Hinckley: It seemed like a good idea at the time
/In the first half of last century, Henry Ford decided to one-up the rubber industry by creating a mini-Dearborn in the Amazon.
CHARMING cottage homes, white picket fences, a hospital, church, a community centre and a dance hall.
Many of the brick pavers had been recycled from street repair projects in Dearborn, Michigan. Likewise the fire hydrants. Entire buildings were relocated to the village.
It looked like a miniature, idealised version of Dearborn, Michigan, the United States’ home of a vast automotive brand. That wasn’t very unusual as the entire project was the brainchild of Henry Ford who was possessed of firm conviction that he could create the ideal city supported by a multifaceted manufacturing centre.
It was to be the next step in an evolutionary process that commenced in 1903 with establishment of Ford Motor Company, his third automobile manufacturing endeavor. Within ten years Ford had challenged the monopoly of the Selden patents and perfected a process for production that allowed for a dramatic increase in volume. In turn this allowed him to sell his cars at a lower rate and yet at a greater profit. Both advances were manifest in the Model T that was introduced in 1909.
The next decade was even more dramatic at Ford. By 1919 three out five vehicles in the world were Ford products. In 1914 he stunned automakers everywhere by announcing that all American Ford workers would receive a daily salary of $5, nearly double the industry average. And during this period, he was also diligently moving forward with plans to control every aspect of manufacturing.
He acquired iron mines and vast acreage of hardwood forests in northern Michigan. And between 1917 and 1928 he established the astounding “Rouge” manufacturing complex.
Ford described the industrial wonder as a manufacturing center with "a continuous, nonstop process from raw material to finished product, with no pause even for warehousing or storage." It was a jaw dropping accomplishment that employed 100,000 people and produced more than 4,000 vehicles each day.
There was only once aspect of manufacturing that Ford was unable to control, the production of rubber. As envisioned his ideal city, the recreation of Dearborn, would resolve this problem as it was to be built deep in the Brazilian Amazon rain forest as a plantation and manufacturing center for rubber.
By 1928, Henry Ford had developed a reputation for his visionary approach to manufacturing. He had built factories for the production of tractors in Russia, and for cars and trucks throughout Europe. And so, when he made plans public, it made headlines throughout Brazil. The announcement was akin to an announcement that Elon Musk was building a Tesla factory in New Zealand.
At first, he purposely left the plans vague. And so, journalists began speculating that he would be building a new railroad to the coast, or perhaps a manufacturing facility to produce cars, trucks, or tractors. No one expected him to build a rubber growing and manufacturing facility as the area of forest selected was not favorable for the growth of rubber trees.
The Fordlandia project in Brazil was an outgrowth of his conviction that his role in the advancement of society was to develop innovative urban planning. His first endeavor, the development of a nearly 70 square mile city and industrial complex in Alabama that included building a dam on the Tennessee River was still born. The Brazil project made his vision manifest, but the endeavor failed miserably on all accounts.
In the years bracketing the dawn of the 20th century the region had benefited greatly from a near monopoly on global rubber production, skyrocketing demands largely the result of automobile production, and the navigable waters of the Amazon River that made transportation relatively cost effective. For a time, Belem, at the mouth of the river, became the busiest port in Brazil.
But the climate and soils were not ideal for the sustainable growth of rubber on an industrial scale even though the plants were native to the region. Further fueling a collapse of rubber production in the region was British development of rubber plantations in in Sri Lanka and southeast Asia.
Ford’s Achilles heel was his stubbornness and unwillingness to heed advice from advisors, two traits that hardened with the passing of time. The first manifestation of how this affected the Fordlandia project came with acquisition of property.
Against expert advice given, Ford sent two legal representatives to negotiate an agreement with Brazilian authorities. In exchange for $125,000 Ford received rights to commercially operate a 5,625 square mile tract of land on the Tapajós river, a tributary of the Amazon, in the Brazilian state of Para. It was later learned that had Ford followed proper channels for discussion with the government he could have obtained that land for less than half of what was paid.
From its inception the project was doomed to failure. The site selected had been chosen on top of a hill to act as a barrier to flooding. But as a result cargo vessels could only negotiate the Tapajós during the rainy season. A survey and construction crew revolted over rotting food and delays in supply shipments in 1928.
Surveying, clearing the jungle and platting the proposed city was brutal work. But the lack of specialized labor, and strict prohibition of alcohol, resultant in countless delays.
On December 20, 1930, simmering feuds and anger over segregation and conditions erupted. At the workers’ cafeteria an argument between supervisor Kaj Ostenfeld and Manuel Caetano, a brick mason working at the city escalated into violence and evolved into a full-scale riot with destruction of generators, manufacturing equipment, and homes. The managerial staff managed to escape by ship and the riot was quelled by Brazilian military personnel.
Despite the setbacks work progressed. Roads were paved. An entertainment center that included a theater was built, as were schools and a hospital. But one aspect of the envisioned jungle utopia remained a daunting challenge.
Fordlandia was not producing any rubber. The few trees that took root were quickly beset by blight. But Ford was a stubborn man and he persisted even though there was no economic rationale for the endeavor. In fact, Fordlandia contributed greatly to the company’s increasing flood of red ink.
Still, the failed endeavor continued through WWII. When Henry Ford II assumed control of the company, as he sought to restore solvency to the company, Fordlandia was sold back to the Brazilian for a fraction of what had been invested.
Today Fordlandia is a jungle village of several thousand people. Scattered throughout the town, and in the surrounding jungle, are vestiges from Ford’s biggest failure. An abandoned manufacturing facility. Empty homes reclaimed by the jungle. Shells of cannibalized trucks and equipment.
Surprisingly, in spite of its remote location that requires an arduous journey to reach, the town has become a destination of sorts for adventuresome automotive enthusiasts fascinated with obscure chapters in the industries history.
Written by Jim Hinckley of jimhinckleysamerica