Ransom Eli Olds was born on June 3, 1864, and died on August 26, 1950. He was an American businessman and leader who helped start the American car industry. The Oldsmobile and REO car brands were named after him. He said he built his first steam-powered car in 1887 and his first gasoline-powered car in 1896. He is credited with creating the modern assembly line, which he used to make the first mass-produced automobile, the Oldsmobile Curved Dash, starting in 1901.

Early life

Olds was born in Geneva, Ohio, as the youngest son of Pliny Fiske Olds, a blacksmith and pattern-maker, and his wife, Sarah Whipple Olds. His family had English roots, tracing back to Dorset, England. When Olds was a young boy, his parents moved the family to Cleveland, Ohio. Later, he settled in Lansing, Michigan, where he attended high school. He left school before finishing to work full-time at his family’s business, P.F. Olds & Son. The company built and sold some steam engines, but most of its income came from repair work. While living in Lansing, he married Metta Ursula Woodward on June 5, 1889.

Career

Ransom Olds founded the Olds Motor Vehicle Company in Lansing, Michigan, on August 21, 1897. In 1899, the company was purchased by a wealthy business leader named Samuel L. Smith, who renamed it Olds Motor Works and moved it to Detroit. Smith became president, while Olds became vice president and general manager.

By 1901, Olds had built 11 prototype vehicles, including at least one powered by steam, electricity, and gasoline. In 1934, he was given a patent for a diesel engine. He was the only American automotive pioneer to produce and sell at least one vehicle of each power type.

On March 9, 1901, the Olds Motor Works factory burned down. Only one model, the Curved Dash runabout, was saved from the fire. Ransom Olds claimed the fire led him to choose the runabout for mass production. However, his biographer doubted the truth of this story, noting that Olds had already received over 300 orders for the Curved Dash before the fire.

Later that year, Olds had his company’s test driver, Roy Chapin, drive a Curved Dash runabout to the New York Automobile Show. During the trip, Chapin took a route along the Erie Canal to avoid poor road conditions. After eight days of travel, Chapin arrived at the Waldorf Astoria hotel but was not allowed to enter the main entrance due to his muddy clothes.

At the auto show, Olds encouraged sales. When a dealer offered to buy 500 cars, Olds replied, “I would like to see you make this order for a thousand cars. Then the public would drop its jaw and take notice.” The deal was signed, and although the dealer sold only 750 cars, the number 1,000 was widely remembered.

The Curved Dash Oldsmobile sold for $650, which is equal to $25,155 today. About 600 were sold in 1901, 3,000 in 1902, and at least 4,000 in 1904. This car, not Henry Ford’s Model T, was the first mass-produced, low-cost American automobile.

In 1904, Frederic L. Smith, Samuel Smith’s son, took over the business and frequently clashed with Olds. Smith removed Olds from his position as vice president and general manager, and Olds left the company. He later founded the R.E. Olds Motor Car Company, which was renamed REO Motor Car Company to avoid a lawsuit. The name REO came from Olds’ initials and was intended to be pronounced as a word. Olds served as president of REO until 1925 and later as chairman. The band REO Speedwagon took its name from the REO Speed Wagon light delivery truck, an early version of pickup trucks.

In 1908, General Motors purchased the Olds Motor Works. The Oldsmobile brand was discontinued in 2004 after 107 years of operation.

In 1946, Ransom Olds started building lawnmowers as part of the Lawn Mower Division of REO Motors.

Olds was the first person to use a moving assembly line in the automotive industry. Henry Ford later improved this system by creating a continuously moving line to produce the Model T starting in 1913. This innovation increased Olds’ factory output from 425 cars in 1901 to 2,500 cars in 1902.

In 1916, Olds purchased 37,547 acres of land near Tampa Bay, Florida, and developed the area into the city of Oldsmar. In 1926, he traded this land for the Fort Harrison Hotel in Clearwater, Florida.

In 1906, Olds organized the Capital National Bank, later known as Lansing National Bank and Michigan National Bank. He was also involved in founding the Michigan Screw Company and Atlas Drop Forge Company in Lansing, Michigan.

Olds was the main financial supporter of the Olds Tower. Completed in 1931, it was the tallest office building in Lansing and remains so today. The building is now called Boji Tower and is located at 124 West Allegan Street.

Olds was also involved in the development of the Hotel Olds, located at 111 South Capitol Avenue in Lansing. Today, this building is known as the George W. Romney Building, where the office of the governor of Michigan is located.

Racing

Olds was also well-known for his car racing on the beaches of Florida at Ormond and Daytona. He completed the first timed race on the beach alone between 1894 and 1897. In 1896 or 1897, wealthy car makers Olds and Alexander Winton (Winton Motor Carriage Company) held an unofficial race; Winton finished 0.20 seconds ahead of Olds.

Politics

Olds was a member of the Republican Party and worked as a representative from Michigan's 6th District at the 1908 Republican National Convention. This meeting chose William Howard Taft as the party's candidate for president.

Residence

In the early 1900s, Olds constructed a detailed Queen Anne-style mansion on South Washington Avenue in Lansing. One of the home’s advanced features was a turntable in the garage, which enabled him to enter at night and exit the next morning without needing to drive backward. The mansion was torn down in 1966 to build Interstate 496, which was later named after Olds. The blueprints of the house are stored in the State of Michigan’s archives.