When did Dodge Brothers sell to Chrysler?
The Dodge Brothers sold their company to Chrysler in 1928, and the Dodge brand became a division of Chrysler Corporation. This sale is widely regarded as a turning point that helped shape the modern American auto industry.
Background: Dodge Brothers and Chrysler’s Rise
To understand the sale, it helps to know the players. The Dodge Brothers—John and Horace Dodge—built a successful automotive components business and, by the 1910s, began producing their own cars in Detroit. After the deaths of the Dodge brothers in 1920, their estate retained control of the company for several years as Chrysler, led by Walter P. Chrysler, expanded his footprint in the industry.
Key milestones leading to the sale
Below is a concise timeline of the events that culminated in the 1928 acquisition and its aftermath.
- Early 1900s: The Dodge Brothers establish a thriving parts business and begin producing their own automobiles, culminating in models like the 1914 Dodge Model 30.
- 1920: John and Horace Dodge die within a short span of each other; their estate assumes control of the Dodge company.
- 1925: Walter P. Chrysler consolidates various automotive holdings and forms the Chrysler Corporation, positioning the company for strategic acquisitions.
- 1928: Chrysler purchases the Dodge Brothers Company for about $170 million in stock and cash, bringing Dodge under the Chrysler umbrella and converting the Dodge business into a division of Chrysler Corporation.
The acquisition in 1928 linked Dodge’s mid-market offerings with Chrysler’s broader scale, accelerating growth for both brands and shaping product strategy for decades to come.
Impact and Legacy
Integration and strategy
After the purchase, Dodge operated as a division within Chrysler, benefiting from shared engineering, platform development, and distribution networks. The move helped Chrysler expand its lineup beyond its existing offerings and gave Dodge access to greater manufacturing resources.
Brand continuity
Despite the corporate reorganization, the Dodge name remained a distinct product line with its own styling and engineering identity, contributing to Chrysler’s ability to compete across different price segments in the U.S. market.
Ultimately, the 1928 acquisition solidified Chrysler’s position as a major American auto manufacturer and marked the Dodge brand as a long-running pillar within the Chrysler Corporation and its successor structures.
Summary
The Dodge Brothers sold their company to Chrysler in 1928 for roughly $170 million, resulting in Dodge becoming a division of Chrysler Corporation. This transaction unified complementary strengths—Dodge’s mid-market models and Chrysler’s broader manufacturing reach—and set the stage for decades of shared development in the American auto industry.
