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To understand what
the beginning of Chevrolet was about, one must also understand the beginning
of General Motors.
Partnering with Josiah Dallas Dort in 1886, William C. Durant, future
founder of Chevrolet, purchased the Coldwater Road Cart Company. This
company was very successful and at its height, operated fourteen factories.
By 1890, Durant-Dort Carriage Company was the nation's largest carriage
company, producing approximately 150,000 vehicles a year. At left is
a photo of the original facility - today a national historic landmark.
In 1904, Billy Durant was approached by James Whiting of the Buick
Motor Company to promote his automobiles and on November 1, 1904 Durant
took control. Between 1904 and 1908, Durant was Buick's president and
established essential parts and accessory companies such as Weston-Mott
and Champion Ignition, located in Flint, Michigan.
William C. Durant then founded General Motors four years later on September
16, 1908. Incorporating General Motors of New Jersey (GM) with a capital
of $2,000. Within 12 days the company generated stocks that produced
$12,000,000 cash. On September 29, 1908, GM bought Buick. Later, GM
bought Oldsmobile (November 12, 1908) in Lansing, Oakland in Pontiac
(January 20, 1909), and Cadillac in Detroit (July 29, 1909 for $5,000,000).
By 1910 he had purchased 17 companies. Unfortunately financial trouble
was not far off.
The superpower of several motorcar companies was not a new idea for
Durant. As early as 1907, he had confided to associates that his goal
was to control the entire automobile industry. As a first step toward
that end he had tried to put together a conglomerate combining Buick,
Ford, Maxwell, and Reo into a single corporation. But Henry Ford wanted
cash for his organization, as did Ransom Olds, so the deal fell through.
Sometime in 1909 William Durant, asked Louis Chevrolet, a well-known
race car driver, to help design a car for introduction to the public.
He had not yet formed a company to manufacture it. Durant was interested
in building a "French Type" car. Durant was aware that Chevrolet
had ambitions to build a car of his own, and since the Chevrolet name
was already well known in motorsport, and since Chevrolet had been born
in Switzerland and knew what "French type" meant, Durant was
sure he was the man for the job. Chevrolet hired a Frenchman to help
him, Etienne Planche, whom he had known from his days with the Walter
in Brooklyn and who had designed the Roebling-Planche (antecedent to
the Mercer).
Late in 1909 bankers turn down William Durant's request for a loan
to buy Ford Motor Co. for about $9.5 million.
The cause of Durant's downfall at General Motors was his ambitious
expansion program. Stretching his credit to the limit he acquired numerous
properties, some of them of dubious value. There was, for instance,
the Welch, an automobile of superb quality, that was "as big as
a freight car," according to one of Durant's associates. But at
$7,000 the Welch proved nearly impossible to sell. Other firms acquired
by Durant during this period included the Randolph, whose builders had
great plans but apparently failed to manufacture even a single car;
the Rainier, soon to be replaced by the ill-fated Marquette; the two-cycle
Elmore, available with either three- or four-cylinder power; the friction-drive
Carter Car; and a taxicab called the Ewing. All of them were losers,
and Billy Durant should have known it; but he was stricken then - as
he would be again in later years - with expansion fever.
By mid-July 1910, General Motors was seven million dollars in hock
to the First National Bank of Boston, and its credit line was stopped.
The creditors viewed Buick as worth saving, but recommended the liquidation
of the balance of the operation. At this point Henry Leland, founder
of the Cadillac (and, later, founder of Lincoln) interceded. The bankers
agreed to supply GM with the needed capital -at exorbitant rates, of
course-provided Durant stepped down.
In May of 1911 a Detroit newspaper leaked the news of the forthcoming
Chevrolet car from Durant. Meanwhile Durant began organizing several
companies: the Chevrolet Motor Company in Detroit (initially Chevrolet
Motor Car but the "Car" was soon dropped), the Little Motor
Car Company in Flint (to build a less expensive car called the Little
to bring some quick cash into dwindling accounts), the Mason Motor Company
in Flint (to build engines for these cars, with former Buick engineer
Arthur Mason at its head), the Republic Motor Company (for which he
bought an entire block in New York City to be used as an auxiliary assembly
plant), among others.
Having lost control of General Motors (though he remained on the corporation's
board of directors), Durant set out to start anew. Billy Durant's endeavors
at this time was the creation of the Chevrolet Motor Car Company, which
was incorporated on November 3, 1911 in Michigan by Durant, Louis Chevrolet,
William Little (former general manager of Buick), and Edwin Campbell
(William Durant's son-in-law). Headquarters were based in Detroit. Quite
some time after the original press leak!

No vehicles were produced in 1911, though the photograph above left
is suspected to be the first prototype - circa late 1911 with Chevrolet
in the driver's seat.
Louis Chevrolet was taking his time to produce that first Chevrolet,
which turned out not to be a 'French Type" at all!
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