When/how Did Ford Motor Company Start Using Dealerships?
Posted by China Sourcing CommentatorSep 28
I’m looking for some good sources on the history of dealerships.
Since Ford owned and produced all the raw materials needed in the 1920′s for his production, I’m assuming he sold the model T’s right out the door as well instead of using dealerships. Am I right?
Popularity: 2% [?]
Stumble Upon
Del.icio.us
Buzz
This is the entry from wikipedia.
In January 1914, Ford solved the employee turnover problem by doubling pay to $5 a day ($103 per day in 2006 dollars), cutting shifts from nine hours to an eight hour day for a 5 day work week, and instituting hiring practices that identified the best workers. Thus, it pioneered the minimum wage and the 40 hour work week in the United States, before the government enacted it. Thus, Henry Ford became an American legend.
Productivity soared and employee turnover plunged, and the cost per vehicle plummeted. Ford cut prices again and again and invented the system of franchised dealers who were loyal to his brand name. Wall Street had disagreed with Ford’s generous labor practices when he began paying workers enough to buy the products they made.
He established a dealership some time between 1914 and 1919.
1919: Edsel Ford succeeds Henry as Company President.