Automotive mechanic Henry Ford founded his first company – the Detroit Automobile Company – in 1899, when he obtained the financial backing of twelve investors, including William Maybury (Mayor of Detroit) and William H. Murphy. Twenty vehicles were made, but the company was dissolved in January 1901 with the loss of $86,000 ($2.61 million in 2019).
Ford's next venture was the Henry Ford Company, founded in November 1901. But he left only four months later, following a dispute with his backers over the amount of time he was devoting to the sport of motor racing.
In August 1902, two of Ford's backers – William H. Murphy and Lemuel Bowen – brought in an engineer and inventor named Henry M. Leland, to appraise the company's plant and equipment with a view to a sale. Instead, Leland persuaded them to continue in the automobile business. The Henry Ford Company was reorganized that year, and named Cadillac in honour of Antoine de la Mothe Cadillac, founder of the city of Detroit.
By the time it was purchased by General Motors, in 1909, Cadillac had already established itself as one of America's premier luxury car makers. The complete interchangeability of its precision parts had allowed it to lay the foundation for the modern mass production of automobiles.
Leland remained at Cadillac until 1917, but left after falling out with General Motors founder William C. Durant over the production of engines for military aircraft (Durant was a pacifist). Leland then founded Lincoln – named after President Abraham Lincoln – which has competed against Cadillac in the luxury car market ever since.
Meanwhile, Henry Ford had teamed up with an old acquaintance, Alexander Y. Malcolmson, to found a new company. When funds were not available to pay for some essential parts, Malcolmson persuaded the creditors – the Dodge Brothers – to invest in the company; the result was the Ford Motor Company, incorporated on 16 June 1903.
And the rest, as they say, is history.
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