Why Henry Ford went private ?

 

💡 Why he did it

  • In the 1910s, Ford Motor Company had several minority shareholders, including the Dodge brothers, who had helped finance the company early on.
  • Henry Ford wanted to plough profits back into expansion (like building the massive River Rouge plant) and keep car prices low for customers.
  • The minority shareholders wanted higher dividends instead, and in 1916 the Dodge brothers even sued him for “reckless expansion” and cutting prices.
  • In 1919, after losing the case, Ford was furious that outsiders could influence his decisions. He threatened to start a new company and leave Ford Motor behind — a bluff that pressured the minority shareholders to sell.
  • By July 1919, Ford (with his son Edsel) bought out all seven minority shareholders for about $106 million total, of which roughly $12 million was his own direct payment for certain stakes. This made Ford Motor a family-owned private company.

💰 How much would $12 million be today?

If we adjust for inflation from 1919 to 2025 using the U.S. Consumer Price Index:

  • $12 million in 1919 ≈ $220 million today (roughly 18–19× increase in prices over that period).
  • If you adjust not just for inflation but for relative economic power (share of GDP), the figure could be in the billions — showing just how massive the buyout was in its time.

🚗 The outcome

  • Ford gained complete control over the company’s direction.
  • He could pursue his vision of mass-producing affordable cars without interference.
  • The Ford family kept control until the company went public again in 1956 — and even today, they retain special voting rights.


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