Everything You Need To Know About The Brothers Who Changed American Automobiles
What if you were pivotal for an automotive giant but decided to walk away? This is the story of the Dodge brothers, whose departure from Ford Motor Company was the birth of a new legacy.
We All Know The Dodge Brothers Company
Founded in 1900, the Dodge Brothers Company would soon become one of America's automotive giants. Names like the Dodge Charger and Ram aren't to be confused. Yet, little is known about the two men behind the brand and the unique bond they shared.
Matson Collection, Wikimedia Commons
But It's Time To Meet The Brothers
John Francis Dodge and Horace Elgin Dodge were both born in Niles, Michigan, a small industrial town. John was four years older than Horace, born in 1868. Their father ran a foundry and machine shop, and recent DNA tests show their roots trace back to East Coker, Somerset in England.
Unknown Author, Wikimedia Commons
However, They Were Different
Although the brothers were inseparable, each had his own passion. This was clear since they were children. Horace was far more hands-on, while John was interested in finances and running businesses. These talents would help them build an empire that still exists today.
Unknown Author, Wikimedia Commons
They Moved
In 1886, the family decided to move to Detroit, where the brothers worked in a boiler marker factory. However, a few years later, they decided to move to Ontario, Canada, where they both worked as machinists (those who operate machines).
Onasill - Bill Badzo - 207 Million Views, Flickr
And Their First Invention Was Born
Soon after moving, Horace invented a dirt-proof ball bearing and patented it. It was designed to decrease rotational friction and support axis and radial loads. Thanks to this invention, they partnered with another investor to manufacture bicycles.
Love Was On The Way
Horace's business success allowed him to focus on his personal life. The aspiring businessman met Anna Thompson, a Scottish immigrant, and they got married in 1896. They had a son and a daughter, and she would later marry silent film actor Hugh Dillman.
But Things Weren't As Great For John
During the same period, John got sick with tuberculosis. This would later affect his lungs for life and play a significant role in his declining health. However, at that time, the two brothers were focused on making their business succeed no matter what.
It Was Just The Beginning
Their bicycle business was so successful that the Dodge brothers went on to sell it three years later. But they were far from done. They used their earnings to build their first machine shop in Detroit and decided to make parts for the booming automotive industry.
Detroit Publishing Company, Wikimedia Commons
Fortune Was On The Way
Thanks to their innovative minds, they landed a contract with Olds Motor Vehicle Company to build their transmissions in 1902. This was an excellent chance to create a solid reputation for their high quality, which eventually encouraged Henry Ford to approach them.
Detroit Publishing Co., publisher, Wikimedia Commons
They Entered The Automotive Industry
The Dodge brothers' partnership with Henry Ford in 1903 marked a turning point in their careers. Ford needed high-quality parts to build his cars; the Dodge brothers were the perfect fit. They became exclusive suppliers for Ford, providing engines, transmissions, and chassis for the iconic Model A.
Hartsook, photographer., Wikimedia Commons
It Was The Perfect Business Deal
In exchange, they received a 10% stake in the Ford Motor Company, which made them wealthy and solidified their influence. The Dodges weren't silent partners as they played a major role in Ford's early success as Ford only needed to add the wheels and body to finish the cars.
Dave Parker, CC BY 3.0, Wikimedia Commons
Or So It Seemed
The 1903 deal stated that the Dodges were to supply Ford with 650 chassis. This meant that their Hastings Street plant was occupied and that they were exclusively working for Ford's new Mack Avenue plant. However, Ford complained that some of the pieces weren't that good.
Spanish Coches, CC BY 2.0, Wikimedia Commons
Disagreements Were On The Way
Ford believed that some of the workers deliberately delivered subpar products as they were paid by piece. Nevertheless, he went on to order 755 engines between January and May of 1904. Then, he ordered 500 more in April.
Joe Ross, CC BY-SA 2.0, Wikimedia Commons
Yet, The Business Deal Was Still In Action
By 1905, the Dodges were delivering up to 400 engines and transmissions a month for Ford's Model B. Horace Dodge made several changes to the Model C's engine and other parts of the car to improve its performance while John married Matilda Rausch.
Sicnag, CC BY 2.0, Wikimedia Commons
Ford Had Other Plans
Henry Ford was planning to offer less expensive cars, so he was working on producing his own engines and transmissions. This meant that the brothers would lose a significant portion of their income. But the Dodges weren't bothered because they had plans of their own.
Unknown Author, Wikimedia Commons
The Dodges Were Skeptical
Horace and John Dodge established their main factory in 1910. By 1912, they provided Ford with 180,000 transmissions. However, Ford was expanding his plants and the Dodges felt that relying on one customer wasn't a good business strategy.
Unknown Author, Wikimedia Commons
And They Had Plans Of Their Own
Giving Ford a notice to end their contract in 1914, the Dodges began working in a different direction. In 1913, they offered their first automobile—the Dodge Model 30-35. This touring car was offered as an upscale competitor to Ford's Model T. As expected, this didn't thrill Henry Ford.
bertknot, CC BY-SA 2.0, Wikimedia Commons
And The Automotive Industry Was Forever Changed
The Dodge Model 30-35 would come equipped with many features that would be standard in cars of the era. These included the all-steel bodies and electric lighting. Moreover, the engine was designed to produce 35 hp, which is superior to Model T's 20 hp.
Harry Shipler, Wikimedia Commons
But Their Partnership Wasn't Completely Over
Despite ending the contract, the Dodges maintained their Ford stock. In 1914, they collected about $3.8 million in dividends in addition to the money they gained from their contract. However, Ford was about to surprise them. He decided to reduce the dividends in 1916 and this impacted them.
So, They Took Him To Court
John and Horace Dodge filed a lawsuit and won, forcing Ford to pay $19 million in dividends in 1918. They received 10% of this money but Ford decided to buy out his shareholders to be able to finance his River Rouge complex.
Detroit Publishing Co., Wikimedia Commons
He Made An Offer They Couldn't Refuse
Henry Ford offered the brothers $25 million for their shares. Over the course of their investment, they've made a return of $34,871,500 on their initial $10,000. This money would have helped them to expand their empire.
Caption card tracings: BI; Shelf., Wikimedia Commons
They Gained More Success With The Army
Since 1910, Dodge has provided military trucks and touring cars, and General John J. Pershing himself used a Dodge car to oversee the troops. More than 12,000 Dodge vehicles were used during WW1, and the company was the army's leading supplier of light-wheeled vehicles until WW2.
Alf van Beem, CC0, Wikimedia Commons
But Tragedy Was About To Strike
Despite the business's success, a family tragedy occurred when John and Horace contracted influenza and pneumonia during the 1918 pandemic. However, they never seemed to recover. Unfortunately, John passed away in January 1920 because of pneumonia complications. It was the beginning of the end.
Carptrash, CC BY-SA 3.0, Wikimedia Commons
The Brothers Were Inseparable Again
In December of 1920, Horace died of pneumonia and liver cirrhosis. The brothers were buried side by side in the family's Egyptian-style cemetery. Frederick Haynes took charge of Dodge Brothers and expanded its truck line, but the company gradually lost its ranking.
The Dodge Brothers Private Mausoleum Woodlawn Cemetery, Detroit. By Graveyard Legends and Lore
A Change Was Due
Dillon, Read & Co. bought the company for about $146 million in 1925 despite its declining sales. It retained the name of the Dodge Brothers firm, but non-voting stocks were offered on the market. Eventually, Chrysler Corporation bought it for $170 million in stocks, and a new chapter began.
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