Detroit Automobile Company

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Detroit Automobile Company
FoundedAugust 5, 1899;124 years ago (1899-08-05)
DefunctNovember 20, 1901 (1901-11-20)
FateReorganized
Successor Henry Ford Company
Headquarters Detroit, Michigan

The Detroit Automobile Company(DAC) was an early American automobile manufacturer founded on August 5, 1899, in Detroit, Michigan. [1] It was the first venture of its kind in Detroit. [2] Automotive mechanic Henry Ford attracted the financial backing of twelve investors; Detroit Mayor William Maybury, William H. Murphy and others. As with many early car ventures, the company floundered, and it was dissolved in January 1901. [1] Twenty vehicles were built and $86,000 ($2.61 million in 2019) of investment was lost. [3] [4]

Contents

History

The company's first product was a delivery truck, completed in January 1900. Detroit Automobile Company Delivery Truck 1900.jpg
The company's first product was a delivery truck, completed in January 1900.

Foundation

The company was founded with a paid-up capital of $15,000 ($455,490 in 2019). [2] Henry Ford managed the manufacturing plant at 1343 Cass Avenue and Amsterdam in Detroit; [5] initially with no pay until he left his job at the Detroit Edison Company, after which he was given a monthly salary of $150 ($4,555 in 2019). [2] [6] He refused to put a car into production until he had perfected it to his satisfaction, [7] infuriating investors who quickly began to lose confidence in Ford's ability to bring a product to market. [7] The company's primary objective was to make a profit for its investors, who had seen the Oldsmobile plant, where the Curved Dash Oldsmobile was built, which was profitable for its owner Samuel Smith. [4]

The company's first product was a gasoline-powered delivery truck engineered by Ford and completed in January 1900. [1] It received favorable coverage in a local newspaper, but was not without its flaws; it was slow, heavy, unreliable and complicated to manufacture. [8] Later in life, Ford recalled this period as one that was driven by profit rather than innovation. [9]

A catalog produced by Detroit Automobile Company in 1900 showed, with a cost analysis, that the automobile was cheaper to maintain and operate than a horse and vehicle. [4] Little is known about the company's designs. [10]

Table 1. Detroit Automobile Car Costs [4]
Automobile
Original cost$1,000
Cost of operating, 14 cents per mile, 25 miles per day$114
New tires$100
Repairs$50
Painting vehicle four times$100
$1,364
Horse and Vehicle
Original cost, horse, harness and vehicle$500
Cost of keeping horse five years$1,200
Shoeing the horse$180
Repairs on vehicle, including rubber tires$150
Repairs on harness, $10 per year$50
Painting vehicle four times$100
$2,180

Demise

The Detroit Automobile Company was reorganized into the Henry Ford Company on November 20, 1901, after Ford gained further backing from investors because of his racing success. [10] It later became the Cadillac Company under the ownership of Henry Leland, who came in subsequently after Ford had left. [9] [11] The factory location for the Detroit Automobile Company is less than a mile away southeast from Mr. Ford's Piquette Avenue Plant, which opened four years later.

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References

  1. 1 2 3 Bryan, Ford R., The Birth of Ford Motor Company, Henry Ford Heritage Association, archived from the original on April 15, 2013, retrieved May 23, 2008
  2. 1 2 3 "Months past (an account of Henry Ford's first automobile factory)", History Today , vol. 49, no. 8, p. 50, August 1999
  3. Cabadas, Joe (2004), River Rouge: Ford's Industrial Colossus, MotorBooks/MBI Publishing, p. 17, ISBN   0-7603-1708-9
  4. 1 2 3 4 Weiss, H. Eugene (2003), Chrysler, Ford, Durant, and Sloan: Founding Giants of the American Automotive Industry, McFarland, pp. 7–9, ISBN   0-7864-1611-4
  5. Location of first Cadillac factory
  6. Peterson, Chester; Beemer, Rodpo (1997), Ford N Series Tractors, MBI Publishing, p. 10, ISBN   0-7603-0289-8
  7. 1 2 Black, Edwin (2007), Internal Combustion, Macmillan, p. 99, ISBN   978-0-312-35908-9
  8. Bryan, Ford Richardson; Evans, Sarah (1995), Henry's Attic: Some Fascinating Gifts to Henry Ford and His Museum, Wayne State University Press, p. 107, ISBN   0-8143-2642-0
  9. 1 2 Ford, Henry; Crowther, Samuel (1922), My Life and Work, Garden City, New York, USA: Garden City Publishing Company, Inc. Various republications, including ISBN   9781406500189 . Original is public domain in U.S. Also available at Google Books ., p. 37.
  10. 1 2 Weiss, H. Eugene (2003), Chrysler, Ford, Durant, and Sloan: Founding Giants of the American Automotive Industry, pp. 9–10
  11. History of the Ford Motor Company

42°21′57″N83°04′25″W / 42.365766°N 83.073593°W / 42.365766; -83.073593