HomeMy WebLinkAboutThe Goderich Signal-Star, 1969-10-02, Page 164
44 GQDER.tc$ SI9x.9,t,.sTgR, THURS.AAY 0GPOeFR a, 19s9:
THE . BLUE THU MB
BY G: MacLEOD ROSS
Ever since Henry Ford.
established his kingdom at. ,the
River Rouge Plant at Dearborn,
and for that matter at the
Highland Park Plant before it,
deviation by employees from the
diktat of the proprietor has
never been suffered gladly. When
on a recent occasion the present
proprietor tried to mix a tiger
with a lion he very soon became
aware of an uncompromising
rule of nature; in this case of
human nature. On September
the 2nd, Chairman Henry Ford
2nd. walked into the office of
the president of the Ford Motor
Company and told him he was
through. Semon Knudsen was.
out an the street after only 19
months, out with only a paltry
$200,000 a year to collect until
1973, the termination date of
his contract.
Mr. Ford said: "Things did
not work out." Mr. Knudsen
admitted having had pians which
"in someinstances he had not
discussed" with Mr. Ford and
Mr. Ford always says, somewhat
cryptically, "My name is on the
building." The flow of history.
had repeated itself, and in more
ways than one. The long knives
had flashed again!
BIG BILL KNUDSEN
VERSUS HENRY FORD
It was more than 50 year ago
when Semon's father, Big Bill
Knudsen began working for old
Henry Ford. Henry was one of
those rapidly disappearing
captains of industry who
autocratically interested himself
in every . detail.- It was not just
that he asserted: "History is
bunk," but that he refused any
technicality of which he was not
personally acquainted: He could
be, and was, ruthless when
ignored. He never for one second
doubted his own judgement, and
of course, any man who had
risen from a bicycle repairer to
build up, unaided by outside
financiers, the second largest
automobile firm in • the world
would hardly be human had he
stifled his egocentric confidence.
Understandably to those who
knew his • character and
temperament, Henry would
brook no • independence of
thought or deed and when, in
1921, Big Bill showed the
symptoms, he was fired, only to
be hired by General Motors.
HENRY FORD 2ND A. -
VERSUS SE,MON KNUDSEN
The recent clash between the'
randson and the son
respectively, of the two men
who conflicted in 1921 arose for
different reasons. Semon
followed his father into the
employ , of the General Motors
Corporation with marked
success: He is credited with
putting Pontiac several rungs up
the ladder at G.M.C. and he
moved up the ladder to number
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4 in the' corporation hierarchy.
,But late in 1967, when G.M.C.
needed. a new president he was
passed over and he quit. When
Henry Ford 2nd whistled his
' friend Semon joined him as
president of the Ford Motor Co.
Now Semon is trot his father's
son for nothing; sortie say he js
arrogant; some temperamental.
It is at least probable that he
could not resist the temptation
to try to demonstrate to .the
G.M. moguls they had made a
mistake. It is equally probable
that he believed he could show
Ford. a thing or two. The
situation was on a par with the
Mountbatten story. The father,
having been unfairly ousted as
First Sea • Lord, the son's
ambition was to achieve the
same position.
Now at General Motors it has
been an unwritten tradition that
seldom, if ever, is anyone
brought in from outside and
installed in high command. This
has not been so 'generally the
understanding at Ford. In this
particular instance Ford had, as
head of his car manufacture, a'
44 -year;'-.- man who has won
his spurs quite recently by
foaling the enormously
successful Mustang and Maverick
cars. ° Semon • Knudsen's
appointment did not sit well
with the successful Mustang
team. There were disagreements
as to how far, to push the
horsepower race and the styling
department sulked at some of
Knudsen's orders. Harmony, so
essential in any undertaking,
fled.. Ford has not been noted
over the years as a particularly
happy ship, and it is not
surprising that word of the
infelicity soon reached Henry
Ford, with the result already
mentioned. Nevertheless, it does
not redound to "young Henry's"
appreciation of human relations
to fail to realize that he was
playing with explosives. In the
result he achieved the inevitable
big bang which a shrewder judge
of men would have avoided.
FORD IN THE -1'930's •
For a foreigner, pitchforked
into the United States in 1942,
topick up something of the
reputation which hung to the
huge . River Rouge , Plant in
Dearborn, it was necessary to sit
at the feet of men • who had
spent their working lives in the
automobile business. My own
three-year association with the
Ford: Motor Company first
became intimate at the- close of
1942. ` The -reason: The Ford
•
F
The flow of history
Company had undertaken to
produce some hundreds of
thousands of tracked infantry
carriers for the British Army. In
a nutshell, this is what I learned:
Ford was the last place to
which you would go for
engineering. Old .Henry was a
mechanic, who scoffed openly at
the profession of engineering.
While he had some very goad
engineers on his staff, and no
one could touch his Chief
Engineer, Larry Sheldrick,
Henry would never allow thern
their heads. Sheldrick was being
called . to the old man's office
several times a day and then had
somehow, to try to make the
whims work. Of course in the
beginning Henry Ford had a
magnificent idea. To make the
rich man's' fancy the servant of
the poor, and it was on this
concept that the Model 'T' was
born. Between 1903 and 1926, .
15 million had been produced
and this privately owned
companywas estimated to have
made a profit of a billion dollars
on sales of close to seven billion.
But Alfred Sloan, chairman
of General Motors, had also
discovered a fallibility of the
American public. He appealed to
their snobbery. He found they
,would pay more if the car was
tailored, ever so 'slightly, to
individual taste, so he offered a
choice of colors (Ford offered
black and you would like black)
and of upholstery. With the
Chevrolet, Sloan put Ford out of
business for a whole year, for
Ford was caught with nothing
up his sleeve and it took him a
year to change to the Model 'A.'
Ford went to a V-8 engine which
was then expensive and
complex. General Motors
developed a 6 -cylinder engine
which met a lower standard.
demanding economy. Ford had
only tooled up for his '6' in
1942.
There was speculation at that
thne�as to what would happen
when Henry died. Edsel, his son,
was well known to be
progressive and would give his
engineers their heads, once his
father retired. - The Ford
Company would then become a
dangerous competitor, with its
immense production potential:
On the other hand, should Edsel
sell out to the bankers, it would
mean a rise of 10 points in
G.M.C. shares. It was said that it
only took five years for the
bankers to ruin a company, as
witness Dodge. When the Dodge
brothers 'died, G.M.C. bid -.a..
hundred. million dollars for,their
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CHARTE R ED,ACCOUNTANT
39 St. David St., 524-6253
Goderich, Ontario
145 ESSEX ST.. GODEhiCh. ONTARIO
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44 THE.SOUARE TELEPHONE
GODER ICH, ONTARIO 524-7562
V
•
plant, but the bankers bought it
for $142 million and later sold it
to the public for $182 million.
• Five years later; Chrysler bought
it for a song. But there was a
third possibility. The life blood
of the auto business is cu.t-throat.
competition. If Ford went ' out
of business and the "Big Three"
were reduced to the "Big Two,"
competition might wane. The
government, ever hovering
vulture-like •over big business,
armed with its bagful of -
bureaucratic red herrings, might
step in, crying their fell call of
"collusion," or "monopoly."
"Show us the books!"
FORD IN THE 1940's
In 1942 the Ford Motor
Company was developing a V,8
engine for their version of- the -
'Sherman tank. They were doing
many other things for the army
of course, building Shermans,
armoured cars, not to mention
the British infantry carrier.
Larry Sheldrick was deeply
involved in this tank engine
project, for this was to provide
greater power than any of the
three other Sherman tank
engines, respectively that by
Continental, by Chrysler and by
General Motors, all of which
were proven and in service. The
early pilots of the Ford engine
lagged and even as late as May
1st, 1943, trials showed the
engine was not developing the
designed power output which
was expected to be 660. Further
there was trouble with failure of
the crankshaft. The Americans
/ were putting all their hopes on
this engine and the Britipn did
not stand to receive very° ` arty
of them. However, we were
happy enough with the Chrysler
engine which had been allotted
to us under Lend -Lease, for the
Chrysler engineers looked upon
it as a challenge to develop their
product to be the most reliable
of any tank. engine. This they
accomplished. Once again it was
a case•of "The engine which the
Americans • rejected, becon ing
the -corner stone of all available
tank engines." This did not
increase the popularity of the
British.
In September 1943 we, in
Detroit, had found that we
could up -gun the Chrysler tank,
with the British designed
174Pounder gun, which was., a
mach for the vaunted German
88 millimetre gun. I was recalled
home to take charge of this
installation and before I left I
dined with Sheldrick and the
other Ford engineers who were
working on British vehicles at
Dearborn and at Cambridge,
Mass. It was a hilarious evening,
though touched with a certain
amount of sadness on my own
part on leaving the association
with, so many superb engineers.
When I returned
unexpectedly to Detroit in
December of the same year I was
amazed to learn that Mr. Ford
had fired Sheldrick,' after 23
years with- theF•ord Company.
The story was that Sheldrick had
shown Henry Ford 2nd, who
was learning the business, some
suspension design• or post-war
automobiles. e„ - had been
sponsored by Ed 1 and ,were
somewhat revolutionary at the
time. Old Henry, who had
always maintained a perfect
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tapestry of spies throughout his
plants, was soon informed: When
Sheldrick arrived ,pt, his office
one morning he found a uote on
his desk informing him he was
fired. Old Henry said he was not
going to have the "young man's
mind perverted with other
SP
•
people's ideas." Sheldrick, a
most charming character, apart
from his wide reputation as an
engineer, was immediately
employed by the Detroit Diesel
Division of General Motors.
The flow .of history seems
unfortunately repetitive at
Dearborn , aid for -those whp
believe unlimited aalariee, stock
options, private jets, homes in
Acapulco and gracious living
deaden the businessman's kl ler
instincts, the September message
from Detroit contradicts the
idea.
Isn't it funny ?
That so many
business men
CRAZY, TOO
4.
Will get up in the morning - -,
Refresh themselves with a dose of advertised fruit salt,
Clean their teeth with an advertised brush: and advertised tooth paste.
Shave with an advertised razor,
Wash and shave with advertised soaps
Put on advertised underwear,
Advertised hose, garters, shirt, cQIlar and shoes,
Seat themselves at the table
And 'eat advertised breakfast food and bread
Drink advertised tea, coffee or cocoa,.
Put on an advertised hat and gloves`
Light an advertised cigarette,
With an advertised match 6
Go to Work in an advertised motorcar
Give letters to a ,typist
Who types on an advertised machine,
Use advertised carbons,
Sign their letterswith an advertised . pen
bontaining advertised ink,
And
Turn down a proposal to advertise on the ground
That .
Advertising Doesn't Pay !
West Street
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GOD ERICH
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