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Now, practically everyone has heard some version of Henry Ford's famous story. But where did General Motors come from? How did it take the lead?
Well, if you look back to the earliest days of General Motors, you won't find a steering wheel or an engine.
You'll find a bathtub, with David Buick inside. The Scottish-born Buick was a successful plumber/inventor. In the 1880s, he developed a method for adhering porcelain enamel to cast-iron tubs that is still used today. And by the 1890s, Buick's interests had turned from plumbing to engine valves.
"Wouldn't You Really Rather Have a Buick?"
Buick invented the overhead valve engine, which would become an industry standard. He was less successful getting his motor company on the road, however. He had a rapid succession of companies that all folded due to lack of cash or lack of product. In one three-year period, he reportedly managed to produce only two cars--hardly mass production!
In 1904, when Buick's latest company, the Buick Motor Company of Flint, Michigan, again ran into money troubles, the backers brought in the leading, local horse-drawn carriage maker to jump-start the company. William Durant came aboard as Buick's general manager.
With Durant's promotional expertise and sales abilities, the company was soon galloping ahead in sales of the horseless carriages. By 1908, the company's finances had improved enough that Durant was able to create a holding company for Buick, naming it General Motors.
"Not Your Father's Oldsmobile"
Meanwhile, also in the late 1890s, Ransom E. Olds founded his own car company, introducing the Curved Dash Oldsmobile in 1901. Selling for $650, this was the first mass-produced, low-priced car, predating Henry Ford's Model T. Still, while at first the Curved Dash was a big success, by 1907 the company's finances were faltering.
Durant stepped in and purchased Oldsmobile as General Motors' first acquisition in 1908. He followed up in 1909 by buying Cadillac, Oakland (which would later become Pontiac), and many smaller firms, including the Reliance Motor Truck Company and the Rapid Motor Vehicle Company (the predecessors of GMC Truck).
But all the acquisitions soon left Durant strapped for cash, too. A bankers' trust took over General Motors in 1910 and told Durant to hit the road. Forced out of the company he founded, Durant turned to Louis Chevrolet, a race car driver, who had once raced cars for Durant to promote Buick.
"See the USA in Your Chevrolet"
In addition to racing, Chevrolet designed cars. In 1911, he and Durant went into business together, forming the Chevrolet Motor Car Company. With Chevrolet's designs and Durant's salesmanship, the company did well and Durant secretly began buying shares in General Motors. By 1916, Durant had enough shares to take back control of General Motors and become president of the company. The Chevrolet brand became part of General Motors soon after.
In 1920, the bankers forced Durant out again, this time for good. He tried starting another car company, but it never did as well as General Motors. Durant ended up opening a bowling alley in Flint in 1940, which he ran until he had a stroke in 1942. None of the key figures in General Motors'
turbulent start--Durant, Olds, Buick, or Chevrolet--ended up wealthy. In fact, most died penniless.
But General Motors continued to grow under the new leadership of Alfred P. Sloan. Sloan organized all the brands assembled by Durant into differently priced rungs on "the ladder of success," so that each brand represented a step up for a car buyer. From an entry-level Chevrolet to a luxurious Cadillac, Sloan's General Motors had "a car for every purse and purpose." By 1931, no car company sold more.
Now, practically everyone has heard some version of Henry Ford's famous story. But where did General Motors come from? How did it take the lead?
Well, if you look back to the earliest days of General Motors, you won't find a steering wheel or an engine.
You'll find a bathtub, with David Buick inside. The Scottish-born Buick was a successful plumber/inventor. In the 1880s, he developed a method for adhering porcelain enamel to cast-iron tubs that is still used today. And by the 1890s, Buick's interests had turned from plumbing to engine valves.
"Wouldn't You Really Rather Have a Buick?"
Buick invented the overhead valve engine, which would become an industry standard. He was less successful getting his motor company on the road, however. He had a rapid succession of companies that all folded due to lack of cash or lack of product. In one three-year period, he reportedly managed to produce only two cars--hardly mass production!
In 1904, when Buick's latest company, the Buick Motor Company of Flint, Michigan, again ran into money troubles, the backers brought in the leading, local horse-drawn carriage maker to jump-start the company. William Durant came aboard as Buick's general manager.
With Durant's promotional expertise and sales abilities, the company was soon galloping ahead in sales of the horseless carriages. By 1908, the company's finances had improved enough that Durant was able to create a holding company for Buick, naming it General Motors.
"Not Your Father's Oldsmobile"
Meanwhile, also in the late 1890s, Ransom E. Olds founded his own car company, introducing the Curved Dash Oldsmobile in 1901. Selling for $650, this was the first mass-produced, low-priced car, predating Henry Ford's Model T. Still, while at first the Curved Dash was a big success, by 1907 the company's finances were faltering.
Durant stepped in and purchased Oldsmobile as General Motors' first acquisition in 1908. He followed up in 1909 by buying Cadillac, Oakland (which would later become Pontiac), and many smaller firms, including the Reliance Motor Truck Company and the Rapid Motor Vehicle Company (the predecessors of GMC Truck).
But all the acquisitions soon left Durant strapped for cash, too. A bankers' trust took over General Motors in 1910 and told Durant to hit the road. Forced out of the company he founded, Durant turned to Louis Chevrolet, a race car driver, who had once raced cars for Durant to promote Buick.
"See the USA in Your Chevrolet"
In addition to racing, Chevrolet designed cars. In 1911, he and Durant went into business together, forming the Chevrolet Motor Car Company. With Chevrolet's designs and Durant's salesmanship, the company did well and Durant secretly began buying shares in General Motors. By 1916, Durant had enough shares to take back control of General Motors and become president of the company. The Chevrolet brand became part of General Motors soon after.
In 1920, the bankers forced Durant out again, this time for good. He tried starting another car company, but it never did as well as General Motors. Durant ended up opening a bowling alley in Flint in 1940, which he ran until he had a stroke in 1942. None of the key figures in General Motors'
turbulent start--Durant, Olds, Buick, or Chevrolet--ended up wealthy. In fact, most died penniless.
But General Motors continued to grow under the new leadership of Alfred P. Sloan. Sloan organized all the brands assembled by Durant into differently priced rungs on "the ladder of success," so that each brand represented a step up for a car buyer. From an entry-level Chevrolet to a luxurious Cadillac, Sloan's General Motors had "a car for every purse and purpose." By 1931, no car company sold more.
