William Knudsen: From Business to Public Service

William Knudsen was a Danish-born American businessman. He had a fulfilling industrial career. He opened a number of assembly plants, directed a shipbuilding program during the World War I, and masterminded the expansion of Ford Motor Company in Europe after the war. He worked with Chevrolet and General Motors as president and was the brains behind America’s production efforts after World War II.

Born as Signius Wilhelm Poul Knudsen, he had little technical education back in his native Denmark. His first job was as a bicycle mechanic. Knudsen immigrated to the US via Ellis Island in New York in 1900. He changed his name to William Signius Knudsen. Knudsen had several jobs – with shipyards and railroad shops – until John Keim Mills invited him to Buffalo at a time when Keim was the leading producer of pressed steel parts used in automotives.

In 1911, Ford Motor Company acquired Keim. Knudsen’s new employer assigned him to Detroit in 1913 to supervise the company’s expansion of its nationwide network of assembly plants. Knudsen used his keenness, toughness and strong temper to direct the mass production of submarine chasers while the World War I was going on.

From 1919 to 1920, Knudsen had developed a plan to internationalize Ford’s production while controlling Ford’s European affairs. However, Henry Ford resented Knudsen’s independent manner. On the other hand, Knudsen also resented Ford’s interference to his work. In 1921, Knudsen decided to leave Ford Motor Company. He worked with an auto parts manufacturer as general manager until 1922 when he received an invitation to work with General Motors.

During the interview, he was asked how much pay he is willing to receive. Knudsen could have said that Ford is paying him $50,000. He simply, said, “Anything you like. I’m here for the opportunity, not for the figure.” GM hired him for $30,000. In one month, Knudsen became the vice president for operations at Chevrolet Motor Division for $50,000 annually.

In 1924, Knudsen became Chevrolet’s president. He had an impressive sales performance and this persuaded Ford to stop producing Model T for Model A. Because of Ford’s changeover, Chevrolet’s six-cylinder engine assumed the lead in sales for the first time in 1927 until 1928. While Ford regained the lead in 1929 and 1930, Chevrolet became the leader for the rest of the pre-World War II. Knudsen assumed Chevrolet’s presidency for the US and Canadian car and body manufacturing in 1933 and Chevrolet’s president in 1937.

President Franklin Roosevelt asked Knudsen to join the National Defense Council in its advisory commission. Knudsen accepted the job even if it means giving up a yearly income of $300,000 because the assignment was unpaid. President Roosevelt promoted Knudsen as the director general of the Office of Production Management in 1941. He became the Department of War’s director of war production in 1943. Knudsen became the first civilian to be conferred with the rank of lieutenant general of the US Army. In 1944, Knudsen was the director of the Air Technical Service Command. That year, Knudsen received the Distinguished Service Medal of the US Army.