Dodge Brothers Company Horace and John Dodge were the founders of what is now the Dodge line of vehicles built by FCA. The two brothers had a machinist background, as their father had run a foundary/machine shop and the two brothers spent many hours along side their father learning the trade. In 1887 Horace designed a dirt proof ball bearing that would be used in the first Dodge Brothers vehicle, a bicycle, in a building across the river in Windsor, they leased from a former employer. John was the one that procured financial backing for their fledgling business as he was the skilled financier of the two brothers. With modest profits made from this business they opened a machine shop back in Detroit in 1901. They would soon be building transmissions for Ransom E. Olds, for his first Oldsmobile in 1902. After growing their contracts and business in Detroit they came into contact with Henry Ford who was trying to start his own automobile company. The brothers were impressed by Henry and his proposed automobile, and they were soon risking their own financial future to invest heavily in the fledgling Ford Motor Company. Henry Ford needed capital he did not have to get his company started. So in return for a 10% stake in the new company, the Dodge boys would give Ford $7000 worth of auto parts along with an investment of $3000 in cash. They wouldnt have ever dreamed that this investment would return millions to them in just a few years time. The Dodge brothers supplied most of what went into the first Ford cars, other than tires and the wooden parts, nearly everything else came from their factory. Along the way they would make suggestions on ways to improve the first Ford autos, but Henry was not at all interested in hearing those. When Ford finished building his huge River Rouge manufacturing plant in Detroit in 1914, he didnt need the Dodge brothers anymore and offered to take over their plant. But the Dodge boys had their own ideas, they would take their profits and dividends of the Ford stock they owned, and bankroll their own automobile company. In July of 1914 they would deliver their last Ford Model T part, and by November the first Dodge Brothers autos would roll off the line. At a cost of $100 more than a Ford Model T the first Dodge was considered a far superior automobile by every measure. With successful launch of Dodge Brothers built autos, Henry Ford was more than a little pissed off, and would try to screw the brothers Dodge out of what they had coming from Ford. After all the games and legal wrangling was done, the Dodge brothers would receive $25 million for their Ford stock, and would collect dividends of another $10 million between 1903-09. Business historians now consider this the single most profitable investment in the entire history of U.S. commerce. Sadly it would all end for the Dodge boys in 1920, Horace would catch pneumonia while attending the New York Auto show. John would also contract pneumonia, after rushing to his brothers bedside. John would die just ten days later, and Horace would hang on just a few months longer. At the time of death, the brothers company was valued at $60 million dollars. Their wives would sell the company to the Dillon, Read, & Co. for $146 million in 1925. Three years later in 1928 Walter P. Chrysler would pay Dillon, Read, & Co. the sum of $170 million to acquire the company and fold it into Chrysler Corporation. Had the brothers lived, Dodge Brothers Company may have become a Detroit power house, they had grown to be the fourth biggest automaker in America in a very short period of time. The brothers never fit into the Detroit society elite, has they were looked down on as being boorish and rather crude, but everyone in Detroit respected their abilities in manufacturing and design, and many felt they were the industry leaders in those respects. Their story is often buried under the tales of Henry Ford and Ford Motor Company, but they were every bit as responsible for the evolution of manufacturing in America, and for much of Henry Fords success also. Crusty grabbed anything he could find on the Dodge brothers from all around the web. There is a lot of interesting tales out there on their lives and times, as always you cant beat allpar for any Chrysler history and a more in-depth story on the brothers Dodge can be found there. Hope some of Crustys Gearhead friends learned a little bit about the Dodge brand which is celebrating 100 years in existence this year. Til next time, keep your rubber on the road Gearheads. Crusty
Posted on: Mon, 07 Jul 2014 14:55:29 +0000
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