My Life and Work by Henry Ford (free novel 24 .TXT) 📕

to get people to buy frequently and that it is bad business to try to make anything that will last forever, because when once a man is sold he will not buy again.

 

Our principle of business is precisely to the contrary. We cannot conceive how to serve the consumer unless we make for him something that, as far as we can provide, will last forever. We want to construct some kind of a machine that will last forever. It does not please us to have a buyer’s car wear out or become obsolete. We want the man who buys one of our products never to have to buy another. We never make an improvement that renders any previous model obsolete. The parts of a specific model are not only interchangeable with all other cars of that model, but they are interchangeable with similar parts on all the cars that we have turned out. You can take a car of ten years ago and, buying to-day’s parts, make it with very little expense into a car of to-day.

Having these objectives the costs always come down under pressure. And since we have the firm policy of steady price reduction, there is always pressure. Sometimes it is just harder!

 

Take a few more instances of saving. The sweepings net six hundred thousand dollars a year. Experiments are constantly going on in the utilization of scrap. In one of the stamping operations six-inch circles of sheet metal are cut out. These formerly went into scrap. The waste worried the men. They worked to find uses for the discs. They found that the plates were just the right size and shape to stamp into radiator caps but the metal was not thick enough. They tried a double thickness of plates, with the result that they made a cap which tests proved to be stronger than one made out of a single sheet of metal. We get 150,000 of those discs a day. We have now found a use for about 20,000 a day and expect to find further uses for the remainder. We saved about ten dollars each by making transmissions instead of buying them. We experimented with bolts and produced a special bolt made on what is called an “upsetting machine” with a rolled thread that was stronger than any bolt we could buy, although in its making was used only about one third of the material that the outside manufacturers used. The saving on one style of bolt alone amounted to half a million dollars a year. We used to assemble our cars at Detroit, and although by special packing we managed to get five or six into a freight car, we needed many hundreds of freight cars a day. Trains were moving in and out all the time. Once a thousand freight cars were packed in a single day. A certain amount of congestion was inevitable. It is very expensive to knock down machines and crate them so that they cannot be injured in transit—to say nothing of the transportation charges. Now, we assemble only three or four hundred cars a day at Detroit—just enough for local needs. We now ship the parts to our assembling stations all over the United States and in fact pretty much all over the world, and the machines are put together there. Wherever it is possible for a branch to make a part more cheaply than we can make it in Detroit and ship it to them, then the branch makes the part.

 

The plant at Manchester, England, is making nearly an entire car. The tractor plant at Cork, Ireland, is making almost a complete tractor.

This is an enormous saving of expense and is only an indication of what may be done throughout industry generally, when each part of a composite article is made at the exact point where it may be made most economically. We are constantly experimenting with every material that enters into the car. We cut most of our own lumber from our own forests.

We are experimenting in the manufacture of artificial leather because we use about forty thousand yards of artificial leather a day. A penny here and a penny there runs into large amounts in the course of a year.

 

The greatest development of all, however, is the River Rouge plant, which, when it is running to its full capacity, will cut deeply and in many directions into the price of everything we make. The whole tractor plant is now there. This plant is located on the river on the outskirts of Detroit and the property covers six hundred and sixty-five acres—enough for future development. It has a large slip and a turning basin capable of accommodating any lake steamship; a short-cut canal and some dredging will give a direct lake connection by way of the Detroit River. We use a great deal of coal. This coal comes directly from our mines over the Detroit, Toledo and Ironton Railway, which we control, to the Highland Park plant and the River Rouge plant. Part of it goes for steam purposes. Another part goes to the by-product coke ovens which we have established at the River Rouge plant. Coke moves on from the ovens by mechanical transmission to the blast furnaces. The low volatile gases from the blast furnaces are piped to the power plant boilers where they are joined by the sawdust and the shavings from the body plant—the making of all our bodies has been shifted to this plant—and in addition the coke “breeze” (the dust in the making of coke) is now also being utilized for stoking. The steam power plant is thus fired almost exclusively from what would otherwise be waste products. Immense steam turbines directly coupled with dynamos transform this power into electricity, and all of the machinery in the tractor and the body plants is run by individual motors from this electricity. In the course of time it is expected that there will be sufficient electricity to run practically the whole Highland Park plant, and we shall then have cut out our coal bill.

 

Among the by-products of the coke ovens is a gas. It is piped both to the Rouge and Highland Park plants where it is used for heat-treat purposes, for the enamelling ovens, for the car ovens, and the like. We formerly had to buy this gas. The ammonium sulphate is used for fertilizer. The benzol is a motor fuel. The small sizes of coke, not suitable for the blast furnaces, are sold to the employees—delivered free into their homes at much less than the ordinary market price. The large-sized coke goes to the blast furnaces. There is no manual handling. We run the melted iron directly from the blast furnaces into great ladles. These ladles travel into the shops and the iron is poured directly into the moulds without another heating. We thus not only get a uniform quality of iron according to our own specifications and directly under our control, but we save a melting of pig iron and in fact cut out a whole process in manufacturing as well as making available all our own scrap.

 

What all this will amount to in point of savings we do not know—that is, we do not know how great will be the saving, because the plant has not been running long enough to give more than an indication of what is ahead, and we save in so many directions—in transportation, in the generation of our power, in the generation of gas, in the expense in casting, and then over and above that is the revenue from the by-products and from the smaller sizes of coke. The investment to accomplish these objects to date amounts to something over forty million dollars.

 

How far we shall thus reach back to sources depends entirely on circumstances. Nobody anywhere can really do more than guess about the future costs of production. It is wiser to recognize that the future holds more than the past—that every day holds within it an improvement on the methods of the day before.

 

But how about production? If every necessary of life were produced so cheaply and in such quantities, would not the world shortly be surfeited with goods? Will there not come a point when, regardless of price, people simply will not want anything more than what they already have?

And if in the process of manufacturing fewer and fewer men are used, what is going to become of these men—how are they going to find jobs and live?

 

Take the second point first. We mentioned many machines and many methods that displaced great numbers of men and then someone asks: “Yes, that is a very fine idea from the standpoint of the proprietor, but how about these poor fellows whose jobs are taken away from them?”

 

The question is entirely reasonable, but it is a little curious that it should be asked. For when were men ever really put out of work by the bettering of industrial processes? The stage-coach drivers lost their jobs with the coming of the railways. Should we have prohibited the railways and kept the stage-coach drivers? Were there more men working with the stage-coaches than are working on the railways? Should we have prevented the taxicab because its coming took the bread out of the mouths of the horse-cab drivers? How does the number of taxicabs compare with the number of horse-cabs when the latter were in their prime? The coming of shoe machinery closed most of the shops of those who made shoes by hand. When shoes were made by hand, only the very well-to-do could own more than a single pair of shoes, and most working people went barefooted in summer. Now, hardly any one has only one pair of shoes, and shoe making is a great industry. No, every time you can so arrange that one man will do the work of two, you so add to the wealth of the country that there will be a new and better job for the man who is displaced. If whole industries changed overnight, then disposing of the surplus men would be a problem, but these changes do not occur as rapidly as that. They come gradually. In our own experience a new place always opens for a man as soon as better processes have taken his old job. And what happens in my shops happens everywhere in industry. There are many times more men to-day employed in the steel industries than there were in the days when every operation was by hand. It has to be so. It always is so and always will be so. And if any man cannot see it, it is because he will not look beyond his own nose.

 

Now as to saturation. We are continually asked: “When will you get to the point of overproduction? When will there be more cars than people to use them?”

 

We believe it is possible some day to reach the point where all goods are produced so cheaply and in such quantities that overproduction will be a reality. But as far as we are concerned, we do not look forward to that condition with fear—we look forward to it with great satisfaction.

Nothing could be more splendid than a world in which everybody has all that he wants. Our fear is that this condition will be too long postponed. As to our own products, that condition is very far away. We do not know how many motor cars a family will desire to use of the particular kind that we make. We know that, as the price has come down, the farmer, who at first used one car (and it must be remembered that it is not so very long ago that the farm market for motor cars was absolutely unknown—the limit of sales was