This Day

August 5, 1899 – Henry Ford starts his first car business: Detroit Automobile Company

A Detroit Automobile Company delivery truck, circa 1900. Is that Henry on the left?

Henry Ford had a gift, or at least that’s what 12 investors believed. These men, enchanted by his Quadricycle and other early innovations, pooled $15,000 (about $456,000 in today’s dollars) to launch the Detroit Automobile Company on this day in 1899. Among the investors was Detroit Mayor William Maybury. Ford, securing a salary of $150 per month (roughly $4,560 today), left his demanding job at the Edison Illuminating Company to embark on this new venture.

The Detroit Automobile Company

The Detroit Automobile Company factory with its first product, a delivery truck, parked in front. The factory would later house Cadillac.

The Detroit Automobile Company’s factory at 1343 Cass Avenue and Amsterdam in Detroit was abuzz with potential. Henry, focused on innovation, was meticulous—too meticulous, as his investors soon discovered. He refused to release a car that didn’t meet his rigorous standards. This perfectionism, while admirable, began to drain the investors’ patience and pockets. Despite their frustrations, they continued to fund Ford’s development efforts, believing in his potential.

In January 1900, the company’s first vehicle, a delivery truck, rolled out. Though it garnered local praise, it was far from perfect. Heavy, unwieldy, and unreliable, the truck fell short of Ford’s expectations. He requested more money and time to refine his design, but his investors had had enough. By November 1900, after producing just 20 vehicles, the Detroit Automobile Company dissolved, leaving the investors with no return on their investment. Ford, undeterred, turned to racing to build his reputation and attract new capital.

The Henry Ford Company

In 1901, Ford and his associate Ed “Spider” Huff developed a 26-horsepower, two-cylinder racer that clocked over 75 miles per hour—an impressive speed for the time. This vehicle, known as the Ford Sweepstakes car, was built to compete in a high-profile race against seasoned racer Alexander Winton. The October 10, 1901, race at the Grosse Pointe Race Track was thrilling. Winton took an early lead, but Ford, gaining confidence, overtook him on the eighth lap and won. This victory showcased Ford’s engineering prowess and attracted new investors.

Riding on his racing success, Ford founded the Henry Ford Company in November 1901. However, clashes with investors over production goals led to his departure just five months later. The company was rebranded as Cadillac, and Ford was left to try again.

The Mack Avenue Ford Motor Company plant.

Ford Motor Company

At age 39, determined to create a car for the masses, Ford established the Ford Motor Company on June 16, 1903—seven years after unveiling his Quadricycle. With new investors, including John and Horace Dodge, who believed in his vision, Ford raised the equivalent of $800,000. Setting up shop on Mack Avenue in Detroit, Ford began producing the 1903 Ford Model A. The company produced 1,708 cars at this facility before moving to the Piquette Avenue plant, where Ford would realize his dream with the iconic Model T. Indeed, the third time was the charm.

Brian Corey

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