Ford

Ford was started in 1902 with a capital of twenty-eight thousand dollars which the founder, Henry Ford, borrowed from 12 investors, including Horace and John Dodge who later founded the Dodge Motor Vehicle Company. Ford was 40 years old when he started the company on Detroit’s Bagley Street.

Ford Motor Company would later be incorporated in June 1903 and started producing models named chronologically in alphabetical order, with the first model being named Model A. The naming convention went up to Model K and Model S, which marked the last models with the right hand steering wheels. In 1908, Model T was designed and this proved to be a quite quintessential vehicle for the company, making it assert itself as a reputable brand in the relatively young auto industry of the country.

The Ford Model T was not only a reliable car, but also was practical and affordable to a decent number of the citizens. It was a big hit in the United States, where it became the undisputed car for the middle-class man. Due to the success of the car, Ford expanded the company and put down the basics for mass production principles and by 1913, the world’s first vehicle assembly line was introduced.

Ford’s organizational innovation in the vehicle manufacture reduced the chassis assembly time by almost ten hours, from 12 ½ hours to only two hours. Consequently, the efficiency increased, and Ford introduced a raft of measures that would further enhance the mass production of the cars. For instance, he introduced a profit sharing policy, where the buyers would get a cut of profits if the sales reached 300,000. This was easily surpassed, with 501, 000 units being sold in 1915.

He also provided other financial tactics such as providing working places for people with disability whom would otherwise not get work in such places, he reduced the work shifts from 9 to 8 hours so that he could have three shifts in a day, and also doubled the employees’ salaries. Such changes translated into high productivity besides laying grounds for modern working conditions.

With all the changes, both the US and the Canadian auto markets would not be enough for Ford’s plans and soon the cars moved across the seas and the oceans to other places such as Denmark, Germany, Austria, England, France etc. Ford remains to be one of the leading auto makers in the modern times and the models have continuously been improved for better performance and efficiency.

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