Ford and the F�ehrer
by Ken Silverstein
[from the January 24, 2000 issue of Nation Magazine]
"We have sworn to you once,
But now we make our allegiance permanent.
Like currents in a torrent lost,
We all flow into you.
Even when we cannot understand you,
We will go with you.
One day we may comprehend,
How you can see our future.
Hearts like bronze shields,
We have placed around you,
And it seems to us, that only
You can reveal God's world to us."
    This poem ran in an in-house magazine published by Ford Motor Company's
German subsidiary in April of 1940. Titled "F�hrer," the poem appeared at a time
when Ford maintained complete control of the German company and two of its
top executives sat on the subsidiary's board. It was also a time when the
object of Ford's affection was in the process of overrunning Western Europe after
already having swallowed up Austria, Czechoslovakia and Poland in the East.
    That Ford and a number of other American firms - including General Motors and
Chase Manhattan - worked with the Nazis has been previously disclosed. So,
too, has Henry Ford's role as a leader of the America First Committee, which
sought to keep the United States out of World War II. However, the new
materials, most of which were found at the National Archives, are far more damning
than earlier revelations. They show, among other things, that up until Pearl
Harbor, Dearborn made huge revenues by producing war mat�riel for the Reich and
that the man it selected to run its German subsidiary was an enthusiastic
backer of Hitler. German Ford served as an "arsenal of Nazism" with the consent
of headquarters in Dearborn, says a US Army report prepared in 1945.
    Moreover, Ford's cooperation with the Nazis continued until at least August
1942 - eight months after the United States entered the war - through its
properties in Vichy France. Indeed, a secret wartime report prepared by the US
Treasury Department concluded that the Ford family sought to further its
business interests by encouraging Ford of France executives to work with German
officials overseeing the occupation. "There would seem to be at least a tacit
acceptance by [Henry Ford's son] Mr. Edsel Ford of the reliance...on the known
neutrality of the Ford family as a basis of receipt of favors from the German
Reich," it says.
. . .
    The generous treatment allotted Ford Motor by the Nazi regime is partially
attributable to the violent anti-Semitism of the company's founder, Henry Ford.
His pamphlet The International Jew: The World's Foremost Problem brought
him to the attention of a former German Army corporal named Adolf Hitler, who in
1921 became chairman of the fledgling Nazi Party. When Ford was considering
a run for the presidency that year, Hitler told the Chicago Tribune, "I wish
that I could send some of my shock troops to Chicago and other big American
cities to help." (The story comes from Charles Higham's Trading With the
Enemy, which details American business collaboration with the Nazis.) In Mein
Kampf, written two years later, Hitler singled Ford out for praise. "It is Jews
who govern the stock exchange forces of the American Union," he wrote. "Every
year makes them more and more the controlling masters of the producers in a
nation of one hundred and twenty millions; only a single great man, Ford, to
their fury, still maintains full independence."
    In 1938, long after the
vicious character of Hitler's government had become clear, Ford accepted the Grand
Cross of the German Eagle, the Nazi regime's highest honor for foreigners.
Ford Motor set up shop in Germany in 1925, when it opened an office in
Berlin. Six years later, it built a large plant in Cologne, which became its
headquarters in the country. Ford of Germany prospered during the Nazi years,
especially with the economic boom brought on by World War II. Sales increased by
more than half between 1938 and 1943, and, according to a US government report
found at the National Archives, the value of the German subsidiary more than
doubled during the course of the war. (Among the many things that Hitler and Ford had in common was their Roman Catholic "faith".
    Ford eagerly collaborated with the Nazis, which greatly enhanced its business
prospects and at the same time helped Hitler prepare for war (and after the
1939 invasion of Poland, conduct it). In the mid-thirties, Dearborn helped
boost German Ford's profits by placing orders with the Cologne plant for direct
delivery to Ford plants in Latin America and Japan. In 1936, as a means of
preserving the Reich's foreign reserves, the Nazi government blocked the
German subsidiary from buying needed raw materials. Ford headquarters in Dearborn
responded - just as the Nazis hoped it would - by shipping rubber and other
materials to Cologne in exchange for German-made parts. The Nazi government took
a 25 percent cut out of the imported raw materials and gave them to other
manufacturers, an arrangement approved by Dearborn.
    According to the US Army report of 1945, prepared by Henry Schneider, German
Ford began producing vehicles of a strictly military nature for the Reich
even before the war began. The company also established a war plant ready for
mobilization day in a "'safe' zone" near Berlin, a step taken, according to
Schneider, "with the...approval of Dearborn." Following Hitler's 1939 invasion
of Poland, which set off World War II, German Ford became one of the largest
suppliers of vehicles to the Wehrmacht (the German Army). Papers found at the
National Archives show that the company was selling to the SS and the police
as well. By 1941 Ford of Germany had stopped manufacturing passenger vehicles
and was devoting its entire production capacity to military trucks. That May
the leader of the Nazi Party in Cologne sent a letter to the plant thanking
its leaders for helping "assure us victory in the present [war] struggle" and
for demonstrating the willingness to "cooperate in the establishment of an
exemplary social state.
    Ford vehicles were crucial to the revolutionary Nazi military strategy of
blitzkrieg. Of the 350,000 trucks used by the motorized German Army as of 1942,
roughly one-third were Ford-made. The Schneider report states that when
American troops reached the European theater, "Ford trucks prominently present in
the supply lines of the Wehrmacht were understandably an unpleasant sight to
men in our Army." Indeed, the Cologne plant proved to be so important to the
Reich's war effort that the Allies bombed it on several occasions. A secret
1944 US Air Force "Target Information Sheet" on the factory said that for the
previous five years it had been "geared for war production on a high level."
While Ford Motor enthusiastically worked for the Reich, the company initially
resisted calls from President Roosevelt and British Prime Minister Churchill
to increase war production for the Allies. The Nazi government was grateful
for that stance, as acknowledged in a letter from Heinrich Albert to Charles
Sorenson, a top executive in Dearborn. Albert had been a lawyer for German
Ford since at least 1927, a director since 1930 and, according to the Treasury
report, part of a German espionage ring operating in the United States during
World War I. "The 'Dementi' of Mr. Henry Ford concerning war orders for
Great Britain has greatly helped us," Albert wrote in July of 1940, shortly after
the fall of France, when England appeared to be on the verge of collapse
before the F�hrer's troops.
    Ford's energetic cooperation with the Third Reich did not prevent the
company's competitors from seeking to tarnish it by calling attention to its
non-German ownership. Ford responded by appointing a majority-German board of
directors for the Cologne plant, upon which it bestowed the politically correct
Aryan name of Ford Werke. In March of 1941, Ford issued new stock in the Cologne
plant and sold it exclusively to Germans, thereby reducing Dearborn's share
to 52 percent. (just enough for the Fords to maintain control of the company).
    At the time, the Nazi government's Ministry of Economy debated whether the
opportunity afforded by the capital increase should be taken to demand a German
majority at Ford Werke. The Ministry "gave up the idea" - this according to a
1942 statement prepared by a Ford Werke executive - in part because "there
could be no doubt about the complete incorporation, as regards personnel,
organization and production system, of Ford Werke into the German national
economy, in particular, into the German armaments industry." Beyond that, Albert
argued in a letter to the Reich Commission for Enemy Property, the abolition of
the American majority would eliminate "the importance of the company for the
obtaining of raw materials," as well as "insight into American production and
sales methods."
    As 1941 progressed, the board of Ford Werke fretted that the United States
would enter the war in support of Britain and the government would confiscate
the Cologne plant. To prevent such an outcome, the Cologne management wrote to
the Reich Commission that year to say that it "question[ed] whether Ford
must be treated as enemy property" even in the event of a US declaration of war
on Germany. "Ford has become a purely German company and has taken over all
obligations so successfully that the American majority shareholder,
independent of the favorable political views of Henry Ford, in some periods actually
contributed to the development of German industry," Cologne argued on June 18,
1941, only six months before the bombing of Pearl Harbor.
    In May of 1942, the Superior Court of Cologne finally put Ford Werke in
"trusteeship," ruling that it was "under authoritative enemy influence." However,
the Nazis never nationalized Ford's German property - plant managers feared
it would be turned over to Mercedes or the Hermann Goering Werke, a huge
industrial network composed of properties seized by the Reich - and Dearborn
maintained its 52 percent share through the duration of the war. Ford Werke even
set aside dividend payments due to Dearborn, which were paid after the war. Ford
claims that it received only $60,000 in dividend payments. It's not possible
to independently verify that - or anything else regarding Dearborn's wartime
economic relationship with Cologne - because Ford of America was privately
held until 1956, and the company will not make available its balance sheets from
the period.
    Labor shortages caused by the war - millions of men were at the front and Nazi
ideology was violently opposed to the idea of women working - led the Reich
to deport millions of people from occupied lands to Germany to work in
factories. German companies were encouraged to bid for forced laborers in order to
meet production quotas and increase profits. By 1943 half of Ford Werke's work
force comprised foreign captives, including French, Russians, Ukrainians and
Belgians. In August of 1944 a squad of SS men brought fifteen prisoners from
the Buchenwald concentration camp to Ford Werke. The German researcher
Karola Fings, co-author of Working for the Enemy, a book on Nazi slave- and
forced-labor programs, to be published this spring, says Ford's worker-inmates
toiled for twelve hours a day with a fifteen-minute break. They were given 200
grams of bread and coffee for breakfast, no lunch and a dinner of spinach and
three potatoes or soup made of turnip leaves.
    An account by Robert Schmidt, the man appointed to run Ford Werke in 1939,
states that the company used forced laborers even before the Nazis put the
plant in trusteeship. His statement, sent to a Ford executive in England
immediately after Germany's surrender, says that as of 1940 "many of our employees
were called to the colours and had to be replaced by whatever was available....
The same applies to 1941. Some 200 French prisoners of war were employed."
In a statement to the US Army in 1945, Schmidt said that the Gestapo began to
play an important role at Ford Werke after the first foreign workers arrived.
With the assistance of W.M. Buchwald, a Ford employee since the
mid-thirties, the Gestapo carefully monitored plant activities. "Whenever there was the
slightest indication of anti-Nazi feeling, be it amongst foreigners or
Germans, the Gestapo tramped down as hard as possible," Schmidt told the Army.
Meanwhile, Ford Werke offered enthusiastic political support for Hitler as
well. The fraternal ties between Ford and the Nazis is perhaps best symbolized
by the company's birthday gift to the F�hrer of 35,000 Reichsmarks in April
of 1939. Ford Werke's in-house publication couldn't have been more fanatically
pro-Nazi if Josef Goebbels had edited it. "F�hrer," the poem printed at the
top of this story, ran in the April 1940 issue, which celebrated Hitler's
51st birthday by running his picture on the cover. The issue carried an excerpt
of a speech by Hitler in which he declared that "by natural law of the earth,
we are the supreme race and thus destined to rule." In another section of
the speech, the F�hrer declared that communism was "second in wretchedness only
to Judaism." The issue from April of the following year - this at roughly the
high point of the Third Reich's military victories - featured a photograph of
a beaming Hitler visiting with German soldiers on the front lines. "The
management of the Ford-Werke salutes our F�hrer with grateful heart, honesty, and
allegiance, and - as before - pledges to cooperate in his life's work:
achieving honor, liberty and happiness for Greater Germany and, indeed, for all
peoples of Europe," reads the caption.
    Robert Schmidt so successfully converted the plant to a war footing that the
Nazi regime gave him the title of Wehrwirtschaftsf�hrer, or Military
Economic Leader. The Nazis also put Schmidt in charge of overseeing Ford plants in
occupied Belgium, Holland and Vichy France. At one point, he and another
Cologne executive bitterly argued over who would run Ford of England when Hitler's
troops conquered Britain.
    Schmidt's personal contributions to Ford Werke's in-house organ reflect his
ardently pro-Nazi views. "At the beginning of this year we vowed to give our
best and utmost for final victory, in unshakable faithfulness to our F�hrer,"
he wrote in December of 1941, the same month as Pearl Harbor. "Today we say
with pride that we succeeded if not in reaching all our goals, nevertheless in
contributing to a considerable extent in providing the necessary
transportation for our troops at the front." The following March, Schmidt penned an
article in which he declared, "It depends upon our work whether the front can be
supplied with its necessities.... therefore, we too are soldiers of the
Fuhrer."
    The Ford family and company executives in Dearborn repeatedly congratulated
the management of Ford Werke on the fine work they were doing under the Nazis.
In October of 1940 Edsel Ford wrote to Heinrich Albert to say how pleased he
was that the company's plants in occupied lands were continuing to operate.
"It is fortunate that Mr. Schmidt is in such authority as to be able to bring
out these arrangements," said Edsel, who died of cancer during the war. The
same letter indicates that Ford was quite prepared to do business with the
Nazis if Hitler won the war. Though it was difficult to foresee what would
happen after the fighting ended, Edsel told Albert, "a general rearrangement of
the ownership of our continental businesses may be required. You will no doubt
keep as close to this subject as possible and we will have the benefit of
your thoughts and suggestions at the proper time."
"To know that you appreciate our efforts in your and the company's interests
is certainly a great encouragement," Albert replied the following month. He
went on to praise Schmidt, who had been forced to shoulder immense
responsibilities after war broke out. "In fulfilling his task his personality has grown
in a way which is almost astonishing." Indeed, Schmidt grew to such a great
degree that the Nazis kept him in charge of Ford Werke after they put the
company in trusteeship. In February of 1942, when the question of who would run
the Cologne plant was still up in the air, a local Nazi official wrote to
Hitler's Chancellery in Berlin to put in a good word for Ford's man. The official
said he saw "no reason to appoint a special custodian for the enterprise"
since Schmidt was "a Party member [who] enjoys my confidence and...the
confidence of the German Armed Forces."
    Ford's behavior in France following the German occupation of June 1940
illustrates even more grotesquely its collaborationist posture. As soon as the
smoke had cleared, Ford's local managers cut a deal with the occupation
authorities that allowed the company to resume production swiftly - "solely for the
benefit of Germany and the countries under its [rule]," according to a US
Treasury Department document. The report, triggered by the government's concern
that Ford was trading with the enemy, is sharply critical of Maurice Dollfus, a
Ford director in France since 1929 and the company's manager during the Vichy
period. "Mr. Dollfus was required by law to replace directors, and he
selected the new directors exclusively from the ranks of prominent
collaborationists," says the Treasury report. "Mr. Dollfus did this deliberately to curry
favor with the authorities." The report refers to another Ford employee, a
certain Amable Roger Messis, as "100% pro-German."
    The Treasury Department found that Ford headquarters in Dearborn was in
regular contact with its properties in Vichy France. In one letter, penned
shortly after France's surrender, Dollfus assured Dearborn that "we will benefit
from the main fact of being a member of the Ford family which entitles us to
better treatment from our German colleagues who have shown clearly their wish to
protect the Ford interest as much as they can." A Ford executive in Michigan
wrote back, "We are pleased to learn from your letter...that our
organization is going along, and the victors are so tolerant in their treatment. It
looks as though we still might have a business that we can carry on in spite of
all the difficulties."
    The Ford family encouraged Dollfus to work closely with the German
authorities. On this score, Dollfus needed little prodding. "In order to safeguard our
interests - and I am here talking in a very broad way - I have been to Berlin
and have seen General von Schell himself," he wrote in a typed note to Edsel
in August of 1940. "My interview with him has been by all means satisfactory,
and the attitude you have taken together with your father of strict
neutrality has been an invaluable asset for the protection of your companies in
Europe." (In a handwritten note in the margin, Dollfus bragged that he was "the
first Frenchman to go to Berlin.") The following month Dollfus complained about
a shortage of dollars in occupied France. This was a problem, however, that
might be merely temporary. "As you know," he wrote Dearborn at the time, "our
[monetary] standard has been replaced by another standard which - in my
opinion - is a draft on the future, not only in France and Europe but, maybe, in
the world." In another letter to Edsel, this one written in late November of
1940, Dollfus said he wanted to "outline the importance attached by high
officials to respect the desires and maintain the good will of 'Ford' - and by
'Ford' I mean your father, yourself and the Ford Motor Company, Dearborn."
All this was to the immense satisfaction of the Ford family. In October of
1940, Edsel wrote to Dollfus to say he was "delighted to hear you are making
progress.... Fully realize great handicap you are working under." Three months
later he wrote again to say that Ford headquarters was "very proud of the
record that you and your associates have made in building the company up to its
first great position under such circumstances."
    Dearborn maintained its communication with Ford of France well after the
United States entered the war. In late January of 1942, Dollfus informed
Dearborn that Ford's operations had the highest production level of all French
manufacturers and, as summed up by the Treasury report, that he was "still relying
on the French government to preserve the interests of American
stockholders."
    During the following months, Dollfus wrote to Edsel several times to report
on damages suffered by the French plant during bombing runs by the Royal Air
Force. In his reply, Edsel expressed relief that American newspapers that ran
pictures of a burning Ford factory did not identify it as a company property.
On July 17, 1942, Edsel wrote again to say that he had shown Dollfus's most
recent letter to his father and to Dearborn executive Sorenson. "They both
join me in sending best wishes for you and your staff, and the hope that you
will continue to carry on the good work that you are doing," he said.
As in Germany, Ford's policy of sleeping with the Nazis proved to be a highly
lucrative approach. Ford of France had never been very profitable in
peacetime - it had paid out only one dividend in its history - but its service to the
Third Reich soon pushed it comfortably into the black. Dollfus once wrote to
Dearborn to boast about this happy turn of events, adding that the company's
"prestige in France has increased considerably and is now greater than it was
before the war."
    Treasury Department officials were clearly aghast at Ford's activities. An
employee named Randolph Paul sent the report to Secretary Henry Morgenthau with
a note that stated, "The increased activity of the French Ford subsidiaries
on behalf of the Germans received the commendation of the Ford family in
America." Morgenthau soon replied, "If we can legally and ethically do it, I
would like to turn over the information in connection with the Ford Motor Company
to Senator [Harry] Truman."
    Lydia Cisaruk, the Ford spokeswoman, says that Ford Werke's pre-Pearl Harbor
support for the Third Reich was largely unknown to company headquarters.
Neither of the two Dearborn executives on Ford Werke's board, Edsel Ford and
Charles Sorenson, attended board meetings after 1938. "By 1940, Dearborn was
becoming less and less involved in day-to-day operations," she says. "There was a
gradual loss of control." Asked about Ford Werke's political support for the
Nazis, as seen in its in-house newsletter, she replied: "Looking at the
years leading up to the war, no one could foresee what was going to happen. A
number of countries were negotiating with Germany and Germany was repeatedly
saying that it was interested in peaceful solutions. The United States was
talking to Germany until the two countries went to war." She concedes that some
"foreign" labor was employed at the plant beginning in 1940, but says Dearborn
had no knowledge of that at the time. Ford is currently conducting an
exhaustive investigation into Ford Werke, she says. When the research is completed
this year, the company will make available all of the documentary evidence it
has accumulated, including financial records. While Ford did not take part in
the German slave-labor talks, Cisaruk says it is in preliminary discussions
with Deputy Treasury Secretary Stuart Eizenstat to establish a humanitarian
US-based fund for Holocaust survivors. "We do want to help people who suffered
at the hands of the Nazis," she says.
    Production at Ford Werke slowed at the end of the war, in part because of
power shortages caused by Allied bombing runs, but activity never came to a
halt. Soon after Germany's capitulation, Ford representatives from England and
the United States traveled to Cologne to inspect the plant and plan for the
future. In 1948 Henry Ford II visited Cologne to celebrate the 10,000th truck to
roll off the postwar assembly line there. Two years later, Ford of Germany
rehired Schmidt - who had been arrested and briefly held by US troops at the
war's end - after he wrote a letter to Dearborn in which he insisted that he had
fervently hated the Nazis. He was one of six key executives from the Nazi
era who moved back into important positions at Ford after 1945. "After the war,
Ford did not just reassume control of a factory, but it also took over the
factory's history," says historian Fings. "Apparently no one at Ford was
interested in casting light upon this part of history, not even to explicitly
proclaim a distance from the practices of Ford Werke during the Nazi era."
Schmidt remained with Ford until his death in 1962.
    The high point of Ford's cynicism was yet to come. Before its fall, the Nazi
regime had given Ford Werke about $104,000 in compensation for damages caused
by Allied bombings (Ford also got money for bombing damages from the Vichy
government). Dearborn was not satisfied with that amount. In 1965 Ford went
before the Foreign Claims Settlement Commission of the US to ask for an
additional $7 million. (During the hearings, commission attorney Zvonko Rode
pointed to the embarrassing fact - which Ford's attorney did not dispute - that most
of the manufactured products destroyed during the bombings had been intended
for the use of the Nazi armed forces.) In the end, the commission awarded the
company $1.1 million - but only after determining that Ford had used a
fraudulent exchange rate to jack up the size of the alleged damages. The commission
also found that Dearborn had sought compensation for merchandise that had
been destroyed by flooding.
    Ford's eagerness to be compensated for damages incurred to Ford Werke during
the Nazi era makes its current posture of denying any association with the
wartime plant all the more hypocritical. These new revelations may force Ford
to reconsider its responsibilities with regard to slave labor. In the
meantime, new legal developments could also create problems for the company. Last
year California passed a law that extends the statute of limitations on
Holocaust-related claims. In November Senator Charles Schumer of New York introduced
a bill in Congress that would do the same thing at the federal level."
    This article can be found on the web at
http://www.thenation.com/doc/20000124/silverstein
|