![]() |
| Henry Ford Made the Automobile Industry an Important Part of the Nation's Economy | |
| 03 December 2006 |
ANNOUNCER:
People in America, a program in Special English on the Voice of America. Every week at this time, we tell the story of a person important in the history of the United States. Today, Steve Ember and Frank Oliver complete the story of industrialist Henry Ford.
(MUSIC)
VOICE ONE:
![]() |
| The Ford 'Model T' |
VOICE TWO:
The "Model T" was ready for sale in October, nineteen-oh-eight. The "Model T" cost eight hundred fifty dollars. It was a simple machine that drivers could depend on. Doctors bought the "Model T. " So did farmers. Even criminals. They considered it the fastest and surest form of transportation. Americans loved the "Model T. " They wrote stories and songs about it.
Thousands of "Model T's" were built in the first few years. The public wanted
the car. And Henry Ford made more and more.
VOICE ONE:
To Make the "Model T,' Ford built the largest factory of its time. Inside the factory, car parts moved to the workers exactly when they needed them. Other factories moved some parts to the workers. But Ford was the first to design his factory completely around this system. Production rose sharply.
As production rose, Ford lowered prices. By nineteen sixteen, the price had dropped to three hundred forty-five dollars.
The last step in Ford's production success was to raise his workers' pay. His workers had always earned about two dollars for ten hours of work. That was the same daily rate as at other factories.
With wages the same everywhere, factory workers often changed jobs. Henry
Ford wanted loyal workers who would remain. He raised wages to five dollars a
day.
VOICE TWO:
That made Henry Ford popular with working men. He became popular with car
buyers in nineteen thirteen when he gave back fifty dollars to each person who
had bought a Ford car. Henry Ford was demonstrating his idea that if workers
received good wages, they became better buyers. And if manufactures sold more
products, they could lower prices and still earn money.
This system worked for Ford because people continued to demand his "Model T.
" And they had the money to buy it. But what would happen when people no longer
wanted the "Model T," or did not have the money?
(MUSIC)
VOICE ONE:
In nineteen nineteen, Henry was involved in a dispute with the other people who owned stock in the Ford Motor Company. In the end, Henry bought the stock of the other investors. He gained complete control of the company.
The investors did not do badly, however. An investment of ten thousand
dollars when the company was first established produced a return of twenty-five
million dollars.
A few years later, another group of investors offered Ford one thousand
million dollars for the company. But he was not interested in selling. He wanted
complete control of the company that had his name. In a sense, Henry Ford was
the company.
VOICE TWO:
Henry's son, Edsel, was named president of the company before nineteen
twenty. No one truly believed that Edsel was running the company. Whatever Edsel
said, people believed he was speaking for his father.
In nineteen twenty-three, fifty-seven percent of the cars produced in America
were "Model T" fords. About half the cars produced in the world were Fords.
Taxicabs in Hong Kong. Most of the cars in South America. Never before -- or
since -- has one car company so controlled world car production.
VOICE ONE:
The success of the Ford Motor Company permitted Henry Ford to work on other
projects. He became a newspaper publisher. He bought a railway. He built
airplanes. He helped build a hospital. He even ran for the United States Senate.
Some of Henry's projects were almost unbelievable. For example, he tried to
end World War One by sailing to Europe with a group of peace supporters.
(MUSIC)
VOICE TWO:
While Henry Ford enjoyed his success, a dangerous situation was developing. Other companies began to sell what only Ford had been selling: good, low-priced cars. Ford's biggest competitor was the General Motors Company. General Motors produced the Chevrolet automobile.
Ford's "Model T" was still a dependable car. But it had not changed in years. People said the "Model T" engine was too loud. They said it was too slow.
The Chevrolet, however, had a different look every year. And you could pay
for one over a long period of time. Ford demanded full payment at the time of
sale. Ford's share of the car market began to fall.
VOICE ONE:
Everyone at Ford agreed that the "Model T" must go. Henry Ford disagreed. And
it was his decision that mattered. Finally, in nineteen twenty-six, even Henry
admitted that the age of the "Model T" was over. A new Ford was needed. A year
later, the "Model T" was gone.
Strangely enough, people mourned its end. They did not want to buy it
anymore. But they recognized that the "Model T" was the last of the first cars
in the brave new world of automobile development.
The success of Ford's new cars did not last long. After nineteen-thirty, Ford
would always be second to General Motors.
(MUSIC)
VOICE TWO:
In nineteen twenty-nine, the United States suffered a great economic
recession. Many businesses failed. Millions of people lost their jobs. In
nineteen thirty-one, the Ford Motor Company sold only half as many cars as it
had the year before. It lost thirty-seven million dollars. Working conditions at
Ford grew worse.
In nineteen thirty-two, hungry, unemployed men marched near the Ford factory.
Police, firefighters and Ford security guards tried to stop them with sticks,
high-pressure water and guns. Four of the marchers died, and twenty were
wounded.
Newspapers all over the United States condemned the police, firefighters and
security guards for attacking unarmed men. And to make a bad situation worse,
Ford dismissed all workers who attended funeral services for the dead.
VOICE ONE:
More violence was to come. For several years, automobile workers had been
attempting to form a labor union. Union leaders negotiated first with America's
two other major automobile makers: the Chrysler Company and General Motors.
Those companies quickly agreed to permit a union in their factories. That left
Ford alone to fight against the union. And fight he did.
VOICE TWO:
In nineteen thirty-seven, union organizers were passing out pamphlets to
workers at the Ford factory. Company security guards struck. They were led by
the chief of security, Harry Bennett.
Harry Bennett knew nothing about cars. But he did know what Henry Ford wanted
done. And he did it. Bennett's power came from Henry. The only person who might
have had the power to stop Bennett was Henry's son, Edsel, who was president of
the company. But Edsel himself was fighting Henry and his unwillingness to
change.
Bennett's power in the company continued to grow. His violence against the union of automobile workers also grew.
The Ford Motor Company did not agree to negotiate with the union until
nineteen forty-one. Henry Ford accepted an agreement. If he had not, his company
would have lost millions of dollars in government business.
VOICE ONE:
In nineteen forty-three, Edsel Ford died. With Edsel gone, Henry again became
president of the Ford Motor Company. It was difficult to know if Henry or Harry
Bennett was running the company. America was at war. And Henry was eighty years
old -- too old to deal with the problems of wartime production. And Bennett knew
nothing at all about production.
So Henry's grandson, also Henry Ford, was recalled from the Navy to run the
company. Young Henry's first act was to dismiss Harry Bennett.
VOICE TWO:
Old Henry Ford retired from business. His thoughts were in the past. He died in his sleep in nineteen forty-seven, at the age of eighty-three.
Henry Ford was not the first man whose name was given to an automobile. But his name -- more than any other -- was linked to that machine. And his dream changed the lives of millions of people.
Some still wonder if Henry Ford was a simple man who seemed difficult -- or a difficult man who seemed simple. No one, however, questions the fact that he made the automobile industry one of the great industries in the world.
(MUSIC)
VOICE TWO:
You have been listening to the Special English program People in America. Your narrators were Steve Ember and Frank Oliver. Our program was written by Richard Thorman. I’m Ray Freeman.