How Ford Built America – The Man Behind The Automobile

How Ford Built America – The Man Behind The Automobile

Henry Ford: one of the most influential American
industrialists. Through his company Henry transformed American
life and in this video we’re gonna learn how he did it starting from the very beginning. This video is brought to you by Audible and
a big part of it is based on Henry Ford’s biography, which you can listen to for free
on Audible if you register for a free trial with the link in the description. You should also check out Real Engineering’s
video on the manufacturing innovations of the assembly line, which he explains masterfully
on his channel. By all accounts, Henry Ford should’ve been
a farmer. Born in Michigan barely 20 years after it
had become a state, Henry grew up at a time when farming was slow, exhausting and manual,
which is why unsurprisingly he came to hate it with a passion. But whereas most people at the time didn’t
have the fortune to escape what they were born into, Henry was lucky enough to get such
an opportunity. You see, the village he was born in was just
8 miles west of Detroit, which was rapidly becoming an industrial center thanks to the
steam engine. Early on in his childhood Henry encountered
technology, which few children his age could play around with. He’d tinker with the watches of his better-off
neighbors and by the time he was twelve he could not just take them apart, but also put
them back together and repair them. His interest grew into an obsession when he
got to observe a working steam engine firsthand while on a school trip to one of the rail
companies in Detroit. By the time Henry had become a teenager the
steam engine was already making its way into the farming community: coal-powered threshing
machines and sawmills were becoming common sight and Henry was learning how they worked
and how to fix them. At the age of sixteen he made a big leap forward,
when against his father’s wishes he left his village to go work in Detroit, where any
young mechanic could easily find very lucrative employment. Industry in Detroit was booming and it had
been doing so for close to five decades. In 1825 a canal had been dug connecting the
Hudson River to the Great Lakes, which at the time were effectively the western frontier. All the untapped resources that had not way
of getting out could suddenly be moved by steamboat to New York and in the span of just
50 years Detroit’s population increased by a factor of ten, with vast mines in the
north producing copper and iron and lumber mills opening up virtually everywhere. All this metal and wood sustained close to
a thousand companies in Detroit alone, including the ones in which Henry would work at over
the course of the 1880s. It is during this time that Henry by chance
learned about the gas engine from a British Magazine. It was being produced in small numbers by
a German engineer, Nikolaus Otto, and it was gaining some traction in Europe, but it was
practically unheard of in America. Henry would get the chance to work on such
an engine himself in 1889 and he instantly recognized the advantages it had. Because it did not use steam, the engine was
much lighter: it got rid of the heavy boiler and all the water in it because it did all
the combustion internally, a much more efficient process. This also allowed the gas engine to start
quickly, whereas steam engines of the time needed as much as 30 minutes to heat up the
water and generate enough steam to start working. The gas engine was an innovation Henry fell
in love with, but it was one he didn’t fully understand: after all, he had extensive experience
with steam and metal, but almost none with electricity and the gas engine was fired by
an electric spark. To obtain this missing knowledge, Henry went
to work for the local branch of the Edison Illuminating Company. It was generating electricity for over a thousand
homes in Detroit and it was doing so by using steam engines, so Henry was a natural hire
for them. Whenever the engines broke Henry had to fix
them, but whenever they were working he was free to do as he wished: it was the perfect
job that allowed him to spend his days experimenting with gas engines. In 1893, when Henry had already been promoted
to Chief Engineer at Edison, he created his first working gas engine. The idea of using the gas engine to create
a horseless carriage had been around in Henry’s mind since he first laid eyes on one, but
actually making that idea a reality would take years of work. Building a car in a world with no car parts
wasn’t easy and Henry had to figure out every detail through trial and error. It took him three years of constant effort
to produce this: the Quadricycle, a simple frame with an engine powered by ethanol and
four bicycle wheels mounted onto it. It had only two gears and neither one was
for going in reverse, but what’s worse is that it had no cooling system to speak of,
thus making overheating a constant issue. In its first year Henry made numerous improvements
to the Quadricycle, most notably adding a cooling system, and by the time he sold it
in 1897 for $200 he had driven a thousand miles in it. Henry built a second Quadricycle and then
a third one, always improving the design, before finally feeling confident enough in
1899 to start his own company. Capitalized at $150,000, the Detroit Automobile
Company was a very ambitious venture. Many of the Detroit elite invested in it,
including Henry’s friends from the Edison Company, and everyone was eager to see what
Henry could create with proper capital. Henry’s plan was very clever: since he personally
knew many of the industrialists in Detroit by that point, he’d try to build an automobile
they could use in their businesses. He leased a factory and planned to hire a
hundred workers to make his new “delivery wagon”, as he called it. But it turned out that building such complex
machines in high numbers was much more difficult than Henry imagined. The vast majority of the parts used in the
making of the delivery wagon were produced by other companies and every time a single
delivery was late the entire factory would have no choice but to stop working. The first delivery wagon took six months to
produce and no more than twenty were made in the first two years of the company’s
existence. By the end of 1902, the other shareholders
were sick of Henry’s lack of progress and actually voted to get rid of him. Now, because Henry held only 15% of the company
he had no choice but to comply and interestingly enough, the man who took over the Detroit
Automobile Company would eventually transform it into Cadillac. But that’s a story for a different time:
what matters is that Henry was pushed out of his own company and had only a thousand
dollars to his name. It was back to the drawing board and this
time Henry would take a very different approach. Instead of targeting businesses with expensive
machines, Henry would design a vehicle to be used by the average man. You see, at the time virtually all cars were
high-ticket items: they were mostly made by skilled craftsmen one at a time and more often
than not were designed for racing, which was rapidly becoming a favorite American activity. Henry envisioned turning the car from a status
symbol into a commodity, but doing that would not be easy and in fact it took Henry 20 different
design iterations before he finally got one that worked. Henry labeled his first design as the model
A and worked his way through the alphabet over the next 5 years, sustained by capital
from his friends and family. But what changed the most during this time
is not the car itself but the production process. Henry learned the importance of having a reliable
supply chain when his first company failed, which is why this time around he tried getting
as many parts as possible from the same manufacturer. The one he chose will probably sound familiar:
the Dodge Brothers Company, a machine shop in Detroit that would eventually evolve into
the eponymous American brand. The biggest game-changer of all, however,
was Henry’s chance visit to a slaughterhouse in Chicago. He saw there something interesting: a disassembly
line, so to speak, where multiple workers would process carcasses moving down a line. Henry figured he could use the same process,
but in reverse: an assembly line. Using the money he had saved from some of
his earlier models, which were also assembled by the Dodge Brothers, Henry was able to build
a factory of his own in 1904, where he could experiment with the assembly line process. By 1905 the Ford factory employed over 300
people that built 25 cars a day, but Henry still hadn’t figured everything out: he
was producing multiple different models at the same time which prevented him from properly
using an assembly line. Nevertheless, there was a sign of things to
come: the affordable Model N, created in 1906 became the best-selling car in the US and
Ford became the biggest car producer in America. It is actually during the production of this
model that Henry would first use the assembly line process to at least partially assemble
some of his cars. It wasn’t a full moving assembly line, but
nevertheless this experiment increased production by a factor of 5 in the same factory. Logistics, of course, was another big part
of Henry’s success: in 1905 he created the Ford Manufacturing Company, complete with
its own factory that started making the engines and transmissions of Henry’s cars to further
eliminate any possibility of delays. But the biggest factor in Henry’s success
came from perhaps the most unexpected place: Peru. Now, this is a story you’re not gonna hear
anywhere else, so listen carefully. In 1907, Henry began construction of heat
treatment plant to produce vanadium steel. This alloy was new to America: in fact, few
furnaces in the US could even reach the temperature needed to manufacture it. The difficulty in producing it, however, was
worth it because vanadium steel was more than twice as strong as regular steel while actually
being lighter. Now, at the time vanadium metallurgy was cutting
edge research, but Henry had an extremely lucky connection: he was friends with the
two brothers who owned the one vanadium mine in Peru producing 92% of the world’s supply. Joseph and James Flannery had commercialized
vanadium steel in Europe and in the US by selling it to rail companies, but their Peruvian
mine was producing so much vanadium that they had to do something else with it. They sold vanadium steel to the US government
for the construction of the Panama Canal, but even that wasn’t enough so when they
met Henry in 1906 they immediately made him an offer: they would help him transition his
entire manufacturing process to use vanadium steel. It was their chief engineer that built the
heat treatment plant for Henry in 1907 and it was their company that supplied Ford with
all the vanadium it needed for its cars. The first Ford car designed with vanadium
steel was the model T in 1908 and it was this alloy that actually made it successful. It wasn’t the cheapest car Henry had made:
the model N and its upscale versions were actually cheaper. But it didn’t need to be because it was
by far the best car built at the time, much stronger than any competitor. The sheer difference in quality was the only
marketing Henry needed and within weeks of the Model T’s release Ford received 25,000
orders for it, even though it only managed to produce 17,000 units for the entirety of
1909. Henry realized just how big of a deal the
Model T was which is why he built a second bigger factory in 1910 and it is there that
he would perfect the moving assembly line in 1913. During this period production would double
every year: in 1910 he built 20,000 Model Ts and just six year later he was building
over half a million. At the same time Henry adopted another brilliant
strategy: he was constantly reducing the price of his car to further increase his market
share. In fact, during these six years he cut the
Model T’s price by more than half. By 1918 half of all cars in America were Model
Ts and this trend would continue well into the 1920s. Henry had begun a new age in American history:
the age of the automobile and it was his company that would totally dominate in its first two
decades. It wasn’t until the end of the 1920s that
the rest of the auto industry caught up to Henry, but at that point he was already one
of the richest men alive. In 1922 he actually took the time to write
an autobiography, where parts of this video came from and which you can listen to it for
free as part of your 30-day free trial of Audible. In his book Henry not only recounts his experiences
in a very eloquent fashion, he also shares plenty of business advice that is actually
still relevant today. You should visit
or you can text “businesscasual” to 500500 to get started with Audible, who have the
biggest collection of audiobooks in the world. And if you’re more into the manufacturing
side of things, you should check out the video my friend Brian from Real Engineering made
on exactly this topic. He will walk you through the beauty of the
assembly line that made the automobile miracle possible, so you should definitely head on
over to his channel, which I’m certain you’re gonna enjoy. In case you also enjoyed this video I’d
like to thank you for watching it and I’d also like to encourage you to share it around
with your friends. You can expect my next video in two weeks,
and until then: stay smart.

Comments (100)

  1. Make sure to check out Real Engineering's video on the Model T and also follow Business Casual's new Instagram page! I uploaded a nice album of pictures of the American Vanadium Corporation that I didn't have time to put in the video:

  2. For some reason, it sounds weird to hear you talking about my hometown. lol. I was born in Detroit in 1968 but have lived in the suburbs most of my life. Most stories I've heard about Henry Ford don't cover much of his early life so great job for covering all the details!

  3. Do a video on Alibaba!

  4. East or West ford is the best'

  5. Hit Like for Valyrian Steel and Comment for Vanadium Steel.

  6. Which softwares do you use to make videos?

  7. Do a video about 1MDB please.

  8. Henry Ford was one of the greatest men of the 20th century;
    if there had been a Nobel Prize for engineering, then he for sure would have received one.

  9. Can we have a video about Hyam Salomon?

  10. I 've just sent my translation in Vietnamese. The video is very inspirational. Thanks!

  11. A true anti Semite. Yes he was a businessman. Doesn’t take away the fact. Do your research and you will see

  12. Кто из россии

  13. Have you noticed it’s not one black owned business/corporation on this channel. It’s not you, it just says a lot about the world we live in🤦🏾‍♂️

  14. can you do a video about JPMorgan and how he accumulate his wealth

  15. I think its worthy to note that Ford took some of his idea from CR Patterson Car Company

  16. Henry's delays with the Detroit Motor Company reminds of Musk with Tesla

  17. Ford and Trump! Building America

  18. 1000 in 1913 is about 25000 today

  19. Just going to say my family always drove Ford, Chevy or Dodge, sometimes the odd plymouth or buick or pontiac or what have you. That being said, Henry Ford created one of the greatest car companies, ever, period. Regardless if you're a fan boy of some other brand you have to give props to him. I drive a Ford truck built in the 90s, damn old thing refuses to quit.

  20. Great job on the video! Subscribed!

  21. @ 3:33 – Henry Ford didn't fully understand the gas engine… Today Ford Motor Co. still doesn't.

  22. Make the Cadillac video

  23. Ford didn't do anything but make cars that would break down all the time, there's no way he built America. Dodge actually claims that title.. Dodge started, and set the bar high for everyone else

  24. Do the Cadillac guy next

  25. Good content. Distracting, repetitive, and corny soundtrack

  26. He was also an amazing author who wrote The international Jew

  27. 🇵🇪🇵🇪🇵🇪

  28. This is my favourite channel on YouTube.

  29. A very inspiring video…..keep up the good work

  30. Thank you. Can you do hemp car by Henry Ford 1941


  32. he reminds me of Steve Job

  33. amazing story. never heard of the visit to Peru.

  34. Real engineering ❤❤❤❤

  35. isn't Ford Mustang the most iconic car ever made

  36. Why Detroit sounds to me like an Android !!

  37. Just think of it, this genius was voted out of his own company!

  38. he used valyrian steel to build cars? impressive

  39. He was also a generous philanthropist and built the Henry Ford Hospital in Detroit

  40. Now Detroit is ☹️😞

  41. Your voice and the background music always do justice to the videos you make. Thanks a ton!!!

  42. You maybe should have mentioned that good ol’ Henry was also a passionate racist. Just saying.

  43. The book from Henry Ford is really good. I haven't it yet, but already learned a lot. Great video

  44. He looks kind and honest

  45. He stole his ideas from a black man

  46. Great video! We are touching on Henry Ford in our middle school class and this kept the kids' attention and we all learned something we hadn't previously known! Very nicely done!

  47. Hey ! Here you need to put in a title like "The DARK secret of Herny Ford….." … no-no-no ! Only the "ugly Germans" deserve to be titled like that….. f…. u !

  48. Notice how all the ingenious and hard working whites made Detroit one of the most advanced and richest cities in the world. Compare to when it's overrun with blacks… Just saying

  49. So that's how valerian steel fantasy came from

  50. The Dodge Brothers made Henry Ford

  51. The Steve Jobs of the FORD in the 1800s and 1900s

  52. Today I learned Ford cars are made from Valyrian steel

  53. My 2002 Focus still runs great…thanks FORD.

  54. And he was a big nazi supporter.

  55. So… His first mass production was for delivery vehicle. That lost backing because of inconsistent deliveries….if only someone made a delivery vehicle to suit consumer demand that might not have happened… lol. Im not sure if i am too high, or they are. Lmfaorotff

  56. You need to add a section on Henry Ford built the modern anti-semitic movement with the publication of the International Jew and the Protocol of the Elders of Zion that resulted in the Holocaust and continues until this day. Unfortunately his creation of the Ford Motor Company pales in comparison.

  57. he sure had some great DSLs. damn

  58. "🎶⚛️🌕🌍💛A.P Rothsch $1.5 Trillion belong DNACODEB-+ Mt 13:11'

  59. Ford:

  60. Misleading title, because he is not "The Man Behind The Automobile". That was Carl Friedrich Benz, but great video! 🙂

  61. It's funny if I had to bet how many views Henry Ford could have done compared to other celebrities you covered in your videos I would have said at least 1 million views. Great video as always, keep it up!

  62. Why is there always some German involved in all these stories doing some brilliant stuff first. Maybe its just a coincidence the kind of videos I am seeing. but it does seem Germans were good innovators.

  63. Henry Ford was one badass! Forget Steve Jobs, henry ford is the one who started the revolution that engineers and innovators are the ones to change the game.
    Also is it me or he looks a bit like Eddie Redmayne..

  64. 1913 the year Henry Ford build his second factory .
    1913 the year the Federal reserve came into existence .
    it is well enough that people of the nation do not understand our banking and monetary system, for if they did , I believe there would be a revolution before tomorrow morning.
    -Henry Ford
    What difficulties did Henry Ford went through will b a great story

  65. USA CORRUPTED governments and closed down car factories in SOUTH AMERICA and around the world in order to force them to buy american cars. CORRUPTION, unfair competition, assassinations. That is how Ford did it. And I'm only talking about the car industry here. The same was done in all other industries in order to create the USA (MAGA people). Don't' blame China when they steal IP from the US, It has never belonged to America anyway…

  66. George Washington Carver

  67. Henry Ford's Company Survived German And Japanese Automobile Giants' Stiff Competition For More Than A Century.

  68. He had anti-Semitic view's

  69. magna carter …..7931…….xx

  70. This mans slides in the sponsor so smooth

  71. another byemyself birthday godfarther

  72. god bless America!!!

  73. Before this video, there was a add for bmw

  74. That was the time when engineers were so important and driving force of a country's economy. Today, the bankers and economist drive the country's economy.

  75. when did henry get the nazi medal?

  76. ford also built tractors

  77. Cadillac video please

  78. Henry Ford another white man that built the American society another white man that invented the automobile and built factory's and provided Americano with jobs and work Henry Ford is the real meaning of white lives matter remember that white people of America on election day vote for white people on American election day !

  79. Raise a glass for sir Henry Ford

  80. Imagine if he lived in fuckin socialist shit
    God today cars could be less good than today is
    No it could be trash

  81. Ever since I started watching Business Casual I was always inspired from these stories of success. I learn & Apply the way of thinking from these entrepreneurs such as Henry Ford, John D Rockefeller, Elon Musk, & More

  82. I've done a good job 🔩🔧

  83. & now many Henry Ford employees are underpaid and overworked. He'd be ashamed if he was alive today.

  84. I find this title rud towards those who really built this country

  85. Well he sure made a"ford"able cars amirite?

  86. But stole C.R Patterson's designs through manipulation because he and his team was too dumb to perfect the end result of a master invention. Know the truth..

  87. 2:33 Is that an anime cat human thingy? Look at the O'Brien advertisement.

  88. How can someone be fired from their own company ? Can someone explain me that please ?

  89. what's up with the dodge brother jewish star logo?

  90. Didn't he build tanks for the Nazis.


  92. To bad he was a asshole that destroyed company’s that he saw a threat. Using false allegations and his political pull

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