9 past mistakes offer lessons for today’s hot new automakers

Wanting to be the next big thing is a story as old as the automobile business, given that more than 2,000 American automakers have come and gone, and all of those founders held the same dream.

He established the Christie Direct Action Motor Car Company in 1905 with the intent of manufacturing his new creation.

Unfortunately, sales never materialized.

Consider William Crapo Durant (yes, that was his middle name), who created General Motors in 1908.

Ousted from GM two years after its creation, Durant regained control in 1915 through a series of financial moves, only to lose control again five years later when his stock market shenanigans put GM in financial peril.

Undaunted, he established Durant Motors in 1921, building an empire similar to that of GM and consisting of Locomobile, Flint, Durant, and Star.

Initially successful, the company expanded rapidly—but sales began declining by mid-decade.

Undeterred, Durant continued expanding his company through acquisition, which quickly put the company in precarious financial shape.

The 1929 stock market crash led to a severe decline in automobile sales everywhere and imperiled a number of automobile companies, including Durant's.

By 1933, Durant Motors was finished, and so was Durant's career in the auto industry?

Ars may earn compensation on sales from links on this site