What Happens When Your Business Partner Becomes Your Rival

John_Horace_Ride_First_Dodge

“The Dodge brothers already made two fortunes from their relationship with Ford, by 1913 they were not thrilled about continuing to make parts for the Model T. Ironically, by the time the T started selling in really huge numbers in the nineteen teens it was obsolete and being technologically surpassed by by more modern cars. The Dodges were good engineers, probably the best machinists in Detroit next to Henry Leland. The term ‘mechanical genius’ could have been coined for Horace Dodge and his brother John was almost as adept with his own management skills. By 1914 the Dodge brothers, who already owned and operated what was probably most advanced automotive plant in the world in the Detroit enclave of Hamtramck, wanted to build modern machines.

“Not only were they tired of dealing with Henry’s eccentricities, and tired of building an old fashioned car, they knew that they were increasingly vulnerable having such a big customer, a customer that had already started making many components himself, on his path to making FoMoCo perhaps the most vertically integrated manufacturing company ever. One reason why people don’t know about the Dodges’ role in Ford history is because Ford was later famous for making every part of their cars, including the raw steel and glass. In the early days, though, Ford, like most automakers then, was an assembler, buying components and subassemblies. The Dodges supplied other automakers like Cadillac and Oldsmobile, but Ford represented the lion’s share of their business. So the Dodges had plenty of reasons in 1913 to jump before they were pushed and in July of that year they gave Henry Ford a year’s notice that they’d no longer be supplying him. Soon, the automotive world was abuzz with the news that Dodge Brothers would be making a Dodge car.”

-Ronnie Schreiber on the Dodge brothers and the 100-year anniversary of their car company. Read more on Detroit.

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Photo: Dodge.com

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