Willys Overland is perhaps best known as makers of a little truck helped win a world war: The original Jeep. The parent company, however, predated its famous aspiring by decades.

ARGUMENT could easily be made that bicycles were the cornerstone of the American auto industry.

The Duesenberg brothers launched their empire with bicycles. Louis Chevrolet started his racing career with bicycles, as did Barney Oldfield. Alexander Pope was the country’s largest manufacturer of bicycles in the 1890s before he turned his attentions toward automobile development and production.

John North Willys, the man whose namesake company would give rise to Walter Chrysler, create the automotive icon that is the Jeep, and pioneered streamlining, also began with bicycles.

Born in Canandaigua, New York, in the early 1890s, Willys began selling bicycles in his hometown. Before the end of the century, he had established a relatively successful bicycle manufacturing company.

 An astute businessman, Willys became one of the first franchised dealers of Overland automobiles in the United States. Applying skills honed while selling bicycles, his dealership was soon selling more Overland built cars than any other franchise in the country. Then in 1907, everything changed.

He had placed a large order for cars and paid $10,000 in advance. When his cars failed to arrive in the time promised, and his calls as well as correspondence went unanswered, Willys traveled to the Indianapolis factory. Imagine his surprise to find that the company was shuttered, and bankruptcy had been filed.

Taken aback but undaunted Willys petitioned the bankruptcy court, and in exchange for his $10,000 acquired controlling interest in the company. With breathtaking speed he negotiated agreements with creditors and parts suppliers, resumed production, expanded the number of dealers and transformed the company into a profitable automobile manufacturer.

Then in 1909 he acquired the Marion Motor Car Co. of Indianapolis, Indiana. This company was incorporated into Overland, and then as sales began to climb exponentially, he consolidated all operations in Toledo, Ohio after purchasing the factories of the bankrupt Pope Motor Car Company.

In 1912 the company was reorganised as Willys-Overland Motor Company. And the following year he purchased the Edwards Motor Company solely to acquire license to manufacture the patented Knight "sleeve valve" engine.

Indicative of Willys business acumen, by 1915 Willys Overland was the second largest automobile manufacturer in the United States. Mirroring this success was the construction of a modern seven story headquarters complex in Toledo.

At the end of World War One, Willys Overland was employing one-third of Toledo's workforce directly or through one of its subsidiary parts manufacturing facilities.

And to adapt to the rapidly evolving consumer market, Willys diversified and began offering Overland, Willys or Willys-Knight vehicles to better cover a wide price range.

It was an era of transition, merger, closure, and expansion for the American auto industry. And Willys was at the forefront.

In 1918, through his holding company, Willys acquired the Moline Plow Company of Moline, Illinois that manufactured the "Universal" brand of farm tractor as well as a line of Stephens cars. The following year he acquired controlling interest in the Duesenberg company primarily to access the state-of-the-art factory in Elizabeth, New Jersey. This was where he planned to produce a new line of six-cylinder cars.

But this was also a time of time of transitioning labour relations. The Willys-Overland Toledo plant was the scene of a violent labour strike in 1919. This forced the entire facility to close for several months. Coupled with the post war economic recession the company suffered a severe economic blow.  

This was but one of the major changes at Willys Overland during this period. For the first time in its history, Willys relinquished full control of the company. He hired General Motors vice-president Walter Chrysler as operations manager for Willys-Overland operation so John Willys could focus more on politics. As testimony to Chrysler’s skills, he was paid the astounding sum of $1 million a year.

But Chrysler had plans of his own. In a complicated serious of stock swaps, and establishment of partnerships, Chrysler attempted to gain control of the company and oust John Willys. When the endeavor failed in 1921, Chrysler obtained Maxwell, and in 1926 reorganized that company as Chrysler.

As with most automobile companies in the 1920s, John Willys' businesses were highly leveraged. Huge loans had funded the growth and expansion. So, to ensure solvency and raise cash for debt reduction, the Willys-Overland plant in New Jersey was sold at auction to William C. Durant, the founder of General Motors who was looking for a facility suitable for building the Durant, Star and Rugby line of vehicles. The New Process Gear Company in Syracuse, New York was also sold.

Then Willys again began laying a plan for expansion and diversification. In 1925 he bought the F.J. Stearns Co. of Cleveland, Ohio, a manufacturer of luxury vehicles on the cusp of bankruptcy. To garner a larger share of the budget car market, in 1926 Willys introduced the "Whippet" model line that was sold in the United States, Canada, and Australia.

In the mid-teens Willys also became heavily involved in national politics as a supporter of the Republican Party. In 1916 he was appointed a delegate to the Republican National Convention. In March 1930, following the election of Herbert Hoover to the Presidency of the United States, Willys was appointed the first US Ambassador to Poland, a position he held until May  of 1932.

The Great Depression, abandonment of control by Willys, and massive debt resulted in the company being forced to enter bankruptcy reorganisation in 1933. Meanwhile Willys’ personal life was also descending into chaos.

In 1934 John Willys and his wife of 37 years divorced. This was most likely a contributing factor to what was deemed a stress-related heart attack. Willys died at his home in the Bronx, New York in 1935.

The Willys-Overland story does not end with the death of Willys or bankruptcy. The company would be reorganized. It would then pioneer development of the Jeep, and after WWII, this multi-purpose vehicle would keep the company afloat for years. And there was even another attempt to become a leading automobile manufacturer with the Willys Aero.

John North Willys and the Willys Overland are another colourful chapter from the infancy of the American auto industry. 

 Written by Jim Hinckley of jimhinckleysamerica.com