In the 1880s, Billy Durant, a entrepreneur from
Flint, Michigan, made a little road cart into the world's largest carriage
company. But with success, Durant seeing a future for the automobile, he bought
Buick in 1904. With visions of a automotive empire he established a new holding
company that he called General Motors in 1908.
He
brought Buick, Oldsmobile, Cadillac and others into General Motors. He soon
over-extended himself, and by 1910 had lost control of GM to the bankers.
He
then established a new company called the Chevrolet Motor Co. in Detroit, and
gradually lost interest in Republic. Racing driver Louis Chevrolet was hired to
design a new car to be called the Chevrolet.
The
Louis Chevrolet-designed Classic Six wasn't the kind of car that Durant had
wanted. It was large, expensive, and had a six-cylinder engine, but since the public
announcement had been made, Durant proceeded with production. Durant and Louis
Chevrolet would soon part company, although the Chevrolet name stayed.
Both the Chevrolet Classic Six and the little car were
offered for sale. The lower priced four cylinders little sold well, although
Sixes would be offered for several years. The little was continued only until a
new, smaller Chevrolet could be designed.
This
new, light, Series-H Chevrolet appeared in 1914 bearing the soon-to-be-famous
bow-tie badge. A 170 cu in. overhead valve four-cylinder engine powered it, and
its two series had the intriguing names of Baby Grand and Royal Mail. In 1915 a
dressed up model called the Amesbury Special joined the lineup. They were the
first Chevrolets to sell for under $1,000.
These
Chevrolet models were well received, and Durant was ready to take aim at Henry
Ford's all conquering Model T. The car he planned for this assault was the
Chevrolet Four-Ninety, a stripped down version of the Series-H. It went into
production in June 1915.
To
aim directly at Ford, Durant said the new car would be priced at $490 (the
source of its name), The. Model T touring. Its introductory price was $550,
however, although it was reduced to $490 later when the electric starter and
lights were made a $60 option. Henry Ford responded by reducing the Model T to
$440.
Chevrolet's new Four-Ninety was well received,
with over 46,000 orders
taken within weeks of introduction.
It allowed
Durant to quietly start buying up General Motor’s stock, and
on September 16, 1915, he
triumphantly announced
to a GM board of directors
meeting that he was again in charge of
General Motors. He had used Chevrolet to regain control from the
bankers exactly seven years after he had originally incorporated GM.
He would bring Chevrolet into GM as a
division in 1918.