The Mega Brands That Built America Recap for Reinventing the Wheel

 

This week’s episode of The Mega Brands That Built America is titled Reinventing the Wheel and talks about how Firestone and Goodyear tires came to be.

In 1986, horse and carriages were the main form of transportation for Americans. They were bumpy rides, so Harvey Firestone presents the idea for rubber tires….selling tires to none other than Henry Ford. The two wouldn’t work together right away, but would soon be together like peanut butter and jelly!

 

Around the same time Frank Seiberling was a struggling businessman. He sees that the rubber industry is growing, so together with his brother Charles, decide to join forces and go into business. Cue Goodyear, named after Charles Goodyear, the inventor of vulcanized rubber. They focus on bicycle, or pneumatic tires, but the demand wasn’t always there.

 

In the early 1900s, Harvey sees the competition and decides to focus on automobile tires, complete with new rims. He needs a car that would fit these, so he reconnects with Henry Ford.

 

Goodyear also comes out with a tire where it was put on the rim and then inflated to fit better. They pitch the idea to Henry, who turns them down. Not to be deterred, Charles and Frank point out that no one uses Firestone tires and pitches a new deal, leaving Henry confused.

 

Firestone is still working day and night for Henry, who then says he needs clincher tires, or the deal is off. Harvey reluctantly agrees and goes to work.

Ford releases the Model T and it is a hit.

 

Goodyear is growing their business and launches a battle with Firestone.

 

At this time, there are a lot of automobile accidents and deaths due to few driving rules and tires being too smooth.

 

People want more traction on their tires and try to come up with their own ideas. Harvey tries to come up with ideas as well, but it isn’t until John Thomas, who is an engineer, comes up with adding raised letters to the tire for traction. Entire the Firestone Non-Skid tires. They are a huge hit!

 

Goodyear wants in on the action. Frank is not happy with the new competition and comes up with their own tire that can grip on any surface in any weather, using raised diamond designs for the traction. Enter the all-weather tire. This makes Goodyear the biggest tire company in the country, with customers in all the major businesses.

 

Harvey wants to top this, so he comes up with tires that can be changed by anymore. Enter the Demountable. To make the deal next level, he sells five tires so someone will always have a spare tire.

This idea skyrockets sales overnight!

 

Both tire companies are neck in neck in competition.

 

Around this time, WWI begins and the WIB if formed. The companies are asked to help with supplies, and they must work together. However, Goodyear works on a super-secret project due to their aviation supply work…..which is how the Goodyear Blimp came to be. It was initially used to spy during the war and eventually became an advertising icon.

 

The post-war recession happens and sends Goodyear 85 million dollars in debt. They brought in an investment firm to refinance, which led to Frank and Charles being forced to resign in order to save the company and thousands of jobs.

Despite this, Firestone wants to make sure they are number one. He would go on to invent the balloon tire.  This would be a hit and change the auto industry forever.

 

Firestone is worth 30 billion.

Goodyear is worth 20 billion.