effort
with the Model T becoming the underpinnings for Allied military vehicles, like the Ford 3-Ton M1918 tank, and the
1916 ambulance.
History of the blue oval
The Ford oval trademark was first introduced in 1907. The 1928 Model A was the first vehicle to sport an early
version of the Ford script in the oval badge. The dark blue background of the oval is known to designers
as Pantone 294C. The Ford script is credited to Childe Harold Wills, Ford's first chief engineer and designer. He
created a script in 1903 based on the one he used for his business cards. Today, the oval has evolved into a perfect
oval with a width-to-height ratio of 8:3. The current Centennial Oval was introduced on June 17, 2003 as part of the
100th anniversary of Ford Motor Company.
Post-World War I developments
In 1919, Edsel Ford succeeded his father as president of the company, although Henry still kept a hand in
management. While prices were kept low through highly efficient engineering, the company used an old-fashioned
personalized management system, and neglected consumer demand for improved vehicles. So, while four-wheel
brakes were invented by Arrol-Johnson (and were used on the 1909 Argyll),[10] they did not appear on a Ford until
1927. (To be fair, Chevrolet waited until 1928.)[10] Ford steadily lost market share to GM and Chrysler, as these and
other domestic and foreign competitors began offering fresher automobiles with more innovative features and luxury
options. GM had a range of models from relatively cheap to luxury, tapping all price points in the spectrum, while
less wealthy people purchased used Model Ts. The competitors also opened up new markets by extending credit for
purchases, so consumers could buy these expensive automobiles with monthly payments. Ford initially resisted this
approach, insisting such debts would ultimately hurt the consumer and the general economy. Ford eventually
relented and started offering the same terms in December 1927, when Ford unveiled the redesigned Model A, and
retired the Model T after producing 15 million units.
Lincoln Motor Company
On February 4, 1922 Ford expanded its reach into the luxury auto market through its acquisition of the Lincoln Motor
Company from Henry M. Leland who had founded and named the company in 1917 for Abraham Lincoln whom
Henry Leland admired. The Mercury division was established later in 1938 to serve the mid-price auto market
between the Ford and Lincoln brands.
Ford Motor Company had built the largest museum of American History in 1928, The Henry Ford. Henry Ford would
go on to acquire Abraham Lincoln's chair, which he was assassinated in, from the owners of Ford's Theatre.
Abraham Lincoln's chair would be displayed along with John F. Kennedy's Lincoln limousine in the Henry Ford
Museum & Greenfield Village in Dearborn, known today as The Henry Ford. Kennedy's limousine was leased to the
White House by Ford.
Fordlândia
Main article: Fordlândia
In 1928, Henry Ford negotiated a deal with the government of Brazil for a plot of land in the Amazon Rainforest.
There, Ford attempted to cultivate rubber for use in the company's automobiles. After considerable labor unrest,
social experimentation, and a failure to produce rubber, and after the invention of synthetic rubber, the settlement
was sold in 1945 and abandoned.
The Great Depression
During the great depression, Ford in common with other manufacturers, responded to the collapse in motor sales by
reducing the scale of their operations and laying off workers. By 1932, theunemployment rate in Detroit had risen to
30%[18] with thousands of families facing real hardship. Although Ford did assist a small number of distressed
families with loans and parcels of land to work, the majority of the thousands of unskilled workers who were laid off
were left to cope on their own. However, Henry Ford angered many by making public statements that the
unemployed should do more to find work for themselves.
This led to Detroit's Unemployed Council organizing the Ford Hunger March. On March 7, 1932 some 3,000 - 5,000
unemployed workers assembled in West Detroit to march on Ford's River Rouge plant to deliver a petition
demanding more support. As the march moved up Miller Road and approached Gate 3 the protest turned ugly. The
police fired tear gas into the crowd and fire trucks were used to soak the protesters with icy water. When the
protesters responded by throwing rocks, the violence escalated rapidly and culminated in the police and plant
security guards firing live rounds through the gates of the plant at the unarmed protesters. Four men were killed
outright and a fifth died later in hospital. Up to 60 more were seriously injured. [19]
Soviet Fords and the Gorki
In May 1929 the Soviet Union signed an agreement with the Ford Motor Company. Under its terms, the Soviets
agreed to purchase $13 million worth of automobiles and parts, while Ford agreed to give technical assistance until
1938 to construct an integrated automobile-manufacturing plant at Nizhny Novgorod. Many American engineers and
skilled auto workers moved to the Soviet Union to work on the plant and its production lines, which was
named Gorkovsky Avtomobilny Zavod (GAZ), or Gorki Automotive Plant in 1932. A few American workers stayed on
after the plant's completion, and eventually became victims of Stalin's Great Terror, either shot[20] or exiled to
Soviet gulags.[21] In 1933, the Soviets completed construction on a production line for the Ford Model-A passenger
car, called the GAZ-A, and a light truck, the GAZ-AA. Both these Ford models were immediately adopted for military
use. By the late 1930s production at Gorki was 80,000-90,000 "Russian Ford" vehicles per year. With its original
Ford-designed vehicles supplemented by imports and domestic copies of imported equipment, the Gorki operations
eventually produced a range of automobiles, trucks, and military vehicles.
World War II
Era of neutrality
During the first 27 months of World War II, when the U.S. was neutral (to December 1941), Ford was hesitant to
participate in the Allied military effort. Ford insisted that peaceful trade was the best way to avoid war. The Ford
subsidiary in Germany had a subsidiary in Germany. In 1936, a Ford executive visiting Germany was informed by a
Nazi official that Ford's Cologne plant manager was a Jew (he had one grandparent who was Jewish), prompting
discussions at Ford offices in both Germany and the U.S. Heinrich Albert, Ford's Germany-U.S. liaison, insisted that
the manager be fired. The manager was replaced by Robert Schmidt, who would play an important role in
Germany's war effort.
Henry Ford had said war was a waste of time, and did not want to profit from it. [13][23] He was concerned the Nazis
during the 1930s might nationalize Ford factories in Germany. Ford nevertheless established a close collaboration
with Germany's Nazi government before the war—so close, in fact, that Ford received, in July 1938, the Grand
Cross of the German Eagle medal from the regime.[24]Ford's outspoken anti-semitism, including his newspaper, The
Dearborn Independent, which published The Protocols of the Elders of Zion also lent credence to the view that he
sympathized with the Nazis.[25][26] In the spring of 1939, the Nazi government assumed day-to-day control of many
foreign-owned factories in Germany. However, Ford's Dearborn headquarters continued to maintain a 52%
ownership over its German factories but with no voice or control or financial reward. Ford factories contributed
significantly to the buildup of Germany's armed forces. Ford negotiated a resource-sharing agreement that allowed
the German military to access scarce supplies, particularly rubber. During this same period, Ford was hesitant to
participate in the Allied military effort.[27] In June 1940, after France had fallen to the Wehrmacht, Henry Ford
personally vetoed a plan to build airplane engines for the Allies.[28]
Wartime: Arsenal of Democracy
The company enthusiatically supported the war effort after Pearl Harbor, making it a major component of the
"Arsenal of Democracy" that President Roosevelt had promised would mobilize industrial resources to win the war.
Henry, aged 76 and early senile, played a minor role even though he had 55% ownership of the company stock. His
son Edsell Ford, the company president and owner of 42% of the stock, had never been a pacifist like his father and
now made all the decisions.[29]
The company produced 390,000 tanks and trucks, 27,000 engines, 270,000 Jeeps, over 8000 B-24 Liberators, and
hundreds of thousands of parts, gun mounts, and machine tools for the war effort. [30]It ranked third among
corporations in the value of wartime production contracts.[31] The company
The Company's new Willow Run factory was designed for the production of B-24 bombers although the production
line was initially characterized by bungling and incompetence.[32] Ford's efforts benefited the Allies as well as the
Axis. After Bantam invented the Jeep, the US War Department handed production over to Ford and Willys.
The Treasury Department investigated Ford for alleged collaboration with German-run Ford plants in occupied
France, but did not find conclusive evidence. After the war, Schmidt and other Nazi-era managers kept their jobs
with Ford's German division.[28] In the United Kingdom, Ford built a new factory in Trafford Park, Manchester during
WWII where over 34,000 Rolls-Royce Merlin aero engines were completed by a workforce trained from scratch.
Post-World War II developments[edit]
A Ford Taurus, one of Ford's best-selling models. In its 21-year lifespan, it sold 7,000,000 units. It is the 4th best-selling
car in Ford's history, behind only the F-150, theModel T, and the Mustang.
In 1943, a despondent Edsel Ford died of stomach cancer. Henry decided then to resume direct control of the
company, but this proved a very poor idea as he was 78 years old and suffering from heart problems and
atherosclerosis. His mental state was also questionable, and there was a very real possibility that the company
would collapse if he died or became incapacitated. The Roosevelt Administration had a contingency plan in place to
nationalize Ford if need be so that they wouldn't lose vital military production.
At this point, Ford's wife and daughter-in-law intervened and demanded that he turn control over to his
grandson[33] Henry Ford II. They threatened to sell off their stock (amounting to half the company's total shares) if he
refused. Henry was infuriated, but there was nothing he could do, and so he gave in. When Henry II, who came to
be called affectionately "Hank the Deuce," assumed command, the Company was losing US$9 million a month and
in financial chaos.[34]
Henry Ford died of a brain hemorrhage on April 7, 1947. Mourners passed by at a rate of 5,000 each hour at the
public viewing on Wednesday of that week at Greenfield Village in Dearborn. The funeral service for Henry Ford was
held at the Cathedral Church of St. Paul in Detroit on Thursday April 9, 1947.[35] At the funeral service, 20,000 people
stood outside St. Paul's Cathedral in the rain with 600 inside, [35] while the funeral had attracted national attention as
an estimated seven million people had mourned his death (according to A&E Biography).
Ernest R. Breech, head of Bendix Aviation,[34] was hired in 1946, and became first Executive Vice President, then
Board Chairman in 1955. Henry II served as President from 1945 to 1960, and as Chairman and CEO from 1960 to
1980. In 1956, Ford became a publicly traded corporation. The Ford family maintains about 40% controlling interest
in the company, through a series of Special Class B preferred stocks. Also in 1956, following its emphasis on safety
improvements in new models,Motor Trend awarded the company its "Car of the Year" award.[36]
In 1946, Robert McNamara joined Ford as manager of planning and financial analysis. He advanced rapidly through
a series of top-level management positions to the presidency of Ford on 9 November 1960, one day after John F.
Kennedy's election. The first company head selected outside the Ford family, McNamara had gained the favor of
Henry Ford II, and had aided in Ford's expansion and success in the postwar period. Less than five weeks after
becoming president at Ford, he accepted Kennedy's invitation to join his cabinet, as Secretary of Defense.
Ford introduced the iconic Thunderbird in 1955 and the Edsel brand automobile line in 1958, following a US$250
million research and marketing campaign, which had failed to ask questions crucial for themarque's success.[37] The
Edsel was cancelled after less than 27 months in the marketplace in November 1960. The corporation bounced
back from the failure of the Edsel by introducing its compact Falcon in 1960 and the Mustang in 1964. By 1967,
Ford of Europe was established.
Lee Iacocca was involved with the design of several successful Ford automobiles, most notably the Mustang. He
was also the "moving force," as one court put it, behind the notorious Pinto. He promoted other ideas which did not
reach the marketplace as Ford products. Eventually, he became the president of the company, but clashed
with "Bunkie" Knudsen as well as Henry II and ultimately, on July 13, 1978, he was fired by Henry Ford II, despite
the company's having earned a $2.2 billion profit for the year. Chrysler soon hired Iacocca, which he returned to
profitability during the 1980s.
In 1942, Elsa Iwanowa, who was then 16-years-old and a resident of Rostok in the Soviet Union, and many other
citizens of countries that were occupied by the Wehrmacht were transported in cattle cars to the western part of
Germany, where they were displayed to visiting businessmen. From there Iwanowa and others were forced to
become slave laborers for Ford's German subsidiary, which had become separated from the Dearborn headquarters
as a result of the U.S. declaration of war. "On March 4, 1998, fifty-three years after she was liberated from the
German Ford plant, Elsa Iwanowa demanded justice, filing a class-action lawsuit in U.S. District Court against the
Ford Motor Company."[38] In court, Ford admitted that Iwanowa and many others like her were "forced to endure a
sad and terrible experience"; Ford, however, moved to have the suit dismissed on the grounds that it would be best
redressed on "a nation-to-nation, government-to-government" basis. [39] In 1999, the court dismissed Iwanowa's suit.
At about the same time, a number of German companies, including GM subsidiary Opel, agreed to contribute $5.1
billion to a fund to compensate the surviving slave laborers.[39] After being the subject of much adverse publicity,
Ford, in March 2000, agreed to contribute $13 million to the compensation fund.
In 1979 Philip Caldwell became Chairman, succeeded in 1985 by Donald Petersen. Harold Polingserved as
Chairman and CEO from 1990 to 1993. Alex Trotman was Chairman and CEO from 1993 to 1998, and Jacques
Nasser served at the helm from 1999 to 2001. Henry Ford's great-grandson,William Clay Ford Jr., is the company's
current Chairman of the Board and was CEO until September 5, 2006, when he named Alan Mulally from Boeing as
his successor.
Current Ford CEO Alan Mulally, who was hired by William Clay Ford, Jr. to restructure the company.
Recapitalization, restructuring
Cash hoarding
In April 2000 the Ford Motor Company announced its recapitalization plan distributing about half of its $24
billioncash hoard, and paying a $10 billion special dividend, and the issuance of additional stock to the Ford family,
to provide more flexibility for the Ford family in terms of estate planning. In 2000 Ford's cash hoard was the largest
of any company in the world.[40]
As of 2006, the Ford family owned about 5% of Company shares outstanding. [41]
In December 2006, Ford announced it would mortgage all assets, including factories and equipment, office property,
intellectual property (patents and blue oval trademarks), and its stakes in subsidiaries, to raise $23.4 billion in cash.
The secured credit line is expected to finance product development during the restructuring through 2009, as the
company expects to burn through $17 billion in cash before turning a profit. The action was unprecedented in the
company's 103 year history.[42][43] At the end of 2012 Ford Motor Company's cash balance was $22.9 billion and was
listed as ten on the list of U.S. non-financial corporation sector's top ten cash kings by Moody's Investors Service in
their March 2013 annual report on Global Credit Research.[44][45][46]
General corporate timeline[edit]
Henry Ford and the Quadricycle
1896 Quadricycle at The Henry Ford Museum in Dearborn, MI
1903 Model A
Ford Model T ad - ca 1908
1930 Model A Fordor
The Ford Australia plant under construction in Geelong, Victoria, Australia, 1926
Mustang Serial #1 - The First Mustang
1896: Henry Ford builds his first vehicle – the Quadricycle – on a buggy frame with 4 bicycle wheels.
1898: Ford creates the Detroit Automobile Company; two and a half years later it is dissolved.
1901: Ford wins high-profile car race in Grosse Pointe, Mi
1901: The Henry Ford Company is incorporated but discontinued the following year only to be reinvigorated
byHenry Leland as the Cadillac Motor Company
1903: Ford Motor Company incorporated with 11 original investors. The Model A "Fordmobile" is introduced 1,708 cars are produced.
1904: Ford Motor Company of Canada incorporated inWalkerville, Ontario
1904: Henry Ford teams up with Harvey Firestone of Firestone Tires
1906: Ford becomes the top selling brand in the US, with 8,729 cars produced.
1908: Model T is introduced. 15 million are produced through 1927.
1909: Ford Motor Company (England) established, otherwise referred to as Ford of Britain
1911: Ford opens first factory outside North America – in Manchester, England.
1913: The moving assembly line is introduced at Highland Park assembly plant, making Model T production
8 times faster.
1913: Ford opens second world branch in Argentina as Ford Motor Argentina
1914: Ford introduces $5 ($118, adjusted for inflation)wage for a workday – double the existing rate.
1918: Construction of the Rouge assembly complex begins.
1919: Edsel Ford succeeds Henry as Company President.
1920: Ford temporarily shuts down due to low sales. After removing unnecessary administrative expenses
and waste, Ford reopens.[47]
1921: Ford production exceeds 1 million cars per year, nearly 10 times more than Chevrolet - the next
biggest selling brand.
1922: Ford purchases Lincoln Motor Company for US $8 million ($113 million, adjusted for inflation).
1925: Ford introduces Ford Tri-Motor airplane for airline services, and a factory was built in Yokohama,
Japan in February.
1926: Ford Australia is founded in Geelong, Victoria, Australia,
1927: Model T production ends, Ford introduces the next generation Model A, from the Rouge complex.
1929: Ford regains production crown, with annual production peaking at 1.5 million cars
1931: Ford and Chevy brands begin to alternate as U.S. production leaders, in battle for automobile sales
during the Great Depression.
1932: Ford introduces the one-piece cast V8 block. It makes the Model 18 the first low-priced V8-powered
car. In London Royal Albert Hall the Model 19, or as it was marketed Model Y, are introduced February 19. The
first of a long line of small European Fords.[48]
1936: Lincoln-Zephyr is introduced.
1938: The German consul at Cleveland awards Henry Ford the Grand Cross of the German Eagle, the
highest medal Nazi Germany could bestow on a foreigner. There is some evidence Ford had Nazi sympathies,
at least before World War II. He may have financed some Nazi activities, and was active in anti-semitic efforts.
1939: Mercury division is formed to fill the gap between economical Fords and luxury Lincolns. Operated as
a division at Ford until 1945
1941: The Lincoln Continental is introduced. Ford begins building general-purpose "jeep" for the military.
First labor agreement with UAW-CIO covers North American employees.
1942: Production of civilian vehicles halted, diverting factory capacity to producing B-24 Liberatorbombers,
tanks, and other products for the war effort.
1943: Edsel Ford dies of cancer at the age of 49, Henry Ford resumes presidency.
1945: Henry Ford II becomes president.
1945: Lincoln and Mercury are combined into a single division.
1946: Ford sues the allies for damages done to his factories in Dresden during the infamous bombing, and
wins compensation.[citation needed]
1946: The Whiz Kids, former US Army Air Force officers, are hired to revitalize the company. Automobile
production resumes.
1947: Henry Ford dies of cerebral hemorrhage at the age of 83; Henry Ford II becomes new chairman.
1948: F-1 Truck introduced. Lincoln Continental is introduced.
1949: The '49 Ford introduces all-new post-war era cars. The "Woody" station wagon is introduced.
1953 Ford Canada Headquarters and Car Plant opens in Oakville, Ontario
1954: Thunderbird introduced as a personal luxury car with a V8. Ford begins crash testing, and
opens Arizona Proving Grounds.
1956: $10,000 ($87.8 thousand, adjusted for inflation) Lincoln Continental Mark II introduced. Ford goes
public with common stock shares. Ford's emphasis on safety with is Lifeguard option package, including seat
belts and dash padding, earns the company Motor Trend's "Car of the Year" award.[36]
1957: Ford launches the Edsel brand of automobiles in the fall of 1957 as 1958 models. Ford is top selling
brand, with 1.68 million automobiles produced.
1959: Ford Credit Corporation formed to provide automotive financing.
1959: Ford withdraws the 1960 model Edsels from the market in November 1959.
1960: Ford Galaxie and compact Ford Falcon introduced.
1960: Robert McNamara is appointed President of Ford by Chairman Henry Ford II.
1960: Ford President Robert McNamara appointed Secretary of Defense by President elect John F.
Kennedy.
1962: Ford of Britain launches first generation of the Ford Cortina. It would dominate the mid-size family
segment in Europe for the next 20 years.
1964: Ford Mustang the car that started the "pony car" class, Ford GT40 challenges Ferrari and Porsche at
LeMans.
1965: Ford brand US sales exceed 2 million units. Ford of Germany and Ford of Britain jointly launch the
first generation Ford Transit range of panel vans.
1965: Ford Galaxie 500 LTD debuts, advertised as quieter than a Rolls Royce
1966: Ford Bronco sport utility vehicle introduced.
1967: Ford of Europe is established by merging the operations of Ford of Britain and Ford of Germany.
1967: Ford opens Talbotville car plant in St. Thomas, Ontario
1968: Lincoln Mark Series is introduced as the company's first personal luxury car to compete with
the Cadillac Eldorado. Ford of Europe launches first generation Ford Escort.
1970: Ford Maverick are introduced. Ford establishes Asia Pacific operations. Ford of Europe launches the
third generation Cortina/Taunus - merging the two previously independent product lines under a common
platform.
1972: Retractable seat belts introduced.
1973: Ford US brand sales reaches an all time high of 2.35 million vehicles produced.
1974: Ford Mustang II debuts as a smaller more economical pony car.
1975: Ford Granada and Mercury Monarch introduced, Maverick continues
1975: Ford of Europe launches the second generation Escort.
1976: Ford of Europe launches the first generation Ford Fiesta
1977: Ford of Europe launches the fourth generation Cortina/Taunus
1978: Ford Motor Company celebrates 75th anniversary. Continental Mark V and Thunderbird available with
"Diamond Jubilee Edition" packages. Fiesta is imported from Europe as an entry into the economy segment.
1979: Ford acquires 25% stake in Mazda. Ford becomes the final American automaker to
introduce downsized full-size cars with radically smaller Panther platform.
1980: Ford of Europe launches the third generation Escort, it is voted European Car of the Yearfor 1981.
1981: The Lincoln Town Car and Ford Escort are introduced. Fiesta discontinued in North America.
1982: Ford of Europe introduce the Ford Sierra, ending production of the stalwart Cortina/Taunus after 20
years and four generations.
1983: Ford launches a redesigned "aero design" Thunderbird. In a model shift, the Granada is discontinued
in North America, replaced by a facelifted model re-branded as the LTD. All full-size models are now LTD Crown
Victorias/Country Squires.
1984: Ford Tempo and Mercury Topaz are introduced, replacing the Ford Fairmont/Mercury Zephyr.
1985: Ford Scorpio launched by Ford of Europe. Replaces Granada as its full-size offering and is
voted European Car Of The Year for 1986, Ford's second COTY win in the 1980s. Merkur brand launched to
market the Sierra and Scorpio models in North America.
1985: Purchases First Nationwide Financial Corporation, a savings and loan. Sold in 1994 after large losses.
1985: Ford Taurus introduced with dramatic "aero design" styling, along with Ford Aerostarminivan.
1986: Ford of Europe launches the second generation of the Transit van family. Ford Capriceases
production.
1987: Ford acquires Aston Martin Lagonda and Hertz Rent-a-Car.
1987: Henry Ford II dies at age 70.
1988: Ford Festiva, built in Korea by Kia is introduced.
1989: Ford acquires Jaguar. Mazda MX-5 Miata is unveiled. Third generation Fiesta is launched in Europe and establishes itself as the fastest selling generation of Fiesta to date - 1 million units in less than two years.
1989: Acquires Associates First Capital Corporation, a finance company. In 1998, it is spun-off to Ford
shareholders.
1990: Ford Aerostar is Motor Trend's Truck Of The Year, while Lincoln Town Car is Motor Trend's Car Of The
Year.
1990: Merkur brand of automobiles production discontinued. Ford of Europe launches fourth generation
Escort.
1991: Ford Explorer is introduced, turning the traditionally rural and recreational SUV into a popular family
vehicle.
1992: Ford Aerostar and Ford Taurus/Mercury Sable are redesigned; Ford Taurus becomes America's top
selling car, displacing the Honda Accord. Ford of Europe announces first generation Ford Mondeo, the first
product of the global CDW27 platform
1992: Redesigned Ford Crown Victoria and Mercury Grand Marquis launched, the first new full-size sedans
in 13 years; Ford Country Squire/Mercury Colony Park station wagon discontinued.
1993: Ford launches Mondeo in Europe, and announces its North American derivatives - the Ford
Contour and Mercury Mystique
1994: Ford Tempo and Mercury Topaz are discontinued - replaced by Ford Contour and Mercury Mystique*
1994: Ford Aspire replaces Festiva, becoming the first car in its class to offer standard dual air bags and
optional 4-wheel ABS.
1995: Ford's first front-wheel-drive V8 sedan is introduced, the 4.6L V8-powered Lincoln Continental. Ford of
Europe launches fourth-generation Fiesta.
1995: New front-wheel-drive Ford Windstar minivan is introduced. Aerostar remains in production.
Redesigned Ford Explorer released, now with standard safety features such as dual air bags, 4-wheel ABS as
standard equipment.
1996: Ford certifies all plants in 26 countries to ISO 9000 quality and ISO 14001 environmental standards.
The V12-powered Jaguar XJS is discontinued.
1996: Controversially redesigned "Ovoid" Ford Taurus and Mercury Sable are introduced. Exit ofChevrolet
Caprice leaves full size fleet market to Ford Crown Victoria.
1996: Ford increases investment stake in a troubled Mazda Corporation to a controlling interest of 33.4%.
1997: Full size 4-door SUV Ford Expedition introduced replace the Ford Bronco.Mercury
Mountaineer introduced. Redesigned Ford Escort and Mercury Tracer also introduced.
1997: Ford Aerostar production ends, along with Ford Probe, Ford Thunderbird, Mercury Cougar, Mazda
MX-6, and Ford Aspire, without immediate replacement.
1997: Sculpted redesign of Ford's top-selling F-150 pickup, overcomes controversy to set sales records.
1998: Lincoln Navigator creates domestic luxury SUV class. Mark VIII is in its final year, introduces HIDheadlamps.
1998: The Focus replaces the ageing Escort in Europe and quickly becomes one of the best-selling cars of
the segment. Is launched in North America for the 2000 model year.
1999: Ford acquires Volvo car division from Volvo. Bill Ford becomes Chairman of the Board,
replacing Jacques Nasser.
1999: A smaller sporty Mercury Cougar is reintroduced with front-wheel drive.
1999: Jaguar Racing Formula One team is formed, with Jackie Stewart at the helm.
1999: Ford splits its full-sized pick-ups into two distinct models (the first to do so) with the introduction of the
Ford F-Series Super Duty (F-250 - F-550). Ford Excursion (based on Super Duty) is introduced, and has the
distinction of being the largest SUV sold anywhere.
2000: Ford purchases Land Rover brand from BMW. Lincoln LS and Jaguar S-Type are introduced, along
with a refreshed Ford Taurus and Mercury Sable. The Lincoln LS becomes the 2000 Motor Trend Car of the
Year. Escort is discontinued in Europe. Third generation Transit platform is launched in Europe.
2001: Retro-styled Ford Thunderbird is introduced, based on the Lincoln LS/Jaguar S-TypeDEW98 platform,
and is also named Motor Trend Car of the Year for 2002.
2002: Fifth-generation Fiesta is launched by Ford of Europe.
2002: Lincoln Continental is discontinued after a roughly fifty year run. Jaguar X-Type is introduced (first
AWD Jaguar). Escort van production ends in Europe, marking the end of the Escort name after a 24-year
production run. Ford Transit Connect production begins at Ford-Otosan in Turkey.
2003: Ford Motor Company's 100th Anniversary. The Ford GT is released, along with limited Centennial
editions of some Ford vehicles.
2004: Jaguar Racing team sold to Red Bull GmbH. Ranger sales decline, losing the title as top-selling
compact pickup. The similar Mazda B-series pickup is withdrawn from the US market. TheFord Escape Hybrid,
the first gasoline-electric hybrid SUV, is introduced. Major redesign of the Ford F-150 and introduction of
the Lincoln Mark LT. Ford Freestar and Mercury Montereyminivans are introduced, replacing the Ford
Windstar and Mercury Villager.
2005: Ford Mustang redesigned with retro styling reminiscent of the 1960s models. The Ford Five
Hundred, Mercury Montego, and Ford Freestyle are introduced. Mercury Sable production ends, and Ford
Taurus production is limited to rental car, taxi, and other fleet sales.
2006: Ford Taurus ends production after a 20-year run. Ford Fusion, Mercury Milan, and Lincoln
Zephyr introduced. Ford announces major restructuring program The Way Forward, which includes plans to
shut unprofitable factories. Bill Ford steps down as CEO, remains as Executive Chairman. Alan Mulally elected
President and CEO. Ford Freestar and Mercury Monterey minivans are discontinued without replacement. Ford
mortgages all assets to raise $23.4 billion cash in secured credit lines, in order to finance product development
during restructuring through 2009.[42] According to J. D. Power and Associates quality surveys, the Ford
Fusion is rated higher in quality than its chief rivals, the Toyota Camry and Honda Accord.[citation needed]
2007: Ford sells Aston Martin to a British consortium led by Prodrive chairman David Richards,[49]and
announces plans to sell Jaguar and Land Rover.
2007: Ford reports losses of $12.7 billion for 2006. Ford Edge and Lincoln MKX introduced. The Lincoln
Zephyr is replaced with the Lincoln MKZ. A redesigned Ford Expedition (including the longer wheelbase "EL"
version) and Lincoln Navigator are introduced. Ford unveils the Ford Interceptor and Lincoln MKR concept cars,
and a pre-production Lincoln MKS is introduced. TheFord Five Hundred, Ford Freestyle and Mercury
Montego nameplates are dropped and replaced with the previously retired Ford Taurus, Ford Taurus X,
and Mercury Sable nameplates.[50]
2008: Ford sells Jaguar and Land Rover to Tata Motors.
2008: Ford of Europe launches sixth-generation Fiesta, based on the Verve concept car.[51] and announces
plans to sell Jaguar and Land Rover.
Sources:
General Timeline (through 2002): Ford Motor Company 2002 Annual Report
Production figures: U.S. Automobile Production Figures
2009 Ford announces that it will leverage more of its European line-up for the North American market. The
Turkish-built Transit Connect compact panel van is the first exponent of this strategy, followed by the sixthgeneration Ford Fiesta subcompact.
2010 Ford sells Volvo Cars to Geely Automobile. Third generation Ford Focus unveilied - as with the first
generation car, it will return to using a single platform for all markets - will be released in North America as a
2012 model.
2011: Mercury production ends; the last vehicle is a Grand Marquis. Lincoln Town Car is discontinued. Ford
Focus Electric unveiled. Ford announces that they will sell 8 million vehicles globally by 2015.
2011: Ford Ranger discontinued for North America; redesigned global version launched.
2012: Fourth generation Mondeo/Fusion previewed at the Detroit Motor Show, thus reuniting Ford's mid-size
platform for Europe and North America for the first time since the CDW27 1st gen
Mondeo/Contour/Mystique of 1994. Ford Crown Victoria, sold only for export in 2012, is discontinued.
2013: Fourth generation Transit/Tourneo launched, along with the second generation Transit Connect and
the refreshed Fiesta is revealed.
2014: The Ford Mustang celebrates 50 years of production with the launch of its sixth generation. The 2015
F-150 is launched, featuring an aluminum-intensive body design.
Criticisms
Throughout its history, the company has faced a wide range of criticisms. Some have accused the
early Fordist model of production of being exploitative, and Ford has been criticized as being willing to
collaborate with dictatorships or hire mobs to intimidate union leaders and increase their profits through
unethical means.
Ford refused to allow collective bargaining until 1941, with the Ford Service Department being set up as an
internal security, intimidation, and espionage unit within the company, and quickly gained a reputation of using
violence against union organizers and sympathizers.[52][53]
Ford was also criticized for tread separation and tire disintegration of many Firestone tires installed on Ford
Explorers, Mercury Mountaineers, and Mazda Navajos, which caused many crashes during the late 1990s and
early 2000s (decade). It is estimated that over 250 deaths and more than 3,000 serious injuries resulted from
these failures. Although Firestone received most of the blame, some blame fell on Ford, which advised
customers to under-inflate the tires in order to reduce the risk of vehicle rollovers.
Alleged Nazi collaboration
Other accusations were that the company collaborated with the German Nazi regime. Actually all the Ford
facilities in Nazi Germany were under the full control and financing of the German government. The profits were
kept in Germany. In 1943 the Company wrote off all its holdings in Germany as a total loss, and never reclaimed
them after the war.[54] The German Ford company used slave labor inCologne between 1941 and 1945 and
produced military vehicles such as trucks, planes, and ships. Many of these allegations were made in a series of
United States lawsuits in 1998. The lawsuit was dismissed in 1999 because the judge concluded "the
issues...concerned international treaties between nations and foreign policy and were thus in the realm of the
executive branch."[55][56]
Defenders of the company argue that the Ford German division, Fordwerke, had been taken over by the Nazi
government after it rose to power, claiming that it was not under the company's control. Although Ford's initial
motivations were anti-war, the plants in Allied countries were heavily involved in the Allied war effort after the
outbreak of war.[56]
Argentine "Dirty War
Ford's Argentine subsidiary was accused of collaborating with the Argentine 1976–1983 military dictatorship,
actively helping in the political repression of intellectuals and dissidents that was pursued by said government.
No result was proven and the company denied the allegations.
In a lawsuit initiated in 1996 by relatives of some of the estimated 600 Spanish citizens who disappeared in
Argentina during the "Dirty War", evidence was presented to support the allegation that much of this repression
was directed by Ford and the other major industrial firms. According to a 5,000-page report, Ford executives
drew up lists of "subversive" workers and handed them over to the military task-forces which were allowed to
operate within the factories. These groups allegedly kidnapped, tortured and murdered workers—at times
allegedly within the plants themselves. The company denied the allegations.
In a second trial, a report brought by the CTA, and the testimonies of former Ford workers themselves, claimed
that the company's Argentine factory was used between 1976 and 1978 as a detention center, and that
management allowed the military to set up its own bunker inside the plant. The company denied the allegations.
[57][58][59]
Ford Pinto
In September 1971 the Ford Motor Company launched the Pinto for the North American market. Through early
production of this model it emerged that design flaws could result in fuel tank explosions when the vehicle was
subject to a rear-end collision. Some sources even allege this safety data was available to Ford prior to
production, but was ignored for economic reasons.[60] Either way, a major scandal followed with the leaking to
San Francisco magazine Mother Jones of the notorious "Ford Pinto Memo", an internal Ford cost-benefit
analysis showing that the cost of implementing design changes to the subcompact's fuel system was greater
than the economic cost of the burn injuries and deaths that could be prevented by doing so. Subsequently some
have played down[61] the importance of this case, as Pinto explosion fatality estimates range widely from 27 to
900,[60] with the lowest figures being allegedly in line with comparable fatality statistics for other car models.
In the related Ford Pinto product liability case Grimshaw v. Ford Motor Co., 119 Cal. App. 3d 757 (4th Dist.
1981) the California Court of Appeal for the Fourth Appellate District reviewed Ford's conduct and upheld
compensatory damages of $2.5 million and punitive damages of $3.5 million against Ford. Of the two plaintiffs,
one was killed in the collision that caused her Pinto to explode, and her passenger, 13-year-old Richard
Grimshaw, was badly burned and scarred for life.
Henry Ford (ca. 1919)
Ford Motor Company is an American automaker and the
largest automaker based on worldwide vehicle sales.
in Dearborn, Michigan, a suburb of Detroit, the automaker
by Henry Ford, on June 16, 1903. Ford Motor Company
to become one of the largest and most profitable
the world, as well as being one of the few to survive
Depression. The largest family-controlled company in the
Ford Motor Company has been in continuous family
over 110 years. Ford now encompasses two brands: Ford
Ford once owned 5 other luxury brands, they were Volvo,
Jaguar, Aston Martin and Mercury. But over time those
sold to other companies and Mercury was discontinued.
world's fifth
Based
was founded
would go on
companies in
the Great
world, the
control for
and Lincoln.
Land Rover,
brands were
The Founding of Ford Motor
Company
Henry Ford's initial foray into automobile manufacturing was the Detroit Automobile Company, founded in 1899. The
company floundered, and in 1901 was reorganized as the Henry Ford Company. In March 1902, after falling out
with his financial backers, Ford left the company with the rights to his name and 900 dollars.
Henry Ford himself turned to an acquaintance, coal dealer Alexander Y. Malcomson, to help finance another
automobile company. Malcomson put up the money to start the partnership "Ford and Malcomson" and the pair
designed a car and began ordering parts. However, by February 1903, Ford and Malcomson had gone through
more money than expected, and the manufacturing firm ofJohn and Horace Dodge, who had made parts for Ford
and Malcomson, was demanding payment.[1]Malcomson, constrained by his coal business demands, turned to his
uncle John S. Gray, the president of the German-American Savings Bank and a good friend. Malcomson proposed
incorporating Ford and Malcomson to bring in new investors, and wanted Gray to join the company, thinking that
Gray's name would attract other investors. Gray was not interested at first, but Malcomson promised he could
withdraw his share at any time, so Gray reluctantly agreed. On the strength of Gray's name, Malcomson recruited
other business acquaintances to invest, including local merchants Albert Strelow and Vernon Fry, lawyers John
Anderson and Horace Rackham, Charles T. Bennett of the Daisy Air Rifle Company, and his own clerk James
Couzens.[1] Malcomson also convinced the Dodges to accept stock in lieu of payment.
On June 16, 1903, the Ford Motor Company was incorporated, with 12 investors owning a total of 1000 shares.
Ford and Malcomson together retained 51% of the new company in exchange for their earlier investments. When
the total stock ownership was tabulated, shares in the company were:Henry Ford (255 shares), Alexander Y.
Malcomson (255 shares), John S. Gray (105 shares), John W. Anderson (50 shares), Horace Rackham (50
shares), Horace E. Dodge (50 shares), John F. Dodge (50 shares), Charles T. Bennett (50 shares), Vernon C. Fry
(50 shares), Albert Strelow (50 shares), James Couzens (25 shares), and Charles J. Woodall (10 shares).[2]
At the first stockholder meeting on June 18, Gray was elected president, Ford vice-president, and James Couzens
secretary.[1] Despite Gray's misgivings, the Ford Motor Company was immediately profitable, with profits by October
1, 1903 of almost $37,000. A dividend of 10% was paid that October, an additional dividend of 20% at the beginning
of 1904, and another 68% in June 1904. Two dividends of 100% each in June and July 1905 brought the total
investor profits to nearly 300% in just over 2 years; 1905 total profits were almost $300,000. [1]
However, there were internal frictions in the company that Gray was nominally in charge of. Most of the investors,
both Malcomson and Gray included, had their own businesses to attend to; only Ford and Couzens worked full-time
at the company. The issue came to a head when the principal stockholders, Ford and Malcomson, quarreled over
the future direction of the company. Gray sided with Ford. By early 1906 Malcomson was effectively frozen out of
the Ford Motor Company, and in May sold his shares to Henry Ford.[1] John S. Gray died unexpectedly in 1906, and
his position as Ford's president was taken over by Ford himself soon afterward. [1]
Ford was subject to lawsuits or threats there of from the Association of Licensed Automobile Manufacturers early in
its history. The Association claimed patent rights to most gasoline-powered automobiles. After several years of legal
wrangling, the Association eventually dropped its case against Ford in 1911.
Early developments and assembly line[edit]
The first Ford factory on Bagley Street, Detroit.
During its early years, the company produced a range of vehicles designated, chronologically, from the Ford Model
A (1903) to the Model K and Model S (Ford's last right-hand steering model) [3] of 1907.[4] The K, Ford's first sixcylinder model, was known as "the gentleman's roadster" and "the silent cyclone", and sold for US$2800; [4] by
contrast, around that time, the Enger 40 was priced at US$2000,[5] the Colt Runabout US$1500,[6] the highvolume OldsmobileRunabout[7] US$650, Western's Gale Model A US$500,[8]and the Success hit the amazingly low
US$250.[7]
The first Ford assembly plant inLa Boca, Buenos Aires, c. 1921.
In 1908, Henry Ford introduced the Model T. Earlier models were produced at a rate of only a few a day at a rented
factory on Mack Avenue in Detroit, Michigan, with groups of two or three men working on each car from components
made to order by other companies (what would come to be called an "assembled car"). The first Model Ts were built
at the Piquette Road Manufacturing Plant, the first company-owned factory. In its first full year of production, 1909,
about 18,000 Model Ts were built. As demand for the car grew, the company moved production to the much
larger Highland Park Plant, and in 1911, the first year of operation there, 69,762[9] Model Ts were produced, with
170,211 in 1912.[10] By 1913, the company had developed all of the basic techniques of the assembly line and mass
production. Ford introduced the world's first moving assembly line that year, which reduced chassis assembly time
from 12 1⁄2 hours in October to 2 hours 40 minutes (and ultimately 1 hour 33 minutes), [10] and boosted annual output
to 202,667 units that year[10] After a Ford ad promised profit-sharing if sales hit 300,000 between August 1914 and
August 1915,[11] sales in 1914 reached 308,162, and 501,462 in 1915; [10] by 1920, production would exceed one
million a year.
These innovations were hard on employees, and turnover of workers was very high, while increased productivity
actually reduced labor demand.[10] Turnover meant delays and extra costs of training, and use of slow workers. In
January 1914, Ford solved the employee turnover problem by doubling pay to $5 a day [12] cutting shifts from nine
hours to an eight hour day for a 5 day work week (which also increased sales; a line worker could buy a T with less
than four months' pay),[10] and instituting hiring practices that identified the best workers, including disabled people
considered unemployable by other firms.[10] Employee turnover plunged, productivity soared, and with it, the
cost per vehicle plummeted. Ford cut prices again and again and invented the system of franchised dealers who
were loyal to his brand name. Wall Street had criticized Ford's generous labor practices when he began paying
workers enough to buy the products they made.[13]
Ford assembly line (1913).
While Ford attained international status in 1904 with the founding of Ford of Canada, it was in 1911 the company
began to rapidly expand overseas, with the opening of assembly plants in Ireland (1917), England and France,
followed by Denmark (1923), Germany (1925), Austria (1925), [10] and Argentina (1925),[14] and also in South Africa
(1924)[15] and Australia (1925) as subsidiaries of Ford of Canada due to preferentialtariff rules
for Commonwealth countries. By the end of 1919, Ford was producing 50 percent of all cars in the United States,
and 40% of all British ones;[10] by 1920, half of all cars in the U.S. were Model Ts. (The low price also killed
the cyclecar in the U.S.)[10] The assembly line transformed the industry; soon, companies without it risked
bankruptcy. Of 200 U.S. car makers in 1920, only 17 were left in 1940. [10]
Ford 1916 Model T Field Ambulance. This canvas on wood frame model was used extensively by the British & French as
well as the American Expeditionary Force in World War I. Its top speed was 45 mph (72 km/h), produced by a 4-cylinder
water-cooled engine
It also transformed technology. Henry Ford is reported to have said, "Any customer can have a car painted any color
that he wants so long as it is black." Before the assembly line, Ts had been available in a variety of colors, including
red, blue, and green, but not black. Now, paint had become a production bottleneck; onlyJapan Black dried quickly
enough, and not until Ducolacquer appeared in 1926 would other colors reappear on the T.[10]
In 1915, Henry Ford went on a peace mission to Europe aboard a ship, joining other pacifists in efforts to stop World
War I. This led to an increase in his personal popularity. Ford would subsequently go on to support the war effort
with the Model T becoming the underpinnings for Allied military vehicles, like the Ford 3-Ton M1918 tank, and the
1916 ambulance.
History of the blue oval
The Ford oval trademark was first introduced in 1907. The 1928 Model A was the first vehicle to sport an early
version of the Ford script in the oval badge. The dark blue background of the oval is known to designers
as Pantone 294C. The Ford script is credited to Childe Harold Wills, Ford's first chief engineer and designer. He
created a script in 1903 based on the one he used for his business cards. Today, the oval has evolved into a perfect
oval with a width-to-height ratio of 8:3. The current Centennial Oval was introduced on June 17, 2003 as part of the
100th anniversary of Ford Motor Company.
Post-World War I developments
In 1919, Edsel Ford succeeded his father as president of the company, although Henry still kept a hand in
management. While prices were kept low through highly efficient engineering, the company used an old-fashioned
personalized management system, and neglected consumer demand for improved vehicles. So, while four-wheel
brakes were invented by Arrol-Johnson (and were used on the 1909 Argyll),[10] they did not appear on a Ford until
1927. (To be fair, Chevrolet waited until 1928.)[10] Ford steadily lost market share to GM and Chrysler, as these and
other domestic and foreign competitors began offering fresher automobiles with more innovative features and luxury
options. GM had a range of models from relatively cheap to luxury, tapping all price points in the spectrum, while
less wealthy people purchased used Model Ts. The competitors also opened up new markets by extending credit for
purchases, so consumers could buy these expensive automobiles with monthly payments. Ford initially resisted this
approach, insisting such debts would ultimately hurt the consumer and the general economy. Ford eventually
relented and started offering the same terms in December 1927, when Ford unveiled the redesigned Model A, and
retired the Model T after producing 15 million units.
Lincoln Motor Company
On February 4, 1922 Ford expanded its reach into the luxury auto market through its acquisition of the Lincoln Motor
Company from Henry M. Leland who had founded and named the company in 1917 for Abraham Lincoln whom
Henry Leland admired. The Mercury division was established later in 1938 to serve the mid-price auto market
between the Ford and Lincoln brands.
Ford Motor Company had built the largest museum of American History in 1928, The Henry Ford. Henry Ford would
go on to acquire Abraham Lincoln's chair, which he was assassinated in, from the owners of Ford's Theatre.
Abraham Lincoln's chair would be displayed along with John F. Kennedy's Lincoln limousine in the Henry Ford
Museum & Greenfield Village in Dearborn, known today as The Henry Ford. Kennedy's limousine was leased to the
White House by Ford.
Fordlândia
Main article: Fordlândia
In 1928, Henry Ford negotiated a deal with the government of Brazil for a plot of land in the Amazon Rainforest.
There, Ford attempted to cultivate rubber for use in the company's automobiles. After considerable labor unrest,
social experimentation, and a failure to produce rubber, and after the invention of synthetic rubber, the settlement
was sold in 1945 and abandoned.
The Great Depression
During the great depression, Ford in common with other manufacturers, responded to the collapse in motor sales by
reducing the scale of their operations and laying off workers. By 1932, theunemployment rate in Detroit had risen to
30%[18] with thousands of families facing real hardship. Although Ford did assist a small number of distressed
families with loans and parcels of land to work, the majority of the thousands of unskilled workers who were laid off
were left to cope on their own. However, Henry Ford angered many by making public statements that the
unemployed should do more to find work for themselves.
This led to Detroit's Unemployed Council organizing the Ford Hunger March. On March 7, 1932 some 3,000 - 5,000
unemployed workers assembled in West Detroit to march on Ford's River Rouge plant to deliver a petition
demanding more support. As the march moved up Miller Road and approached Gate 3 the protest turned ugly. The
police fired tear gas into the crowd and fire trucks were used to soak the protesters with icy water. When the
protesters responded by throwing rocks, the violence escalated rapidly and culminated in the police and plant
security guards firing live rounds through the gates of the plant at the unarmed protesters. Four men were killed
outright and a fifth died later in hospital. Up to 60 more were seriously injured. [19]
Soviet Fords and the Gorki
In May 1929 the Soviet Union signed an agreement with the Ford Motor Company. Under its terms, the Soviets
agreed to purchase $13 million worth of automobiles and parts, while Ford agreed to give technical assistance until
1938 to construct an integrated automobile-manufacturing plant at Nizhny Novgorod. Many American engineers and
skilled auto workers moved to the Soviet Union to work on the plant and its production lines, which was
named Gorkovsky Avtomobilny Zavod (GAZ), or Gorki Automotive Plant in 1932. A few American workers stayed on
after the plant's completion, and eventually became victims of Stalin's Great Terror, either shot[20] or exiled to
Soviet gulags.[21] In 1933, the Soviets completed construction on a production line for the Ford Model-A passenger
car, called the GAZ-A, and a light truck, the GAZ-AA. Both these Ford models were immediately adopted for military
use. By the late 1930s production at Gorki was 80,000-90,000 "Russian Ford" vehicles per year. With its original
Ford-designed vehicles supplemented by imports and domestic copies of imported equipment, the Gorki operations
eventually produced a range of automobiles, trucks, and military vehicles.
World War II
Era of neutrality
During the first 27 months of World War II, when the U.S. was neutral (to December 1941), Ford was hesitant to
participate in the Allied military effort. Ford insisted that peaceful trade was the best way to avoid war. The Ford
subsidiary in Germany had a subsidiary in Germany. In 1936, a Ford executive visiting Germany was informed by a
Nazi official that Ford's Cologne plant manager was a Jew (he had one grandparent who was Jewish), prompting
discussions at Ford offices in both Germany and the U.S. Heinrich Albert, Ford's Germany-U.S. liaison, insisted that
the manager be fired. The manager was replaced by Robert Schmidt, who would play an important role in
Germany's war effort.
Henry Ford had said war was a waste of time, and did not want to profit from it. [13][23] He was concerned the Nazis
during the 1930s might nationalize Ford factories in Germany. Ford nevertheless established a close collaboration
with Germany's Nazi government before the war—so close, in fact, that Ford received, in July 1938, the Grand
Cross of the German Eagle medal from the regime.[24]Ford's outspoken anti-semitism, including his newspaper, The
Dearborn Independent, which published The Protocols of the Elders of Zion also lent credence to the view that he
sympathized with the Nazis.[25][26] In the spring of 1939, the Nazi government assumed day-to-day control of many
foreign-owned factories in Germany. However, Ford's Dearborn headquarters continued to maintain a 52%
ownership over its German factories but with no voice or control or financial reward. Ford factories contributed
significantly to the buildup of Germany's armed forces. Ford negotiated a resource-sharing agreement that allowed
the German military to access scarce supplies, particularly rubber. During this same period, Ford was hesitant to
participate in the Allied military effort.[27] In June 1940, after France had fallen to the Wehrmacht, Henry Ford
personally vetoed a plan to build airplane engines for the Allies.[28]
Wartime: Arsenal of Democracy
The company enthusiatically supported the war effort after Pearl Harbor, making it a major component of the
"Arsenal of Democracy" that President Roosevelt had promised would mobilize industrial resources to win the war.
Henry, aged 76 and early senile, played a minor role even though he had 55% ownership of the company stock. His
son Edsell Ford, the company president and owner of 42% of the stock, had never been a pacifist like his father and
now made all the decisions.[29]
The company produced 390,000 tanks and trucks, 27,000 engines, 270,000 Jeeps, over 8000 B-24 Liberators, and
hundreds of thousands of parts, gun mounts, and machine tools for the war effort. [30]It ranked third among
corporations in the value of wartime production contracts.[31] The company
The Company's new Willow Run factory was designed for the production of B-24 bombers although the production
line was initially characterized by bungling and incompetence.[32] Ford's efforts benefited the Allies as well as the
Axis. After Bantam invented the Jeep, the US War Department handed production over to Ford and Willys.
The Treasury Department investigated Ford for alleged collaboration with German-run Ford plants in occupied
France, but did not find conclusive evidence. After the war, Schmidt and other Nazi-era managers kept their jobs
with Ford's German division.[28] In the United Kingdom, Ford built a new factory in Trafford Park, Manchester during
WWII where over 34,000 Rolls-Royce Merlin aero engines were completed by a workforce trained from scratch.
Post-World War II developments[edit]
A Ford Taurus, one of Ford's best-selling models. In its 21-year lifespan, it sold 7,000,000 units. It is the 4th best-selling
car in Ford's history, behind only the F-150, theModel T, and the Mustang.
In 1943, a despondent Edsel Ford died of stomach cancer. Henry decided then to resume direct control of the
company, but this proved a very poor idea as he was 78 years old and suffering from heart problems and
atherosclerosis. His mental state was also questionable, and there was a very real possibility that the company
would collapse if he died or became incapacitated. The Roosevelt Administration had a contingency plan in place to
nationalize Ford if need be so that they wouldn't lose vital military production.
At this point, Ford's wife and daughter-in-law intervened and demanded that he turn control over to his
grandson[33] Henry Ford II. They threatened to sell off their stock (amounting to half the company's total shares) if he
refused. Henry was infuriated, but there was nothing he could do, and so he gave in. When Henry II, who came to
be called affectionately "Hank the Deuce," assumed command, the Company was losing US$9 million a month and
in financial chaos.[34]
Henry Ford died of a brain hemorrhage on April 7, 1947. Mourners passed by at a rate of 5,000 each hour at the
public viewing on Wednesday of that week at Greenfield Village in Dearborn. The funeral service for Henry Ford was
held at the Cathedral Church of St. Paul in Detroit on Thursday April 9, 1947.[35] At the funeral service, 20,000 people
stood outside St. Paul's Cathedral in the rain with 600 inside, [35] while the funeral had attracted national attention as
an estimated seven million people had mourned his death (according to A&E Biography).
Ernest R. Breech, head of Bendix Aviation,[34] was hired in 1946, and became first Executive Vice President, then
Board Chairman in 1955. Henry II served as President from 1945 to 1960, and as Chairman and CEO from 1960 to
1980. In 1956, Ford became a publicly traded corporation. The Ford family maintains about 40% controlling interest
in the company, through a series of Special Class B preferred stocks. Also in 1956, following its emphasis on safety
improvements in new models,Motor Trend awarded the company its "Car of the Year" award.[36]
In 1946, Robert McNamara joined Ford as manager of planning and financial analysis. He advanced rapidly through
a series of top-level management positions to the presidency of Ford on 9 November 1960, one day after John F.
Kennedy's election. The first company head selected outside the Ford family, McNamara had gained the favor of
Henry Ford II, and had aided in Ford's expansion and success in the postwar period. Less than five weeks after
becoming president at Ford, he accepted Kennedy's invitation to join his cabinet, as Secretary of Defense.
Ford introduced the iconic Thunderbird in 1955 and the Edsel brand automobile line in 1958, following a US$250
million research and marketing campaign, which had failed to ask questions crucial for themarque's success.[37] The
Edsel was cancelled after less than 27 months in the marketplace in November 1960. The corporation bounced
back from the failure of the Edsel by introducing its compact Falcon in 1960 and the Mustang in 1964. By 1967,
Ford of Europe was established.
Lee Iacocca was involved with the design of several successful Ford automobiles, most notably the Mustang. He
was also the "moving force," as one court put it, behind the notorious Pinto. He promoted other ideas which did not
reach the marketplace as Ford products. Eventually, he became the president of the company, but clashed
with "Bunkie" Knudsen as well as Henry II and ultimately, on July 13, 1978, he was fired by Henry Ford II, despite
the company's having earned a $2.2 billion profit for the year. Chrysler soon hired Iacocca, which he returned to
profitability during the 1980s.
In 1942, Elsa Iwanowa, who was then 16-years-old and a resident of Rostok in the Soviet Union, and many other
citizens of countries that were occupied by the Wehrmacht were transported in cattle cars to the western part of
Germany, where they were displayed to visiting businessmen. From there Iwanowa and others were forced to
become slave laborers for Ford's German subsidiary, which had become separated from the Dearborn headquarters
as a result of the U.S. declaration of war. "On March 4, 1998, fifty-three years after she was liberated from the
German Ford plant, Elsa Iwanowa demanded justice, filing a class-action lawsuit in U.S. District Court against the
Ford Motor Company."[38] In court, Ford admitted that Iwanowa and many others like her were "forced to endure a
sad and terrible experience"; Ford, however, moved to have the suit dismissed on the grounds that it would be best
redressed on "a nation-to-nation, government-to-government" basis. [39] In 1999, the court dismissed Iwanowa's suit.
At about the same time, a number of German companies, including GM subsidiary Opel, agreed to contribute $5.1
billion to a fund to compensate the surviving slave laborers.[39] After being the subject of much adverse publicity,
Ford, in March 2000, agreed to contribute $13 million to the compensation fund.
In 1979 Philip Caldwell became Chairman, succeeded in 1985 by Donald Petersen. Harold Polingserved as
Chairman and CEO from 1990 to 1993. Alex Trotman was Chairman and CEO from 1993 to 1998, and Jacques
Nasser served at the helm from 1999 to 2001. Henry Ford's great-grandson,William Clay Ford Jr., is the company's
current Chairman of the Board and was CEO until September 5, 2006, when he named Alan Mulally from Boeing as
his successor.
Current Ford CEO Alan Mulally, who was hired by William Clay Ford, Jr. to restructure the company.
Recapitalization, restructuring
Cash hoarding
In April 2000 the Ford Motor Company announced its recapitalization plan distributing about half of its $24
billioncash hoard, and paying a $10 billion special dividend, and the issuance of additional stock to the Ford family,
to provide more flexibility for the Ford family in terms of estate planning. In 2000 Ford's cash hoard was the largest
of any company in the world.[40]
As of 2006, the Ford family owned about 5% of Company shares outstanding. [41]
In December 2006, Ford announced it would mortgage all assets, including factories and equipment, office property,
intellectual property (patents and blue oval trademarks), and its stakes in subsidiaries, to raise $23.4 billion in cash.
The secured credit line is expected to finance product development during the restructuring through 2009, as the
company expects to burn through $17 billion in cash before turning a profit. The action was unprecedented in the
company's 103 year history.[42][43] At the end of 2012 Ford Motor Company's cash balance was $22.9 billion and was
listed as ten on the list of U.S. non-financial corporation sector's top ten cash kings by Moody's Investors Service in
their March 2013 annual report on Global Credit Research.[44][45][46]
General corporate timeline[edit]
Henry Ford and the Quadricycle
1896 Quadricycle at The Henry Ford Museum in Dearborn, MI
1903 Model A
Ford Model T ad - ca 1908
1930 Model A Fordor
The Ford Australia plant under construction in Geelong, Victoria, Australia, 1926
Mustang Serial #1 - The First Mustang
1896: Henry Ford builds his first vehicle – the Quadricycle – on a buggy frame with 4 bicycle wheels.
1898: Ford creates the Detroit Automobile Company; two and a half years later it is dissolved.
1901: Ford wins high-profile car race in Grosse Pointe, Mi
1901: The Henry Ford Company is incorporated but discontinued the following year only to be reinvigorated
byHenry Leland as the Cadillac Motor Company
1903: Ford Motor Company incorporated with 11 original investors. The Model A "Fordmobile" is introduced 1,708 cars are produced.
1904: Ford Motor Company of Canada incorporated inWalkerville, Ontario
1904: Henry Ford teams up with Harvey Firestone of Firestone Tires
1906: Ford becomes the top selling brand in the US, with 8,729 cars produced.
1908: Model T is introduced. 15 million are produced through 1927.
1909: Ford Motor Company (England) established, otherwise referred to as Ford of Britain
1911: Ford opens first factory outside North America – in Manchester, England.
1913: The moving assembly line is introduced at Highland Park assembly plant, making Model T production
8 times faster.
1913: Ford opens second world branch in Argentina as Ford Motor Argentina
1914: Ford introduces $5 ($118, adjusted for inflation)wage for a workday – double the existing rate.
1918: Construction of the Rouge assembly complex begins.
1919: Edsel Ford succeeds Henry as Company President.
1920: Ford temporarily shuts down due to low sales. After removing unnecessary administrative expenses
and waste, Ford reopens.[47]
1921: Ford production exceeds 1 million cars per year, nearly 10 times more than Chevrolet - the next
biggest selling brand.
1922: Ford purchases Lincoln Motor Company for US $8 million ($113 million, adjusted for inflation).
1925: Ford introduces Ford Tri-Motor airplane for airline services, and a factory was built in Yokohama,
Japan in February.
1926: Ford Australia is founded in Geelong, Victoria, Australia,
1927: Model T production ends, Ford introduces the next generation Model A, from the Rouge complex.
1929: Ford regains production crown, with annual production peaking at 1.5 million cars
1931: Ford and Chevy brands begin to alternate as U.S. production leaders, in battle for automobile sales
during the Great Depression.
1932: Ford introduces the one-piece cast V8 block. It makes the Model 18 the first low-priced V8-powered
car. In London Royal Albert Hall the Model 19, or as it was marketed Model Y, are introduced February 19. The
first of a long line of small European Fords.[48]
1936: Lincoln-Zephyr is introduced.
1938: The German consul at Cleveland awards Henry Ford the Grand Cross of the German Eagle, the
highest medal Nazi Germany could bestow on a foreigner. There is some evidence Ford had Nazi sympathies,
at least before World War II. He may have financed some Nazi activities, and was active in anti-semitic efforts.
1939: Mercury division is formed to fill the gap between economical Fords and luxury Lincolns. Operated as
a division at Ford until 1945
1941: The Lincoln Continental is introduced. Ford begins building general-purpose "jeep" for the military.
First labor agreement with UAW-CIO covers North American employees.
1942: Production of civilian vehicles halted, diverting factory capacity to producing B-24 Liberatorbombers,
tanks, and other products for the war effort.
1943: Edsel Ford dies of cancer at the age of 49, Henry Ford resumes presidency.
1945: Henry Ford II becomes president.
1945: Lincoln and Mercury are combined into a single division.
1946: Ford sues the allies for damages done to his factories in Dresden during the infamous bombing, and
wins compensation.[citation needed]
1946: The Whiz Kids, former US Army Air Force officers, are hired to revitalize the company. Automobile
production resumes.
1947: Henry Ford dies of cerebral hemorrhage at the age of 83; Henry Ford II becomes new chairman.
1948: F-1 Truck introduced. Lincoln Continental is introduced.
1949: The '49 Ford introduces all-new post-war era cars. The "Woody" station wagon is introduced.
1953 Ford Canada Headquarters and Car Plant opens in Oakville, Ontario
1954: Thunderbird introduced as a personal luxury car with a V8. Ford begins crash testing, and
opens Arizona Proving Grounds.
1956: $10,000 ($87.8 thousand, adjusted for inflation) Lincoln Continental Mark II introduced. Ford goes
public with common stock shares. Ford's emphasis on safety with is Lifeguard option package, including seat
belts and dash padding, earns the company Motor Trend's "Car of the Year" award.[36]
1957: Ford launches the Edsel brand of automobiles in the fall of 1957 as 1958 models. Ford is top selling
brand, with 1.68 million automobiles produced.
1959: Ford Credit Corporation formed to provide automotive financing.
1959: Ford withdraws the 1960 model Edsels from the market in November 1959.
1960: Ford Galaxie and compact Ford Falcon introduced.
1960: Robert McNamara is appointed President of Ford by Chairman Henry Ford II.
1960: Ford President Robert McNamara appointed Secretary of Defense by President elect John F.
Kennedy.
1962: Ford of Britain launches first generation of the Ford Cortina. It would dominate the mid-size family
segment in Europe for the next 20 years.
1964: Ford Mustang the car that started the "pony car" class, Ford GT40 challenges Ferrari and Porsche at
LeMans.
1965: Ford brand US sales exceed 2 million units. Ford of Germany and Ford of Britain jointly launch the
first generation Ford Transit range of panel vans.
1965: Ford Galaxie 500 LTD debuts, advertised as quieter than a Rolls Royce
1966: Ford Bronco sport utility vehicle introduced.
1967: Ford of Europe is established by merging the operations of Ford of Britain and Ford of Germany.
1967: Ford opens Talbotville car plant in St. Thomas, Ontario
1968: Lincoln Mark Series is introduced as the company's first personal luxury car to compete with
the Cadillac Eldorado. Ford of Europe launches first generation Ford Escort.
1970: Ford Maverick are introduced. Ford establishes Asia Pacific operations. Ford of Europe launches the
third generation Cortina/Taunus - merging the two previously independent product lines under a common
platform.
1972: Retractable seat belts introduced.
1973: Ford US brand sales reaches an all time high of 2.35 million vehicles produced.
1974: Ford Mustang II debuts as a smaller more economical pony car.
1975: Ford Granada and Mercury Monarch introduced, Maverick continues
1975: Ford of Europe launches the second generation Escort.
1976: Ford of Europe launches the first generation Ford Fiesta
1977: Ford of Europe launches the fourth generation Cortina/Taunus
1978: Ford Motor Company celebrates 75th anniversary. Continental Mark V and Thunderbird available with
"Diamond Jubilee Edition" packages. Fiesta is imported from Europe as an entry into the economy segment.
1979: Ford acquires 25% stake in Mazda. Ford becomes the final American automaker to
introduce downsized full-size cars with radically smaller Panther platform.
1980: Ford of Europe launches the third generation Escort, it is voted European Car of the Yearfor 1981.
1981: The Lincoln Town Car and Ford Escort are introduced. Fiesta discontinued in North America.
1982: Ford of Europe introduce the Ford Sierra, ending production of the stalwart Cortina/Taunus after 20
years and four generations.
1983: Ford launches a redesigned "aero design" Thunderbird. In a model shift, the Granada is discontinued
in North America, replaced by a facelifted model re-branded as the LTD. All full-size models are now LTD Crown
Victorias/Country Squires.
1984: Ford Tempo and Mercury Topaz are introduced, replacing the Ford Fairmont/Mercury Zephyr.
1985: Ford Scorpio launched by Ford of Europe. Replaces Granada as its full-size offering and is
voted European Car Of The Year for 1986, Ford's second COTY win in the 1980s. Merkur brand launched to
market the Sierra and Scorpio models in North America.
1985: Purchases First Nationwide Financial Corporation, a savings and loan. Sold in 1994 after large losses.
1985: Ford Taurus introduced with dramatic "aero design" styling, along with Ford Aerostarminivan.
1986: Ford of Europe launches the second generation of the Transit van family. Ford Capriceases
production.
1987: Ford acquires Aston Martin Lagonda and Hertz Rent-a-Car.
1987: Henry Ford II dies at age 70.
1988: Ford Festiva, built in Korea by Kia is introduced.
1989: Ford acquires Jaguar. Mazda MX-5 Miata is unveiled. Third generation Fiesta is launched in Europe and establishes itself as the fastest selling generation of Fiesta to date - 1 million units in less than two years.
1989: Acquires Associates First Capital Corporation, a finance company. In 1998, it is spun-off to Ford
shareholders.
1990: Ford Aerostar is Motor Trend's Truck Of The Year, while Lincoln Town Car is Motor Trend's Car Of The
Year.
1990: Merkur brand of automobiles production discontinued. Ford of Europe launches fourth generation
Escort.
1991: Ford Explorer is introduced, turning the traditionally rural and recreational SUV into a popular family
vehicle.
1992: Ford Aerostar and Ford Taurus/Mercury Sable are redesigned; Ford Taurus becomes America's top
selling car, displacing the Honda Accord. Ford of Europe announces first generation Ford Mondeo, the first
product of the global CDW27 platform
1992: Redesigned Ford Crown Victoria and Mercury Grand Marquis launched, the first new full-size sedans
in 13 years; Ford Country Squire/Mercury Colony Park station wagon discontinued.
1993: Ford launches Mondeo in Europe, and announces its North American derivatives - the Ford
Contour and Mercury Mystique
1994: Ford Tempo and Mercury Topaz are discontinued - replaced by Ford Contour and Mercury Mystique*
1994: Ford Aspire replaces Festiva, becoming the first car in its class to offer standard dual air bags and
optional 4-wheel ABS.
1995: Ford's first front-wheel-drive V8 sedan is introduced, the 4.6L V8-powered Lincoln Continental. Ford of
Europe launches fourth-generation Fiesta.
1995: New front-wheel-drive Ford Windstar minivan is introduced. Aerostar remains in production.
Redesigned Ford Explorer released, now with standard safety features such as dual air bags, 4-wheel ABS as
standard equipment.
1996: Ford certifies all plants in 26 countries to ISO 9000 quality and ISO 14001 environmental standards.
The V12-powered Jaguar XJS is discontinued.
1996: Controversially redesigned "Ovoid" Ford Taurus and Mercury Sable are introduced. Exit ofChevrolet
Caprice leaves full size fleet market to Ford Crown Victoria.
1996: Ford increases investment stake in a troubled Mazda Corporation to a controlling interest of 33.4%.
1997: Full size 4-door SUV Ford Expedition introduced replace the Ford Bronco.Mercury
Mountaineer introduced. Redesigned Ford Escort and Mercury Tracer also introduced.
1997: Ford Aerostar production ends, along with Ford Probe, Ford Thunderbird, Mercury Cougar, Mazda
MX-6, and Ford Aspire, without immediate replacement.
1997: Sculpted redesign of Ford's top-selling F-150 pickup, overcomes controversy to set sales records.
1998: Lincoln Navigator creates domestic luxury SUV class. Mark VIII is in its final year, introduces HIDheadlamps.
1998: The Focus replaces the ageing Escort in Europe and quickly becomes one of the best-selling cars of
the segment. Is launched in North America for the 2000 model year.
1999: Ford acquires Volvo car division from Volvo. Bill Ford becomes Chairman of the Board,
replacing Jacques Nasser.
1999: A smaller sporty Mercury Cougar is reintroduced with front-wheel drive.
1999: Jaguar Racing Formula One team is formed, with Jackie Stewart at the helm.
1999: Ford splits its full-sized pick-ups into two distinct models (the first to do so) with the introduction of the
Ford F-Series Super Duty (F-250 - F-550). Ford Excursion (based on Super Duty) is introduced, and has the
distinction of being the largest SUV sold anywhere.
2000: Ford purchases Land Rover brand from BMW. Lincoln LS and Jaguar S-Type are introduced, along
with a refreshed Ford Taurus and Mercury Sable. The Lincoln LS becomes the 2000 Motor Trend Car of the
Year. Escort is discontinued in Europe. Third generation Transit platform is launched in Europe.
2001: Retro-styled Ford Thunderbird is introduced, based on the Lincoln LS/Jaguar S-TypeDEW98 platform,
and is also named Motor Trend Car of the Year for 2002.
2002: Fifth-generation Fiesta is launched by Ford of Europe.
2002: Lincoln Continental is discontinued after a roughly fifty year run. Jaguar X-Type is introduced (first
AWD Jaguar). Escort van production ends in Europe, marking the end of the Escort name after a 24-year
production run. Ford Transit Connect production begins at Ford-Otosan in Turkey.
2003: Ford Motor Company's 100th Anniversary. The Ford GT is released, along with limited Centennial
editions of some Ford vehicles.
2004: Jaguar Racing team sold to Red Bull GmbH. Ranger sales decline, losing the title as top-selling
compact pickup. The similar Mazda B-series pickup is withdrawn from the US market. TheFord Escape Hybrid,
the first gasoline-electric hybrid SUV, is introduced. Major redesign of the Ford F-150 and introduction of
the Lincoln Mark LT. Ford Freestar and Mercury Montereyminivans are introduced, replacing the Ford
Windstar and Mercury Villager.
2005: Ford Mustang redesigned with retro styling reminiscent of the 1960s models. The Ford Five
Hundred, Mercury Montego, and Ford Freestyle are introduced. Mercury Sable production ends, and Ford
Taurus production is limited to rental car, taxi, and other fleet sales.
2006: Ford Taurus ends production after a 20-year run. Ford Fusion, Mercury Milan, and Lincoln
Zephyr introduced. Ford announces major restructuring program The Way Forward, which includes plans to
shut unprofitable factories. Bill Ford steps down as CEO, remains as Executive Chairman. Alan Mulally elected
President and CEO. Ford Freestar and Mercury Monterey minivans are discontinued without replacement. Ford
mortgages all assets to raise $23.4 billion cash in secured credit lines, in order to finance product development
during restructuring through 2009.[42] According to J. D. Power and Associates quality surveys, the Ford
Fusion is rated higher in quality than its chief rivals, the Toyota Camry and Honda Accord.[citation needed]
2007: Ford sells Aston Martin to a British consortium led by Prodrive chairman David Richards,[49]and
announces plans to sell Jaguar and Land Rover.
2007: Ford reports losses of $12.7 billion for 2006. Ford Edge and Lincoln MKX introduced. The Lincoln
Zephyr is replaced with the Lincoln MKZ. A redesigned Ford Expedition (including the longer wheelbase "EL"
version) and Lincoln Navigator are introduced. Ford unveils the Ford Interceptor and Lincoln MKR concept cars,
and a pre-production Lincoln MKS is introduced. TheFord Five Hundred, Ford Freestyle and Mercury
Montego nameplates are dropped and replaced with the previously retired Ford Taurus, Ford Taurus X,
and Mercury Sable nameplates.[50]
2008: Ford sells Jaguar and Land Rover to Tata Motors.
2008: Ford of Europe launches sixth-generation Fiesta, based on the Verve concept car.[51] and announces
plans to sell Jaguar and Land Rover.
Sources:
General Timeline (through 2002): Ford Motor Company 2002 Annual Report
Production figures: U.S. Automobile Production Figures
2009 Ford announces that it will leverage more of its European line-up for the North American market. The
Turkish-built Transit Connect compact panel van is the first exponent of this strategy, followed by the sixthgeneration Ford Fiesta subcompact.
2010 Ford sells Volvo Cars to Geely Automobile. Third generation Ford Focus unveilied - as with the first
generation car, it will return to using a single platform for all markets - will be released in North America as a
2012 model.
2011: Mercury production ends; the last vehicle is a Grand Marquis. Lincoln Town Car is discontinued. Ford
Focus Electric unveiled. Ford announces that they will sell 8 million vehicles globally by 2015.
2011: Ford Ranger discontinued for North America; redesigned global version launched.
2012: Fourth generation Mondeo/Fusion previewed at the Detroit Motor Show, thus reuniting Ford's mid-size
platform for Europe and North America for the first time since the CDW27 1st gen
Mondeo/Contour/Mystique of 1994. Ford Crown Victoria, sold only for export in 2012, is discontinued.
2013: Fourth generation Transit/Tourneo launched, along with the second generation Transit Connect and
the refreshed Fiesta is revealed.
2014: The Ford Mustang celebrates 50 years of production with the launch of its sixth generation. The 2015
F-150 is launched, featuring an aluminum-intensive body design.
Criticisms
Throughout its history, the company has faced a wide range of criticisms. Some have accused the
early Fordist model of production of being exploitative, and Ford has been criticized as being willing to
collaborate with dictatorships or hire mobs to intimidate union leaders and increase their profits through
unethical means.
Ford refused to allow collective bargaining until 1941, with the Ford Service Department being set up as an
internal security, intimidation, and espionage unit within the company, and quickly gained a reputation of using
violence against union organizers and sympathizers.[52][53]
Ford was also criticized for tread separation and tire disintegration of many Firestone tires installed on Ford
Explorers, Mercury Mountaineers, and Mazda Navajos, which caused many crashes during the late 1990s and
early 2000s (decade). It is estimated that over 250 deaths and more than 3,000 serious injuries resulted from
these failures. Although Firestone received most of the blame, some blame fell on Ford, which advised
customers to under-inflate the tires in order to reduce the risk of vehicle rollovers.
Alleged Nazi collaboration
Other accusations were that the company collaborated with the German Nazi regime. Actually all the Ford
facilities in Nazi Germany were under the full control and financing of the German government. The profits were
kept in Germany. In 1943 the Company wrote off all its holdings in Germany as a total loss, and never reclaimed
them after the war.[54] The German Ford company used slave labor inCologne between 1941 and 1945 and
produced military vehicles such as trucks, planes, and ships. Many of these allegations were made in a series of
United States lawsuits in 1998. The lawsuit was dismissed in 1999 because the judge concluded "the
issues...concerned international treaties between nations and foreign policy and were thus in the realm of the
executive branch."[55][56]
Defenders of the company argue that the Ford German division, Fordwerke, had been taken over by the Nazi
government after it rose to power, claiming that it was not under the company's control. Although Ford's initial
motivations were anti-war, the plants in Allied countries were heavily involved in the Allied war effort after the
outbreak of war.[56]
Argentine "Dirty War
Ford's Argentine subsidiary was accused of collaborating with the Argentine 1976–1983 military dictatorship,
actively helping in the political repression of intellectuals and dissidents that was pursued by said government.
No result was proven and the company denied the allegations.
In a lawsuit initiated in 1996 by relatives of some of the estimated 600 Spanish citizens who disappeared in
Argentina during the "Dirty War", evidence was presented to support the allegation that much of this repression
was directed by Ford and the other major industrial firms. According to a 5,000-page report, Ford executives
drew up lists of "subversive" workers and handed them over to the military task-forces which were allowed to
operate within the factories. These groups allegedly kidnapped, tortured and murdered workers—at times
allegedly within the plants themselves. The company denied the allegations.
In a second trial, a report brought by the CTA, and the testimonies of former Ford workers themselves, claimed
that the company's Argentine factory was used between 1976 and 1978 as a detention center, and that
management allowed the military to set up its own bunker inside the plant. The company denied the allegations.
[57][58][59]
Ford Pinto
In September 1971 the Ford Motor Company launched the Pinto for the North American market. Through early
production of this model it emerged that design flaws could result in fuel tank explosions when the vehicle was
subject to a rear-end collision. Some sources even allege this safety data was available to Ford prior to
production, but was ignored for economic reasons.[60] Either way, a major scandal followed with the leaking to
San Francisco magazine Mother Jones of the notorious "Ford Pinto Memo", an internal Ford cost-benefit
analysis showing that the cost of implementing design changes to the subcompact's fuel system was greater
than the economic cost of the burn injuries and deaths that could be prevented by doing so. Subsequently some
have played down[61] the importance of this case, as Pinto explosion fatality estimates range widely from 27 to
900,[60] with the lowest figures being allegedly in line with comparable fatality statistics for other car models.
In the related Ford Pinto product liability case Grimshaw v. Ford Motor Co., 119 Cal. App. 3d 757 (4th Dist.
1981) the California Court of Appeal for the Fourth Appellate District reviewed Ford's conduct and upheld
compensatory damages of $2.5 million and punitive damages of $3.5 million against Ford. Of the two plaintiffs,
one was killed in the collision that caused her Pinto to explode, and her passenger, 13-year-old Richard
Grimshaw, was badly burned and scarred for life.
