The Lincoln Motor Company was founded in August 1917 by Henry Leland and his son Wilfred. Among the founders of Cadillac, Leland had sold the company to General Motors in 1909; staying on as an executive, he left in 1917 over a dispute with GM President William Durant regarding war production.
Leland named Lincoln Motor Company after Abraham Lincoln, stating that Lincoln was the first President for whom he ever voted (1864). The company was financed by securing a $10 million contract to Liberty V12 aircraft engines ($211,506,494 in 2021 dollars ) for use during World War I. The Lelands broke ground on the Lincoln Motor Company Plant in Detroit. Lincoln Motor Company acted as the final assembly point for the engines, with the company securing parts from other manufacturers; cylinders were produced by Ford, with other parts sourced from Buick, Cadillac, Marmon, and Packard.
In total, Lincoln Motor Company would assemble 6,500 Liberty V12 engines by the end of World War I concluding production; by the end of the war, Lincoln would employ 6,000 workers.
On January 26, 1920, Lincoln Motor Company was reorganized as an automobile manufacturer, retooling its Detroit factory to produce automobiles. On September 16, 1920, Lincoln Motor Company produced its first automobile, the Lincoln Model L.
Lincoln Motor Company had struggled with the transition from military to automobile production, with some customers having to wait nearly a year for their vehicles to be completed from the time of purchase. By 1922, the company was on the verge of bankruptcy and was placed in receivership.
Under the influence of Edsel Ford, Lincoln Motor Company was purchased by Henry Ford for $8 million ($129,510,934 in 2021 dollars) on February 4, 1922. While Lincoln was valued at $16 million, a $5 million bid by Ford was the sole bid received for the company (forced to be increased by the court).
