.png)
In 1913, the Dodge brothers declined to renew their contract working for the Ford Motor Company. Instead, they chose to branch out on their own and start The Dodge Brothers Motor Car Company.
The Early Years
Since 1903, The Dodge brothers had operated a large independent auto machine shop manufacturing automobiles exclusively for the Ford Motor Company. Since starting in 1900, the Dodge Brothers became known as the largest automobile and general machine shop in Detroit.1
The Dodge Brothers began manufacturing automobile parts in 1900 after selling their interest in a bicycle shop in 1899. In 1902, Ransom Olds had contracted the brothers to build parts for the Olds Curved Dash. When Ford approached them to build cars for him, they had other offers, including from Olds, but the brothers entered a contract to build exclusively for Ford.2 Henry Ford created The Ford Motor Company in June 1903 after previously starting The Detroit Automobile Company in 1899. He left his previous company in 1902 among disputes with investors.
When the company began, Ford was unable to pay full price for the Dodge Brothers' work and so they each received $5,000 worth of stock. When The Ford Motor Company began, it was capitalized with roughly $100,000 dollars, making the Dodge Brothers ten percent owners of the company. The Dodge Brothers also did not get paid from Ford until each car was finished and sold, causing the Dodge Brothers to accumulate substantial credit lines.3 Given Ford had just left his previous investors in 1902, the Dodge Brothers were taking a substantial risk by working with Ford under these terms. One banker for one of Ford's investors is recorded as saying, "
This automobile fad is just a craze and will die out just as the bicycle business did. You will certainly lose money, and remember that Ford failed in his recent automobile venture.4
However, the Dodge Brothers' risk paid off handsomely. In the first year, Ford Motor Company produced only 672 cars but five years later, the company reached the mark of producing 10,000 cars per year.5
The Dodge Brothers Start Their Own Company - YouTube Short
The Dodge Brothers Motor Car Company Begins
In 1913, the Dodge brothers declined to renew their contract with the Ford Motor Company and gave twelve months notice that they would not manufacture for Mr. Ford going forward. This very same year, Henry Ford began using the moving assembly line to become more efficient at Ford's Highland Park Plant. In 1913, the Dodge Brothers had over 2,500 employees and were the largest supplier of parts and components in the industry. This decision was not something that the brothers made whimsically, as they had been discussing the idea since the financial crisis of 1906-07 when they had a particular dispute with Ford.6
Upon the announcement, James Couzens, the treasurer of Ford stated:
The other members of the Ford Company and I personally have a every good wish for the success of the planned corporation. There is room for all of us.7
On July 1, 1914 The Dodge Brothers Motor Car Company was established and on November 14, 1914, the first Dodge vehicle rolled off the line. The Dodge Brothers experienced immediate success as their reputation in the industry preceded them. When they began, they even had people waiting in line to open Dodge dealerships. In 1915, the Dodge company was already the eighth largest car manufacturer and in 1917, they were fourth largest.8 And by 1919, after just five short years in business, the Dodge Brothers were ranked second in automobile production, behind only Ford. In 1919, they produced 121,039 vehicles.9
In 1916, a dispute arose between Ford and the brothers when Ford stopped paying dividends on shares of Ford, presumably because a portion of the dividends were going to his new competitors. In response the Dodge brothers sued Ford for the dividends and eventually won. For a time, Ford stepped down as the President of the company and his son Edsel took over. Eventually, the dispute was resolved and Ford offered to buy out each of the minority owners who had received shares over the years. In July 1919, Ford purchased the Dodge Brothers' shares in The Ford Motor Company for $12,500,000 each. The $5,000 worth of shares that each brother received in June 1903 had multiplied into $12.5 million. In addition, from 1903 until 1919, the brothers each received $2,000,000 in dividends.10
It is worth mentioning that the Dodge Company also contributed to the war effort during World War I as the US Army ordered almost 12,000 Dodge automobiles for the war. However, only 3,390 vehicles were delivered to France before the war ended.11 Furthermore, they built "the finest" munitions plant in the country in four months which spanned eleven acres and employed 8,000 men.12
Unfortunately, as The Dodge Company appeared destined for greatness, the brothers both passed away in 1920. In January 1920 they attended the National Automobile Show in New York City and both contracted influenza. John Dodge died shortly after from complications related to pneumonia in his room at the Ritz Carlton in New York. Horace Dodge died with pneumonia caused by influenza on December 10, 1920 at his winter home in Palm Beach, Florida.
Sources:
Miller, James Martin., Ford, Henry. The Amazing Story of Henry Ford: The Ideal American and the World's Most Famous Private Citizen; a Complete and Authentic Account of His Life and Surpassing Achievements. United States: M. A. Donohue & Company, 1922. 71.
The World's Work. United States: Doubleday, Page & Company, 1921. 566.
Miller, James Martin., Ford, Henry. The Amazing Story of Henry Ford. 71.
Miller, James Martin., Ford, Henry. The Amazing Story of Henry Ford. 72.
The World's Work. 566.
Automotive Industries, the Automobile. United States: Class Journal Company, 1925. 635.
Ward's Automobile Topics. United States: E.E. Schwarzkopf, 1913. 102.
Automotive Industries, the Automobile. United States: Class Journal Company, 1920. 1244.
Rooks, Timothy. “Automotive America’s Dodge Brothers Stopped Cold by Flu – DW – 06/24/2020.” dw.com, July 2, 2020. https://www.dw.com/en/dodge-brothers-how-the-spanish-flu-epidemic-stopped-a-detroit-automotive-legend-a-century-ago/a-53825127.
Miller, James Martin., Ford, Henry. The Amazing Story of Henry Ford. 73.
Islieb, Chris. 2021. “Great War Dodge.” Key Military. March 31, 2021. https://www.keymilitary.com/article/great-war-dodge.
Automotive Industries, the Automobile. United States: Class Journal Company, 1920. 1244.