Where GM all started

teamzr1

Supporting vendor
The taproots of General Motors Their taproots reach down to carriage- and wagon-building, to firearms, stationary and marine gasoline engines, milling machinery, roller bearings, bicycle gears, lathes, and even door-bells. Their branch roots stretch back to the beginnings of scientific experiment, since the self-propelled vehicle is the child of physics and chemistry.

David Dunbar Buick, a skilled machinist, inventor and business owner in Detroit, Michigan, began producing gasoline engines around 1895. He completed two experimental automobiles before moving to Flint. Michigan and incorporating the Buick Motor Company in 1903.

Raised in Flint, Michigan, William C. "Billy" Durant was a marketing genius and known as the “king of carriage makers” for building America’s most successful horse-drawn vehicle empire beginning in 1886. Originally skeptical of automobiles, he became smitten with the Buick after the company’s investors approached him to take charge of it. He took the reins in late 1904 and by 1908 had turned it into the largest automobile producer in America.

Already engaged in the machining and manufacturing business, Henry Leland founded the Cadillac Automobile Company in honor of the city of Detroit’s founder, French explorer Antoine de la Mothe Cadillac in 1902. His focus on precision manufacturing led to Cadillac's reputation as Standard of the World.

Engineer and industrialist Charles Stewart Mott's Weston-Mott Axle Co., which already produced axles for Buick, moved to Flint at the invitation of Billy Durant in 1907, the start of relationship that culminated in Mott's leadership on GM's board of directors for 60 years.

General Motors growth began almost immediately after the company's founding. Oldsmobile followed Buick into the fold in November 1908 becoming one of 25 different companies acquired during GM's first few years. Among the notable brands added were Cadillac, Oakland (the predecessor of Pontiac), the future AC Spark Plug and three brands that would form the basis of GMC: Rapid, Reliance and Randolph.

With an unprecedented number of acquisitions in a period of just two years, GM was financially over-extended and burdened with excess production capacity when the U.S. economy and vehicle market slumped unexpectedly in 1910. Although the economy and the industry quickly recovered, GM’s bankers forced founder Billy Durant’s exit and assumed management control of the company in exchange for providing new loans to keep it afloat.

The History of Durant-Dort Factory One

Factory One tells the stories of the visionaries and innovators who helped revolutionize personal transportation around the world.

Located just north of downtown Flint, the factory dates to 1880, when it was built by the Flint Woolen Mills company as a short-lived venture into cotton textiles. In 1886, William Crapo “Billy” Durant and business partner Josiah Dallas Dort leased the facility and formed the Flint Road Cart Company – which became the Durant-Dort Carriage Factory and one of the largest carriage builders in the world.

Eventually, Durant would take control of another company – Buick Motor Co. – and leverage his Durant-Dort resources to grow the young automaker into one of the most successful car companies in the country. Durant used Buick’s success to build General Motors in 1908 and turned to his friends from Flint’s carriage industry to form Chevrolet in 1911.

The carriage market eroded with the seismic societal shift to automobiles, and the Durant-Dort Carriage Company ended production at Factory One in 1917. The building and others in the complex were converted to manufacture automobiles for the new Dort Motor Company until that business ceased operations in 1924.

In the more-than 130 years since Durant and Dort set up shop at Factory One, it housed countless other businesses and was renovated in the 1980s, before falling into disrepair.

GM purchased Factory One in 2013 and transformed it, with the goal of preserving and showcasing the original architecture.

The renovation of Factory One as a modern archive and research center brings the facility full circle, preserving the shared heritage of GM and Flint as a learning tool for future generations.

William Durant dropped out of school at age 17. Ignoring his family’s expectations for him to become a lawyer, Durant’s first job was piling lumber, and his second job was selling cigars. He alone sold more than three other sales people combined.

By age 24, Durant was already a successful businessman in the old lumber town of Flint, Michigan.

Durant, who went on to become a partner in a thriving insurance agency, decided to get into the vehicle business in 1886. He bought a small horse cart company with borrowed money. All he got was two completed carts and a design patent. Durant immediately took one cart to a fair and won a blue ribbon. He came home with orders for more than 600 carts even though he had yet to build one.

Within 15 years, the Durant-Dort Carriage Company had grown from a $2,000 investment into a $2 million business. It had become the largest vehicle manufacturer in the U.S., with Factory One its first plant in Flint. William Durant was heralded as the "King of Carriage Makers."
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teamzr1

Supporting vendor
Durant was a millionaire at age 40, and he was eager for new adventures. With the Durant-Dort Carriage Company running smoothly, Durant was becoming bored. He liked to create organizations.

By 1900, different brands of horseless carriages were being marketed in the U.S. To maintain the title of "Vehicle City," the city of Flint needed the automobile business. James Whiting of Flint Wagon Works bought Buick to help the city and save the company from financial ruin. Yet, he needed a sharp young businessman to take command, and Durant was the one.

Durant wasn’t interested at first. He said that automobiles were noisy, dangerous contraptions that frightened people and horses. Still, he was willing to give it a shot. He took the Buick out alone, driving it on all kinds of roads for a month or two. He was so impressed that he took over the management of Buick in 1904.

In 1908, Buick production surpassed Ford and Cadillac combined. Durant had made the transition from the largest carriage maker to the largest automobile manufacturer in a little more than three years. Durant became an inspiration to the workers of Flint.

One night in 1907, Durant received a phone call about a large automobile merger put together by financier J.P. Morgan. Weeks later, Durant held a meeting in his room at the original Pontchartrain Hotel, together with three other automotive leaders. They were Henry Ford, Ransom Olds of REO, and Ben Briscoe of Maxwell-Briscoe. When Ford announced that he wanted money, not stock, the talks fell apart. Everyone left the sinking ship except Durant, because he knew there must be consolidation.

Durant had a plan B. He knew Oldsmobile was having a difficult time. He took a night train to Lansing, Michigan, roused the Olds officials from bed, and proposed creating a holding company called General Motors that would include Buick and Oldsmobile. They agreed, and General Motors was incorporated on September 16, 1908.

In fact, Durant almost purchased Ford in 1909. After getting GM in shape, Durant had Henry Ford agree to sell the company for $8 million. The loan committee of the bank, however, passed on this deal. If Durant had had the cash, Ford would have become a division of GM.

By the start of 1909, Durant was ready to move in a big way. His aim was nothing less than to gain control of some of the biggest and best automobile companies in America. But he also wanted to get in on the ground floor with companies that were just starting. He wondered what their patents, products and inventions might bring.

Wrote Durant, "I figured if I could acquire a few more companies like Buick, I would have control of the greatest industry in this country. A great opportunity, no time to lose, I must get busy."

Less than 16 months after GM’s incorporation, Durant had purchased 22 companies of all kinds. Although many were proven worthless due to a few severe liabilities, some were solid gold – Buick, Cadillac, Oakland (Pontiac), Oldsmobile, McLaughlin (GM Canada) and GMC.

While U.S. banking interests looked on cars as little more than a national fad, Durant was already seeing the automotive business as the greatest industry in the land. When Durant predicted that someday 500,000 automobiles would be built and sold in a single year, the bankers thought he was mad. Durant did not care what they thought. He knew he was right.

In 1910, big problems arose. The market for large cars dried up. People were flocking to Henry Ford's reliable and inexpensive Model T, his only model. GM, meanwhile, offered 21 different models of larger cars produced by 10 independent divisions, few of which were profitable. Durant's image went from genius to foolish speculator. To borrow money to keep GM afloat, Durant had no choice but to accept bankers taking control of his "baby" for the five-year term of the loan, starting from September 26, 1910. But Durant was far from through. He was already starting to talk with Buick’s former racing star – Louis Chevrolet.

Chevrolet was a fearless racer and pioneering engineer who beat racing legend Barney Oldfield in his first race. His racing prowess caught the eye of Durant, and he signed up to drive for the Buick racing team in 1909. In two racing seasons, the Buick team won half of America’s road races.

Always wanting to design and build his own car, Chevrolet recalled: "Durant told me, ‘We’re going to need a car.’ So I built it." Together they founded Chevrolet Motor Company in 1911, named after Louis Chevrolet. It launched two models in 1914 with the first valve-in-head engine, which drew many potential Ford Model T buyers. Chevrolets sold very well.

Durant had kept his shares of GM stock and continued to purchase more. Finally, at a GM board meeting in 1916, Durant announced that Chevrolet now had controlling interest of GM. Durant was again elected president of GM.

From Durant's return to control through the end of 1919, GM had grown into a vast enterprise. One of GM’s directors wrote, "The General Motors Corporation of today is 8 times as large as the company which the bankers were managing. This is indeed a fine tribute to your foresight."

In 1920, the post-World War I boom ended, stocks lost 25% of their value, and 100,000 businesses went bankrupt. Durant began secretly buying stock on margin. He felt personally responsible for the thousands of stockholders who had entrusted him with the fate of their funds. Six months later, his $90 million was all gone. He was bailed out again but with a provision that he resign completely from GM. For the second time, he had lost control of the company he had founded. Durant was 59 years old and unemployed.

He wasted no time. Within six weeks of leaving GM without any money, he was back in the automotive business with a new company – Durant Motors. But the Great Depression in 1929 got in his way, and Durant Motors was liquidated in 1933. Yet, Durant, as a visionary, never lost his energy. He earned himself the nickname "Bull of the Bulls" on Wall Street and opened a bowling alley in one of the country’s first drive-in restaurants at the age of 78.

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Roscobbc

Moderator
I'll read this with interest later.......initially I thought is was going to be about GM modified food.......or gender manipulation and an additional gender classification for us to deal with.......
 

plastic orange

CCCUK Member
David Buick was from Arbroath - 10 miles from where I stay. There is a small plaque on the wall where he was born: David Dunbar Buick - Wikipedia

Strangely, 10 miles from Arbroath is where the Davidson family (of Harley Davidson fame ) came from - Aberlemno, where their cottage has been renovated.
The Angus area of Scotland has a great history of innovators and engineers.

Pete
 
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