When Dodge Sued Ford

When Dodge sued Ford, it was a lawsuit that changed capitalism… and ruined the auto industry. The year was 1919. And the story involved two brothers, a stubborn genius, and a lawsuit that changed everything. You ever wonder why car companies today are run by accountants instead of gearheads? Why businesses seem to care more about shareholders than their crew/employees? Or why your new truck costs an absolute fortune… but feels more disposable than the one your granddad drove? Well, the first domino fell back in 1919, when the Dodge brothers sued Henry Ford.

It wasn’t over stolen blueprints…

Or an unfair contract, or even a heated fistfight in a smoky Detroit bar. Although knowing the people involved, that wouldn’t have been out of the question. But no – this was about something much bigger.

Henry Ford, in his infinite wisdom & occasional lunacy… 

Decided that making absurd amounts of money wasn’t enough. He thought that maybe – just maybe – he should use some of that profit to increase his employees’ wages. And/or lower the cost of his vehicles so more people could afford them. Maybe even hire even more workers. Keep in mind, Henry Ford is the same man that invented the 40-hour work week during a time when people essentially worked indefinitely. Sounds reasonable, right? Well… 

Not if you were John & Horace Dodge, two of Ford’s biggest shareholders…

They had a different idea. An idea that a company exists solely to make money for its shareholders… and anything else was a distraction. And so – they took Ford to court to make sure he couldn’t waste any more of their money being decent. And would you believe it? The Dodge brothers won.

The Case That Killed Corporate Morality…

This wasn’t just a courtroom spat between rich guys. The Michigan Supreme Court’s decision in Dodge v. Ford Motor Co. fundamentally changed how businesses operate in America. It established the principle that corporations exist only to maximize shareholder value. Not to make great products. And not to create a great atmosphere. Just to make rich guys richer. 

The next time you see a company laying off workers despite record profits. Or a CEO getting a $50 million bonus while their employees have to crowdfund medical bills. Remember – this is where it started.

The Dodge Brothers: Brilliant, Bold, & Brutal…

Now, before we go painting the Dodge brothers as mustache-twirling villains, let’s set the record straight. John & Horace Dodge weren’t just cut-throat businessmen… they were also mechanical hotshots. Gearheads to the core. AND – skilled engineers who helped build Ford’s early success before they decided to strike out on their own.

Dodge vehicles were built tough…

Their early cars were some of the best-engineered machines of their time. Sturdy, reliable, & rugged enough to survive the kind of roads that made the Oregon Trail look like an interstate. The U.S. Army even used Dodge vehicles in World War I, because they just wouldn’t die.

But (and there’s always a ‘but’) the Dodge brothers weren’t exactly saints…

They were known for being hard-nosed businessmen who didn’t mind getting their hands dirty (literally & figuratively). Notorious for their wild, boozy lifestyle… they had a reputation for being just as tough as the cars they built. Their rebellious nature is poetically reflected in their muscle cars, and personally, I love it. However…

The Dodge brothers hard-living ways may have been their downfall…

Both John & Horace Dodge died within months of each other – in 1920. Some say from complications of the Spanish flu. But others whisper about their years of alcohol-fueled debauchery catching up with them. Either way, their company was soon sold off, eventually becoming part of Chrysler, then Daimler, then Cerberus, then Fiat, then Stellantis. Because nothing says “Great American Legacy” like being passed around corporations like a rental car.

Henry Ford: The Mad Genius of Detroit…

And then there’s Henry Ford. The man, the myth, the guy who somehow built one of the greatest industrial empires in history. While also being one of the most complicated figures to ever hold a wrench. On one hand… 

Ford revolutionized manufacturing with the assembly line…

And that helped make automobiles affordable for the average American. Henry Ford believed in paying his workers enough to where they could afford the product they built. An idea that, shockingly, was novel back then (and sort of still is today actually).

Henry Ford was obsessed with making life easier for people…

He constantly looked for ways to improve efficiency, lower costs, and bring mobility to the masses. He also had a strange but deep respect for George Washington Carver, and was a major supporter of agricultural innovation. Ford  also helped shape the modern airport system, which let’s be honest, is kind of a big deal.

But (and there’s always a ‘but’) Henry Ford was also, shall we say, problematic…

For starters, he was an unapologetic antisemite. And not in an “offhanded comment here or there” kind of way. No, Ford went all-in… publishing an entire newspaper. The Dearborn Independent spread anti-Jewish conspiracy theories. He was even admired by a young, aspiring dictator in Germany, who later incorporated some of Ford’s ideas into his own worldview. That’s… not the kind of influence you want on your resumé. Henry Ford was also obsessed with control. Control over his company, his workers, even his customers. The man literally told people, “You can have any color you want, as long as it’s black.” That was because black paint dried faster on his assembly line.

And then there was the Fordlandia debacle…

A failed utopian city in the Amazon where Ford tried to grow his own rubber to avoid relying on British & Dutch suppliers. It was a disaster. Workers rebelled, the jungle ate the infrastructure, and the whole thing collapsed like a cheap card table. So while Ford had some genuinely revolutionary ideas, he was also a tyrannical egomaniac with some very disturbing beliefs.

The Legacy: Where Did It All Lead?

So where does all that leave us? Well, thanks to Dodge v. Ford, corporations today operate with one thing in mind: Profits above all else. Profit, profit, profit. Think about how that’s affected the auto industry (and elsewhere) over the decades.

Ford Motor Company, the essential pioneers of treating workers fairly, has long since abandoned that philosophy in favor of stock buybacks & executive bonuses. Dodge, the company that fought for shareholder supremacy, ironically became the brand of the rebellious working man, building some of the most beloved muscle cars and trucks in history. Meanwhile, the car industry as a whole became a playground for CEOs & Wall Street. People who care more about investor earnings than making great vehicles. If you’ve ever wondered why, outside of inflation, a car that should cost $30,000 is now $60,000, or why new vehicles seem to have more recalls despite all our experience & technological advancements. Or why the green/EV agenda became such an agenda. Well, look no further than 1919 my friends.

All-in-all, Ford & the Dodge brothers were visionaries…

They built machines that shaped the world. But they also (perhaps unintentionally in their squabbles) helped create a system that would ultimately take the passion & fight out of the car companies. And for that, we all lost.

Article by David S. Windsor