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William C. Durant

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William Crapo Durant was a massive figure in the history of American business. He was a pioneer who helped shape the United States automobile industry. Durant is most famous for founding General Motors (GM) and co-founding Chevrolet. He did not just build cars; he built a new way to organize a business. He created a system where a single large holding company owned many different brands. Each brand appeared independent and sold different types of vehicles. This allowed a company to reach many different types of customers at once.

William C. Durant of General Motors in 1909
William C. Durant of General Motors in 1909

Durant’s method for growing a business relied on a process called vertical integration. This means a company owns many different parts of its own supply chain. Instead of buying parts from others, Durant bought the companies that made them. He gathered many manufacturers of parts and components into one group. This group included companies that made things like bearings, radiators, and electric parts. He eventually sold this group, called United Motors Company, to General Motors for $44,065,000. This ensured that the main company controlled almost everything needed to build a car.

Durant’s business strategy involved several distinct stages of growth. First, he focused on improving individual brands to make them successful. In 1904, he took control of the struggling Buick Motor Company. He used his own resources to turn Buick into the best-selling car in America. Next, he used Buick as a base to acquire other companies. He bought Oldsmobile in 1908 and Cadillac in 1909. Finally, he brought these different brands under the umbrella of General Motors. This created a hierarchy of cars ranging from affordable models to luxury vehicles.

William C. Durant Mausoleum 1024
William C. Durant Mausoleum 1024

Durant’s career began long before he worked with cars. He was born in Boston, Massachusetts, on December 8, 1861. After his father left the family, he moved to Flint, Michigan. He started as a cigar salesman and eventually worked in a lumberyard. In 1886, he partnered with Josiah Dallas Dort to form the Flint Road Cart Company. They turned $2,000 of starting money into a $2-million company. By the start of the 20th century, their carriage company was the largest in the United States. This experience with horse-drawn vehicles gave him the ideas he later used for automobiles.

His rise to power was not always a straight line. In 1910, Durant bought too many companies too quickly. This made the corporation overextended and caused a shortage of cash. Because of this, he was forced out of General Motors. However, he immediately started working on "another GM" by partnering with Louis Chevrolet in 1911. He used the success of Chevrolet to eventually buy back his control of General Motors in 1916. He served as the president of the company until 1920. During this time, he added Chevrolet, Fisher Body, and Frigidaire to the GM family.

Durant’s vision for the market was very different from his rival, Henry Ford. Ford focused on mass-market items like the Model T. Ford famously suggested customers could have any color car as long as it was black. Durant believed people had different tastes and different amounts of money. He wanted to offer a car for every income level. He created "entry" tier cars for people on a budget. He also created ultra-luxurious lines for the very wealthy. This approach allowed him to compete with many different types of manufacturers at once.

Later in life, Durant attempted to repeat his success with Durant Motors in 1921. He created several brands like Star, Flint, and Eagle to rival General Motors. The Star brand was meant to compete with the Ford Model T. His most expensive line was the Locomobile, which was for luxury buyers. Unfortunately, the Wall Street Crash of 1929 and the Great Depression made it impossible to keep the company going. Durant Motors failed in 1933. Even after his business failures, Durant remained a person of interest in the financial world until his death in 1947.

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