On September 16, 1908, one of the most influential companies in American industrial history was born when businessman William C. Durant incorporated General Motors (GM) in New Jersey. What began as Durant’s ambitious attempt to unite automobile manufacturers would eventually grow into an automotive powerhouse, helping transform the automobile from a relatively new invention into an essential part of American life.
Durant was already a successful businessman before entering the automobile industry. Born in Boston in 1861 and raised in Flint, Michigan, he left high school and eventually made his fortune manufacturing horse-drawn carriages. Ironically, Durant initially disliked automobiles, believing the early machines were noisy, dangerous, and unpleasant. Nevertheless, he recognized the enormous business opportunity they represented.
By the beginning of the 20th century, the American automobile industry was highly fragmented. Dozens of manufacturers competed for customers, and many companies produced only small numbers of vehicles before disappearing. Durant believed consolidation could bring greater stability to the rapidly growing industry. After taking control of Buick, he began envisioning an even larger organization that could bring several automobile brands under one corporate umbrella.
His strategy differed dramatically from that of Henry Ford. Ford concentrated on producing a single affordable automobile—the enormously successful Model T. Durant envisioned something broader. Rather than selling one vehicle to everyone, General Motors would offer different automobiles at different prices, giving consumers choices ranging from practical transportation to luxury cars.
Durant moved quickly. During GM’s first two years, the corporation brought together some 30 companies, including 11 automobile manufacturers. Among the brands acquired were Oldsmobile, Cadillac and Oakland, which would later become Pontiac. GM also purchased companies that manufactured automobile parts and other products needed by the growing corporation.
But Durant’s aggressive expansion came at a tremendous cost. By 1911, GM’s financial problems led the company’s board to force him out. Durant refused to abandon the automobile business. He joined forces with race-car driver Louis Chevrolet and his brother to establish the Chevrolet Motor Company. Chevrolet became so successful that Durant accumulated enough GM stock to regain control of General Motors in 1916. His comeback was short-lived, however, and he was forced out permanently in 1920.
Durant’s personal fortunes eventually declined, and he declared bankruptcy during the Great Depression. Yet the company he created continued to flourish. General Motors grew into one of the world’s largest corporations, producing some of America’s most recognizable automotive brands and employing generations of American workers.
The incorporation of General Motors on September 16, 1908, represented more than the creation of another automobile company. Durant’s vision helped establish a new model for the American auto industry—one built around multiple brands, consumer choice and large-scale manufacturing. His bold gamble ultimately helped shape America’s automotive age and forever changed the way Americans traveled.
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