development of the company before the war

In the year 1916, the company had a total excess capital of $60million, but henry ford did not give large amount of profits to the shareholder .but he reinvested the money in research development and also in new plants built to manufacture car the plant was named as river rouge plant. This helped ford to increase the sales of the company which also employed many workers, this also made his cars even cheaper in the market. This move made 2 shareholder who were john francis dodge and Horace elgin dodge to object to what henry ford had done so they filed a case against the ford company for the dividend they had to recive from ford after a while in the same year they won the case and ford company had to give $19million to the dodge brothers but this victory was not to long when the decision was moved to another court which was michigan supreme court which gave almost the same reply as the earlier court so henry ford said that he would buy all the shares dodge brothers had  and to make it even worse he threatened that he would set up a rival company which later he succeeded to make a deal with the brothers  in 1919 he gained complete control in July at a cost of $125million ,which was made up of $19million of dividend which the court had ordered and remaining of shares of the brothers of which summed up to $106million . This stage edsel ford son of henry ford took over as the president of the company. this was the change ford motors needed . the prices of the cars were low , new efficient machinery was used ,the old management  was removed and new methods were replaced ,but the neglected the need for the consumers for better cars  like the four wheel combined brakes were in vented in 1909 but these came to ford cars in 1927 then there came the existence of many foreign companies which gave the new and better models of cars this reduced their market share against Chrysler and GM (i.e. leading car brands) the competitors used various strategies to put up new idea such as credit sales . ford did not wasn’t to give credit as this would affect the company’s debts so he did not until the year 1927 he agreed because he did not want to lose against the new brands .he also wanted to bring new designs of cars in the market so he unveiled the model A which he redesigned and shut down the model after  massively producing 15 million cars and also changes in the company logo was made .