The origins of Lincoln Motor Company trace back to the exit of its founder, Henry Leland, from Cadillac in 1917. Leland’s departure was triggered by Cadillac’s refusal to manufacture aircraft engines during World War I. Seizing a $10,000,000 government contract, Leland founded Lincoln Motor Company, initially dedicated to crafting V12 Liberty aircraft engines. Post-war, Lincoln underwent a transformation, retooling its operations to produce luxury automobiles, with the inaugural Model 8 hitting the market in 1920.
However, by 1922, financial troubles besieged Lincoln, leading to a consequential bid by Henry Ford. His initial offer of $5 million was rebuffed by a judge who deemed it inadequate, prompting a subsequent bid of $8 million, which secured the acquisition. Speculation lingered that Ford deliberately low-balled the bid as a form of retribution for Leland’s connection to Cadillac’s founding, estimated to be conservatively worth $16 million. Regardless, Ford secured Lincoln for $8 million.
The post-acquisition era witnessed tensions as Ford sought to streamline production and mitigate Lincoln’s financial challenges. The climax occurred on June 10, 1922, when Ford executive Ernest Liebold, acting under Henry Ford’s authority, requested the resignation of Wilfred Leland, Henry Leland’s son. Faced with an inescapable reality, both Henry and Wilfred Leland resigned, marking their departure from the enterprise they had birthed. Yet, the narrative of Lincoln did not conclude with the Lelands’ exit. Under Ford’s stewardship, Lincoln persevered as an esteemed marque within the Ford lineup, leaving an indelible mark on the automotive industry. The acquisition, marked by its share of tensions and transitions, played an instrumental role in shaping Lincoln’s enduring legacy.
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