William C. Durant
William C. Durant | |
---|---|
Born | William Crapo Durant December 9, 1861 Boston, Massachusetts, U.S. |
Died | March 18, 1947 New York City, U.S. | (aged 85)
Occupation | Businessman |
Known for | Co-founder of General Motors and Chevrolet |
Spouses | |
Children | Margery Pitt Durant (1887–1969)[3] Russell Clifford Durant (1890–1937) |
William Crapo Durant (December 8, 1861 – March 18, 1947) was a leading pioneer of the United States
Biography
Durant was born in Boston, Massachusetts on December 8, 1861.[4] He was the second child of William Clark Durant and Rebecca Folger Durant (née Crapo), who was born to a wealthy Massachusetts family of French descent.[5] His mother, Rebecca, was the daughter of Michigan governor Henry H. Crapo, who was also of French descent. Durant's family moved to Flint, Michigan after his father abandoned the family in 1869.[5] They lived with Rebecca's sister, Rhoda, and her husband James Wilson.[5] William dropped out of high school to work in his grandfather's lumberyard.[6] He started out as a cigar salesman in and eventually founded his own carriage company.
In 1886, Durant partnered with
Durant was highly skeptical of automobiles, feeling that the bad smell of burnt fuel, along with the engines' loud sounds, made them inherently dangerous to the point where he would not let his daughter ride in one. By 1900, public outcry over weak government regulation of gasoline-powered horseless carriages was significant. Durant noticed the general public's anger at this situation, and rather than relying on government regulations to improve their safety, he saw it as an opportunity to create a company which could improve the safety of this new class of transportation.
To begin this massive endeavor, Durant first set out to purchase Buick, then a local car company with few sales and large debts.[8]
Durant conceived the modern system of automobile dealer franchises.[9]
Buick
From his holdings in Durant-Dort Carriage Company, Durant was a millionaire.
General Motors
With Buick as a base, Durant envisioned creating a large automobile company that would manufacture several makes and control subsidiary component-making companies, much as Durant-Dort had done in the carriage-making world.
Durant consolidated 13 car companies and 10 parts-and-accessories manufacturers under the new holding company's control in 1908.
But Durant would not be bowed, and he backed Louis Chevrolet's eponymous company in 1911, with J. Dallas Dort as the vice-president and director of the company.[13] In 1913, Dort stepped down as vice-president of Chevrolet,[13] and in 1914 Durant disposed of his share of the Durant-Dort Carriage Company.[14] By 1916, Durant had leveraged Chevrolet's sales to regain control of General Motors, and he went on to lead GM until 1920.[10]
Other acquisitions
On October 26, 1909, General Motors Holding acquired the
"They say I shouldn't have bought Cartercar. Well, how was anyone to know that Carter wasn't to be the thing? It had the friction drive and no other car had it. How could I tell what these engineers would say next?" By the time Durant had regained control of General Motors in 1916, the GM board had already decided to discontinue the Cartercar, largely because sales never approached the 1000-2000 annually that Durant had predicted. The GM board decided to use the factory instead to produce the Oakland.[15]
Durant had arranged an $8 million deal to buy Ford in 1909, but the bankers turned him down and the board of directors of General Motors dismissed him.[16]
Both Durant and rival
Chevrolet
When Durant became financially overextended and banking interests assumed control, forcing him out of GM Holding, in 1910, he immediately set out to create "another GM", starting with the Little car, named after its founder, William H. Little. His initial intention was to compete with the Ford Model T, which was beginning the start of its impending popularity. Unsatisfied with this approach, he dropped it. In Canada, on 30 September 1910, after obtaining a loan of $52,935.25 ($1,730,983 in 2023 dollars [7]) (cosigned by R S McLaughlin), went into partnership with Louis Chevrolet in 1911, starting the Chevrolet company. In 1914, a disagreement with Louis Chevrolet resulted in Durant buying out his partner.[9] Durant went to McLaughlin in 1915 to put Chevrolet in Canada and with the shares being bought up at 5-to-1 and 7-to-1, McLaughlin and Durant with other shareholders had enough stock to reclaim Durant's old job. McLaughlin had no problem with his friend back at the helm; he went on building Chevrolet and built his Buicks in Canada without conflict with his Buick contract. General Motors Corporation was started at this time with Durant putting Pierre du Pont in charge, with McLaughlin Director and Vice President of the newly incorporated General Motors Corporation in 1918.
The venture proved highly successful for Durant, and he was able to buy enough shares in GM to regain control, becoming its president in 1916. During his presidency (1916–1920), Durant brought the Chevrolet product line into the corporation (1919), as well as Fisher Body and Frigidaire.[8] In 1920, he finally lost control of GM to the DuPont and McLaughlin shareholders, paying out $21,000,000 ($319,395,349 in 2023 dollars [7]) back to his friends.
Following the US entry into
While in charge of Chevrolet, Durant created other companies, including Republic Motors, mainly to produce Chevrolet.
He was inducted into the Automotive Hall of Fame in 1968.
Vertical integration
Drawing on experience gleaned in the carriage-making business 20 years earlier, Durant assembled a collection of parts and components manufacturers (Hyatt Roller Bearing, New Departure Manufacturing, Dayton Engineering Laboratories (later
Durant Motors
In 1921, Durant established a new company, Durant Motors, initially with one brand. Within two years, it had several marques (including the Durant, Star (also called Rugby), Flint, and Eagle),[9] rivalling the range offered by General Motors. Part of the new empire included a factory in Leaside, Ontario, for Canadian production.
As he had with General Motors, Durant acquired a range of companies whose cars were aimed at different markets, and therefore, levels of affordability and luxury. The lowest ('entry' tier) was the Star, aimed at the person who would otherwise buy the Ford Model T. Durant cars were mid-market, and the company's entire structure was purposefully very similar with GM; the Princeton line (designed, prototyped, and marketed but never produced) competed with
Wall Street and later years
In the 1920s, Durant became a major "player" on
After the fall of Durant Motors, Durant and his second wife, Catherine Lederer Durant, lived on a pension provided by R. S. McLaughlin, and Messrs. Marr and Dupont as arranged by Alfred P. Sloan at $10,000.00 ($217,482 in 2023 dollars
Durant Park in
Durant's Castle
During the late 1920s, Durant's son, Russell Clifford (Cliff) Durant and his third wife, Lea Gapsky Durant, started construction on a personal castle and private airstrip in Roscommon, Michigan, along the south branch of the Au Sable River. The 54-room mansion burned to the ground under mysterious circumstances on February 6, 1931. The Durants never inhabited it. Arson was suspected, allegedly at the hands of trade unionists, whom Durant had refused to recognize.[22]
After Lea's mysterious disappearance in 1934, and Cliff's death in 1937, Cliff's fourth wife, Charlotte Phillips Durant, sold the land to George W. Mason (of Nash Motors), an automotive executive. Upon his death, it was bequeathed to the State of Michigan as a nature preserve, the Mason Tract, which covers a portion of the Au Sable State Forest. All that remains of the castle and private airstrip are the old foundation works. Today, a canoe landing and short history of the castle are on the site.
References
- ^ "Invisible Manor History: Early Owner". Archived from the original on 8 May 2011. Retrieved 16 February 2015.
- ^ "University of Michigan-Flint: Henry Howland Crapo Family". Retrieved 16 February 2015.
- ^ "GW and Foggy Bottom Historical Encyclopedia: Margery Durant". Archived from the original on 16 February 2015. Retrieved 16 February 2015.
- ^ "Flint Timeline Project-Flint Wagon Works". www.cockleburcamp.com. Retrieved 2023-08-22.
- ^ ISBN 978-1-77067-782-1.
- ISBN 978-0-7864-3960-7.
- ^ a b c d e f 1634–1699: McCusker, J. J. (1997). How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States: Addenda et Corrigenda (PDF). American Antiquarian Society. 1700–1799: McCusker, J. J. (1992). How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States (PDF). American Antiquarian Society. 1800–present: Federal Reserve Bank of Minneapolis. "Consumer Price Index (estimate) 1800–". Retrieved February 29, 2024.
- ^ a b c d Dr. Burton W. Folsom (1998-09-08). "Billy Durant and the Founding of General Motors [Mackinac Center]". Mackinac.org. Retrieved 2011-09-29.
- ^ a b c d e f g Yates, Brock. "10 Best Moguls", in Car and Driver, 1/88, p.46.
- ^ a b c d e Christian, Ralph J. (March 1977). "National Register of Historic Places Inventory-Nomination: Durant-Dort Carriage Company Office / Arrowhead Veterans Club" (pdf). National Park Service.
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(help) and Accompanying three photos, exterior, from 1977 (32 KB) - ^ ISBN 978-0-8144-0869-8. Retrieved April 7, 2013.
- ^ "November 12, 1908 - GM buys Oldsmobile". 12 November 2016.
- ^ a b Sherosky, Frank (December 23, 2009). "Remembering Josiah Dallas Dort and his automobile". Detroit Automotive Technology Examiner.
- ^ Wood, Edwin Orin (1916), History of Genesee County, Michigan: Her People, Industries and Institutions, Volume 1, Federal Publishers, p. 778, retrieved April 7, 2013
- ^ Pelfrey, William. Billy, Alfred, and General Motors (New York, New York: AMACOM, 2006), p.151.
- ^ "Happy 100th Birthday, General Motors". Motor Trend. August 2008.
- ISBN 9781406500189. Original is public domain in U.S. Also available at Google Books. Chapter IV.
- ISBN 978-1-4000-6964-4.
- ^ [1] Archived October 17, 2008, at the Wayback Machine
- ^ "Full text of "The turning wheel; the story of General Motors through twenty-five years, 1908-1933"". Retrieved 2011-09-29.
- ^ "Library of Congress: William Crapo Durant, 1861-1947". Library of Congress. Retrieved 16 February 2015.
- ^ Quinn, James (May 31, 2009). "GM: Its rise, fall and future". The Daily Telegraph. London.
Further reading
- Pelfrey, William (2007). Billy, Alfred and General Motors. Amacom Publishing.
- Madsen, Axel (2000). The Deal Maker: How William C. Durant Made General Motors. Wiley Publishing. ISBN 9780471283270.
- Gustin, Lawrence (2008). Billy Durant: Creator of General Motors. University of Michigan Press. ISBN 978-0-472-03302-7.
- Rae, John B. "The Fabulous Billy Durant." Business History Review (1958) 32#3: 255-271 online.
- Weisberger, Bernard A. The Dream Maker: William C. Durant, Founder of General Motors. Boston: Little, Brown, 1979. Print.