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Henry Ford (ca. 1919)
automaker and the world's
based on . Based in , a suburb of , the automaker was founded by , on June 16, 1903. Ford Motor Company would go on to become one of the largest and most profitable companies in the world, as well as being one of the few to survive the . The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 110 years. Ford now encompasses two brands: Ford and . Ford once owned 5 other luxury brands: Volvo, Land Rover, Jaguar, Aston Martin and Mercury. Over time those brands were sold to other companies and Mercury was discontinued.
Henry Ford's initial foray into automobile manufacturing was the , founded in 1899. The company foundered, and in 1901 was reorganized as the . In March 1902, after falling out with his financial backers, Ford left the company with the rights to his name and 900 .
Henry Ford turned to an acquaintance, coal dealer , 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 of
and , who had made parts for Ford and Malcomson, was demanding payment. Malcomson, constrained by his coal business demands, turned to his uncle , 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 , Charles T. Bennett of the , and his own clerk . 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:
(255 shares),
(255 shares),
(105 shares), John W. Anderson (50 shares),
(50 shares),
(50 shares),
(50 shares), Charles T. Bennett (50 shares), Vernon C. Fry (50 shares), Albert Strelow (50 shares),
(25 shares), and Charles J. Woodall (10 shares).
At the first stockholder meeting on June 18, Gray was elected president, Ford vice-president, and James Couzens secretary. 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 1905 total profits were almost $300,000.
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 bus 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. John S. Gray died unexpectedly in 1906, and his position as Ford's president was taken over by Ford himself soon afterward.
Ford was subject to lawsuits or threats there of from the
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.
The first Ford factory on Bagley Street, Detroit.
During its early years, the company produced a range of vehicles designated, chronologically, from the
to the Model K and Model S (Ford's last right-hand steering model) of 1907. The K, Ford's first six-cylinder model, was known as "the gentleman's roadster" and "the silent cyclone", and sold for US$2800; by contrast, around that time, the
was priced at US$2000, the
US$1500, the high-volume
US$650, 's Gale Model A US$500, and the
hit the amazingly low US$250.
The first Ford assembly plant in , c. 1921.
In 1908, Henry Ford introduced the . Earlier models were produced at a rate of only a few a day at a rented factory on Mack Avenue in , 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 , 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
, and in 1911, the first year of operation there, 69,762 Model Ts were produced, with 170,211 in 1912. By 1913, the company had developed all of the basic techniques of the
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), and boosted annual output to 202,667 units that year After a Ford ad promised
if sales hit 300,000 between August 1914 and August 1915, sales in 1914 reached 308,162, and 501,462 in 1915; 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 reduced labor demand. 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 cutting shifts from nine hours to an eight-hour day for a 5-day work week (which
a line worker could buy a T with less than four months' pay), and instituting hiring practices that identified the best workers, including disabled people considered unemployable by other firms. 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.
Ford assembly line (1913).
While Ford attained international status in 1904 with the founding of , 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), and Argentina (1925), and also in South Africa (1924) and Australia (1925) as subsidiaries of Ford of Canada due to preferential
countries. By the end of 1919, Ford was producing 50 percent of all cars in the , and 40% of all B by 1920, half of all cars in the U.S. were Model Ts. (The low price also killed the
in the U.S.) The assembly line tran soon, companies without it risked bankruptcy. Of 200 U.S. car makers in 1920, only 17 were left in 1940.
Field Ambulance. This canvas on wood frame model was used extensively by the British & French as well as the
in . 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 p only
dried quickly enough, and not until
appeared in 1926 would other colors reappear on the T.
In 1915, Henry Ford went on a peace mission to Europe aboard a ship, joining other pacifists in efforts to stop . 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
tank, and the 1916 ambulance.
By 1916, the company had accumulated a capital surplus of $60 million, but Henry Ford declared that he intended to end special dividends for shareholders in favor of massive investments in new plants, including the , allowing Ford to dramatically increase production, and the number of people employed at his plants, at the same time as cutting the prices of his cars. The Dodge brothers,
and , the largest non-family shareholders, with 10% of the company, objected and took Ford to court in 1917 in an often cited case, . The judge found in their favor requiring a $19million special dividend. The decision was then upheld in the 1919 appeal to the
which stated that:
A business corporation is organized and carried on primarily for the profit of the stockholders. The powers of the directors are to be employed for that end. The discretion of directors is to be exercised in the choice of means to attain that end, and does not extend to a change in the end itself, to the reduction of profits, or to the non-distribution of profits among stockholders in order to devote them to other purposes...
In response Henry Ford determined to buy out the remaining shareholders. I encourage this he threatened to leave and set up a rival company, offering to buy out the minority shareholders, at varying prices. He gained complete control in July 1919 at a cost of $125 million, made up of $106 million of the stock and $19 million in court-ordered dividend, financed with a $75 million loan from two eastern banks. The Dodge brothers received $25 million. At this time
also 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
were invented by
(and were used on the 1909 ), they did not appear on a Ford until 1927. (To be fair,
waited until 1928.) Ford steadily lost market share to
and , 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 . 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 , and retired the
after producing 15 million units. An early version of the Ford script in the oval badge was first used on the 1928 Model A; the Ford script had been created in 1903 by , and the oval trademark in 1907.
On February 4, 1922 Ford expanded its reach into the luxury auto market through its acquisition of the
who had founded and named the company in 1917 for
whom Henry Leland admired. The
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, . Henry Ford would go on to acquire Abraham Lincoln's chair, which he was assassinated in, from the owners of . Abraham Lincoln's chair would be displayed along with '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.
Main article:
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 , the settlement was sold in 1945 and abandoned.
During , 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, the
had risen to 30% 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
organizing the . On March 7, 1932 some 3,000 - 5,000 unemployed workers assembled in West Detroit to march on Ford's
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
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 the hospital. Up to 60 more were seriously injured.
In May 1929 the
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 . 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 (), or Gorki Automotive Plant in 1932. A few American workers stayed on after the plant's completion, and eventually became victims of Stalin's , either shot or exiled to Soviet . 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.
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
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. 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
medal from the regime. Ford's outspoken , including his newspaper, , which published , also lent credence to the view that he sympathized with the Nazis. 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. In June 1940, after France had fallen to the Wehrmacht, Henry Ford personally vetoed a plan to build airplane engines for the Allies.
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.
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. It ranked third among corporations in the value of wartime production contracts.
The Company's new
factory was designed for the production of B-24 bombers although the production line was initially characterized by bungling and incompetence. Ford's efforts benefited the Allies as well as the Axis. After
invented the , the US War Department handed production over to Ford and .
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. In the United Kingdom, Ford built a new factory in ,
during WWII where over 34,000
aero engines were completed by a workforce trained from scratch.
A , 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 , the , and the .
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 . 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.
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
in . The funeral service for
was held at the
on Thursday April 9, 1947. At the funeral service, 20,000 people stood outside St. Paul's Cathedral in the rain with 600 inside, while the funeral had attracted national attention as an estimated seven million people had mourned his death (according to ).
, head of , 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
. The Ford family maintains about 40% controlling interest in the company, through a series of Special Class B . Also in 1956, following its emphasis on safety improvements in new models,
awarded the company its "Car of the Year" award.
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 's . 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 , as .
Ford introduced the iconic
in 1955 and the
brand automobile line in 1958, following a US$250 million research and marketing campaign, which had failed to ask questions crucial for the 's success. 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
in 1960 and the
in 1964. By 1967, Ford of Europe was established.
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 . He promoted other ideas which did not reach the marketplace as Ford products. Eventually, he became the president of the company, but clashed with
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.
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
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." 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. 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. After being the subject of much adverse publicity, Ford, in March 2000, agreed to contribute $13 million to the compensation fund.
became Chairman, succeeded in 1985 by .
served as Chairman and CEO from 1990 to 1993.
was Chairman and CEO from 1993 to 1998, and
served at the helm from 1999 to 2001. Henry Ford's great-grandson, , is the company's current Chairman of the Board and was CEO until September 5, 2006, when he named
as his successor.
Current Ford CEO , who was hired by
to restructure the company.
In April 2000 the Ford Motor Company announced its recapitalization plan distributing about half of its $24 billion , 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.
As of 2006, the Ford family owned about 5% of Company shares outstanding.
In December 2006, Ford announced it would mortgage all assets, including factories and equipment, office property, intellectual property ( and blue oval ), 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. 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
in their March 2013 annual report on Global Credit Research.
Henry Ford and the Quadricycle
1896 Quadricycle at
in Dearborn, MI
1903 Model A
ad - ca 1908
1930 Model A Fordor
The Ford Australia plant under construction in , , 1926
Mustang Serial #1 - The First Mustang
1896: Henry Ford builds his first vehicle – the
– on a buggy frame with 4 bicycle wheels.
1898: F two and a half years later it is dissolved.
1901: Ford wins high-profile car race in Grosse Pointe, Mi
is incorporated but discontinued the following year only to be reinvigorated by
1903: Ford Motor Company incorporated with 11 original investors. The
"Fordmobile" is introduced - 1,708 cars are produced.
incorporated in
1904: Henry Ford teams up with
1906: Ford becomes the top selling brand in the US, with 8,729 cars produced.
is introduced. 15 million are produced through 1927.
1909: Ford Motor Company (England) established, otherwise referred to as
1911: Ford opens first factory outside North America – in Manchester, England.
1913: The moving
is introduced at , making Model T production 8 times faster.
1913: Ford opens second world branch in Argentina as
1914: Ford introduces $5 ($118, adjusted for inflation)
– double the existing rate.
1918: Construction of the
assembly complex begins.
succeeds Henry as Company President.
1920: Ford temporarily shuts down due to low sales. After removing unnecessary administrative expenses and waste, Ford reopens.
1921: Ford production exceeds 1 million cars per year, nearly 10 times more than Chevrolet - the next biggest selling brand.
1922: Ford purchases
for US $8 million ($113 million, adjusted for inflation).
1925: Ford introduces
airplane for airline services, and a factory was built in
in February.
is founded in , ,
1927: Model T production ends, Ford introduces the next generation , 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 .
1932: Ford introduces the one-piece cast
block. It makes the
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.
is introduced.
1938: The German consul at Cleveland awards Henry Ford the , the highest medal
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
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
bombers, 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.[]
1946: The Whiz Kids, former US Army Air Force officers, are hired to revitalize the company. Automobile production resumes.
1947: Henry Ford dies of
at the age of 83; Henry Ford II becomes new chairman.
Truck introduced.
is introduced.
1949: The '49 Ford introduces all-new post-war era cars. The
station wagon is introduced.
1953 Ford Canada Headquarters and Car Plant opens in
introduced as a personal luxury car with a . Ford begins crash testing, and opens .
dedicated, September 26, 1956
1956: $10,000 ($87.8 thousand, adjusted for inflation)
Mark II introduced. Ford goes public with common stock shares. Ford's emphasis on safety with is Lifeguard option package, including
and dash padding, earns the company 's "Car of the Year" award.
1957: Ford launches the
brand of automobiles in the fall of 1957 as 1958 models. Ford is top selling brand, with 1.68 million automobiles produced.
Corporation formed to provide automotive financing.
1959: Ford withdraws the 1960 model Edsels from the market in November 1959.
introduced.
is appointed President of Ford by Chairman .
1960: Ford President
appointed Secretary of Defense by President elect .
1962: Ford of Britain launches first generation of the . It would dominate the mid-size family segment in Europe for the next 20 years.
the car that started the "pony car" class,
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
range of .
1965: Ford Galaxie 500 LTD debuts, advertised as quieter than a Rolls Royce
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
is introduced as the company's first personal luxury car to compete with the . Ford of Europe launches first generation .
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.
introduced, Maverick continues
1975: Ford of Europe launches the second generation Escort.
1976: Ford of Europe launches the first generation
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 . Ford becomes the final American automaker to introduce
with radically smaller .
1980: Ford of Europe launches the third generation Escort, it is voted
are introduced. Fiesta discontinued in North America.
1982: Ford of Europe introduce the , ending production of the stalwart Cortina/Taunus after 20 years and four generations.
1983: Ford launches a redesigned . 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.
are introduced, replacing the Ford Fairmont/Mercury Zephyr.
launched by Ford of Europe. Replaces Granada as its full-size offering and is voted
for 1986, Ford's second COTY win in the 1980s.
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.
introduced with dramatic "aero design" styling, along with
1986: Ford of Europe launches the second generation of the Transit van family.
ceases production.
1987: Ford acquires
Lagonda and .
1987: Henry Ford II dies at age 70.
1988: , built in Korea by
is introduced.
1989: Ford acquires .
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.
brand of automobiles production discontinued. Ford of Europe launches fourth generation Escort.
is introduced, turning the traditionally rural and recreational
into a popular family vehicle.
1992: Ford Aerostar and Ford Taurus/Mercury S Ford Taurus becomes America's top selling car, displacing the Honda Accord. Ford of Europe announces first generation , the first product of the global CDW27 platform
1992: Redesigned
launched, the first new full-size sedans in 13 Ford Country Squire/Mercury Colony Park station wagon discontinued.
1993: Ford launches Mondeo in Europe, and announces its North American derivatives - the
are discontinued - replaced by Ford Contour and Mercury Mystique* 1994:
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 . 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
quality and
environmental standards. The V12-powered Jaguar XJS is discontinued.
1996: Controversially redesigned "Ovoid" Ford Taurus and Mercury Sable are introduced. Exit of
leaves full size fleet market to .
1996: Ford increases investment stake in a troubled
Corporation to a
1997: Full size 4-door SUV
introduced replace the . introduced. Redesigned Ford Escort and Mercury Tracer also introduced.
production ends, along with , Ford Thunderbird, Mercury Cougar, Mazda MX-6, and , 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 HID-headlamps.
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
becomes Chairman of the Board, replacing .
1999: A smaller sporty
is reintroduced with front-wheel drive.
team is formed, with
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
brand from .
are introduced, along with a refreshed Ford Taurus and Mercury Sable. The Lincoln LS becomes the 2000 . Escort is discontinued in Europe. Third generation Transit platform is launched in Europe.
2001: Retro-styled
is introduced, based on the Lincoln LS/Jaguar S-Type
platform, and is also named Motor Trend Car of the Year for 2002.
2002: Fifth-generation Fiesta is launched by Ford of Europe.
is discontinued after a roughly fifty-year run.
is introduced (first AWD Jaguar). Escort van production ends in Europe, marking the end of the Escort name after a 24-year production run.
production begins at
2003: Ford Motor Company's 100th Anniversary. The
is released, along with limited Centennial editions of some Ford vehicles.
team sold to .
sales decline, losing the title as top-selling compact pickup. The similar
pickup is withdrawn from the US market. The , the first
SUV, is introduced. Major redesign of the Ford F-150 and introduction of the .
minivans are introduced, replacing the
redesigned with retro styling reminiscent of the 1960s models. The , , and
are introduced.
production ends, and
production is limited to rental car, taxi, and other fleet sales.
ends production after a 20-year run. , , and
introduced. Ford announces major restructuring program , which includes plans to shut unprofitable factories.
steps down as CEO, remains as Executive Chairman.
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. According to
quality surveys, the
is rated higher in quality than its chief rivals, the
2007: Ford sells
to a British consortium led by
chairman David Richards,[] and announces plans to sell
2007: Ford reports losses of $12.7 billion for 2006.
introduced. The Lincoln Zephyr is replaced with the . A redesigned
(including the longer wheelbase "EL" version) and
are introduced. Ford unveils the
concept cars, and a pre-production
is introduced. The ,
nameplates are dropped and replaced with the previously retired , , and
nameplates.
2008: Ford sells
2008: Ford of Europe launches sixth-generation Fiesta, based on the Verve concept car. and announces plans to sell
General Timeline (through 2002):
Production figures:
2009 Ford announces that it will leverage more of its European line-up for the North American market. The Turkish-built
compact panel van is the first exponent of this strategy, followed by the sixth-generation
subcompact.
2010 Ford sells
to Geely Automobile. Third generation
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: Mer the last vehicle is a Grand Marquis.
is discontinued.
unveiled. Ford announces that they will sell 8 million vehicles globally by 2015.
discontinued for North A
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 . The
is launched, featuring an aluminum-intensive body design.
Further information: , ,
Throughout its history, the company has faced a wide range of criticisms. Some have accused the early
model of production of being exploitative, and Ford has been criticized as being willing to collaborate with
or hire mobs to intimidate union leaders and increase their profits through unethical means.
Ford refused to allow
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.
Ford was also criticized for tread separation and tire disintegration of many
tires installed on , , and , 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
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.
Further information:
In 1940, at a time when the German division had begun to use slave labor, Ford-Werke was still under the control of Dearborn. After Pearl Harbor, Ford lost control of its division in Germany, and all the Ford facilities in Germany came under the full control of the Nazi government. In 1943 the Company wrote off all its holdings in Germany as a total loss, and never reclaimed them after the war. The
company used
between 1940 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."
Defenders of the company argue that the Ford German division, , 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.
Further information:
was accused of collaborating with the
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 "", 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 , 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.
Further information:
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. Either way, a major scandal followed with the leaking to San Francisco magazine
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 the importance of this case, as Pinto explosion fatality estimates range widely from 27 to 900, 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.
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