Henry Ford II

Henry Ford II (1917 – 1987), the grandson of Henry Ford, followed in his grandfather’s footsteps as an industrialist. The son of Edsel Ford and Eleanor Clay Ford, Henry Ford II was nicknamed “HF2” and “Hank the Deuce” ^[1] and occupied a long tenure as both president of the Ford Motor Co. from 1945 to 1960 and as CEO from 1960 to 1979. Henry Ford II was largely remembered for bringing the Ford Motor Co. into the modern era when he hired a group of 10 influential statisticians from the Army Air Forces called the “whiz kids.”

[edit] History

When Edsel Ford passed away from stomach cancer in 1943, an elderly and mentally unstable Henry Ford was forced out of retirement to once again lead the company he had founded. Even though Henry Ford had not held an official executive title for almost 20 years, the board and management of the company let him resume his presidency, which he held until the end of World War II. Around the same time, a number of Ford executives were battling for title of president, namely Harry Bennett and Charles Sorensen.^[2]

Henry Ford II attended Yale University three years prior and eventually left school without a diploma to join the family firm. After serving only a year working at Ford’s Rouge plant where he learned a bit about company operations, he left to join the Navy working as a Navy ensign. At the time of his father’s passing, he was able to serve as president of Ford.

[edit] Taking Over Ford Motor Co.

With his grandfather back at the helm, Henry Ford II took over the company at a time when it was volatile and losing a great deal of money—approximately $10 million per month. The company’s domestic sales were down and its European factories had been damaged from the war. Though Henry Ford II lacked the appropriate grooming to take over the family business as president, he proved to embody the same leadership qualities as Henry Ford; however, he seldom shared the same views as his grandfather.

Henry’s Ford’s management style from the onset was remarkably aggressive, with a number of decisions being made to turn the poor performance of the company around. First he fired Harry Bennet, the personnel head of Ford’s Service Department.^[3] Bennet had originally been hired by Henry Ford to halt unionization attempts. Secondly, acknowledging his lack of experience, Ford hired veterans in the business to provide him with much needed consultation and support. This included Ernest Breech and Lewis Cruso from the Bendix Corp., both former General Motors executives.

[edit] Modernization and Growth

Henry Ford’s most pivotal move in his career was the hiring of a group of individuals, all statisticians from the Army Air Forces, who became known as the “whiz kids.” ^[4] The group was formed with the intention to bring Ford in line with modern management practices as well as spearhead innovation. Under their leadership, Ford was the first company to get a car to market after the war.^[5] The whiz kids were credited as the design team responsible for the 1949 Ford, which presented a complete overhaul of the company’s previous, already well oudated automobile. The process of conception to production took the whiz kids less than 19 months and positioned Ford once again as a market leader in the automobile industry. A record 10,000 units of the automobile were ordered the day it was released to the public.^[6] Two individuals in the group, Robert McNamara and Arjay Miller, would each go on to become president of Ford. A third member, J. Edward Lundy, would be reputed for making Ford a financial powerhouse.

By 1949, the Ford Motor Co. was back on track as the dominant leader in America’s automobile industry with the launch of two new vehicles comparable to the Model T and the Model A. Before the war, the company had been lagging behind major competitors GM and Chrysler.^[7] By 1960, Henry Ford was confidently running the show at Ford.

[edit] Ford's Legacy

Through his career, Ford made decisions that saw the company’s profits fluctuate. In 1956, he made an offering of public stock that raised US$650 million for the company. He was also responsible for strengthening the company’s European operations after the war and saw his vision of creating a “pan-European Ford company” come to fruition, essentially establishing Ford as a major contender in the European market.^[8]

Other decisions made by Ford were met with less success. For example, he initiated an “experimental car” program that cost the company almost half the amount made in the offering of public stock. Another controversial decision for which Ford became infamous was the firing of Lee Iacocca in 1978. Lee Iacocca was the brainchild behind the commercially successful Ford Mustang introduced in 1964 as well as Ford’s acting president. The firing was the result of personal disputes between the two.

Ford is also remembered for having carried on the work started by his grandfather when he formed the Ford Foundation. Under his leadership, Henry Ford II turned the Ford Foundation into one of the world’s largest philanthropic organizations.^[9] There is no doubt that under his direction, Henry Ford II delivered the Ford Motor Co. back to its former glory shadowing the early successes of his grandfather. By the time Henry Ford retired as CEO in 1979, the company was the fourth-largest industrialist corporation in the world.

[edit] References

1. ↑ Biography for Henry Ford II. IMDB.com, 2008-09-27.
2. ↑ April 10, 1944: Henry Ford II is promoted. History.com: This Day in History, 2008-09-27.
3. ↑ Henry Ford, II. Britannica, 2008-09-27.
4. ↑ Hays Walter, Henry: Life of Henry Ford II, pg 64.
5. ↑ Builders and Titans. Time.com, 2008-09-27.
6. ↑ Builders and Titans. Time.com, 2008-09-27.
7. ↑ Henry Ford II is promoted. United Federation Forum, 2008-09-27.
8. ↑ Henry Ford II's big idea: A pan-European car company. European Automotive Hall of Fame, 2008-09-27.
9. ↑ Our History. Ford Federation, 2008-09-27.