Detroit Automobile Company
Encyclopedia
The Detroit Automobile Company (DAC) was an early American
automobile manufacturer
founded on August 5, 1899, in Detroit, Michigan
. It was the first venture of its kind in Detroit. Automotive mechanic Henry Ford
attracted the financial backing of three investors; Detroit Mayor William Maybury, William H. Murphy, and Senator Thomas W. Palmer
. As with many early car ventures, the company floundered and was dissolved in January 1901. Twenty vehicles were built and $86,000 ($2.11 million in 2007) of investment was lost.
, after which he was given a monthly salary of $150 ($3,692 in 2007). He refused to put a car into production until he had perfected it to his satisfaction, infuriating investors who quickly began to lose confidence in Ford's ability to bring a product to market. The company's primary objective was to make a profit for its investors, who had seen the Oldsmobile
plant, where the Curved Dash Oldsmobile
was built which was profitable for its owner Samuel Smith.
The company's first product was a gasoline-powered delivery truck engineered by Ford and completed in January 1900. It received favorable coverage in a local newspaper, but was not without its flaws; it was slow, heavy, unreliable and complicated to manufacture. Later in life, Ford recalled this period as one that was driven by profit rather than innovation.
on November 20, 1901, after Ford gained further backing from investors because of his racing success. It later became the Cadillac Company
under ownership of Henry Leland, who came in subsequently after Ford had left.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
automobile manufacturer
Automotive industry
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue....
founded on August 5, 1899, in Detroit, Michigan
Michigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
. It was the first venture of its kind in Detroit. Automotive mechanic Henry Ford
Henry Ford
Henry Ford was an American industrialist, the founder of the Ford Motor Company, and sponsor of the development of the assembly line technique of mass production. His introduction of the Model T automobile revolutionized transportation and American industry...
attracted the financial backing of three investors; Detroit Mayor William Maybury, William H. Murphy, and Senator Thomas W. Palmer
Thomas W. Palmer
Thomas Witherell Palmer was a U.S. Senator from the state of Michigan. He is considered to be one of the most significant figures in the history of Detroit, Michigan....
. As with many early car ventures, the company floundered and was dissolved in January 1901. Twenty vehicles were built and $86,000 ($2.11 million in 2007) of investment was lost.
History
Foundation
The company was founded with a paid-up capital of $15,000 ($369,205 in 2007). Henry Ford managed the manufacturing plant at 1343 Cass Avenue, Amsterdam in Detroit; initially with no pay until he left his job at the Detroit Edison CompanyDetroit Edison
The Detroit Edison Company, founded in 1903, is an investor-owned electric utility which serves most of Southeast Michigan. Its parent company, DTE Energy , provides energy services to a variety of clients beyond Detroit Edison's service area.- History :...
, after which he was given a monthly salary of $150 ($3,692 in 2007). He refused to put a car into production until he had perfected it to his satisfaction, infuriating investors who quickly began to lose confidence in Ford's ability to bring a product to market. The company's primary objective was to make a profit for its investors, who had seen the Oldsmobile
Oldsmobile
Oldsmobile was a brand of American automobile produced for most of its existence by General Motors. It was founded by Ransom E. Olds in 1897. In its 107-year history, it produced 35.2 million cars, including at least 14 million built at its Lansing, Michigan factory...
plant, where the Curved Dash Oldsmobile
Oldsmobile Curved Dash
The gasoline powered Curved Dash Oldsmobile is credited as being the first mass-produced automobile, meaning that it was built on an assembly line using interchangeable parts. It was introduced by the Oldsmobile company in 1901 and produced through 1907...
was built which was profitable for its owner Samuel Smith.
The company's first product was a gasoline-powered delivery truck engineered by Ford and completed in January 1900. It received favorable coverage in a local newspaper, but was not without its flaws; it was slow, heavy, unreliable and complicated to manufacture. Later in life, Ford recalled this period as one that was driven by profit rather than innovation.
Catalog
A catalog produced by Detroit Automobile Company in 1900 showed, with a cost analysis, that the automobile was cheaper to maintain and operate than a horse and vehicle. Little is known about the company's designs.| Original cost | $1,000 |
| Cost of operating, cents per mile, 25 miles per day | $114 |
| New tires | $100 |
| Repairs | $50 |
| Painting vehicle four times | $100 |
| $1,364 | |
| Original cost, horse, harness and vehicle | $500 |
| Cost of keeping horse five years | $1,200 |
| Shoeing the horse | $180 |
| Repairs on vehicle, including rubber tires | $150 |
| Repairs on harness, $10 per year | $50 |
| Painting vehicle four times | $100 |
| $2,180 |
Demise
The Detroit Automobile Company was reorganized into the Henry Ford CompanyHenry Ford Company
The Henry Ford Company was the second company for Henry Ford, founded November 3, 1901. It resulted from the reorganization of the Detroit Automobile Company, his first unsuccessful attempt at automobile manufacture a year before. In March 1902, Ford left the company following a dispute with his...
on November 20, 1901, after Ford gained further backing from investors because of his racing success. It later became the Cadillac Company
Cadillac
Cadillac is an American luxury vehicle marque owned by General Motors . Cadillac vehicles are sold in over 50 countries and territories, but mostly in North America. Cadillac is currently the second oldest American automobile manufacturer behind fellow GM marque Buick and is among the oldest...
under ownership of Henry Leland, who came in subsequently after Ford had left.